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The Cannabis Industry, the Blockchain, and Dennis Rodman Gives PotCoin a New High

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The Cannabis Industry, the Blockchain, and Dennis Rodman Gives PotCoin
a New High

Cannabis has been legalized in numerous states

across the United States. However, the cannabis industry is still plagued with limited access to banking services as traditional banks want to avoid dealing with businesses that engage in business activities that are still largely illegal under federal law. That is where cryptocurrencies could offer a solution.

Due to the loosening of anti-cannabis laws across America, the legal weed retail industry has grown quickly over the years and is expected to keep growing rapidly as more states debate and decide on its legality. Both the medicinal and recreational use of cannabis has been legalized in Alaska, California, Colorado, Oregon, Washington, Nevada, Massachusetts, Maine, and the District of Columbia, while the medical use of cannabis has also been legalized in an additional 20 states across the US. In late 2016, leading investment bank Cowen and Company published a report on the Cannabis industry titled, “The Cannabis Compendium: Cross-Sector Views on a Budding Industry” which postulates that the industry would grow to $50 billion by the year 2026.

However, because cannabis is still illegal under federal law, most legal dispensaries are having to conduct purely cash-based business, given most banks and other financial institutions will not allow them access to financial services as a result of regulatory constrictions. This leaves weed retailers vulnerable to theft, which criminals have exploited, as evidenced by statistics on dispensary robberies. The blockchain industry is looking to remedy this. Due to the decentralized nature and inherent security of the blockchain, it offers a unique selling proposition as a payments solution for the cannabis industry.

Dennis Rodman Gives PotCoin a New High

PotCoin was created in 2014 to cater to the needs of the unbanked cannabis industry. The coin works on a proof of stake system with an Annual Percentage Interest (APR) of five percent. The coin also boasts fast processing time with relatively low fees. Though the coin has exhibited steady growth in its three years of existence, there has been a substantial spike in its price this week due to its sponsorship of retired Basketball star and Hall-of-Famer Dennis Rodman’s trip to North Korea.

According to PotCoin spokesperson Shawn Perez, the main reason for the sponsorship of Rodman’s trip was to support “Dennis Rodman's mission to bring peace to the world." Though the visit does not seem to have any visible ties to the cannabis industry, PotCoin has benefitted from the media attention that has surrounded Rodman’s journey to North Korea. According to Coin Market Cap, the coin has shown over 70 percent growth, from just below $0.10 to $0.17 since the sponsorship was announced.

POSaBIT

Washington-based bitcoin startup POSaBIT has created a financial platform that allows customers at weed retailers to make purchases using their regular credit cards. The platform uses bitcoin as an intermediate payment system. Jon Baugher, co-founder of POSaBIT explained: “There’s no industry – whether it’s the production and sale of cannabis or the production and sale of a cup of coffee – that can operate safely, transparently or effectively without access to banks or other financial institutions and traditional services. That’s where we thought we could leverage the use of digital currency.” The technology facilitates customers’ quick and easy access to bitcoin at the point of sale who can then use the digital currency anywhere that it is accepted. The platform is already in use by 30 dispensaries in the state of Washington.

The platform is attractive to cash-only merchants who want to accept another form of payment, retailers that want to be seen as more technologically savvy so as to differentiate themselves from the competition, and for small businesses that want to maximize profits by capitalizing on digital currencies’ low transaction fees. The technology is compliant with Know Your Customer (KYC), Anti-Money Laundering (AML), and Office of Foreign Assets Control (OFAC) regulations while complying with laws regulating the cannabis trade. Since the platform reduces the reliance on cash as a medium of exchange, it is making dispensaries safer working environments for employees as there is less of an incentive for theft.

SinglePoint and First Bitcoin Capital

Holding company SinglePoint and blockchain technology provider First Bitcoin Capital announced a partnership on June 6. The joint venture agreement aims to create an efficient and workable payments solution for cannabis retailers using blockchain technology. Greg Lambrecht, SinglePoint CEO, explained: "In January 2014 SinglePoint announced and started working on a bitcoin payment solution, shortly after we recognized the issue of minimal user adoption of digital currency. The payments industry has rapidly changed since that time. There is now tremendous momentum and demand for bitcoin acceptance as an alternative form of payment.

This Joint Venture with First Bitcoin Capital is perfect timing. Bitcoin payments are catching on, and cannabis dispensaries need a solution fast." SinglePoint has previously worked with leading companies such as AT&T, T-Mobile, Sprint and Verizon on technology integration systems that have allowed for a more robust use of communication technology as a payment solution. The company now hopes to use this experience to create a workable solution for weed retailers.

Greg Rubin of First Bitcoin Capital stated: "We are optimistic that our partnership with SinglePoint will produce positive cash flow to our bottom line. Between the two of our companies, we will have the ability to develop a best in class solution, and SinglePoint will be able to help in distribution. We look forward to providing cutting-edge products and services to all states through the establishment of this new venture." “As with the massive and widespread adoption of Bitcoin worldwide, the two companies will pursue opportunities to leverage their payment technology background and develop a proprietary solution specifically for high-risk payment verticals including the cannabis industry.” the press release adds.

The two companies believe they have found a way for a smooth customer experience at the point of sale at weed dispensaries. Using SinglePoints’ technology integration experience and First Bitcoin Capital’s tech background, the company will create an “all-encompassing payment solution” for the retail cannabis industry. The platform will be easy to integrate into the existing point of sale machinery through a simple download. With the retail cannabis industry set to grow quickly in the coming years and the continuing lack of regulatory support at the federal level, it seems like the industry will have to rely on blockchain technology and digital currencies to facilitate easy trade and to securely store its profits.

Chuck Reynolds


Marketing Dept
Contributor
Please click either Link to Learn more about -Bitcoin.

Alan Zibluk – Markethive Founding Member

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Traders Plan for Correction as Crypto Market Falls Below $100 Billion

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Traders Plan for Correction as Crypto Market Falls Below $100 Billion

Traders Plan for Correction as Crypto Market Falls Below $100 Billion

The total value of all publicly traded cryptocurrencies may be at an all-time high, but trader confidence isn't keeping pace.

After rising more than 1,500% from just over $7bn on 1st January, the market is beginning to show signs that its rapid ascent in 2017 may be slowing.

According data from CoinMarketCap, the cryptocurrency asset class fell from a high of $117bn yesterday to just under $100bn today, a period in which more than 80 of the top 100 cryptocurrencies have seen double-digit declines.

While this decline may just be a speed bump in the world of cryptocurrencies, some analysts report it is sufficient enough that they are beginning to reassess their positions in light of recent activity.

Hedging for a crash?

Indeed, several traders spoke with CoinDesk about the strategies they're currently using to hedge against a potential decline in cryptocurrency prices, with some indicating they're employing simple strategies by reducing their holdings.

For example, Charlie Shrem, a bitcoin entrepreneur and over-the-counter (OTC) trader, is in this camp. He reported he's been buying more bitcoin lately, with "less than 10%" of his portfolio in alternative assets.

Marius Rupsys, a cryptocurrency trader and co-founder of fintech startup InvoicePool, took a bolder approach, telling CoinDesk he liquidated his entire cryptocurrency portfolio and has started shorting bitcoin, actively betting its price will go down.

Rupsys predicted:

"There should be larger correction at some point which will cause altcoins to fall and bitcoin to fall at the same time."

While several traders identified portfolio management and active trading strategies as ways to hedge against a cryptocurrency price crash, cryptocurrency trader Kong Gao offered a different solution.

One way to hedge against this decline, he said, is to begin mining on alternative asset protocols, and simply hold the coins they receive instead of selling them.

Irrational exuberance

Elsewhere, Rupsys spoke to how he believes the increasing price has been largely caused by highly optimistic newcomers, a prospect that leads him to believe the bull run could soon fade.

"Many of these new traders are retail traders that have little knowledge of crypto-assets or trading in general," Rupsys told CoinDesk.

He added, many people have contacted him interested in getting rich quick.

Tim Enneking, managing director of cryptocurrency hedger fund, Crypto Asset Management, also spoke to the exuberance in the market.

While cryptocurrencies have been experiencing sharp gains, they will reverse direction at some point, Enneking predicted. Crypto Asset Management has set up stop loss orders to liquidate positions in certain cryptocurrencies should these digital assets suffer an "abrupt crash", he said.

And according to Charles Hayter, co-founder and CEO of cryptocurrency exchange CryptoCompare, a crash is likely. The attention alternative asset protocols have gained lately have highlighted some of this overconfidence, he said.

While there may be no clear signs yet, Hayter is still putting his money where his mouth is, noting CryptoCompare is going so far as to reallocate its active positions in the market.
 

David Ogden
Entrepreneur

 

Author: Charles Bovaird

Alan Zibluk – Markethive Founding Member

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Jet-coin conference call tonight

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Jet-coin club is really starting to heat up. Tom Prendergast and myself have started a new project that is earning us bitcoin everyday.

I have personally known the master Distributors Brent Robinson and Scott Chandler for over ten years as personal friends of mine. they came on board as the MD just 11 days ago and have already added over 12,000 members world wide.

If you would like to know what has tom and I so intrigued please join us on this call tonight 6/11/2017 @ 9 PM EST. Hope to see you there.

We are only working with the first 20 people that join to take part in our Auto Rotator, which we will be driving major traffic.

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Alan Zibluk – Markethive Founding Member

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Bitcoin Break $3,000 Do Not Miss This

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The price of bitcoin topped $3,000 for the first time in history today, according to the CoinDesk Bitcoin Price Index (BPI).

If you want to double your bitcoin every 40-50 days then we have a platform for you that you do not want to miss. [Ckick Here] or copy and paste in your browser http://hivepush.com/ekjxanbwtw/1096

After spending much of the last week seeking direction in the $2,700 to $2,900-range, the average price of bitcoin across major international exchanges edged up over this threshold finally at roughly 17:00 UTC.

The new record comes at a time when alternative digital assets are seeing robust inflows, with ethereum's ether token setting a new all-time high of more than $300 today as well.

Indeed, analysts spoke to the ongoing broadening of the cryptocurrency market as a tide that is benefitting bitcoin.

"The inflows into 'alts' are greater than those into bitcoin. In other words, bitcoin is growing at a very nice pace, but non-bitcoin cryptocurrencies are growing even faster," cryptocurrency hedge fund manager Tim Enneking told CoinDesk.

Jehan Chu, managing partner at cryptocurrency fund Jen Advisors, agreed, noting that bitcoin is likely benefitting from new investor interest and the surging interest of "cryptos like ether".

Still, Arthur Hayes, founder of Hong Kong-based digital currency exchange BitMEX, stated that bitcoin is still the "most talked-about cryptocurrency", even as returns become more substantial in other areas of the market.

Hayes told CoinDesk:

"As investors marvel at bitcoin's historical returns and the returns of altcoins, their natural first purchase is bitcoin. Bitcoin has under performed other coins this year, it is now playing catchup."

Investor Sean Walsh largely agreed, pointing to bitcoin's growing price as a sign of its place in the market as the first stop on a road to other assets.

"Bitcoin still seems like the dominant gateway to [alternative digital assets]. So, many first purchase bitcoin in order to then trade their bitcoin for altcoins," he noted.

The development coincides with signs that the cryptocurrency market is maturing to support new inflows and increasing interest.

As noted by CoinDesk research analyst Alex Sunnarborg today, the cryptocurrency exchange market has never been more globally diverse or buoyed by such an array of possible inflows.

Such tailwinds have combined in recent weeks to bring new investor attention to bitcoin, with expectations for bitcoin's growth becoming more and more exuberant. Danish investment firm Saxo Bank went so far as to publish a forecasting report in which it placed the possible value of bitcoin at $100,000 in the next 10 years.

Chris Corey 

CMO Markethive Inc

Charts on mobile device via Shutterstock

Alan Zibluk – Markethive Founding Member

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Nevada Becomes First US State to Block Blockchain Taxes

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On June 5, the Nevada State Legislature became the first US state to approve a bill which will block local government entities from taxing Blockchain transactions.

This is great news because Thomas Prendergast and I have a trading platform to double your Bitcoin every 40-50 days without recruiting anyone. CLICK HERE We are recruiting top industry leaders right now. Find out how we grew by 110 people in the first day.

Nevada is often recognized as the “silver state” due to its significant silver resources. It is also famous for being the home to Las Vegas, the city of entertainment. A big chunk of its revenue comes from casinos, and money is valuable in this location. For the first time, the state of Nevadahas taken a significant step in paving the way for the continued progress of Bitcoin.

On March 30, Republican Senator Ben Kieckhefer introduced Senate Bill 398 intended to protect Blockchain transactions under the state’s Uniform Electronic Transactions Act.

The bill provides an accurate definition of the Blockchain, stating that it is:

“An electronic record of transactions or other data which is:

  1. Uniformly ordered;
  2. redundantly maintained or processed by one or more computers or machines to guarantee the consistency or non-repudiation of the recorded transactions or other data;
  3. Validated by using cryptography.”

Bitcoin transactions are tax-free

Senate Bill 398, the Blockchain-friendly bill, was introduced by Kieckhefer last March and was approved unanimously by the Senate in April. The move was made right before the moving of the Nevada Assembly in May, whereby it was amended, approved and then turned back to the Senate who confirmed the amendments.

It was then sent to Governor Brian Sandoval whereby it was approved. In regards to the approval, Kieckhefer states:

“The potential uses of Blockchain are limitless, and I’m confident Nevada’s entrepreneurs will find ways to use this technology to innovate and drive our economy forward.”

He added: “I can’t wait to see what comes next.”

Following in the steps of Arizona

This is the second Blockchain-friendly bill that has been enacted into law within the past few days. On May 29, Arizona Governor Doug Ducey signed a bill which recognized the legality of Blockchain’s signatures and smart contracts.

Domino effect

Bitcoin influences and has a domino effect upon every state and company, and this law aims to promote both Nevada and the Blockchain community.

Let us hope that Nevada continues to become a decentralized Blockchain-friendly stateso that the amendments may focus on promoting honesty, integrity, validity and immutability – all of which Blockchain is known for.

One by one, US states are gearing towards the direction of Bitcoin. The digital currency that started small is now instructing the world and providing a path for how the future will grow financially.

The world is adjusting to Bitcoin, something never experienced before in history, and a world centered around cryptocurrencies is the future that we should look forward to.

Transparency and a better economy await with this law validating the legality of Bitcoin.

Chris Corey

CMO 

Markethive Inc

Contributor: Joshua Althauser

https://cointelegraph.com/news/nevada-becomes-first-us-state-to-block-blockchain-taxes#

Alan Zibluk – Markethive Founding Member

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Is Bitcoin or Other CryptoCurrency a Good Investment

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Is Bitcoin or Other CryptoCurrency a Good Investment

Is Bitcoin or Other CryptoCurrency a Good Investment

Despite all denials of the techies, the Bitcoin continues to fly under the pressure of marketing that makes it a form of Russian roulette that benefits those who know the manipulation. Since March 26, the Bitcoin has increased from $ 973 to $ 2,795. A real explosion of prices which can only be explained by fraudulent maneuvers. It went from $ 16 billion to $ 43 billion.

But behind this surge, there are formidable manipulators who have means that are the exchanges of bitcoins of which several leaders are in prison. The founder of the world’s largest depository based in Bitcoins, now based in Zug, Switzerland, predicts that the value of a Bitcoin will surpass the million dollar mark in 10 years, taking by surprise the whole assembly and even the most Optimists in the sector. Some see the replacement of gold. We are in full delirium.

On several occasions, these dramatic increases came from the conversion of dirty money into Bitcoin. We do not know what causes these mood swings that fall quickly. Do they pose a fundamental question: Beyond the technology behind the object, from where comes the value of $ 32 billion?

No regulation of false rumors or manipulations

There is a lot of talk about the Bitcoin right now, as well as a few other crypto-currencies, but are they really good investments? Recently I read research which describes why Bitcoin are a good investment for the future. They also provide detailed analysis and data to showcase their study. So I am exploring based on that and my personal opinion on crypto-currencies.

I will divide this question into three points:

1. Are crypto-currencies really an investment?

2. What currency crypto choose?

3.Are crypto-currencies really an investment?

Nowadays, virtually everything is called an “investment”. In the case of crypto-currencies, trading (trading) and investment are again confused, even by financial professionals.

 

An investment is when you buy an asset that produces something, and that by extension creates income.

For example, if you buy a tractor and lease it, it will allow someone to dig to then put the foundation of a house, pull farm machinery, and much more. In exchange for the productivity of your assets, you receive an income.

The question is, therefore: does the crypto-currency produce something?

The main added value of crypto-money is that it can make anonymous transactions, so it increases economic activity (albeit generally illegal).

That said, it produces nothing tangible for you because its overall productivity is drowned in the pool of all transactions.

Your only hope is therefore that its overall productivity in the form of a currency function is growing so that you can “freak out” your crypto-currency.

Basically, crypto-currency does not produce income for you, and your only option to make money is that its demand increases.

When a profit is generated not by production but by the difference between the purchase price and the selling price, it is called trading and not an investment.

What does it actually mean that it is trading and not an investment?

Trading is speculation and it’s not complicated, 95% of people lose at this activity.

Investing is a much safer way to get rich. You simply need to be aware of what you are doing with your money, and not speculate in thinking that you are investing.

Which crypto-currency to choose?

Bitcoin? Zcash and Zcoin? SafeCoin? Syscoin?

Admitting that you understand that you are speculating, the only crypto-currency I would negotiate personally is the Bitcoin, for two reasons:

 

Reason # 1: Everyone knows the Bitcoin

This point seems banal and simplistic. However, it should not be forgotten that the value of crypto-currencies is based on people’s trust. Indeed they are “fiat currencies”, like the Canadian dollar, the US dollar, and virtually all currencies in the world.

People have a tremendous confidence in the Canadian dollar and particularly the US dollar, which is the world’s reserve currency. What about crypto-currencies?

How do people trust you, the Bitcoin, the Zcoin, or the Syscoin? Obviously, people have more confidence in the Bitcoin, and one can easily assume that it will only go by increasing over time.

However, there is always resistance, and people do not have enough confidence in the Bitcoin to move away from the Canadian dollar or the US dollar.

In particular, the critical point or the Bitcoin could explode in price is when people will have enough confidence to use another function of the currency: the reservoir of value.

When people have confidence in Bitcoin to use it as saving, as an entity where they can retain the value of their work, then everything will change.

But how could the Bitcoin reach this level? How to develop this trust? These questions lead me to the second reason.

 

Reason # 2: The Bitcoin is the only crypto-currency that has a real chance

The Bitcoin is the only crypto-currency that has a real chance of what? To become an official currency, endorsed by the government and the financial system.

A strong and unshakeable confidence in the Bitcoin can only exist if governments and the financial system give it their approval.

In fact, it seems that in Canada the government is increasingly ready to incorporate the Bitcoin into daily transactions. This is not cast in concrete, and the future is still vague at the legislative level.

One of the barriers to official currency status for Bitcoin is that the government cannot legalize a private currency, which would limit its ability to tax transactions.

Can another crypto-currency based on the blockchain possibly be adopted rather than the Bitcoin? Yes, but precisely, there lies the whole aspect of speculation: we must try to predict the future.

In summary, invest in crypto-currencies or not?

Honestly, the majority of people do not even have $ 2,000 in an emergency, according to an article I read, so I do not see myself buying Bitcoins.

In this situation, I would buy stocks, bonds, gold, and real estate well before buying Bitcoins.

So unless I have a full RRSP and a TFSA, stuffed with income-producing assets, I cannot justify buying crypto-currencies.

I understand the desire to hit a home run with the Bitcoin, the desire to make 10 times his initial bet. This may be suitable for some people, but I cannot endorse this strategy because it makes a lot more losers than winners.

The strategy to get rich that works for me and in general is to get rich in the long run, walking by walk, so surely find myself at the top of the stairs.

 

Aashish Sharma

 

The article above is quite interesting but many people do not realise you do not need to to purchase a wholw bitcoin, there are ways and means to earn bits for free completing surveys, or by investing in Trade Coin Club

David Ogden
Entrepreneur

 

Alan Zibluk – Markethive Founding Member

Markethive

Cryptocurrency Investment Manager Seeks $400 Million for New Fund

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Cryptocurrency investment manager Tim Enneking is seeking to raise as much as $400m for a new fund.

cryptocurrency new fund for investment

New filings from the US Securities and Exchange Commission reveal that Enneking is launching the "Crypto Asset Fund", registered in the state of Delaware. CNBC first reported the news. According to that filing, no equity sales in the fund have been made. The minimum amount required by outside investors to gain a stake is $5,000, the filing notes.

Enneking told CNBC that the fund will be aimed at investing in a broader subset of digital currencies and blockchain assets. He also said that, as it stands, he has been fielding interest from institutional investors looking to gain a stake in the market.

If you believe that my message is worth spreading, please use the share buttons if they show on this page.

Stephen Hodgkiss
Chief Engineer at MarketHive
markethive.com

Alan Zibluk – Markethive Founding Member

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Is China Waking up to Ethereum

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Is China Waking up to Ethereum

Is China Waking up to Ethereum

On May 27, Huobi, one of the three leading bitcoin exchanges in China alongside BTCC and OKCoin, officially integrated support for Ethereum trading. The Huobi development team announced that users will be able to trade Ethereum starting from May 31.

In its announcement, Huobi revealed that the company has come to a consensus to integrate support for Ethereum due to its exponential growth, high market liquidity, stability and increase in the demand toward Ethereum in both China and internationally.

Local sources including CNLedger reported that Huobi’s integration of Ethereum was an important milestone for the Chinese Ethereum community and market as the market liquidity for Ethereum within China was substantially low due to the lack of support from local exchanges.

Previously, exchanges including OKCoin did express their enthusiasm toward Ethereum and hinted at the possibility of integrating Ethereum support in the near future. In fact, OKCoin representatives told CNLedger that OKCoin has been planning to list Ethereum and that the company plans to integrate Ethereum at an appropriate time.

Thus, it is likely that other major bitcoin exchanges such as OKCoin will soon integrate Ethereum support following the footsteps of Huobi, which serves millions of users in China alone.

Although Ethereum has been enjoying an exponential growth in Asian markets including Japan and South korea, Ethereum is relatively unknown to the majority of Chinese cryptocurrency traders that have been investing in bitcoin and Litecoin. Cryptocurrency traders have only begun to take interest in Ethereum after the formation of the Enterprise Ethereum Alliance and the Ethereum Foundation’s visit to the country.

Earlier in May, Consensus Systems (ConsenSys) head of global business development Andrew Keys attended the Global Blockchain Financial Summit with other members of the Ethereum Foundation including Ethereum co-founder Vitalik Buterin. Prior to the Global Blockchain Financial Summit, Keys and the rest of the Ethereum Foundation visited Ethereum communities in Beijing, Shanghai, Nanjing and Hangzhou.

Keys discovered that the Ethereum adoption throughout China has been increasing at a rapid rate. Large conglomerates have started to build applications on top of the Ethereum protocol and universities have been researching into Ethereum’s potential within the finance market.

Even government-owned companies including the Royal Chinese Mint, the subordinate unit of China Banknote Printing and Minting, have started to utilize Ethereum to digitize the RMB. Keys explained that the Royal Chinese Mint is currently utilizing the ERC 20 token standard and Ethereum smart contracts to digitize the RMB.

More to that, CryptoCoinsNews also reported that Ant Financial, the subsidiary company of e-commerce giant Alibaba, is also utilizing the Ethereum protocol to develop various applications and platforms. Ant Financial is the company behind the $60 billion financial network Alipay, which is used by 450 million users in China.

Keys noted:

“The services provided by Ant Financial and its affiliates cover payment, wealth management, credit reporting, private bank and cloud computing. Ant Financial is experimenting with Ethereum technology to improve their global payment platforms.”

The rapid rise in the demand toward Ethereum and the adoption of the Ethereum smart contract technology could allow China to become one of the larger Ethereum exchange markets in the world. At the moment, South Korea is the largest Ethereum exchange market with over 40 percent of the global market share. If China continues to sustain such growth rate, it will see its Ethereum market outpace other regions.

Ethereum Foundation members including Vitalik Buterin are actively encouraging companies and users in China to utilize the Ethereum protocol to build decentralized applications.

 

David Ogden
Entrepreneur

 

Author:Joseph Young

Alan Zibluk – Markethive Founding Member

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Bitcoin is going wild — here’s what the cryptocurrency is all about

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Bitcoin is going wild — here's what the cryptocurrency is all about

Bitcoin is going wild — here's what the cryptocurrency is all about

Bitcoin is a currency just like the US dollar or Mexican peso. It's also back in the headlines after soaring in value. One bitcoin was worth $2,800 on May 25, up from $1,200 at the end of April.

In countries that accept it, you can buy groceries and clothes just as you would with the local currency. Only bitcoin is entirely digital; no one is carrying actual bitcoins around in their pocket.

Bitcoin is divorced from governments and central banks. It's organized through a network known as a blockchain, which is basically an online ledger that keeps a secure record of each transaction all in one place. Every time anyone buys or sells bitcoin, the swap gets logged. Several hundred of these back-and-forths make up a block.

No one controls these blocks, because blockchains are decentralized across every computer that has a bitcoin wallet, which you only get if you buy bitcoins.

Why bother using it?

True to its origins as an open, decentralized currency, bitcoin is meant to be a quicker, cheaper, and more reliable form of payment than money tied to individual countries. In addition, it's the only form of money users can theoretically "mine" themselves, if they (and their computers) have the ability.

But even for those who don't discover using their own high-powered computers, anyone can buy and sell bitcoins, typically through online exchanges like Coinbase or LocalBitcoins.

A 2015 survey showed bitcoin users tend to be overwhelmingly white and male, but of varying incomes. The people with the most bitcoins are more likely to be using it for illegal purposes, the survey suggested.

Each bitcoin has a complicated ID, known as a hexadecimal code, that is many times more difficult to steal than someone's credit-card information. And since there is a finite number to be accounted for, there is less of a chance bitcoin or fractions of a bitcoin will go missing.

But while fraudulent credit-card purchases are reversible, bitcoin transactions are not.

21 million

Bitcoin is unique in that there are a finite number of them: 21 million. Satoshi Nakamoto, bitcoin's enigmatic founder, arrived at that number by assuming people would discover, or "mine," a set number of blocks of transactions daily.

Every four years, the number of bitcoins released relative to the previous cycle gets cut in half, as does the reward to miners for discovering new blocks. (The reward right now is 12.5 bitcoins.) As a result, the number of bitcoins in circulation will approach 21 million, but never hit it.

This means bitcoin never experiences inflation. Unlike US dollars, whose buying power the Fed can dilute by printing more greenbacks, there simply won't be more bitcoin available in the future. That has worried some skeptics, as it means a hack could be catastrophic in wiping out people's bitcoin wallets, with less hope for reimbursement.

The future of bitcoin

Historically, the currency has been extremely volatile. But go by its recent boom — and a forecast by Snapchat's first investor, Jeremy Liew, that it will hit $500,000 by 2030 — and nabbing even a fraction of a bitcoin starts to look a lot more enticing.

Bitcoin users predict 94% of all bitcoins will have been released by 2024. As the total number creeps toward the 21 million mark, many suspect the profits miners once made creating new blocks will become so low they'll become negligible. But with more bitcoins in circulation, people also expect transaction fees to rise, possibly making up the difference.

 

David Ogden
Entrepreneur
 

Chris Weller

Alan Zibluk – Markethive Founding Member

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Billion Dollar Cryptocurrency Club Swells to Six Members

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Billion Dollar Cryptocurrency Club Swells to Six Members

Billion Dollar Cryptocurrency Club Swells to Six Members

Bitcoin’s market cap surpassed $37 billion today when the price hit $2271.16, commanding more than a billion in trade volume in a 24-hour period, according to coinmarket.com. The total value of the coin market is now at $81.3 billion, as the last two days added more than $10 billion to the capitalization.

Bitcoin’s value has almost doubled in the last month, even while its market share has fallen below 50%, thanks to the gains of other cryptocurrencies. Bitcoin’s gains have been steadier than most of the altcoins, but collectively, altcoins are rising at a faster pace.

Asian Trading Remains Key

Rising demand for bitcoin by Chinese and Japanese investors combined with falling stocks and other factors to push bitcoin to new heights. Because the Japanese yen holds the largest share of bitcoin trading, Asian trading pushes the prices higher.

The Nikkei Asian Review today reported, “Bitcoin going mainstream as Japanese business signs on,” signaling bitcoin’s growing popularity in Japan, which recently recognized bitcoin as a method of payment.

Asian interest in bitcoin increasingly carries over to other currencies, as indicated by the gains for Ripple and NEM, the two most popular altcoins in Japan in terms of demand and trading volumes.

Japanese regulators also decided to abolish the 8% consumption tax on transactions of bitcoin bought from exchanges, which is set to go into effect in July this year.

Progress On Scaling Continues

Today’s announcement that a majority of bitcoin miners have reached a consensus to deploy the Segwit2Mb protocol upgrade for bitcoin also bodes well. Bitcoin’s rise has benefited from an alleviation of the fear that a “hard fork” will be needed – dividing bitcoin into two currencies – to improve bitcoin transaction times. A successful deployment of an alternative scaling solution indicates the hard fork that would have resulted in two separate currencies in order to speed up bitcoin transactions may not be required.

Wences Casares, CEO of bitcoin wallet Xapo and a member of PayPal’s board of directors one bitcoin would hit $1 million before the next ten years while speaking at the Consensus 2017 conference in New York.

Ethereum Continues To Amaze

Ethereum, the largest altcoin, hit more than $16 billion market capitalization with a $179.68 price, followed by Ripple at more than $13 billion. The top three cryptocurrencies — bitcoin, Ethereum and Ripple — are the only players to boast more than $10 billion market cap.

Ethereum has witnessed the fastest growth of any digital currency ever. Not even two years old, the platform is now worth more than $16 billion with its trading spaces consistently attracting more online active users than even bitcoin’s.

Ripple, designed for enterprise use and can be used by institutions for on-demand liquidity for cross-border payments, also continues to post rapid gains. Banks and payment providers that use XRP will secure better access to emerging markets at lower settlement costs.

Ripple recently committed to placing 55 billion XRP in a cryptographically secure escrow account at the end of the year, addressing concerns that it will eventually sell its 61.68 XRP as it seeks to strengthen XRP’s exchange rate against other currencies.

NEM, number four commands a $2.299 billion cap, followed by Litecoin at $1.575 billion and Ethereum Classic at $1.02 billion.

There are now six cryptocurrencies with more than $1 billion market caps.

Altcoins Keep Shifting Position

Aside from bitcoin, the rotation shifts fairly frequently among the billion dollar players. A day ago, Litecoin, Monero, and Dash displaced Ethereum and NEM, with gains of 15%, 20%, 25%, respectively.

NEM, number four, commands a $2.299 billion cap, followed by Litecoin at $1.575 billion and Ethereum Classic at $1.02 billion. There are now six cryptocurrencies with more than $1 billion market caps.

NEM has also made significant gains over the past few months. A major factor that has allowed NEM to transform into one of the most popular altcoins in Japan is its development team and company composed of Japanese founders and talents. NEM was initially developed and introduced in Japan by Makoto Takemiya, the co-founder and CEO of Soramitsu, the company that has also introduced the Iroha blockchain project to the Linux foundation’s Hyperledger Project.

Litecoin, one of the oldest altcoins, gained visibility this month because of its successful activation of SegWit, a scaling solution that circumvents the need for a hard fork.

 

David Ogden
Entrepreneur

 

Author Lester Coleman

Alan Zibluk – Markethive Founding Member