What separated these survivors from the quitters and the double-downers, Carlson concluded, was simply the price of electricity. Survivors either lived in or had moved to places like China or Iceland or Venezuela, where electricity was cheap enough for bitcoin to be profitable. Carlson knew that if he could find a place where the power wasn’t just cheap, but really cheap, he’d be able to mine bitcoin both profitably and on an industrial scale.
With the Bitcoin price so volatile everyone is curious. Bitcoin, the category creator of blockchain technology, is the World Wide Ledger yet extremely complicated and no one definition fully encapsulates it. By analogy it is like being able to send a gold coin via email. It is a consensus network that enables a new payment system and a completely digital money.
What separated these survivors from the quitters and the double-downers, Carlson concluded, was simply the price of electricity. Survivors either lived in or had moved to places like China or Iceland or Venezuela, where electricity was cheap enough for bitcoin to be profitable. Carlson knew that if he could find a place where the power wasn’t just cheap, but really cheap, he’d be able to mine bitcoin both profitably and on an industrial scale.

Bitcoin is a peer-to-peer version of electronic cash that allows payments to be sent directly from one party to another without going through a financial institution. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. – Satoshi Nakamoto

I think many institutions are buying quietly before the next rally and before the next halving: http://www.bitcoinblockhalf.com/ This is a great time to accumulate. The upside potential overweighs many times any downside risk. And with the stock market peaking, more money will start flowing into Bitcoin. submitted by /u/simplelifestyle [link] [comments]


A Bitcoin wallet is also referred to as a digital Wallet. Establishing such a wallet is an important step in the process of obtaining Bitcoins. Just as Bitcoins are the digital equivalent of cash, a Bitcoin wallet is analogous to a physical wallet. But instead of storing Bitcoins literally, what is stored is a lot of relevant information like the secure private key used to access Bitcoin addresses and carry out transactions. The four main types of wallet are desktop, mobile, web and hardware.
That’s why mining pools came into existence. The idea is simple: miners group together to form a “pool” (i.e., combine their mining power to compete more effectively). Once the pool manages to win the competition, the reward is spread out between the pool members depending on how much mining power each of them contributed. This way, even small miners can join the mining game and have a chance of earning Bitcoin (though they get only a part of the reward).
Another interesting way (literally) to earn bitcoins is by lending them out, and being repaid in the currency. Lending can take three forms – direct lending to someone you know; through a website which facilitates peer-to-peer transactions, pairing borrowers and lenders; or depositing bitcoins in a virtual bank that offers a certain interest rate for Bitcoin accounts. Some such sites are Bitbond, BitLendingClub and BTCjam. Obviously, you should do due diligence on any third-party site.
It would seem even early collaborators on the project don’t have verifiable proof of Satoshi’s identity. To reveal conclusively who Satoshi Nakamoto is, a definitive link would need to be made between his/her activity with Bitcoin and his/her identity. That could come in the form of linking the party behind the domain registration of bitcoin.org, email and forum accounts used by Satoshi Nakamoto, or ownership of some portion of the earliest mined bitcoins.  Even though the bitcoins Satoshi likely possesses are traceable on the blockchain, it seems he/she has yet to cash them out in a way that reveals his/her identity. If Satoshi were to move his/her bitcoins to an exchange today, this might attract attention, but it seems unlikely that a well-funded and successful exchange would betray a customer's privacy.

If you have the required hardware, you can mine bitcoin even if you are not a miner. There are different ways one can mine bitcoin such as cloud mining, mining pool, etc. For cloud mining, all you need to do is to connect to the datacenter and start mining. The good thing about this is that you can mine from anywhere and you don’t need a physical hardware to mine.

Bitcoin’s popularity has undeniably been its number one advantage over the numerous other cryptocurrencies. By gaining a large number of adopters and users, Bitcoin has achieved a network effect that attracts even more users. Users who would otherwise be more apprehensive investing in a relatively unknown and unproven digital currency are reassured by Bitcoin’s performance over time, its growing community, and the fact that people they know are adopting cryptos.

Wallets and similar software technically handle all bitcoins as equivalent, establishing the basic level of fungibility. Researchers have pointed out that the history of each bitcoin is registered and publicly available in the blockchain ledger, and that some users may refuse to accept bitcoins coming from controversial transactions, which would harm bitcoin's fungibility.[117]
You can buy bitcoins at online exchanges similar to a paypal account. Companies like Coinbase allow you to buy bitcoin with a credit card along with wire transfers, checks and ACH. You can also use professional exchanges like Coinbase Pro that allow for institutional investors and experienced traders to trade in high volumes in a variety of cryptocurrencies with minimal fees.
Another interesting way (literally) to earn bitcoins is by lending them out, and being repaid in the currency. Lending can take three forms – direct lending to someone you know; through a website which facilitates peer-to-peer transactions, pairing borrowers and lenders; or depositing bitcoins in a virtual bank that offers a certain interest rate for Bitcoin accounts. Some such sites are Bitbond, BitLendingClub and BTCjam. Obviously, you should do due diligence on any third-party site.
Apart from being an intriguing mystery, this has real-world ramifications. u/Sick_Silk believes that the movement of funds may be at least partially responsible for the recent price decline seen in August, and whether that’s true or not, it’s certainly the case that  0.52% of the entire supply of Bitcoin is more than enough to seriously manipulate or destabilize the market. Indeed, the funds are already worth around $80 million less since the report went public.
No. 1: Paper wallet or other cold storage. A paper wallet is simply a document that contains all the information you need to generate the bitcoin private keys you need. It often takes the form of a piece of paper with a QR code that can be scanned into a software wallet when you so desire. By storing your bitcoin offline, trusting nothing and no one but yourself, and if you have all the information you need to control and access your bitcoin, you're using the strongest "cold storage" method out there.
Mobile wallets overcome the handicap of desktop wallets, as the latter are fixed in one place. These take the form of paid apps on youOnce you run the app on your smartphone, the wallet can carry out the same functions as a desktop wallet, and help you pay directly from your mobile from anywhere. Thus a mobile wallet facilitates in making payments in physical stores by using "touch-to-pay" via NFC scanning a QR code. Bitcoin Wallet, Hive Android and Mycelium Bitcoin Wallet are few of the mobile wallets. Bitcoin wallets do not generally work on both iOS and Android systems. It's advisable to research your preferred mobile Bitcoin wallet as several malware softwares posing as Bitcoin wallets can be 
Another interesting way (literally) to earn bitcoins is by lending them out, and being repaid in the currency. Lending can take three forms – direct lending to someone you know; through a website which facilitates peer-to-peer transactions, pairing borrowers and lenders; or depositing bitcoins in a virtual bank that offers a certain interest rate for Bitcoin accounts. Some such sites are Bitbond, BitLendingClub and BTCjam. Obviously, you should do due diligence on any third-party site.
Because of bitcoin's decentralized nature and its trading on online exchanges located in many countries, regulation of bitcoin has been difficult. However, the use of bitcoin can be criminalized, and shutting down exchanges and the peer-to-peer economy in a given country would constitute a de facto ban.[164] The legal status of bitcoin varies substantially from country to country and is still undefined or changing in many of them. Regulations and bans that apply to bitcoin probably extend to similar cryptocurrency systems.[165]
The difficulty is rapidly doubling, so in a year (2019) your 14 hash rate(Can be as low as 11) on your $1500 non over gouged S9 (or $2500-$3000 gouged) is going in effect has the same as 7 in what’s it worth to you. Increases of 10% a month or so. At btc current prices, and current electrical prices (using avg of .10) , you will cease to pay for electricity in a yrs time taking the complexity of the work it’s doing rising at that rate. Add on top of that the fact it’s a machine, running 24/7,you’ve really… Read more »
Just when it seemed that things couldn’t get any worse, they did. As mining costs were rising, bitcoin prices began to dive. The cryptocurrency was getting hammered by a string of scams, thefts and regulatory bans, along with a lot of infighting among the mining community over things like optimal block size. Through 2015, bitcoin prices hovered in the low hundreds. Margins grew so thin—and, in fact, occasionally went negative—that miners had to spend their coins as soon as they mined them to pay their power bills. Things eventually got so grim that Carlson had to dig into his precious reserves and liquidate “all my little stacks of bitcoin,” he recalls, ruefully. “To save the business, we sold it all.”

Because of bitcoin's decentralized nature and its trading on online exchanges located in many countries, regulation of bitcoin has been difficult. However, the use of bitcoin can be criminalized, and shutting down exchanges and the peer-to-peer economy in a given country would constitute a de facto ban.[164] The legal status of bitcoin varies substantially from country to country and is still undefined or changing in many of them. Regulations and bans that apply to bitcoin probably extend to similar cryptocurrency systems.[165]
Deanonymisation is a strategy in data mining in which anonymous data is cross-referenced with other sources of data to re-identify the anonymous data source. Along with transaction graph analysis, which may reveal connections between bitcoin addresses (pseudonyms),[13][18] there is a possible attack[19] which links a user's pseudonym to its IP address. If the peer is using Tor, the attack includes a method to separate the peer from the Tor network, forcing them to use their real IP address for any further transactions. The attack makes use of bitcoin mechanisms of relaying peer addresses and anti-DoS protection. The cost of the attack on the full bitcoin network is under €1500 per month.[19]

In January 2009, the bitcoin network was created when Nakamoto mined the first block of the chain, known as the genesis block.[18][19] Embedded in the coinbase of this block was the following text: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks."[10] This note has been interpreted as both a timestamp and a comment on the instability caused by fractional-reserve banking.[20]:18

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