On this day in Crypto History - Original Tweet: https://twitter.com/AlexSaundersAU/status/1053782888649379840 2017: Australia officially ended double taxation of Bitcoin 2015: ACCC investigated Banks closing crypto companies accounts 2011: BTC completed it's deepest correction from $30 to $2 2008: Satoshi put the finishing touches on his Whitepaper https://i.redd.it/2uyreiom8ft11.png submitted by /u/nugget_alex [link] [comments]

For all that potential, however, the basin’s nascent mining community was beset by the sort of troubles that you would have found in any other boomtown. Mining technology was still so new that the early operations were constantly crashing. There was a growing, often bitter competition for mining sites that had adequate power, and whose landlords didn’t flip out when the walls got “Swiss-cheesed” with ventilation holes. There was the constant fear of electrical overloads, as coin-crazed miners pushed power systems to the limit—as, for example, when one miner nearly torched an old laundromat in downtown Wenatchee.
But due to the volatility of bitcoin, it’s impossible to predict the annual revenue of a mining farm. On my flight from China back to the United States, the price of bitcoin crashed 25 percent, from $2,400 to $1,800. In no time at all the operation I visited was bringing in $50,000 less per day. Within a week it was back up, and approaching an all-time high.

Bitcoin paints a future that is drastically different from the fiat-based world today. This is either exciting or unsettling for the vast majority. Equip yourself with the best possible resources. Become active in communities that further explore not only the technical applications of Bitcoin and other cryptos, but with their overall potential to disrupt virtually every market. Brace yourselves. Cryptos are coming.
Desktop wallets are installed on a desktop computer and provide the user with complete control over the wallet. Desktop wallets enable the user to create a Bitcoin address for sending and receiving the Bitcoins. They also allow the user to store a private key. A few known desktop wallets are Bitcoin Core, MultiBit, Armory, Hive OS X, Electrum, etc.
According to the Library of Congress, an "absolute ban" on trading or using cryptocurrencies applies in eight countries: Algeria, Bolivia, Egypt, Iraq, Morocco, Nepal, Pakistan, and the United Arab Emirates. An "implicit ban" applies in another 15 countries, which include Bahrain, Bangladesh, China, Colombia, the Dominican Republic, Indonesia, Iran, Kuwait, Lesotho, Lithuania, Macau, Oman, Qatar, Saudi Arabia and Taiwan.[166]

Paint mixing is a good way to think about the one-way nature of hash functions, but it doesn’t capture their unpredictability. If you substitute light pink paint for regular pink paint in the example above, the result is still going to be pretty much the same purple, just a little lighter. But with hashes, a slight variation in the input results in a completely different output:
Anyone who can run the mining program on the specially designed hardware can participate in mining. Over the years, many computer hardware manufacturers have designed specialized Bitcoin mining hardware that can process transactions and build blocks much more quickly and efficiently than regular computers, since the faster the hardware can guess at random, the higher its chances of solving the puzzle, therefore mining a block.
Paint mixing is a good way to think about the one-way nature of hash functions, but it doesn’t capture their unpredictability. If you substitute light pink paint for regular pink paint in the example above, the result is still going to be pretty much the same purple, just a little lighter. But with hashes, a slight variation in the input results in a completely different output:
To save money on cooling, some mine operators have opted for cooler climates. BitFury also runs three large mining facilities, one of which is in Iceland to benefit from the cool weather. “Many data centers around the world have 30 to 40 percent of electricity costs going to cooling,” explains Valery Vavilov, the CEO of BitFury. “This is not an issue in our Iceland data center.”

Majority consensus in bitcoin is represented by the longest chain, which required the greatest amount of effort to produce. If a majority of computing power is controlled by honest nodes, the honest chain will grow fastest and outpace any competing chains. To modify a past block, an attacker would have to redo the proof-of-work of that block and all blocks after it and then surpass the work of the honest nodes. The probability of a slower attacker catching up diminishes exponentially as subsequent blocks are added.[3]
The future of global payments could be in the early stages of significant change, with Bitcoin and other cryptocurrencies gaining in popularity and use. These charts can keep you up to date on Bitcoin prices and market activity, and can be a useful tool for timing purchases or sales. While prices could go down as well as up, the Bitcoin market has enormous potential, and prices seen in 2017 could eventually look like a genuine bargain.a

Bitcoin miners were now caught in the same vicious cycle that real miners confront—except on a much more accelerated timeframe. To maintain their output, miners had to buy more servers, or upgrade to the more powerful servers, but the new calculating power simply boosted the solution difficulty even more quickly. In effect, your mine was becoming outdated as soon as you launched it, and the only hope of moving forward profitably was to adopt a kind of perpetual scale-up: Your existing mine had to be large enough to pay for your next, larger mine. Many miners responded by gathering into vast collectives, pooling their calculating resources and sharing the bitcoin rewards. Others shifted away from mining to hosting facilities for other miners. But whether you were mining or hosting, mining entered “a scaling race,” says Carlson, whose own operations marched steadily from 250 kilowatts to 1.5 megawatts to 5 megawatts. And it was a race: Any delay in getting your machines installed and mining simply meant you’d be coming on line when the coins were even harder to mine.


Cryptocurrency mining can be an expensive proposition, requiring computing hardware and electricity. Cryptojacking offers cybercriminals a way to steal computing power from other people to bypass the effort and expense. Cryptojacking software operates on computers in the background, with the only evidence of its presence signified by a user’s device overheating or slowing down.
If you've made it this far, then congratulations! There is still so much more to explain about the system, but at least now you have an idea of the broad outline of the genius of the programming and the concept. For the first time we have a system that allows for convenient digital transfers in a decentralized, trust-free and tamper-proof way. The repercussions could be huge.
It is well known and recognised throughout the land, that the opposition to BREXIT is coming from those who are aligned together in various forms. Some are OPEN BORDERS AND MASS IMMIGRATION, others are GREEDY BIG BUSINESS IDENTITIES, wanting masses of cheap labour to compete with China and India etc--etc-. Others are TRAITORS wanting to disband the national identity of the British nation. The FASCIST leaning EU wants to remove Sovereign nations and turn them into GEOGRAPHIC AREA'S on a Brussels Empire Map. And yet again, there are the brain washed Students from third rate socialist universities ( LSE ), student unions trying to attack our heritage, and being allowed to do so by weak and unfit for purpose University Vice Chancellors. But thank god they are still in a small minority, probably all those who attended the Socialist Marxist uprising in Londonistan yesterday, were the bulk ( about 90%) of the Remainers who hate the democratic result of our referendum. But there are more than 20 million totally opposed to the EU, and we will LEAVE THE EU
The Bitcoin mining network difficulty is the measure of how difficult it is to find a new block compared to the easiest it can ever be. It is recalculated every 2016 blocks to a value such that the previous 2016 blocks would have been generated in exactly two weeks had everyone been mining at this difficulty. This will yield, on average, one block every ten minutes.
Charts can be a very useful tool for those looking to trade or invest in Bitcoin. Prices are available on numerous time frames, from as little as a minute to monthly or yearly charts. Short term traders may use shorter-term charts to try to profit from buying and selling of Bitcoin. Long-term investors may use charts to try to identify areas f support and resistance. When the market declines into support levels, investors may see that as a solid buying opportunity and look to buy Bitcoin on dips.
Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions (and a "mining rig" is a colloquial metaphor for a single computer system that performs the necessary computations for "mining". This ledger of past transactions is called the block chain as it is a chain of blocks. The blockchain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the blockchain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.
Video description: Bitcoin.com’s mining services continue to grow exponentially as pool.bitcoin.com commands roughly 3 percent of the Bitcoin network’s global mining power. In addition to the company’s mining capabilities, Bitcoin.com is partnered with the largest U.S.-based bitcoin mining data center allowing the company to leverage mining services like no other business in the industry.
A few miles from the shuttered carwash, David Carlson stands at the edge of a sprawling construction site and watches workers set the roof on a Giga Pod, a self-contained crypto mine that Carlson designed to be assembled in a matter of weeks. When finished, the prefabricated wood-frame structure, roughly 12 by 48 feet, will be equipped with hundreds of high-speed servers that collectively draw a little over a megawatt of power and, in theory, will be capable of producing around 80 bitcoins a month. Carlson himself won’t be the miner; his company, Giga-Watt, will run the pod as a hosting site for other miners. By summer, Giga-Watt expects to have 24 pods here churning out bitcoins and other cryptocurrencies, most of which use the same computing-intensive, cryptographically secured protocol called the blockchain. “We’re right where the rubber hits the road with blockchain,” Carlson shouts as we step inside the project’s first completed pod and stand between the tall rack of toaster-size servers and a bank of roaring cooling fans. The main use of blockchain technology now is to keep a growing electronic ledger of every single bitcoin transaction ever made. But many miners see it as the record-keeping mechanism of the future. “We’re where the blockchain goes from that virtual concept to something that’s real in the world,” says Carlson, “something that somebody had to build and is actually running.”
Bitcoin Miner 1.54.0 - Fix several edgehtml.dll related crashes. Bitcoin Miner 1.53.0 - Fix connection issues with the default mining pool. - Fix potential UI update issue when mining is stopped. Bitcoin Miner 1.48.0 - Temporarily revoke the webcam permission to workaround a Microsoft Advertising camera issue, unfortunately this also disables Payout Address QR code scanning. - Reduce number of mining errors through improved Stratum difficulty handling. Bitcoin Miner 1.47.0 - Increase Satoshi yield estimate display to 4 decimal places when mining. - Rename Accepted and Rejected share count displays to Shares and Errors. - Minor mining performance improvements. Bitcoin Miner 1.39.0 - Next payout date is now shown when default pool payout requirements are met.
Mining is the process of spending computation power to secure Bitcoin transactions against reversal and introducing new Bitcoins to the system. Technically speaking, mining is the calculation of a hash of the block header, which includes among other things a reference to the previous block, a hash of a set of transactions and a nonce (an arbitrary number used just once for authentication purposes).
A few miles from the shuttered carwash, David Carlson stands at the edge of a sprawling construction site and watches workers set the roof on a Giga Pod, a self-contained crypto mine that Carlson designed to be assembled in a matter of weeks. When finished, the prefabricated wood-frame structure, roughly 12 by 48 feet, will be equipped with hundreds of high-speed servers that collectively draw a little over a megawatt of power and, in theory, will be capable of producing around 80 bitcoins a month. Carlson himself won’t be the miner; his company, Giga-Watt, will run the pod as a hosting site for other miners. By summer, Giga-Watt expects to have 24 pods here churning out bitcoins and other cryptocurrencies, most of which use the same computing-intensive, cryptographically secured protocol called the blockchain. “We’re right where the rubber hits the road with blockchain,” Carlson shouts as we step inside the project’s first completed pod and stand between the tall rack of toaster-size servers and a bank of roaring cooling fans. The main use of blockchain technology now is to keep a growing electronic ledger of every single bitcoin transaction ever made. But many miners see it as the record-keeping mechanism of the future. “We’re where the blockchain goes from that virtual concept to something that’s real in the world,” says Carlson, “something that somebody had to build and is actually running.”

Oct. 31, 2008: Someone using the name Satoshi Nakamoto makes an announcement on The Cryptography Mailing list at metzdowd.com: "I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. The paper is available at http://www.bitcoin.org/bitcoin.pdf." This link leads to the now-famous white paper published on bitcoin.org entitled "Bitcoin: A Peer-to-Peer Electronic Cash System." This paper would become the Magna Carta for how Bitcoin operates today.
In Charles Stross' 2013 science fiction novel, Neptune's Brood, the universal interstellar payment system is known as "bitcoin" and operates using cryptography.[235] Stross later blogged that the reference was intentional, saying "I wrote Neptune's Brood in 2011. Bitcoin was obscure back then, and I figured had just enough name recognition to be a useful term for an interstellar currency: it'd clue people in that it was a networked digital currency."[236]
Each time you request blockchain data from a wallet, the server may be able to view your IP address and connect this to the address data requested. Each wallet handles data requests differently. If privacy is important to you, use a wallet that downloads the whole blockchain like Bitcoin Core or Armory. Tor can be used with other wallets to shield your IP address, but this doesn’t prevent a server from tying a group of addresses to one identity. For more information, check out the Open Bitcoin Privacy Project for wallet rankings based on privacy.

Bitcoin is an increasingly popular cryptocurrency that utilizes blockchain technology to facilitate transactions. Basically, a user obtains a Bitcoin wallet that can be used for storing bitcoins and both sending and receiving of payments. The blockchain technology used by Bitcoin is really just a shared public ledger that is used by the entire public network. The technology used is secured through cryptography, a branch of mathematics that provides a highly secure means of facilitating and recording transactions on the network.


In the meantime, the basin’s miners are at full steam ahead. Salcido says he’ll have 42 megawatts running by the end of the year and 150 megawatts by 2020. Carlson says his next step after his current build-out of 60 megawatts will be “in the hundreds” of megawatts. Over the next five years, his company plans to raise $5 billion in capital to build 2,000 megawatts—two gigawatts—of additional mining capacity. But that won’t all be in the basin, he says. Carlson says he and others will soon be scaling up so rapidly that, for farsighted miners, the Mid-Columbia Basin effectively is already maxed out, in part because the counties simply can’t build out power lines and infrastructure fast enough. “So we have to go site hunting across the US & Canada,” Carlson told me in a text. “I’m on my way to Quebec on Monday.” As in oil or gold, prospectors never stop—they just move on.
Bitcoin mining operations take a lot of effort and power, and the sheer amount of competition makes it difficult for newcomers to enter the race and profit. A new miner would not only need to have adequate computing power and the knowledge to use it to outcompete the competition, but would also need the extensive amount of capital necessary to fund the operations.
This gives the pool members a more frequent, steady payout (this is called reducing your variance), but your payout(s) can be decreased by whatever fee the pool might charge. Solo mining will give you large, infrequent payouts and pooled mining will give you small, frequent payouts, but both add up to the same amount if you're using a zero fee pool in the long-term.
According to the Internet Watch Foundation, a UK-based charity, bitcoin is used to purchase child pornography, and almost 200 such websites accept it as payment. Bitcoin isn't the sole way to purchase child pornography online, as Troels Oertling, head of the cybercrime unit at Europol, states, "Ukash and paysafecard... have [also] been used to pay for such material." However, the Internet Watch Foundation lists around 30 sites that exclusively accept bitcoins.[31] Some of these sites have shut down, such as a deep web crowdfunding website that aimed to fund the creation of new child porn.[47][better source needed] Furthermore, hyperlinks to child porn websites have been added to the blockchain as arbitrary data can be included when a transaction is made.[48][49]
Press Contacts: San Francisco, CA, Kerryn Lloyd, [email protected] San Francisco, CA – August 28, 2018 –The Bitcoin Foundation has received a commitment of $200,000 for its 2018/2019 plan - $100,000 from Brock Pierce, a venture capitalist, philanthropist, serial entrepreneur and Chairman of the Bitcoin Foundation and a further $100,000 commitment [...]

As noted in Nakamoto's whitepaper, it is possible to verify bitcoin payments without running a full network node (simplified payment verification, SPV). A user only needs a copy of the block headers of the longest chain, which are available by querying network nodes until it is apparent that the longest chain has been obtained. Then, get the Merkle branch linking the transaction to its block. Linking the transaction to a place in the chain demonstrates that a network node has accepted it, and blocks added after it further establish the confirmation.[2]
That’s all transactions are—people signing bitcoins (or fractions of bitcoins) over to each other. The ledger tracks the coins, but it does not track people, at least not explicitly. Assuming Bob creates a new address and key for each transaction, the ledger won’t be able to reveal who he is, or which addresses are his, or how many bitcoins he has in all. It’s just a record of money moving between anonymous hands.

Shipping containers make for a quick way to set up an industrial bitcoin mining operation, but the servers inside produce so much heat that large fans are needed to move incredible volumes of air at high velocity in order to keep them overheating. At top, workers have attached ducts to the hot exhaust, carrying it over to melt the frozen worksite and warm their lounge area. | Patrick Cavan Brown for Politico Magazine
Behind the scenes, the Bitcoin network is sharing a massive public ledger called the "block chain". This ledger contains every transaction ever processed which enables a user's computer to verify the validity of each transaction. The authenticity of each transaction is protected by digital signatures corresponding to the sending addresses therefore allowing all users to have full control over sending bitcoins.
The concept of a virtual currency is still novel and, compared to traditional investments, Bitcoin doesn't have much of a longterm track record or history of credibility to back it. With their increasing use, bitcoins are becoming less experimental every day, of course; still, after eight years, they (like all digital currencies) remain in a development phase, still evolving. "It is pretty much the highest-risk, highest-return investment that you can possibly make,” says Barry Silbert, CEO of Digital Currency Group, which builds and invests in Bitcoin and blockchain companies.
How do they find this number? By guessing at random. The hash function makes it impossible to predict what the output will be. So, miners guess the mystery number and apply the hash function to the combination of that guessed number and the data in the block. The resulting hash has to start with a pre-established number of zeroes. There's no way of knowing which number will work, because two consecutive integers will give wildly varying results. What's more, there may be several nonces that produce the desired result, or there may be none (in which case the miners keep trying, but with a different block configuration).
Bitcoin cloud mining can be a tricky thing to determine if it’s completely safe in the Bitcoin world, and if it is, will it be cost effective? The return on your investment can be longer than other alternatives such as buying and selling Bitcoin. This can be due to the fees involved, the time it takes to mine, the upfront costs and the value of Bitcoin during that time. The upside is that if the costs are reasonable, the cloud mining operation has good rewards and the price of Bitcoin rises, you will more than likely end up making a healthy return on your investment.

As noted in Nakamoto's whitepaper, it is possible to verify bitcoin payments without running a full network node (simplified payment verification, SPV). A user only needs a copy of the block headers of the longest chain, which are available by querying network nodes until it is apparent that the longest chain has been obtained. Then, get the Merkle branch linking the transaction to its block. Linking the transaction to a place in the chain demonstrates that a network node has accepted it, and blocks added after it further establish the confirmation.[2]
After some months later, after the network started, it was discovered that high end graphics cards were much more efficient at Bitcoin mining. The Graphical Processing Unit (GPU) handles complex 3D imaging algorithms, therefore, CPU Bitcoin mining gave way to the GPU. The massively parallel nature of some GPUs allowed for a 50x to 100x increase in Bitcoin mining power while using far less power per unit of work. But this still wasn’t the most power-efficient option, as both CPUs and GPUs were very efficient at completing many tasks simultaneously, and consumed significant power to do so, whereas Bitcoin in essence just needed a processor that performed its cryptographic hash function ultra-efficiently.
It’s decentralized and brings power back to the people. Launched just a year after the 2008 financial crises, Bitcoin has attracted many people who see the current financial system as unsustainable. This factor has won the hearts of those who view politicians and government with suspicion. It’s no surprise there is a huge community of ideologists actively building, buying, and working in the cryptocurrency world.

Just because miners want power doesn’t mean they get it. Some inquiries are withdrawn. And all three county public utilities have considerable discretion when it comes to granting power requests. But by law, they must consider any legitimate request for power, which has meant doing costly studies and holding hearings—sparking a prolonged, public debate over this new industry’s impact on the basin’s power economy. There are concerns about the huge costs of new substations, transmission wires and other infrastructure necessary to accommodate these massive loads. In Douglas County, where the bulk of the new mining projects are going in, a brand new 84-megawatt substation that should have been adequate for the next 30 to 50 years of normal population growth was fully subscribed in less than a year.
Although there are no guarantees that Bitcoin will continue to rise in value, the future does look bright for this exciting cryptocurrency. Unlike leveraged instruments, you can rest assured that your exposure to Bitcoin is limited to what you pay for it. (This does not apply to Bitcoin or other cryptocurrency derivatives that may be leveraged or shorted).

Unfortunately, “participating” in Bitcoin mining isn’t the same thing as actually making money from it. The new ASIC chips on the market today are specifically designed for mining Bitcoin. They’re really good at Bitcoin mining, and every time someone adds a new ASIC-powered computer to the Bitcoin network, it makes Bitcoin mining that much more difficult.


Bitcoin mining is the process through which bitcoins are released to come into circulation. Basically, it involves solving a computationally difficult puzzle to discover a new block, which is added to the blockchain, and receiving a reward in the form of few bitcoins. The block reward was 50 new bitcoins in 2009; it decreases every four years. As more and more bitcoins are created, the difficulty of the mining process – that is, the amount of computing power involved – increases. The mining difficulty began at 1.0 with Bitcoin's debut back in 2009; at the end of the year, it was only 1.18. As of April 2017, the mining difficulty is over 4.24 billion. Once, an ordinary desktop computer sufficed for the mining process; now, to combat the difficulty level, miners must use faster hardware like Application-Specific Integrated Circuits (ASIC), more advanced processing units like Graphic Processing Units (GPUs), etc.

Charts can be a very useful tool for those looking to trade or invest in Bitcoin. Prices are available on numerous time frames, from as little as a minute to monthly or yearly charts. Short term traders may use shorter-term charts to try to profit from buying and selling of Bitcoin. Long-term investors may use charts to try to identify areas f support and resistance. When the market declines into support levels, investors may see that as a solid buying opportunity and look to buy Bitcoin on dips.
Computing power is often bundled together or "pooled" to reduce variance in miner income. Individual mining rigs often have to wait for long periods to confirm a block of transactions and receive payment. In a pool, all participating miners get paid every time a participating server solves a block. This payment depends on the amount of work an individual miner contributed to help find that block.[8]
Benny: The Rogue Miner “Benny,” a self-taught, 20-something computer whiz, set up three mining servers in his Wenatchee home last summer. Since then he has made enough profit not only to recover his initial investment but also to pay his monthly mortgage. As a bonus, the heat from the computers keeps his home heated all winter. “It’s just basically free money,” says Benny, pictured here with his homemade mining operation. | Patrick Cavan Brown for Politico Magazine
Bitcoin mining is the process by which transactions are verified and added to the public ledger, known as the block chain, and also the means through which new bitcoin are released. Anyone with access to the internet and suitable hardware can participate in mining. The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle.  The participant who first solves the puzzle gets to place the next block on the block chain and claim the rewards.  The rewards, which incentivize mining, are both the transaction fees associated with the transactions compiled in the block as well as newly released bitcoin. (Related: How Does Bitcoin Mining Work?)
Bitcoin Mining is a peer-to-peer computer process used to secure and verify bitcoin transactions—payments from one user to another on a decentralized network. Mining involves adding bitcoin transaction data to Bitcoin's global public ledger of past transactions. Each group of transactions is called a block. Blocks are secured by Bitcoin miners and build on top of each other forming a chain. This ledger of past transactions is called the blockchain. The blockchain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the blockchain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.
The proof-of-work system, alongside the chaining of blocks, makes modifications of the blockchain extremely hard, as an attacker must modify all subsequent blocks in order for the modifications of one block to be accepted.[81] As new blocks are mined all the time, the difficulty of modifying a block increases as time passes and the number of subsequent blocks (also called confirmations of the given block) increases.[64]
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