In Düsseldorf, Portz continues to work on making his own environment more accessible. Sighted friends help him with his image-heavy textbooks, describing charts and pictures. During the pandemibittorrent next bitcoinc-related university closures, he listened to his recorded lectures at double speed, slowing down for the more complex bits. He still discusses new ideas for science materials with his former teacher, Mahnke, and continues to feel inspired by his old school. "It gave me a super strong push," he recalls of his time there. "I realised what was possible, and what can be made possible."
This system drives up Bitcoin's stock-to-flow ratio antheta coin nedird lowers its inflation until it is eventually zero. After the third halving that took place on May 11, 2020, the reward for each block mined became 6.25 bitcoins.Hashes
Here is a slightly more technical description of how mining works. The network of miners, who are scattered across the globe and not bound to each other by personal or professional ties, receives the latest batch of transaction data. They run the data through a cryptographic algorithm that generates a "hash," a string of numbers and letters that verifies the information's validity but does not reveal the information itself. (In reality, this ideal vision of decentralized mining is no longer accurate, with industrial-scale mining farms and powerful mining pools forming an oligopoly. More on that below.)Given the hash 000000000000000000c2c4d562265f272bd55d64f1a7c22ffeb66e15e826ca30, you cannot know what transactions the relevant block (#480504) contains. You can, however, take a bunch of data purporting to be block #480504 and make sure that it hasn't been subject to any tampering. If one number were out of place, no matter how insignificant, the data would generate a totally different hash. For example, if you were to run the Declaration of Independence through a hash calculator, you might get 839f561caa4b466c84e2b4809afe116c76a465ce5da68c3370f5c36bd3f67350. Delete the period after the words "submitted to a candid world," though, and you get 800790e4fd445ca4c5e3092f9884cdcd4cf536f735ca958b93f60f82f23f97c4. This is a completely different hash, although you've only changed one character in the original text.The hash technology allows the Bitcoin network to instantly check the validity of a block. It would be incredibly time-consuming to comb through the entire ledger to make sure that the person mining the most recent batch of transactions hasn't tried anything funny. Instead, the previous block's hash appears within the new block. If the most minute detail had been altered in the previous block, that hash would change. Even if the alteration was 20,000 blocks back in the chain, that block's hash would set off a cascade of new hashes and tip off the network.Generating a hash is not really work, though. The process is so quick and easy that bad actors could still spam the network and perhaps, given enough computing power, pass off fraudulent transactions a few blocks back in the chain. So the Bitcoin protocol requires proof of work.It does so by throwing miners a curveball: Their hash must be below a certain target. That's why block #480504's hash starts with a long string of zeroes. It's tiny. Because every string of data will generate one and only one hash, the quest for a sufficiently small one involves adding nonces ("numbers used once") to the end of the data. So a miner will run [thedata]. If the hash is too big, she will try again. [thedata]1. Still too big. [thedata]2. Finally, [thedata]93452 yields her a hash beginning with the requisite number of zeroes.
The mined block will be broadcast to the network to receive confirmations, which take another hour or so, though occasionally much longer, to process. (Again, this description is simplified. Blocks are not hashed in their entirety but broken up into more efficient structures called Merkle trees.)Depending on the kind of traffic the network is receiving, Bitcoin's protocol will require a longer or shorter string of zeroes, adjusting the difficulty to hit a rate of one new block every 10 minutes. As of October 2019, the current difficulty is around 6.379 trillion, up from 1 in 2009. As this suggests, it has become significantly more difficult to mine Bitcoin since the cryptocurrency launched a decade ago.To receive bitcoins, it's enough for the sender to know your address. The public key is derived from the private key, which you need to send bitcoins to another address. The system makes it easy to receive money but requires verification of identity to send it.
To access bitcoins, you use a wallet, which is a set of keys. These can take different forms, from third-party web applications offering insurance and debit cards, to QR codes printed on pieces of paper. The most important distinction is between "hot" wallets, which are connected to the Internet and therefore vulnerable to hacking, and "cold" wallets, which are not connected to the Internet. In the Mt. Gox case above, it is believed that most of the BTC stolen were taken from a hot wallet. Still, many users entrust their private keys to cryptocurrency exchanges, which is essentially a bet that those exchanges will have stronger defenses against the possibility of theft than one's own computer would.Bitcoin offers an efficient means of transferring money over the Internet and is controlled by a decentralized network with a transparent set of rules, thus presenting an alternative to central bank-controlled fiat money.1 There has been a great deal of talk about how to price Bitcoin, and we set out here to explore what the cryptocurrency's price might look like in the event it achieves further widespread adoption. First, however, it is useful to back up a step. Bitcoin and other digital currencies have been touted as alternatives to fiat money. But what gives any type of currency value?The currency ticker used for bitcoin is either BTC or XBT.KEY TAKEAWAYS
A bitcoin exchange acts as the intermediary between a seller and a buyer or, to use cryptocurrency language, between a "maker" and a "taker."A bitcoin exchange works like a brokerage, and you can deposit money via bank transfer, wire, and other common means of deposit. However, you will often pay a price for this service.
If a trader wants to trade between cryptocurrencies, they will pay a currency conversion fee, similar to institutional banks when you trade money from different countries.Purchases and sales are based on the same ordering system as existing brokerages, where a buyer (taker) places a limit order which is then sold when a corresponding cryptocurrency is available from the seller (maker).Understanding Bitcoin ExchangesBitcoin exchange platforms match buyers with sellers. Like a traditional stock exchange, traders can opt to buy and sell bitcoin by inputting either a market order or a limit order. When a market order is selected, the trader is authorizing the exchange to trade the coins for the best available price in the online marketplace. With a limit order set, the trader directs the exchange to trade coins for a price below the current ask or above the current bid, depending on whether they are buying or selling.
To transact in bitcoin on an exchange, a user has to register with the exchange and go through a series of verification processes to authenticate their identity. Once the authentication is successful, an account is opened for the user who then has to transfer funds into this account before they can buy coins.Different exchanges have different payment methods that can be used for depositing funds including bank wires, direct bank transfers, credit or debit cards, bank drafts, money orders and even gift cards. A trader who would like to withdraw money from the account could do so using the options provided by their exchange, which could include a bank transfer, PayPal transfer, check mailing, cash delivery, bank wire, or credit card transfer.Decentralized ExchangesDecentralized bitcoin exchanges are those that are operated without a central authority. These exchanges allow peer-to-peer trading of digital currencies without the need for an exchange authority to facilitate the transactions.
There are a number of benefits to decentralized exchanges. First, many cryptocurrency users feel that decentralized exchanges better match the decentralized structures of most digital currencies themselves; many decentralized exchanges also require less personal information from their members than other types of exchanges. Second, if users transfer assets directly to other users, that eliminates the need for the transferring of assets to the exchange, thereby reducing the risk of theft from hacks and other fraud. Third, decentralized exchanges may be less susceptible to price manipulation and other fraudulent trading activity.On the other hand, decentralized exchanges (like all cryptocurrency exchanges) must maintain a fundamental level of user interest in the form of trading volume and liquidity. Not all decentralized exchanges have been able to achieve these important baseline qualities. Further, users of a decentralized exchange may have less recourse if they are the victims of fraud than those who make use of exchanges with centralized authorities.
Making deposits and withdrawals comes at a price, depending on the payment method chosen to transfer funds. The higher the risk of a chargeback from a payment medium, the higher the fee. Making a bank draft or wiring money to the exchange has a lesser risk of a chargeback compared to funding your account with PayPal or a credit/debit card where the funds being transferred can be reversed and returned to the user upon request to the bank.In addition to transaction fees and funds transfer fees, traders may also be subject to currency conversion fees, depending on the currencies that are accepted by the bitcoin exchange. If a user transfers Canadian dollars to an exchange that only deals in U.S. dollars, the bank or the exchange will convert the CAD to USD for a fee. Transacting with an exchange that accepts your local currency is the best way to avoid the FX fee.All bitcoin exchanges have transaction fees that are applied to each completed buy and sell order carried out within the exchange. The fee rate is dependent on the volume of bitcoin transactions that is conducted.Foreign exchange spreads are important measures when transacting in bitcoin and vary depending on how liquid the bitcoin exchange is.Bitcoin WalletsNote that a bitcoin exchange is different from a bitcoin wallet. While the former offers a platform through which bitcoin buyers and sellers can transact with each other, the latter is simply a digital storage service for bitcoin holders to store their coins securely. To be more technical, bitcoin wallets store private keys which are used to authorize transactions and access the bitcoin address of a user. Most bitcoin exchanges provide bitcoin wallets for their users, but may charge a fee for this service.
Makers and TakersOnline bitcoin marketplaces usually designate bitcoin participants as either makers or takers. When a buyer or seller places a limit order, the exchange adds it to its order book until the price is matched by another trader on the opposite end of the transaction. When the price is matched, the buyer or seller who set the limit price is referred to as a maker. A taker is a trader who places a market order that immediately gets filled.
Example of a Bitcoin ExchangeFor example, on a bitcoin exchange, three coin sellers are asking for BTC/USD 2265.75, BTC/USD 2269.55, and BTC/USD 2270.00. A trader who initiates a market order to buy bitcoins will have their order filled at the best ask price of 2265.75. If only five bitcoins are available for the best ask and 10 coins are available for 2269.55, and the trader wants to buy 10 at market price, the trader's order will be filled with 5 coins @ 2265.75 and the remaining 5 @ 2269.55.
However, a trader who thinks they can get bitcoins for a better price could set a limit order for, say, 2260.10. If a seller matches their ask price with this order or sets a price below this figure, the order will get filled. All of this is done by the exchange, which takes a percentage of each transaction for their business.Bengaluru | Mumbai: Andreessen Horowitz is in talks to invest in CoinSwitch Kuber, a cryptocurrency platform for retail traders, people familiar with the matter said. If the deal goes through it will be the first bet by a16z—as the Silicon Valley venture capital firm is popularly known—in an Indian startup, sources told ET.
“The deal is likely to be completed soon and could be made official later this month,” one of the people cited above said.The capital infusion from a16z will be part of CoinSwitch Kuber’s new funding round, which will push its valuation to just under $2 billion, the sources said, making it a unicorn—startups with a valuation of $1 billion or more. Singapore-based CoinSwitch’s previous fundraise was in April when it raised $25 million from Tiger Global at a valuation of $500 million. That was the New York-based investment firm’s maiden investment in a crypto platform in India.Crypto Tales by CoinSwitch Kuber, a new series where our host, Jatin Sapru will meet some of the experts, the gurus, the pioneers, of the Indian Cryptocurrency universe. In this episode, Jatin meets Rushindra Sinha, CEO, Global Esports, a techie, a gamer, one of the earliest cryptocurrency investors in the world, a crypto trader, crypto consultant and also a doctor. Download CoinSwitch Kuber now and join 10 million Indians on India's largest crypto-trading platform.A curated weekly summary of forward-focused crypto news that matters. This week, Bitcoin outperforms most large cap altcoins, Coinbase announces a bumper bond sale to raise new funds, and PayPal launches crypto services in the UK.
Performance across the digital asset markets was mixed in the last week, with gainers led by a bullish Bitcoin (BTC). The market’s largest and oldest asset was up ~2% to end the week. Ethereum (ETH) and Cardano (ADA), the second and third largest assets in the crypto markets, fell by ~4% and ~13% respectively.The industry received a strong tailwind after Coinbase, the Nasdaq listed crypto exchange, announced that it will seek to bolster its balance sheet with a US$1.5 billion sale. Coinbase says the raise will be used for general corporate purposes such as investments in product development and the future acquisitions of other companies and technology solutions. Excess demand pushed Coinbase to increase the size of the sale to US2$billion. According to The Economic Times, over $7 billion worth of orders were placed to compete for equal quantities of 7 and 10-year bonds.
Demand for crypto trading solutions is also growing rapidly, outpacing the demand to trade legacy markets, according to mobile app data. Data from iOS and Android app-monitoring platform Apptopia reports that Coinbase Pro was the fastest-growing app in finance in the second week of September with a 319% increase in downloads. Voyager, an app that supports the trading of over 60 digital assets, saw a 234% surge in the same period. The mobile app for popular global exchange Binance was fourth on the list with a 120% increase in downloads.The growth of crypto apps outpaced the growth of personal finance apps like Albert, banking apps like Bank of America Prepaid Mobile, and stock trading apps like Etoro and Stash. It’s clear that the retail crypto market is alive and kicking.
A new funnel for retail crypto users has opened in the UK with PayPal completing the rollout of its crypto service offering in the country. An announcement from PayPal on Twitter read, “We are delighted to share that all eligible customers in the UK can now buy, hold and sell #Cryptocurrencies #Bitcoin, #Ethereum, #BitcoinCash & #Litecoin from their PayPal account. Look out for it in the PayPal app.”This will mark PayPal’s first crypto service offering outside of the United States. Jose Fernandez da Ponte, PayPal’s general manager for blockchain, crypto, and digital currencies, told CNBC in an interview last month that PayPal’s crypto service has been doing “really well in the USA” and PayPal expects similar results in the UK.
The Crypto Fear and Greed index measures sentiment and emotions in crypto markets using data like price volatility, social media mentions, and momentum (moving averages). The Fear and Greed index is currently neutral. The crypto markets have had a volatile September with the price of BTC ranging from highs of ~52,600 on September 7th to lows of around ~44,200 on September 13th. Traders and investors feeling a ‘neutral’ sentiment suggests they are unsure of which direction markets will move next.Trading set-ups for the weekPro trader Josh Olszewicz explores trading options and signals for BTC and ETH - and lays out the trading setups he's watching for the upcoming week. Start your week off right with Josh's thoughts on trading strategies on a weekly basis.Crypto news for the week ahead
September 25th-26th - Cardano SummitCardano (ADA), the third-largest asset in crypto, will host its annual conference this week. The event will be held online and in-person. Leading Cardano community members and engineers will be present physically at London, Miami, Berlin, Cape Town, Wyoming (the location of IOHK's headquarters), and New York for live events as part of the summit. There has been some buzz in the last week about Hydra, Cardano’s recently announced layer 2 scaling solution. ADA is down ~12% in the last week.
September 24th - Binance officially delists COVEROn Friday crypto trading giant Binance will officially delist the COVER token of decentralized insurance protocol, Cover. Binance will end the BUSD/COVER & ETH/COVER markets, as well as suspending deposits and withdrawals of the token. The delisting is occurring because the Cover and Ruler insurance protocols which underpin the token are being shut down and the UI removed. COVER is up ~3% in the last week.
Top 10 Crypto SummaryBitcoin aside, performance in the digital asset markets was generally poor in the last week. Solana (SOL) was the biggest loser in the top 10, falling by almost 14%. Last week the Solana network experienced an outage for 16 hours due to high transaction loads. The blockchain appears to have suffered a coordinated denial of service attack. The network is back to running normally however the attack has shown that the network is not antifragile.