Category Archives for "Bitcoin News"

Oct 23

One Miner Could Play a Big Role in the Future of Bitcoin

By Etanllah | Bitcoin News

With the emergence of technology over the years there have been many new ways to pay other people either through apps or online. In the past, it was all about trading animals and other products as payments. Then methods of payment switched over to cash and checks. Now checks are becoming less common as apps and smartphones can send money to someone across the globe in a matter of minutes. It is fast and much more secure.

Bitcoin is a new form of payment that is created and used online. No one necessarily controls it because it never hits paper. It is all safely stored online. Bitcoin is produced by people and are are starting to peak the interest of businesses.

In recent news, there is a mystery miner guy that could play a big role in determining the future of Bitcoin. There has been much debate around the globe about how to expand the reach of Bitcoin. There has to be a better way to scale out the transaction capacity. Searching for new solutions has been delaying the growth of Bitcoin.

The slow growth in progress for Bitcoin has hurt the business community in several ways. Many of the companies impacted by Bitcoins slow growth rely on technical improvements to keep growing. Bitcoin’s main development group has a group of detractors. A large number of startups and service providers that have invested time and money in Bitcoin will continue to support its efforts.

If the bitcoin mining pool will work well, then another new solution may be unnecessary. So far China’s ViaBTC has been one of the biggest supporters and providers for a mining software that will help change a clients status from official version provided by Bitcoin Core to Bitcoin Unlimited. The unlimited status is part of a competing group that supports other methods of scaling and continues to focus its efforts on a changeable bitcoin block size.

In comparison to the basic bitcoin software, Bitcoin Unlimited does not receive and support for developer group’s greatest scaling solution, Segregated Witness. This solution is a technical advancement that would make bitcoin’s block size about 1.8 times larger than its current size.

During the fall months of 2015, Bitcoin Unlimited was developed all that all individual node operator and miners involved could pick a block size that they prefer instead of being forced to abide by the size limit put in place by bitcoin’s executives. The claims made stated the problem with Bitcoin Unlimited relates to the blocks using up data too fast pasts its limits. That in turn causes an overall slower transaction processing time. In addition, fees are rising and that is prohibiting the bitcoin program to grow.

In order to successfully change the bitcoin block size there needs to be a hard fork. That has not been working well for Bitcoin Core. Getting a hard fork is not necessarily easy. There are several problems involved. With hard fork pairs of blockchains with dissimilar standards are built. Bitcoin miners and node operators have the power to choose their best option.

If there is no new software available to upgrade the system then a node is cut off from being part of the system. Segregated Witness is different because it uses a soft fork. That means nodes will still be connected to the system even if there is no recent upgrade. You would just not be able to broadcast the information without the most recent update.

bitcoin kenya
Oct 18

Bitcoin Assistance in the Kenyan Government Taxation Crackdown

By Etanllah | Bitcoin News

It’s recently reported that Bitcoin is assisting Kenya in being tax regulators for cracking down on small businesses that are implementing tax evasion. Kenya has been having a huge problem with a large amount of unbanked citizens and lingering corruption of the higher epsilon in business.

Kenya has also been fixated on thousands of kiosks located throughout various cities and towns of Kenya. This is because an overwhelming amount of the workforce comes from such small scale operations, and they have been hard to tax. As a matter of fact, about 80% of employment in these sort of operations is also known as the “informal sector”, according to Standard Digital, a local publication.

Standard Digital also quoted a statement from Henry Rotich, the National Treasury Cabinet Secretary, saying that they are considering a presumptive tax introduction as part of the income tax review of the population segment that’s hard to tax, including the informal sector. The new rules will also include matutu drivers who are formed as the main urban transport system. And as a result, the public immediately addressed questions upon hearing the announcement. The public demanded answers in knowing how the government will enforce legislation in a country that has low establishment in banking. Nevertheless, Rotich still focused uniformly on applying tax laws, regardless of the banking status. So far, he has requested the Kenyan Revenue Authority to explore avenues for the taxation of the informal sector and to significantly increase their efforts in trapping tax evaders.

BitPesa and their Customers

Due to the cracking down of tax evasion in the Kenyan government, BitPesa has assured their customers that they have nothing to fear. This Bitcoin-based operator has confirmed to that this situation will not affect their loyal customers. As long as these customers are paying taxes, they have nothing to be concern about. As a matter of fact, all transactions of BitPesa are monitored in the mobile money account and the starting and ending in a bank.

The anti-tax measures started during a setback of Kenya’s microloans customers. In August, Kenya enacted a legislation of new banking that has prevented M-Pesa, Kenya’s biggest mobile payment operator, from providing loans. And at that time, a spokesman stated that the program had been stalled for the time being, and that only the repayment function for existing loans is available.

So far, the government has not responded to queries regarding the new checks’ system. The government also has not pointed out whether or not there would be improvement required for the mobile money wallet monitoring. However, the required resources and manpower of any increase will likely be an issue moving forward.

bitcoin circuit
Oct 07

BlockStream Achieves A Major Milestone In Bitcoin Transaction

By Etanllah | Bitcoin News

Engineers and programmers working on the Bitcoin technology have achieved yet another milestone by initiating a “lightening fast” transaction to buy a product, online. The project calls itself “the Lightening Network”, which bases its technology on the different Lightening Projects taking place all around the world. According to the news release, the test was done to sell a picture of two cats sitting in front of a Sun. Interestingly, the entire transaction took less than one-tenth of a millisecond, which is an incredible speed considering that the entire process included invoicing the party for the bitcoin and routing the data over multiple nodes.

It is also interesting to note that recently a French startup, Acinq, carried out a similar successful trial of the bitcoin transaction based on the lightening concept. However, the recent test by the Montreal based Blockstream is seen as an advanced step in Bitcoin transaction. The test is significant because unlike Acinq, which focused on efficient routing instead of the speed, the transaction test done by Blockstream focused only on successful transaction across the network. Experts confirmed that the test is also different in the sense because previous test by Acinq, the French company, only demonstrated an analogy how the transaction can be carried out by taking a specific route. However, Blockstream test has actually demonstrated in real-time that it can be done efficiently by conducted the test on the bitcoin testnet.

After the test, Blockstream tech engineer, Rusty Russell, explained that they were ready to do the test because they had everything in place for a long time. While it may seem trivial to many who are new to the Bitcoin industry, it is a major milestone for us because seeing the transaction in real-time is extremely encouraging. He also explained that his company is not solely focused on “lightening network”. In fact, this is not the signature project of the company, either. Still, the success of the company on the lightening projects is interesting because a large number of companies and new startups are eager to meet and develop the lightening project as one of the mainstream concepts in the industry. Rusty also acknowledged that his company has hired experts who want to test new dimensions similar to this project. For instance, another expert Christian Decker joined the company last August proposed Duplex Lightning Micropayment Channels, another method to tap into the micropayment channels.

It is notable that in recent years, many new firms interested in bitcoins have started focusing on the lightning network. Just recently, a new startup received VC funding to develop the network. The increased interest in lightning bitcoin is forcing interested parties and stakeholders to come together to craft an industry standard, which will increase the development process. As a result, the recent large-scale conference, Scaling Bitcoin, also proved vital in convincing developers to create unified rules for the lightening network. Accordingly, prominent teams working on different Lightening Projects are going to meet in Milan, very soon.

Decker also explained that one of the goals of the upcoming meeting is to build a micropayment channel on the bitcoin testnet, which will help developers create a small ecosystem as a starting point. To achieve goals of development, Blockstream has decided to publicly make its documentation available to researchers or anyone interested in the development of this groundbreaking technology. Still, there are opportunities for further development because the existing process is only a practical method of routing the payment from end-to-end without focusing on the most efficient route. Hopefully, the technology will soon be able to find the most efficient route to make payments extremely secure.

bitcoin chart up
Oct 04

Bitcoin Prices Could Change Because Of Interest Rate Changes

By Etanllah | Bitcoin News

The Bitcoin is the most popular virtual currency out there, but it is also subject to the global economy just like everything else. You might think that you are immune to the economy when you are using bitcoins, but that is not the truth at all. You need to read up on the situation that is revolving around interest rates, and you will see that bitcoins could be hit by changing interest rates just like anything else.

Bitcoin Prices Are Subject To The Market

The market out there includes all currencies, and it is very hard for you to avoid the fact that all currencies impact all other currencies. You know just as well as anyone else that the currencies all around are going to move as the others move. You can get currency trading going at any time, but you have to be prepared for currencies to take a dive when other currencies are not doing well. Everyone will react to what happens with the currencies around the world, and they will cause your bitcoin prices to go down.

Interest Rates Rising As The Economy Improving

Everyone around the world is essentially waiting for their interest rates to go up as central banks are trying to make sure that they can stabilize their economies. They are going to raise rates just a little to make sure that everything is stable. You might have high prices on your bitcoins, but that does not mean that they are always going to be that valuable. They might start to dip in price if they have been hit by the interest rates around the world.

Reading Up On World Events

You have to be well versed in world events, and you need to make sure that you have an idea of how these events change the price of your bitcoins. You have bitcoins that already have a set value, but you need to start looking around to find out what they are worth every day. It could be changing all the time, and it is very hard for someone like you to be able to get your bitcoins to recover value. You might want to sell them off before their prices get too low, or you might wait for their value to recover.

Selling Versus Holding

You can sell your Bitcoins if you think that is the right thing to do, but there is a lot of information to suggest that you should hold onto your coins. The economy will recover because ti always does, and you will be able to sell later because you will not have to worry about the value falling. There are a lot of people who are going to want to sell right now, but you usually do better when you choose to sell after you have thought it over.

The Price Today

The price today is something that you need to be concerned with, and you need to take steps to make sure that you have chosen to get the value you want out of the Bitcoins. You do need to do your research because that could be a big problem, and it is also important that you have thought about what is possible when you know the trends in the prices of your coins.

You can see your Bitcoins changing in value every day with the moves in the world market, and interest rates all over the world will change the values of your bitcoins. You cannot help it because the economy moves with or without you, but you need to make sure you are prepared.