Category Archives for "Bitcoin News"

Dec 21

Bitcoin Value Reaches Three-Year High: What Does This Indicate?

By Etanllah | Bitcoin News , Bitcoin Price

Bitcoin Value Reaches Three-Year High: What Does This Indicate?

Ever since its debut in the late 2000s, Bitcoin currency has increased steadily in value. It remains one of the most promising digital currencies on the market and could transform the marketplace in a variety of ways.

A recent piece of news revealed just how big this potential is when it was shown that Bitcoins passed the $800 mark for the first time in three years.

What Caused This Increase?

There are a variety of reasons that Bitcoin prices skyrocketed. First of all, trading is at an all-time high, particularly after the series of strange events that occurred in Europe and America.

The first was Brexit, in which the United Kingdom left the European Union. This economically-suicidal move drove the pound to historic lows and even impacted the Euro. This sent desperate European traders scrambling for a more stable and cost-efficient investment.

Second was the successful presidential election of Donald Trump. The value of the dollar after this shocking victory was rather wild, first dropping, then rising, and then dropping again. This has made the dollar seem like an uncertain proposition for many businesses.

With the value of the dollar in such a state of turmoil, digital currency like Bitcoins become an attractive option to traders because they don’t depreciate in value nearly as much as traditional national currencies. This steady balance has made Bitcoins a useful investment, causing a high increase in orders.

Another interesting influence was the falling value of Chinese currency. The yuan has been falling again rapidly after it was once the highest value currency on the market. This deprecation has sent the dollar and the pound into their own high increases, resulting in a strange economic situation that bodes well for those who are willing to invest in Bitcoins.

This rapidly increasing value is not just promising for Bitcoin traders, but for people all around the world. Digital currency like Bitcoins could truly transform the landscape if they were allowed to fully prosper. But just how useful are Bitcoins now and how can they continue to help balance the economic marketplace?

The Major Purpose Of Bitcoins

One of the biggest benefits of the Bitcoin is the way that it helps balance investors fear of inflation and uncertainty in various forms of currency. This is why trading in Bitcoins skyrockets during strange times: investors are looking to put their money into a currency that is stabler and more reliable than other currencies with more wiggle room.

However, this is a major benefit to those who don’t invest because it helps balance against potential inflation. As investors turn to Bitcoins instead of other currencies, the value of those currencies is likely to increase.

That’s because fewer people are investing in them and increasing their value every so slightly. As a result, high-value and important currencies, like the dollar and the Euro, can maintain a stabler balance than they would without Bitcoins.

This is one reason why few currencies have had a total collapse after the emergence of Bitcoins. Yes there have been currencies in less developed countries that have suffered, but Bitcoins serve as an important buffer between failure for many currencies. The increasing investment in these currencies is proof of that and it shows just how important Bitcoins could be for global economic security.

Final Thoughts

If the value of the Bitcoin continues to rise, is there any chance that nations could give up their currency and turn totally to Bitcoins? Probably not as the existence of these national currencies helps give Bitcoins their value.

However, in an increasingly internet-based world focused so heavily on online living, there is a chance that more people could turn to these coins in the future. This could have a major impact on the economy and force the hand of the world’s nations.

Bitcoins alternative currency
Dec 19

Bitcoins Getting Tagged As Alternative Currency

By Etanllah | Bitcoin News

The last quarter of 2016 has been great for Bitcoin, with stock market values hovering steadily around $780.08. It’s the third time since February of 2014, when the stock, Bitcoin Price Index (BPI), rose as high as $780.

The highest average price of the stock was back on December 13th, when Bitcoin hit its all time best value of $788.49. Since the stock’s value isn’t moving back and forth; this is very good news for all international trading markets. The sizable increase in the stock has caught the eye of one country in particular.

Venezuela is Switching to Full-time Use of Bitcoin

Due to the economic instability of the Venezuelan Bolivar, the country is now using bitcoin as its full-time currency. Yes, you read it correctly. Venezuelans are using Bitcoin as a standard form of payment, buying and paying for goods and services, no longer considering it as “just” digital currency. This decentralization, follows the increasingly positive upward surge of Bitcoin’s overall performance as a valued commodity.

Venezuela has been struggling with economic woes for awhile now. By switching to Bitcoin full-time, it means that the country can look forward to moving ahead without worrying about the declining Bolivar. The Venezuelan currency is expected to be stripped of all asset value, as the devaluation punctuates a rather steep downward decline. This is how and why Bitcoins are playing a prominent role in the eventual recovery of the Venezuelan inflationary crisis.

Bitcoin could be the answer to overcoming the crippling effects of decentralization. Decentralization just means that the Venezuelan dollar (Bolivar) has lost its value. The country turned to Bitcoins after a failed financial moved by the government there. The Venezuelan government caused the downward spiral when it was decided to removed the highest dollar Bolivar (equivalent to the US hundred dollar bill).

Venezuela is now using Bitcoin for everything from paying weekly salaries to buying goods such as groceries and other shopping items. It should be noted that the Bolivar is still considered the main currency in the country, as Bitcoin hasn’t entirely phased out the use of Venezuelan dollars. However, the demand for Bitcoin is increasing in the domestic market there, as the value is climbing daily and the price is now well over the $200 mark.

The United States Is Keeping An Eye on Bitcoin’s Future

Bitcoin’s popularity is somewhat troubling for the United States. Because, “indirectly” it could mean trouble for the US dollar. No, it isn’t troubling for the US as a super power. As a super power country, the US wields influence and control over certain aspects of unsanctioned, alternative international currencies. For example, in South Africa there’s a small town with its own currency. This currency, the Ora is for “whites only.” The US keeps a watchful eye on alternative currencies.

The “ora” is for political purposes only and surprisingly it’s one of many forms of alternative currency that the US currently monitors. Bitcoins growth is troubling because it could lead others to follow in the footsteps of Venezuela. At this time, Bitcoin is mainly referred to an “online or digital currency.” Venezuela using Bitcoins as standard payment is a bit unorthodox, at the moment. That might be changing soon.

In the US, the Department of Treasury is fearful about Bitcoin’s future. Because in time, alternative currencies could erode the value of the US dollar. Which could open multiple gateways for illegal, international crimes. We’re talking about seeing an increase in terrorist attacks, human trafficking, illegal drugs and money laundering.

Dec 08

China Experiences A 2-Year High In Bitcoin Price

By Etanllah | Bitcoin News

In recent times, the quest for bitcoin in China has been on a steady increase due to the continuous devaluation of the country’s currency – Renminbi, reported Bitcoin Magazine. Just last month, The Wall Street Journal presented a story on increasing rate at which Chinese investors were purchasing bitcoin due to the strong market trend which was easily recognized by the financial press.

As part of efforts to secure safe digital refuge for their funds, many Chinese investors are switching over to bitcoin thereby helping one of the country’s leading exchanges surpass two-year highs. Reaching an average limit of 5497 RMB at 1:56 p.m in China, bitcoin prices made remarkable great leaps. This rapid increase in Bitcoin price which was recorded on December 2 has never been experienced since January 2014.

In view of the current upward price trend, some leading Bitcoin operators, and CEOs in China were contacted by Bitcoin Magazine to take the pulse of the market.

BTCC CEO Bobby Lee revealed that the current price rally with bitcoin presents a really exciting trend. Despite the devaluation of the Yuan, China has been experiencing record trading volumes. According to him, “bitcoin’s price might reach or surpass $1,500 as soon as early 2017 thereby surpassing its 2013 all-time high.”

Lee thinks that the 80 percent price rise in bitcoin experienced this year is not only due to the devaluation of the Chinese currency but may have also been influenced by some major global economic and political upheavals, including the recent introduction of rigorous capital controls in Venezuela, the cancellation of banking notes with larger denomination in India, instability in the banking sector, Trump’s election, and even Brexit.

In comparison with altcoins, he thinks bitcoin has risen to become a safe choice for investors due to its relative stability and improvements in recent times – such as the establishment of SegWit. Lee concluded by saying that even before the next block reward halving in 2020, “bitcoin might even reach $10,000 and several thousands of U.S dollars in the long term.”

Considering how government has been spreading the supply of fiat currencies via some quantitative easing solutions, including fiat currencies, this prediction could be actually true. Since units of inflating currencies are used to measure bitcoin price, the price of the cryptocurrency is sure to go up because, over time, money supply will greatly increase.

But CEO Arthur Hayes, says the People’s Bank of China (PBOC) allowed the CNY to weaken since the Trump election. Also, one of the most relevant channels of capital flight, offshore mergers and acquisitions (M&A) of Beijing was closed during the recent period of devaluation. Now, Chinese companies must seek government approval before acquiring overseas firms.

Hayes who is also the Co-Founder of BitMEX revealed that it is becoming increasingly difficult to escape the weakening CNY especially “for regular comrades” many of whom tried to escape the commodity markets after property became unaffordable along with the crash of the stock market. There has been a fall in the trading volumes of most commodity futures due to increased margin requirements and Beijing’s reluctance on this rampant speculation.

Hayes concluded by saying if there is any market where the Chinese people are good at speculating 24/7, it is Bitcoin. As a hedge against a weakening domestic currency, this is where some wealth can be gainfully converted into bitcoin. No wonder the virtual currency is currently experiencing 2-year highs trade in China.

No doubt the use of bitcoin in many emerging markets, including China is on a rapid increase. Even with the speculative nature of most Chinese users, yet it does not seem to affect the increasing number of actual users in any way. BitKan CEO Leon Liu believes that why many startups are beginning to turn their eyes on bitcoin is due to the recently decreasing blockchain hype. “We are bullish on the bitcoin price, based on the statistics obtained,” said Liu.

hoopla on bitcoin price rise
Nov 28

The Hoopla Over Bitcoin Price Rise

By Etanllah | Bitcoin News


Everywhere you turn, you hear people talking about Bitcoin, like they’re on a first name basis. Well, it’s all for a good reason. Bitcoin Price is on the rise. Since November 14th, Bitcoin has ended the trading day, above $700. This volume is close to the all time highs, which were recorded in mid-June, at $781.31. If Bitcoin continues the upward trend, the end of the year could see trading hit an average annual mark higher than $750.

With trading markets, value counts for a great deal because the larger a stock becomes, the higher amount of new money is being poured into it. For Bitcoin price this could very well result in more enthusiasm about the currency overall. Enthusiasm means that new investors will rush to gobble up Bitcoins. Thereby, elevating the value as a percentage exchange rate, which in turn could push Bitcoin value even higher.

Right now, the outside factor that’s helping to push Bitcoin price higher is Chinese capital controls. Chinese capital controls refers to the rate in which a stock increases or decreases in value as a market commodity.

In simpler terms, capital control is the growth rate of the Chinese economy and how effectively it’s managed. So what does this have to do with Bitcoin price? The rate of the Chinese economy grows affects the ability of foreign investors to put money into global stable stock. With Bitcoin phenomenal growth rate, Chinese investors are assuming no risks, meaning they can invest in Bitcoin for the long term. Because Bitcoins do not erode in value.

What does Bitcoin’s price rally mean for investors? This is good news for investors everywhere. Bitcoin is becoming a long term investment option, which gives it clout as a safe haven stock. An example of another long term, safe haven stock is gold. Gold is a commodity that’s always on the top of the list of stocks to buy. Because Gold always increases in value, and now Bitcoin is approaching that same status. Bitcoin is headed towards becoming a valued asset in every country.

As previously stated, Gold is the only other asset that’s in constant global demand. It is considered a year round, safe haven. Meaning the more money you invest in Gold as a traded commodity, the higher the return on the investment (ROI). Bitcoin is quickly approaching that same status as an in-demand publicly traded option.

Bitcoin had to climb beyond the predicted, “slope of Enlightenment,” for its latest value increases. The “slope of Enlightenment,” refers to the newness factor, once all eyes are on a particular currency, because of excitement. Once that initial excitement dies is typically the period when boredom follows. For a brief period, it seemed that Bitcoin was going fall down into that slope. When its prices slacked off slightly to $713.

Then “Black Friday” rolled around and Bitcoin price value started to climb once again. This is due to the fact that Bitcoin was a contender in the Black Friday deals, going toe-to-toe with mainstream discounts. Bitcoin was holding its on vying for precious consumer shopping dollars by competing to match other exclusive discount offers. Bitcoin wallets opened up and with that, the stock’s value began to climb even higher.

Everyone was a winner using digital wallets on Friday. Some of the most popular Bitcoin bargains were shipping discounts that also included a free gift as well. Other deals offered 10% off for anyone using Bitcoin wallets. In addition to discounts and percentages off savings, other retailers provided Bitcoin raffle tickets with purchase.

coinbase logo
Nov 22

IRS Wants To Identify Coinbase Users

By Etanllah | Bitcoin News

IRS Seeking “John Doe” Summons on Coinbase

Last week, paperwork for a “John Doe” summons was filed by the Department of Justice on behalf of the IRS, who is seeking to uncover the identities of Coinbase users in the United States who transferred virtual currency between December 31st, 2013 and December 31st, 2015. Coinbase, the company that is being requested to release this information, is a company that allows its users to buy, sell, send, and receive virtual currencies such as Bitcoin and Ethereum.

A “John Does” summons is an order that, according to an article on the Forbes website, “identifies a person or ascertainable group or class by their activities”. The IRS is using this order to search for Coinbase users that may have failed to report their earnings or have committed tax fraud. They have already found instances of Coinbase users reporting the amount they spent on Bitcoins as tax deductions for technology expenses.

The “John Doe” summons could potentially uncover a great deal of information about a large amount of people. Coinbase says that it has 4.8 million users to date and was considered “the fourth largest exchanger globally of bitcoin into U.S. dollars and the largest exchanger in the U.S. of bitcoin into U.S. dollars” as of December of last year. The order is asking for information such as U.S. addresses, telephone numbers, e-mail accounts, bank accounts, all wallet activity on the Coinbase website.

Coinbase Statement

Coinbase released a statement to its users on its blog, “Our customers may be aware that the U.S. government filed a civil petition yesterday in federal court seeking disclosure of all Coinbase U.S. customers’ records over a three year period. The government has not alleged any wrongdoing on the part of Coinbase and its petition is predicated on sweeping statements that taxpayers may use virtual currency to evade taxes. Although Coinbase’s general practice is to cooperate with properly targeted law enforcement inquiries, we are extremely concerned with the indiscriminate breadth of the government’s request. Our customers’ privacy rights are important to us and our legal team is in the process of examining the government’s petition. In its current form, we will oppose the government’s petition in court. We will continue to keep our customers informed on developments in this matter.”

bitcoin utopia liberland
Nov 17

The President of Bitcoin Utopia Liberland Fights for Recognition

By Etanllah | Bitcoin News

Liberland’s first president Mr. Vit Jedlicka is on his way to create a Utopia in the land, which is between Serbia and Croatia, the land which according to him is unclaimed. He has a plan of having bitcoin as its Currency, and he also says that there will be no gun control and tax pay will not be mandatory. The land that Jedlicka is planning for is a 2.5 square mile marshland, which is uninhabited.

His three friends elected Jedlicka President in the year 2015 after they had planted a flag on the land. He has been working tirelessly since then, one of the big steps that he has made is signing up almost half a million citizens online, he also has a cabinet and ambassadors who are waiting to take up their role once everything is in place.

Crowdfunding and wealthy libertarians have helped Jedlicka in raising funds some of which he has used to print passports for the citizens.

No Occupation, Croatia Says

The land in question initially had its borders in Serbia, the Yugoslav civil war of the 1990s led to the redrawing of the boundaries. The challenge came in when Croatia said that they were not interested in the land considering that taking the land would mean that they have less territory. On the other hand, Serbia was comfortable with the new borders because it would give them more land. At the end of it, all the two countries did not want to take it, and at this point is when Jedlicka said that he is interested in the land and he wants it.

Vit Jedlicka Presses On

Some of the significant efforts made by Jedlicka to establish the new state include but not limited to the following.

• In September this year Jedlicka, Jose Miguel Maschietto, and a BBC reporter went into Liberland all of them posing as tourists.

• He has representatives and ministers who use social media to communicate.

• He has given tenders to architectural companies from all over the world to come up with a plan.

• Jedlicka went to neighboring countries in the year 2014 to build rapport and increase legitimacy on what he said was a diplomatic mission according to CCN.

• He engaged himself in a regional macroeconomic meeting where he explained about his entry and wanted it to be made legal.

• Jedlicka’s conviction was overturned by a Croatian court and instead taken for a retrial in a local one. He had seen danger and thought of giving up the case because if he were fined then, that would prove that an international boundary exists. He was hopeful that the border location would be decided by the court. The court didn’t do that because the case was adjourned.

Problems From Within

Mr. Maschietto who is Liberland’s foreign minister had some hidden agendas and went round with rumors which didn’t sum up. The first issue, which brought problems, was his claims that he had served as a commander in the Italian army and was also involved in peacekeeping in Kosovo.

The BBC reporter who uncovered this also confirmed that Maschietto had also claimed to be an international musician who was widely celebrated; he said that he is a composer and an experienced pianist. He said he had excelled in music and had done interviews to Italian and Czech media. It was confirmed that all this was not true.

When Jedlicka learned about the misconduct and false claims that Maschietto made he was not happy and that lead to the resignation of Mr. Maschietto. Jedlicka’s journey has not been an easy one. He still holds firm that he is the president of Liberland and that Bitcoin is the currency that he will use when everything is in place.

Nov 14

Growing use of Bitcoin in e-Commerce and Trade Points to a Great Future

By Etanllah | Bitcoin News

Growing use of Bitcoin in e-Commerce and Trade Points to a Great Future

Bitcoin cryptocurrency is regulated differently around the world, depending on government policies or court decisions. Several private companies are also getting into the act by defining how the currency can be used to pay for goods and services. BigCommerce is a leading global concern pushing for the acceptance of Bitcoin on eCommerce site eBay. According to a new report published by Coin Telegraph, BigCommerce has signed an agreement with eBay to expose over 160 million active buyers to Bitcoin. Although the digital currency yet to be fully accepted by eBay as a form of payment, the move by BigCommerce is informed by the growing popularity of the digital currency and company’s incessant push to promote Bitcoin.

BigCommerce also sees Bitcoin as a relatively safe means of payment in the global marketplace. The announcement between eBay and BigCommerce saw the integration plan begin on November 11. BigCommerce merchants will now have the opportunity to pick products from the company’s catalog and offer them for sale at eBay without going through the tedious third-party apps. The newly unveiled, cost efficient platform combines the app ecosystem and an open architecture to scale and leverage online sales. The integration will also allow merchants to use the advanced centralized order processing and inventory management system to sell products simultaneously at BigCommerce and eBay.

BigCommerce boasts a wide portfolio of clients, who include 50,000 small and medium size enterprises, 10 Fortune 1,000 companies, 2,000 plus mid-market businesses and 17 internet retailers. The company CEO, Mr. Brent Belm augured that the unified integration will make it easy for retailers to tap into the larger eBay customer base, in a move to boost sales. The platform will also allow traders to enjoy the benefits of economies of scale by minimizing operational complexity and technical glitches. Besides promoting the use of Bitcoin, BigCommerce also encourages the use of Apple Pay, PayPal and Credit and Debit, among other forms of payments. In related news, the use of Bitcoin around the world continues to grow as various economies look for the strategies to tap into the digital currency phenomenon.

According to a list published by in late March 2016, the top 5 Bitcoin friendly countries were listed as Estonia, United States, Sweden, Denmark and South Korea. In Estonia, the wide acceptance of Bitcoin stems from the country’s willingness to embrace technology at different levels of governance and business. The Baltic nation is already home to several Bitcoin startups and ATM machines. One of the leading peer-2-peer startups in the country is Paxful. The company is focused on buying and selling Bitcoin in exchange for services. In the United States, the presence of the Silicon Valley and a large financial services sector has bolstered the use of Bitcoin in trading. The country is also home to the highest concentration of Bitcoin cryptocurrency users, Bitcoin ATM’s, and block chain startups.

LocalBitcoins is one of the preeminent peer-2-peer Bitcoin trading companies in the US. South Korea with its tech savvy populace and economy was quick to embrace Bitcoin as a means of exchange and investment. This development is attributed to a number of factors, including high penetration of Smartphone’s and corresponding mode of payment and lack of laws regulating the use of the Bitcoin. The existing business environment in the country has led to a rise in the number of Bitcoin related startups and retail stores accepting the digital currency, prominent among them the 7 Eleven stores. The other countries that rank high in the use of Bitcoin around the world include the Netherlands, the UK, Canada, Australia and Finland.

blackchain logo
Nov 08

The Joining of a Third Blockchain Project

By Etanllah | Bitcoin News

In recent news, a third blockchain project has joined the Hyperledger incubation for the Linux Foundation. This project joined this incubation program on October the 13th. It was rumored for a while that the Bitcoin is dead or will be dead soon. However, due to the blockchain technology, the bitcoin may be around for a while longer.

A blockchain is a digital ledger that is recorded publicly and chronologically in which companies can verify and make transactions on a network instantly through bitcoin or another cryptocurrency. Today, a significantly growing number of firms from different industries are experimenting with this technology as a transparent and secure way to track the ownership of assets digitally. These companies see how blockchain is an opportunity to track assets moving through their supply chain, and they can electronically enforce and initiate contracts.

The blockchain project for the Linux Foundation is called Iroha, and it was created by the members of Soramitsu, a Japanese startup. The Fabric project of IBM and the Sawthooth Lake project of Intel were the first two projects that received incubation status. And now, Iroha is the third project that obtained this status.

The beginning and developing of the Iroha protocol came from a few blockchain companies’ members. This included Soramitsu, Colu (an Israeli startup), and NTT Data. The developers stated that the project is designed to offer a decentralized and secure platform of data management for financial institutions and other industries. The core of Iroha core offers the infrastructure of the distributed ledger that comprised of the data membership services, data validation, peer to peer network, consensus algorithm, and chain code infrastructure. This project uses Sumeragi, a custom consensus algorithm that is incredibly fast, according to the programmers. They aimed to provide finished transactions within two seconds. Thus, Iroha claims it uses C++ for UDP multicast and processing to scale this platform for this ultimate speed.

Developers also stated that Iroha is aiming to compliment IBM’s Fabric and Intel’s Sawtooth Lake. They want to complement them and other potential projects by producing components in C++ that are reusable and can be called from different languages, like Go. With these goals, Iroha would be additive to existing projects. Additionally, the long term goal is to realize a reusable components’ library that can be chosen and utilized freely by those blockchains on Hyperledger technology.

An Effort of Collaboration

Recently reported about a few companies forming a blockchain collaboration. It was the Center for Global Communications (GLOCOM), Soramitsu, the University of Aizu, and the University of Tokyo. These organizations along with Sompo Holdings are working and exploring on use cases in order to improve the viability of Iroha.

Sompo Holdings will work with derivatives of the Iroha blockchain. Also, the joint research of these groups that operates within Fukushima Prefecture will test Iroha. And Soramitsu is developing a KYC system with Rakuten Securities.

According to these developers, the platform possesses an easy architecture and the capability to perform smart contracts that are Java centered. They claim to possess asset loyal point systems and issuance capability on a web development and mobile platform. Also, Iroha possesses multiple use cases, including contract management, settlement, supply chain management, securities clearing, and much more.


With all the developments and the joining of different blockchain projects, the bitcoin is here to stay, at least, for a while. With blockchain being a secure and decentralized way as a business ledger to handle transactions digitally and publicly, more companies are getting involved, and this is just the beginning.

Nov 02

Venezuela Citizens Turn To Bitcoins In Record Numbers

By Etanllah | Bitcoin News

Bitcoins are becoming an increasingly popular form of digital currency, especially in areas that are suffering from currency devaluation. Unlike other forms of currency, the bitcoin remains relatively stable and isn’t likely to suddenly drop in value at the drop of a hat.

This explains why Venezuela, a country that has been suffering from severe economic problems, is increasingly turning to bitcoins over there own currency.

The Root Of The Problem

Over the last year, Venezuela’s currency, the bolivar, has lost at least half of its value when compared to the American dollar. This is an astonishing drop and one of the worst in the world. Coupled with this is a stunning increasing in inflation, which is estimated to have grown by as much as 15 times.

This creates a perfect storm of conditions that has driven the bolivar to nearly worthless levels. It isn’t uncommon for Venezuela citizens to carry a wheelbarrow of cash to the store simply to buy a few items.

Some are even using their currency as a form of paper or stuffing it in their heating and cooling items. As a result, the country is in a state of crisis which has been historically difficult to escape.

Where Bitcoins Come In

According to recent date released by LocalBitcoins (an online page that helps bitcoin buyers and sellers communicate), trading volume in Venezuela is at an all-time high. Some in the country have purchased as many as 370 bitcoins in a single week, which translates to about $224,000 USD. Though this process is difficult to manage, it is one that an increasing number of Venezuelans are undertaking, especially on their exchange, Surbitcoin.

Once a buyer gets control of bitcoins, they have a few different options. Many will simply keep the bitcoin and hope it increases in value over the years. In this way, they are basically investing in a huge upswing and hoping that their currency stays at its low level. This is a bit of a gamble, though, as it requires holding into currency for an extended period of time.

However, many more buyers are converting their bitcoins into American currency. Having lost all confidence in the bolivar, they are transforming it into a more stable and reliable one. However, there are some dangers with investing too heavily in bitcoins, especially in a struggling nation.

Hacking Is A Possibility

The thing that many people in Venezuela may not realize is that bitcoin hacking is a real possibility. Exchanges and wallets have been hacked and emptied of billions of bitcoins, devastating the holder’s account.

Thankfully, anti-hacking procedures are available for bitcoint wallets including storing bitcoins in air-gap servers stored in secret locations. This option is not likely viable for many Venezuelans, however.

Truthfully, the small amount of money the average person holds in their bitcoin wallet makes it highly unlikely that their account will be hacked. It is a danger, however, that is worth understanding.

Potential Fallout

One interesting thing to consider is the possibility of other countries turning to bitcoins in the future. For example, the economic crisis that impacted Greece could have seen them turning to a stable form of digital currency, rather than their own devalued one.

Could a major economic depression across the world raise bitcoins to worldwide prominence? If so, this would cause most of the world’s currency to be focused in the hands of those that could produce and distribute bitcoins. This is a strange possibility and one that is hard to imagine actually occurring.

But as countries like Venezuela continue to watch their currency’s value drop, it is one that is worth taking seriously.

Oct 27

The Evolution Of Bitcoins

By Etanllah | Bitcoin News

Bitcoin Chain IMG_9152

Bitcoin usage is still a relatively new thing in history with tweaking and debates about changes to the core of bitcoin still going on. There has been a long ongoing debate in whether or not to raise the limit on data in bitcoin transactions. Those for it recognize that doing so will likely encourage more users who buy with and accept bitcoin. Those opposed to such a change, also recognize that it will encourage more users. However, they are afraid that of the harsh consequences of this such as centralization and instability. But the limit of data in transactions is only one area of bitcoin usage that can be tweaked; there are many with there be those for and against changing any one of them.

People who have extensively researched the subject of bitcoins say that one of the most important of these proposed changes involves block time reduction from 10 to one minute which most of these experts agree can be done securely and effectively. A very positive outcome of such a change is that it will greatly boost the number of transactions possible on a network. And all of the researchers agree that of the many possible tweaks to bitcoin usage, this tweak seems the most plausible and the most beneficial.

These findings are a result of these researchers particularly seeking ways to increase bitcoins transaction capacity. But the researchers say that if any of these changes to come about, they must be made extremely carefully and meticulously gauging every step of the procedure so that future bitcoin researchers can make better decisions. In fact, the ability to make future and better decisions is why there are dedicated researchers of bitcoin at all. Their research of the possible tweaks has found that many do not have enough benefits to outweigh the very possible adverse effects.

A huge adverse effect involves security. If security is greatly hurt, the possible tweak will most probably be abandoned. There has been a lot of progress made as a result of this research, but the researchers say there is much more to do. There are also tighter security measures being made to ensure that unethical acts like double spending or selfish mining aren’t going on. Bitcoin engineers have found that they can detect stuff like this by carefully monitoring the blockchains. A stale block will usually make it easier for these unethical acts to go down.

This is why it is harder and thus more insecure to have bigger 10-minute blocks. And that is why one-minute blocks are more effective for security reasons. There are still the skeptic experts who say bigger block-times are better. They do have good reason for this because although a too high a block time is bad for security, a too low block time is bad for it as well. Those for a higher block time also arguing that larger blocks move across a network faster. While the debate lingers, it is clear that changes of some sort will be arriving in the bitcoin sector in the future.