80% of all Bitcoins Will Have Been Mined In a year From now

  

is in for quite a reality shock in about a year from now. As most people are well aware of, the amount of bitcoins being mined every day is much compared to a few years ago. What is even more intriguing is how the vast majority of BTC has been mined already. In January of 2018, 80% of all 21 million BTC will be mined and brought into circulation. A significant milestone that should not be overlooked by any means.

Inching Closer To 80% Of All Bitcoins

It is quite interesting to think about how far bitcoin has come since its inception. With a  hard limit of 21 million BTC to be generated by 2140, a lot of people assume there are still a lot of coins to be mined for the next few years. While that is true up to a certain extent, we are getting closer to 80% of the finite supply being brought into circulation already. Said milestone will take place roughly 365 days from now.

It remains a bit unclear as to what this will mean for the price per individual BTC, though. Asa mining becomes more difficult and less profitable unless continuous new investments take place, the price per existing bitcoin should go up in value. Moreover, with “only” 4.2 million coins to be generated after January 2018 = over the course of nearly 122 years – the demand for bitcoin should increase as well. However, neither of these factors are a given, as the cryptocurrency market does not operate like more traditional models.

At the same time, the 80% milestone could force some miners to shut down their operations. We have seen some major mining difficulty spikes over the past few weeks, and that trend will continue for quite some time. A higher mining difficulty requires more hash power and electricity to mine the same amount of bitcoin. For a lot of miners, January 2018 may become a good time to call it quits once and for all.

Should that happen, however, things will become even more intriguing. If there were fewer miners, it is expected the mining hardware manufacturers will take an even larger stake in the bitcoin mining process. Companies such as Bitmain and Bitfury have brought a lot of mining hardware online over the past few years. With more energy-efficient hardware still being developed, it is not unlikely a certain degree of centralization will occur in the mining world.

One of the lingering questions being asked aloud is whether or not we will ever see 100% of bitcoin’s entire supply be mined, to begin with. The final 5% could prove to be challenging, as the trade-off between costs and earnings will make it seem far less attractive to do so. It will take a very long time to mine the 21st million BTC, that much is already a given at this point. In fact, most people alive today in the bitcoin world will never that happen.

The coming year could become a very important one for Bitcoin as a whole. Albeit there are no guarantees or certainties, once 80% of the supply is mined, things will change eventually. Whether that will be in positive or negative fashion, remains unknown at this point. We live in very exciting times, especially when one has grown fond of the concept of bitcoin and cryptocurrency.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

Cryptocurrency Versatility Creates New Opportunities

  

Over the last few years, the Cryptocurrency industry has been gaining popularity, and for a good reason. With the complexity that goes into making physical dollars, it’s clear now why people are opting to print a new form of currency. Making a digital currency is quite easier for someone with basic coding skills. Most are turning to the internet to gain ground and understand its use and value. Before, the concept was unfamiliar and scary just like the credit card some years back.

You might have come across the terms Bitcoin, Litecoin, and Ether. These are cryptocurrencies that use the Blockchain Technology to ensure this currency and technology is safe. Here we look at the some of the new opportunities created by cryptocurrency versatility in different fields. But before that, let’s look at the basics.

What is Cryptocurrency?

A cryptocurrency is an encrypted digital currency that is created using advanced encryption techniques commonly known as cryptography. The concept became a reality upon the creation of Bitcoin in 2009. It captured the attention of significant investors in April 2013 when it recorded a price of $266 per bitcoin. So, will the currency eventually unseat the ruling currencies such as dollars and euros? The answer lies with the Bitcoin. That said, what are the new opportunities being created by the cryptocurrency? Find out.

Improvement in education

According to Gigaom reports, university students can now receive bitcoin once they enroll in school, and some universities are even accepting the currency as a form of payment for tuition. Dan Elitzer, the President of the MIT Bitcoin Club, and Jeremy Rubin, a computer scientist at MIT, successfully raised about half a million dollars for the enrollment of more than four thousand students worldwide in tech institutions.

The team together with the bitcoin community managed to provide students a chance to develop their own bitcoin wallets. This seems like a clever plan judging from the recent advancements in Bitcoin where they have developed the new Xapo Wallet. Today technology has enabled students to access different services including essay services and now cryptocurrency. Providing college students with access to bitcoin is a great step in cryptocurrency especially since universities are now accepting alternative currencies such as Bitcoin as payment for tuition.

Entrepreneurial innovation

The improved growth in the use of cryptocurrency leads to entrepreneurial innovation and it is said to foster growth in traditional banking infrastructure. Once the infrastructure is built and there is mass distribution of the currency, new businesses can build financial services without having to invest in expensive infrastructure. They just have to build applications and supportive services aside from the cryptocurrency system and they conduct their business without building a data center, huge hardware, and an IT department. The ability of an entrepreneur to access a source of payment method has fueled innovations in the financial services. These services are beneficial to the constituencies and areas that are underserved by the traditional banking providers.

Facilitates establishment of custom designed currencies

Cryptocurrencies are the latest technological advancements that have enabled groups to create custom designed currencies. Today we see banks and other institutions working hard to establish their digital currencies and this is a new chance to experiment new technology. Bitcoin has already set ground and proven to be quite dynamic and resilient amongst other currencies. It has undergone massive criticism but it has proven it’s powerful on the global perspective. Being an example of a successful digital currency, it is completely public and can be used in peer-to-peer transactions. It is a global financial utility that is accessible to anyone provided you’re connected to the internet.

Those who say that Bitcoin and Ethereum may become irrelevant may be surprised. Cryptocurrencies are high-grade financial tools that are made for legitimate and exciting function with a sense of global financial services that bypasses the infrastructure of traditional banking. Some experts even suggest that blockchain payment systems may beat the mighty U.S. Automated House financial transactions system come 2020.

With the technological advancement that is being experienced now, it is not a surprise to find that the cryptocurrency usage may accelerate to greater heights. The blockchain technology is expected to form a great part of the coming internet generation with massive transformation in commerce and overall structure of corporations and many other institutions across the globe. Be ready for this radical transformation. It’s worth checking out.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

What is Bitcoin mining?

Bitcoin miners use computing power to add transaction records to the blockchain, which is a public ledger of transactions. Miners earn a certain number of Bitcoins for the work they contribute to this process and are paid a transaction fee by users sending transactions. The process of mining and adding a new block to the blockchain comprises the following steps:

1. Verify that the transaction is valid.
2. Compile valid transactions in a block.
3. Insert the header of the most recent block into the new block as a hash.
4. Solve the proof of work problem.
5. When a solution is discovered, the new block is added to the blockchain.

The proof of work is designed to require a large amount of computational power, as this prevents the public ledger of transactions from being tampered with and controls the rate of new Bitcoins being introduced. The proof of work difficulty is updated regularly in order to maintain a controlled flow of new Bitcoins and improve the security of the system.

Mining Hardware

During the infancy of Bitcoin mining, many people used desktop processors to mine Bitcoin. However, as the difficulty continued to rise with the popularity of the cryptocurrency, specialized mining hardware was developed in order for miners to remain competitive. These days, mining Bitcoin requires a large amount of investment and work to make a profit, as there are many mining farms around the world.

While this increases the security of the system, it means that using your graphics card to mine Bitcoins in your spare time is no longer a viable solution for most miners. Most serious Bitcoin miners use hardware designed to mine Bitcoin. The efficiency of these devices is measured in hashes per second and their price can vary depending on performance levels.High-end hardware also draws a large amount of power and can be prohibitively expensive for casual Bitcoin miners.

Below are several Bitcoin mining hardware solutions available in South Africa.

Software and Bitcoin Wallet

After purchasing the required mining hardware, you will need to download Bitcoin mining software. This software connects you to the blockchain and ensures you are in consensus with the official Bitcoin network. If you are mining in a pool with other miners, data requirements are relatively small. If you are mining by yourself, you will need to download the official Bitcore client to synchronize with the blockchain. Bitcoin mining software is freely available online, with the most popular using a simple command line interface.

Below are a few popular Bitcoin mining programs:

• EasyMiner
• MinePeon
• CG Miner
• BFG Miner

Miners also need a Bitcoin wallet to store their earnings. There are a number of Bitcoin wallets available online, but it is generally recommended that users download a wallet which allows them to hold their own security keys instead of an online hosting solution.

Saving keyboard money

Additional options

Instead of purchasing physical hardware and using your own resources to mine Bitcoin, some miners opt to purchase cloud mining contracts. Cloud mining involves renting an amount of processing power from a service provider and earning Bitcoin relative to the amount of processing power purchased. There have been many scams involving cloud mining contracts, and there is no guarantee of security when using these services.

Miners can also choose to mine different cryptocurrencies using different blockchains, such as Ethereum. Each of these currencies has its own advantages and disadvantages, with some catering more to individual miners or offering reduced block time.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

Bitcoin Price Growth, Global Adoption Depend on Japan’s Confidence in Bitcoin

  

Alan Zibluk – Markethive Founding Member

The Big Three: How China, India, Japan Set Pace For Bitcoin

  

Alan Zibluk – Markethive Founding Member

  

A company built around the research of Craig Wright,

who has claimed to have invented the bitcoin cryptocurrency, has been sold to a private equity firm in a deal the company says is the biggest to date involving bitcoin's underlying blockchain technology. The deal swings the spotlight once again on to Wright, a 46-year-old computer scientist who is the cryptocurrency's most controversial figure. He hopes to remain central to the technology's future, telling Reuters the goal is to build bitcoin into a global "system with no ruler, no king."

"We will scale and grow bitcoin to become what it was envisioned to be," he said. "All I do is to help grow the use of bitcoin, and I want to see it in daily use by at least a billion people on-chain. We have the funds, the people and the technology to do this." According to a news release on Thursday, Malta-based High Tech Private Equity Fund SICAV bought nChain Holdings, "the world leader in blockchain-centric research and development." It put no value on the deal and did not mention Wright. Reuters previously identified nChain, formerly known as EITC Holdings, as Wright's vehicle for filing hundreds of bitcoin and blockchain-related patents.

U.K. records confirm that the target company—under both its EITC and nChain names—already filed more than 80 bitcoin and blockchain-related patents. A person close to the deal said $300 million had been invested in nChain, but it was not clear over what period of time. The Maltese fund did not respond to emails asking for comment.

Reuters reported last year that EITC planned to file hundreds of patents related to the blockchain, the distributed ledger technology that underpins cryptocurrencies like bitcoin. The financial industry and others are exploring its potential. The fund is managed by Liechtenstein-based Accuro Fund Solutions, part of Zurich-based Accuro Group. Accuro did not respond to an emailed request for comment.

DIVISIVE FIGURE

Wright remains a divisive figure in the bitcoin world. After failing to convince many in the bitcoin community that he was Satoshi Nakamoto, the pseudonymous founder of bitcoin, Wright retreated from view last year. Reuters reported last month that Wright was working with Calvin Ayre, a Canadian online gambling tycoon, to build a patent portfolio, though its purpose was not clear. Ayre was not immediately available for comment.

nChain said in an emailed response to questions from Reuters that neither Ayre nor Wright had a stake in it before or after the sale. It said the company previously acquired Wright's assets and intellectual property, and he now held the post of chief scientist. Although it was not possible to confirm Wright's identity as Nakamoto, a Reuters investigation found he was deeply involved in the early development of bitcoin and had told Australian tax officials he possessed more than 1 million bitcoin—worth $1.2 billion at the current exchange rate.

Patent lawyers have noted that open-source technologies like bitcoin are not easy to patent, and even if patents are approved, they are not always easy to defend. Thursday's announcement is the first time nChain has publicly acknowledged it is filing patents. Without confirming how many bitcoins he owns, Wright told Reuters he would never "dump bitcoin." "I will sell when I do this for goods on a daily basis, or I will go down with it. Past the basics of my family's well-being, all I have is dedicated to building the systems and institutions needed to make bitcoin successful globally," he said.

The news release also shed light on what Wright and nChain might do with its patents. nChain this year "intends to make some of its intellectual property assets available to the blockchain community through open-source software and royalty-free licensing." It invited interested parties to register via email. nChain's patent filings, seen by Reuters, range from the storage of medical documents to Wi-Fi security. Investors have spent more than $1.5 billion on blockchain and bitcoin start-ups over the past four years, according to CB Insights, an Internet research company.

The company said it was also working on software tools and applications to support the growth of blockchain. These include a software to develop applications on the bitcoin blockchain, solutions for bitcoin blockchain scalability, inventions to improve security, on-chain scripting for smart contracts, and a decentralized trading platform that uses autonomous agents. The company also called for a neutral standards body to be set up to coordinate bitcoin's development.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

Short interest on Bitfinex has surpassed long interest for the first time since February

  

Bets that the bitcoin price

will fall have surpassed bets that it will rise for the first time since February on one of the world’s largest digital currency exchanges, stoking contrarian speculation that the digital currency could be headed for a new all-time high.

Open short interest on Bitfinex surpassed long interest on Thursday for the first time since February. The last time shorts eclipsed longs, the bitcoin price gained nearly $300 over the following three weeks, rising from $993 on Feb 13 to an all-time high of $1,285. Bitfinex, a top digital currency exchange by trading volume, is also one of only a handful to allow customers to trade on margin.

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In financial markets,

short interest is sometimes viewed as a contrarian indicator because it leaves assets vulnerable to what’s known as a short squeeze. In a short squeeze, investors who bet against the asset are forced to buy it back to close out their positions at a loss, causing the price to move sharply in the other direction.

The buildup in shorts “proves that the bitcoin scaling debate isn’t over yet,” said Chris Dannen, a founding partner at Iterative Instinct, a small New York-based private-equity fund that trades crypto-assets. Dannen was referring to a rift in the bitcoin community over how to upgrade bitcoin’s software to allow the network to process transactions more quickly and efficiently.

That debate has quieted down in recent weeks as bitcoin miners have backed away from a controversial proposal called bitcoin unlimited that would’ve raised the limit on the amount of transaction data can be stored in each block of the bitcoin blockchain. Investors feared that, if support for the proposal passed a certain threshold, but fell short of unanimous adoption, it could split the network into two different coins.

Amith Nirgunarthy, director of marketing and high net-worth partnerships at Bitcoin IRA, was reluctant to read too much into the shift in positioning. “There’s been a lot of good news in the cryptocurrency space as of late,” he said. Earlier this week, Blockchain Capital, a venture fund focused on blockchain initiatives, closed its $10 million initial coin offering—the first of its kind in the U.S.—after just six hours. A blockchain is a decentralized, cryptographically secured ledger that powers digital currencies like bitcoin. The bitcoin BTCUSD, +0.45%  price retreated on Thursday after touching its highest level in three weeks. One coin was recently trading at $1,165.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

Bitcoin (BTC) extended

upside movement against the US Dollar (USD) on Thursday to a weekly high of 1229, rallying the price of BTC/USD to more than 1200, the psychological number, as Japan legalized the cryptocurrency as online payment method while Russia is also mulling over to authorize the cryptocurrency. The technical bias however, remains bearish in near term.

Russia Intercedes into the Crypto World

Russia is mulling over to regulate the digital currency. Russian Deputy Finance Minister Alexey Moiseev told Bloomberg in an interview this week that the authorities hope to recognize bitcoin and other cryptocurrencies as a legal financial instrument in 2018 in a bid to tackle money laundering.

“The state needs to know who at every moment of time stands on both sides of the financial chain,” Moiseev told Bloomberg. If there’s a transaction, the people who facilitate it should understand from whom they bought and to whom they were selling, just like with bank operations.”

Increasing state regulations around bitcoin could make the cryptocurrency an attractive investment for investors who previously remained cautious due to the high risk and price swings.

Technical Analysis

As of this writing, BTC/USD is being traded around 1170. A 4-Hourly support may be seen around 1135. A major support however still holds around 1060 which is 50% Fibonacci level as demonstrated in the given below 4-hour chart with green color. EMA 200 is pushing upward on a short-term bias after a test at 1135. Trendline in red color is still major and effective as sellers gain momentum. A break and 4-Hourly closing below the 1135 support shall incite renewed selling pressure, validating a move towards 1060, the 50% fibonacci retracement and then a retest of the trend line around 950.

On the upside, bitcoin is expected to face a hurdle near 1230, a key horizontal resistance area ahead of 1300, the psychological number which is also the high of April 2017. The technical bias shall remain bullish as long as the 1135 support area is intact as mentioned before.

What to expect in Long-Term?

In long-term, a pull back will retest the trend line around 950 is very much expected. RSI (25) provides an extra conformation as it is heading lower sharply.

How to Trade BTC/USD in near future?

Selling BTC/USD below the 1135 support level can be a good strategy with stops being placed above 1180. Similarly, buying BTC/USD above 1200 level can be a good idea with stops being placed right below the 1135 support.

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

Legal Status of Bitcoin in India to Be Addressed at Global Summit by Assocham

  

Chuck Reynolds
Contributor

Alan Zibluk – Markethive Founding Member

F2Pool: We Were Never Against SegWit. Wait…

  

Alan Zibluk – Markethive Founding Member