Category Archives: ico cryptocurrency list

World one Starlet Coins – Fresh Super Mario two Wiki Guide

World one Starlet Coins

This page contains the location of every Starlet Coin in World one of Fresh Super Mario Bros. Two.

EditWORLD 1-1 

EditStar Coin 1

The very first Starlet Coin is understandably the easiest to get in the entire game. Just use the musical notes to bounce high enough to reach it.

EditStar Coin Two

The 2nd Starlet Coin is a little further up, protected by some brick blocks. Bash them from below using the musical notes to bounce higher, and grab the coin. Note: you can’t bash the blocks with puny Mario.

EditStar Coin Trio

The third one can be found in a green pipe which shoots you above the clouds. Hit the P block, run along collecting the petite coins, and then leap to get the Starlet Coin before falling back down. 

EditWORLD 1-2 

EditStar Coin 1

A little way into the level you’ll find a crimson Koopa Troopa patrolling inbetween two POW Blocks. Ground-pound the Brick Blocks, then grab his shell and throw them at the POW Blocks to expose the very first Starlet Coin underneath.

EditStar Coin Two

Inject the yellow pipe a little to the right of the very first Starlet Coin. Hit the P-Switch, which will turn the blocks into coins. Sprint to the right, leap up then run all the way over to the left to grab the 2nd Starlet Coin before the ticking timer stops.

EditStar Coin Trio

Later in the level, you’ll find a grey pipe with a Fire sign near it. To get to it, you’ll need to throw a Koopa shell into the POW Block. As Fire Mario, throw fireballs until a Mega Mushroom emerges from the top of the pipe. Grab it, then run as swift as you can to the right. Just as it starts to run out, you should reach the smashable blocks that surround the Starlet Coin. Demolish them and grab the final coin. 

EditWORLD 1-3 

EditStar Coin 1

You’ll need to be Raccoon Mario to get all three Starlet Coins, but fortunately you’ll find slew of Super Leaves via the level. To get the very first coin, you’ll need to accelerate towards the sign with an arrow pointing diagonally upwards. Be sure to throw the Koopa Troopa shell into the Goombas to clear your run-up. Once you’re airborne, fly up to the top of the very first tree. The Starlet Coin is at the top.

EditStar Coin Two

From the very first Starlet Coin, leap and float over to the roulette coin block, and then again to the right to reach a green pipe on top of a tree. Go inwards to be shot up into the sky. Run to the edge of the platform and fly to grab the 2nd coin.

EditStar Coin Three

Back on the ground you’ll find the final Starlet Coin hiding (not very well) behind some Brick Blocks. Hit the blocks with Raccoon Mario’s tail to reach it.

EditWORLD 1-Tower 

EditStar Coin 1

When you arrive at the two sets of three green block platforms that budge back and forward, leap up to the left. Wall-kick up the left wall to grab the very first Starlet Coin. If you miss it and reach the platform above, there’s no going back.

EditStar Coin Two

A little way up from the checkpoint, there is a crimson pipe in the left wall. Come in and hit the P-Switch. Rail the moving green blocks up to the top of the room and and quickly leap up the Brick Block platforms to grab the 2nd Starlet Coin.

EditStar Coin Trio

The third is right above you when you exit that room, but is surrounded by moving green blocks.  Make your way across and up to it, being careful to avoid the Dry Piranha Plant nearby. Leap down to the left side to take the last Starlet Coin.

EditWORLD 1-4 

EditStar Coin 1

The very first Starlet Coin is another effortless one. Stay on top of the high mushroom platforms and make your way to the right. It is sitting on top of a yellow mushroom.

EditStar Coin Two

Proceed on, and you’ll see a blue pipe above a swaying pink mushroom. Hop inwards. Oh dear, now it’s ALL swaying mushrooms! Make your way to the end of this area and leap off, falling into the 2nd Starlet Coin.

EditStar Coin Trio

Near the end of the course, there are four ?-Blocks with an open space inbetween them. Leap here and you’ll hit a hidden block that sends a beanstalk rising into the clouds. Climb it, and hit the P-Switch to turn the coins into blocks. Hurry up the blocks and grab the last Starlet Coin at the top.

EditWORLD 1-5 

EditStar Coin 1

The very first Starlet Coin is hard to miss. Just swim down and grab it, while watching for that pesky purple Cheep Cheep. 

EditStar Coin Two

A little further on, you’ll come across a yellow pipe. Descend and you’ll find a puny cave with some strong currents at the bottom. The Starlet Coin is in the middle, but you’ll need to hammer the swim button so you don’t get sucked down. 

EditStar Coin Three

The third Starlet Coin is near the end of the stage. You’ll see a square rock with Cheep Cheeps swimming around it. Above here is a petite slot in the ceiling. Go after it up and the screen will scroll up to expose the last Starlet Coin.

EditWORLD1-Castle 

EditStar Coin 1

While draping on one of the ropes, you will see the very first Starlet Coin sitting above some lava. There is a petite pile that rises from and descends into the lava. Wait for it to emerge and hop down to grab the Starlet Coin.

EditStar Coin Two

Right after that there is a Dry Koopa. Past him are four blocks. Hop on the ones on the left and hop up to hit two hidden blocks. Leap on those and head left to get a Super Leaf. From there, run to the right and fly straight forward. After a wall of coins you’ll come to the 2nd Starlet Coin.

EditStar Coin Three

Right before the purpose, there is a giant Thwomp. When he falls down, he smashes the blocks under him. Let him fall a 2nd time so you can access the last Starlet Coin.

EditWORLD 1-A 

EditStar Coin 1

Early in the level you’ll see a yellow gate with an arrow pointing downwards. Ground-pound the blocks above it and fall through. Soon you’ll come to an open room with a crimson Koopa Troopa. Kill him and take the very first Starlet Coin.

EditStar Coin Two

The 2nd Starlet Coin isn’t until much later in the level, after you’ve been boosted upwards through two pipes. After you’ve emerged from the 2nd, climb up and you’ll see a Super Piranha Plant to your left. Hop over it and proceed until you see a coin roulette box. Wait for the Piranha Plant to retreat back into his pipe, and drop down. Fall down through the very first gate and stir to the left to open the 2nd one. You might think the coin is now inaccessible, but you simply need to wait for the very first gate to close. When it does, walk across and grab the Starlet Coin.

EditStar Coin Three

The last Starlet Coin is very well-hidden. Just before the aim, you’ll see four pipes with Piranha Plants coming out of them. On the left side, under the pipe, there is a hidden block. Hit it, then hop onto it and come in the pipe to the left. If you’re Fire Mario then the Super Piranha Plant won’t be a problem, otherwise, you can hop on the crimson Koopa Troopa and throw his shell into the plant to ruin it. Hop down to snaffle the final Starlet Coin.

World two Starlet Coins Previous

Related video:

Why is My Bitcoin Transaction Pending for So Long? Fees explained

Why is My Bitcoin Transaction Pending for So Long? – Bitcoin Fees for Dummies

If you’re reading this post I assume that like many others, you sent a bitcoin transaction and was kind of confused as to why it’s still listed as “unconfirmed” or “pending” after a few hours or so.

I mean Bitcoin transactions are supposed to be instant right?

In this post I want to attempt and explain in a very basic way how a Bitcoin transaction works and why the fee that you fasten to each transaction has a crucial role in how long it will take the transaction to go through the network.

Here’s what happens when you send Bitcoins to someone

Table of Contents

Whenever you send someone Bitcoins, the transaction goes through different computers running the Bitcoin protocol around the world that make sure the transaction is valid. Once the transaction is verified it then “waits” inwards the Mempool (i.e. in some sort of a “limbo” state).

It’s basically waiting to be picked up by a Bitcoin miner and entered into a block of transaction on the Blockchain. Until it is picked up it’s considered an “unconfirmed transaction” or a “pending transaction”. A fresh block of transactions in added to the Blockchain every ten minutes on average.

However since there are so many transactions lately due to the price increase, and a block can only hold a finite amount of transactions, not all transactions are picked instantly. So you need to wait for a certain amount of time until a miner determined to pick your transaction out of all of those sitting around in the mempool.

Once your transaction is included in the block it receives its very first confirmation and it’s no longer pending. After another block of transactions is added it will get another confirmation and so on….here’s a brief movie explaining this:

How can you make sure your transaction will get included in the next block?

Elementary. By adding a big enough mining fee to it. You see one of the ways miners get paid for their work is by collecting the fees on the different transactions. So naturally they would choose to include the transactions with the highest fees very first. If your fee is high enough – your transaction will go through quicker.

How can you tell how much is the right fee?

Fees are calculated by the size of the transaction. Every transaction has a size, just like a file size. The size depends on many factors that I won’t go in to at the moment. The fastest and cheapest transaction fee is presently 60 satoshis /byte . So if, for example, your transaction is two hundred fifty seven bytes, you will need to pay 257*60 = 15,420 Satoshis as a transaction fee in order to be included in the next block.

So now you’re most likely asking “How can I calculate my transaction size?”

You can’t, at least not without extensive skill of how Bitcoin works. Your wallet is supposed to do this for you. Most wallets today will either automatically add the required fee to get the transaction confirmed as soon as possible or will let you choose from a multitude of fees according to the requested confirmation time (e.g. swift, medium, slow).

However, since I wouldn’t want to leave you draping I determined to give you an overview of how the most popular wallets around treat their fees:

Coinbase – Coinbase pays the miner fees (typically 0.0003 BTC) on outward transactions in order to ensure these transactions propagate across the bitcoin network quickly. For very puny transaction amounts you may be prompted to pay the transaction / miner fee. (source)

Blockchain.info – The wallet implemented a dynamic fee structure.Dynamic fees work to detect switches in network volume and will raise or lower transaction fees accordingly. This means that the same transaction may require a higher fee during a period of network congestion, or a lower fee if sent during a period of decreased activity. If you set a custom-built fee a warning will display if a custom-made fee is thought to be unnecessarily high or riskily low. (source)

Electrum – Has the option to set dynamic fees (similar to Blockchain.info) or set your own fee through the devices -> preference tab. (source)

Greenaddress – GreenAddress is the very first Bitcoin wallet to include a replace-by-fee option. With it, users can increase fees on their transactions and increase the likelihood a miner will include a transaction in a block.

Clicking on the “bump fee” tab opens a mini-menu. On top of the menu, text displays how quick the transaction is expected to confirm. The menu permitted me to bump the fee: times 1.Five, times two or times Trio.

if a transaction is not expected to be mined in the very first available block because the fee is too low, the mini-menu offers users the option to include a fee big enough to have the transaction included in the next two, three or six blocks. (source)

MyCelium – Mycelium does give you some control over the fee. In Settings/Miner Fee, you can select Standard, Economic, or Priority for (I think) 0.1mBTC, 0.01mBTC, or 0.5mBTC, respectively, per mB. (source)

Bitcoin QT -Bitcoin Core will use floating fees. Based on past transaction data, floating fees approximate the fees required to get into the `m`th block from now. Bitcoin Core will cap fees. Bitcoin Core will never create transactions smaller than the current minimum relay fee. Eventually, a user can set the minimum fee rate for all transactions. (source)

TREZOR – Fees will be automatically calculated for you by the myTREZOR wallet. (source)

There’s a very helpful resource created by 21.co that shows how many Satoshis/byte you’ll need to pay in order to get included in the upcoming blocks. Here’s an example of the current situation inwards the Bitcoin network:

For each Satoshi/byte category you can see the number of unconfirmed transactions as opposed to the transactions that went through. For example, fifteen thousand four hundred five transactions with a fee of 11-20 Satoshis/byte went through the system in the last three hours as opposed to one thousand five hundred thirty three that are waiting for confirmation.

On the right palm side you can see the estimated number of block confirmation / minutes you’ll have to wait until your transaction gets included.

What happens to transaction that don’t get confirmed ever?

Basically transactions stay in “limbo” (i.e. the mempool) until they are included in a block. However, if a transaction stays inwards the mempool for too long the different computers holding it (Bitcoin knots) may just drop it from their system. In this case the transaction will be canceled.

Some wallets may attempt to rebroadcast an expired transaction and therefor it will stay inwards the mempool for a long time until some miner determines to have pity on your soul and include it 🙂

VIA BTC offers a transaction accelerator service

Just recently VIABTC (one of the largest Bitcoin mining pools) embarked suggesting a fresh transaction accelerator service. With the Transaction Accelerator for delayed transactions, users can submit any TXID (Transaction ID) that includes a minimum 0.0001BTC/KB fee to ViaBTC. The pool will then prioritize to include the TX in the next block when possible at no extra charge. A maximum of one hundred TXs submitted can be accelerated every hour.

Significant: Transactions are received on a very first come very first served basis so attempt to submit yours at the beginning of every hour to get into the queue before it fills up.

So I hope this clears things up a bit. Next time before sending a Bitcoin transaction make sure to add the suitable fee in accordance to the wallet you are using.

If you have any more questions or insights about Bitcoin fees feel free to leave them in the comment section below.

Why is My Bitcoin Transaction Pending for So Long? Fees explained

Why is My Bitcoin Transaction Pending for So Long? – Bitcoin Fees for Dummies

If you’re reading this post I assume that like many others, you sent a bitcoin transaction and was kind of confused as to why it’s still listed as “unconfirmed” or “pending” after a few hours or so.

I mean Bitcoin transactions are supposed to be instant right?

In this post I want to attempt and explain in a very basic way how a Bitcoin transaction works and why the fee that you fasten to each transaction has a crucial role in how long it will take the transaction to go through the network.

Here’s what happens when you send Bitcoins to someone

Table of Contents

Whenever you send someone Bitcoins, the transaction goes through different computers running the Bitcoin protocol around the world that make sure the transaction is valid. Once the transaction is verified it then “waits” inwards the Mempool (i.e. in some sort of a “limbo” state).

It’s basically waiting to be picked up by a Bitcoin miner and entered into a block of transaction on the Blockchain. Until it is picked up it’s considered an “unconfirmed transaction” or a “pending transaction”. A fresh block of transactions in added to the Blockchain every ten minutes on average.

However since there are so many transactions lately due to the price increase, and a block can only hold a finite amount of transactions, not all transactions are picked instantly. So you need to wait for a certain amount of time until a miner determined to pick your transaction out of all of those sitting around in the mempool.

Once your transaction is included in the block it receives its very first confirmation and it’s no longer pending. After another block of transactions is added it will get another confirmation and so on….here’s a brief movie explaining this:

How can you make sure your transaction will get included in the next block?

Ordinary. By adding a big enough mining fee to it. You see one of the ways miners get paid for their work is by collecting the fees on the different transactions. So naturally they would choose to include the transactions with the highest fees very first. If your fee is high enough – your transaction will go through swifter.

How can you tell how much is the right fee?

Fees are calculated by the size of the transaction. Every transaction has a size, just like a file size. The size depends on many factors that I won’t go in to at the moment. The fastest and cheapest transaction fee is presently 60 satoshis /byte . So if, for example, your transaction is two hundred fifty seven bytes, you will need to pay 257*60 = 15,420 Satoshis as a transaction fee in order to be included in the next block.

So now you’re very likely asking “How can I calculate my transaction size?”

You can’t, at least not without extensive skill of how Bitcoin works. Your wallet is supposed to do this for you. Most wallets today will either automatically add the required fee to get the transaction confirmed as soon as possible or will let you choose from a diversity of fees according to the requested confirmation time (e.g. rapid, medium, slow).

However, since I wouldn’t want to leave you suspending I determined to give you an overview of how the most popular wallets around treat their fees:

Coinbase – Coinbase pays the miner fees (typically 0.0003 BTC) on outward transactions in order to ensure these transactions propagate via the bitcoin network quickly. For very petite transaction amounts you may be prompted to pay the transaction / miner fee. (source)

Blockchain.info – The wallet implemented a dynamic fee structure.Dynamic fees work to detect switches in network volume and will raise or lower transaction fees accordingly. This means that the same transaction may require a higher fee during a period of network congestion, or a lower fee if sent during a period of decreased activity. If you set a custom-built fee a warning will display if a custom-built fee is thought to be unnecessarily high or unsafely low. (source)

Electrum – Has the option to set dynamic fees (similar to Blockchain.info) or set your own fee through the implements -> preference tab. (source)

Greenaddress – GreenAddress is the very first Bitcoin wallet to include a replace-by-fee option. With it, users can increase fees on their transactions and increase the likelihood a miner will include a transaction in a block.

Clicking on the “bump fee” tab opens a mini-menu. On top of the menu, text displays how swift the transaction is expected to confirm. The menu permitted me to bump the fee: times 1.Five, times two or times Trio.

if a transaction is not expected to be mined in the very first available block because the fee is too low, the mini-menu offers users the option to include a fee big enough to have the transaction included in the next two, three or six blocks. (source)

MyCelium – Mycelium does give you some control over the fee. In Settings/Miner Fee, you can select Standard, Economic, or Priority for (I think) 0.1mBTC, 0.01mBTC, or 0.5mBTC, respectively, per mB. (source)

Bitcoin QT -Bitcoin Core will use floating fees. Based on past transaction data, floating fees approximate the fees required to get into the `m`th block from now. Bitcoin Core will cap fees. Bitcoin Core will never create transactions smaller than the current minimum relay fee. Eventually, a user can set the minimum fee rate for all transactions. (source)

TREZOR – Fees will be automatically calculated for you by the myTREZOR wallet. (source)

There’s a very helpful resource created by 21.co that shows how many Satoshis/byte you’ll need to pay in order to get included in the upcoming blocks. Here’s an example of the current situation inwards the Bitcoin network:

For each Satoshi/byte category you can see the number of unconfirmed transactions as opposed to the transactions that went through. For example, fifteen thousand four hundred five transactions with a fee of 11-20 Satoshis/byte went through the system in the last three hours as opposed to one thousand five hundred thirty three that are waiting for confirmation.

On the right arm side you can see the estimated number of block confirmation / minutes you’ll have to wait until your transaction gets included.

What happens to transaction that don’t get confirmed ever?

Basically transactions stay in “limbo” (i.e. the mempool) until they are included in a block. However, if a transaction stays inwards the mempool for too long the different computers holding it (Bitcoin knots) may just drop it from their system. In this case the transaction will be canceled.

Some wallets may attempt to rebroadcast an expired transaction and therefor it will stay inwards the mempool for a long time until some miner determines to have pity on your soul and include it 🙂

VIA BTC offers a transaction accelerator service

Just recently VIABTC (one of the largest Bitcoin mining pools) embarked suggesting a fresh transaction accelerator service. With the Transaction Accelerator for delayed transactions, users can submit any TXID (Transaction ID) that includes a minimum 0.0001BTC/KB fee to ViaBTC. The pool will then prioritize to include the TX in the next block when possible at no extra charge. A maximum of one hundred TXs submitted can be accelerated every hour.

Significant: Transactions are received on a very first come very first served basis so attempt to submit yours at the beginning of every hour to get into the queue before it fills up.

So I hope this clears things up a bit. Next time before sending a Bitcoin transaction make sure to add the suitable fee in accordance to the wallet you are using.

If you have any more questions or insights about Bitcoin fees feel free to leave them in the comment section below.

Why is My Bitcoin Transaction Pending for So Long? Fees explained

Why is My Bitcoin Transaction Pending for So Long? – Bitcoin Fees for Dummies

If you’re reading this post I assume that like many others, you sent a bitcoin transaction and was kind of confused as to why it’s still listed as “unconfirmed” or “pending” after a few hours or so.

I mean Bitcoin transactions are supposed to be instant right?

In this post I want to attempt and explain in a very basic way how a Bitcoin transaction works and why the fee that you fasten to each transaction has a crucial role in how long it will take the transaction to go through the network.

Here’s what happens when you send Bitcoins to someone

Table of Contents

Whenever you send someone Bitcoins, the transaction goes through different computers running the Bitcoin protocol around the world that make sure the transaction is valid. Once the transaction is verified it then “waits” inwards the Mempool (i.e. in some sort of a “limbo” state).

It’s basically waiting to be picked up by a Bitcoin miner and entered into a block of transaction on the Blockchain. Until it is picked up it’s considered an “unconfirmed transaction” or a “pending transaction”. A fresh block of transactions in added to the Blockchain every ten minutes on average.

However since there are so many transactions lately due to the price increase, and a block can only hold a finite amount of transactions, not all transactions are picked instantly. So you need to wait for a certain amount of time until a miner determined to pick your transaction out of all of those sitting around in the mempool.

Once your transaction is included in the block it receives its very first confirmation and it’s no longer pending. After another block of transactions is added it will get another confirmation and so on….here’s a brief movie explaining this:

How can you make sure your transaction will get included in the next block?

Plain. By adding a big enough mining fee to it. You see one of the ways miners get paid for their work is by collecting the fees on the different transactions. So naturally they would choose to include the transactions with the highest fees very first. If your fee is high enough – your transaction will go through swifter.

How can you tell how much is the right fee?

Fees are calculated by the size of the transaction. Every transaction has a size, just like a file size. The size depends on many factors that I won’t go in to at the moment. The fastest and cheapest transaction fee is presently 60 satoshis /byte . So if, for example, your transaction is two hundred fifty seven bytes, you will need to pay 257*60 = 15,420 Satoshis as a transaction fee in order to be included in the next block.

So now you’re very likely asking “How can I calculate my transaction size?”

You can’t, at least not without extensive skill of how Bitcoin works. Your wallet is supposed to do this for you. Most wallets today will either automatically add the required fee to get the transaction confirmed as soon as possible or will let you choose from a diversity of fees according to the requested confirmation time (e.g. quick, medium, slow).

However, since I wouldn’t want to leave you suspending I determined to give you an overview of how the most popular wallets around treat their fees:

Coinbase – Coinbase pays the miner fees (typically 0.0003 BTC) on outer transactions in order to ensure these transactions propagate across the bitcoin network quickly. For very puny transaction amounts you may be prompted to pay the transaction / miner fee. (source)

Blockchain.info – The wallet implemented a dynamic fee structure.Dynamic fees work to detect switches in network volume and will raise or lower transaction fees accordingly. This means that the same transaction may require a higher fee during a period of network congestion, or a lower fee if sent during a period of decreased activity. If you set a custom-made fee a warning will display if a custom-built fee is thought to be unnecessarily high or unsafely low. (source)

Electrum – Has the option to set dynamic fees (similar to Blockchain.info) or set your own fee through the contraptions -> preference tab. (source)

Greenaddress – GreenAddress is the very first Bitcoin wallet to include a replace-by-fee option. With it, users can increase fees on their transactions and increase the likelihood a miner will include a transaction in a block.

Clicking on the “bump fee” tab opens a mini-menu. On top of the menu, text displays how swift the transaction is expected to confirm. The menu permitted me to bump the fee: times 1.Five, times two or times Three.

if a transaction is not expected to be mined in the very first available block because the fee is too low, the mini-menu offers users the option to include a fee big enough to have the transaction included in the next two, three or six blocks. (source)

MyCelium – Mycelium does give you some control over the fee. In Settings/Miner Fee, you can select Standard, Economic, or Priority for (I think) 0.1mBTC, 0.01mBTC, or 0.5mBTC, respectively, per mB. (source)

Bitcoin QT -Bitcoin Core will use floating fees. Based on past transaction data, floating fees approximate the fees required to get into the `m`th block from now. Bitcoin Core will cap fees. Bitcoin Core will never create transactions smaller than the current minimum relay fee. Eventually, a user can set the minimum fee rate for all transactions. (source)

TREZOR – Fees will be automatically calculated for you by the myTREZOR wallet. (source)

There’s a very helpful resource created by 21.co that shows how many Satoshis/byte you’ll need to pay in order to get included in the upcoming blocks. Here’s an example of the current situation inwards the Bitcoin network:

For each Satoshi/byte category you can see the number of unconfirmed transactions as opposed to the transactions that went through. For example, fifteen thousand four hundred five transactions with a fee of 11-20 Satoshis/byte went through the system in the last three hours as opposed to one thousand five hundred thirty three that are waiting for confirmation.

On the right mitt side you can see the estimated number of block confirmation / minutes you’ll have to wait until your transaction gets included.

What happens to transaction that don’t get confirmed ever?

Basically transactions stay in “limbo” (i.e. the mempool) until they are included in a block. However, if a transaction stays inwards the mempool for too long the different computers holding it (Bitcoin knots) may just drop it from their system. In this case the transaction will be canceled.

Some wallets may attempt to rebroadcast an expired transaction and therefor it will stay inwards the mempool for a long time until some miner determines to have pity on your soul and include it 🙂

VIA BTC offers a transaction accelerator service

Just recently VIABTC (one of the largest Bitcoin mining pools) began suggesting a fresh transaction accelerator service. With the Transaction Accelerator for delayed transactions, users can submit any TXID (Transaction ID) that includes a minimum 0.0001BTC/KB fee to ViaBTC. The pool will then prioritize to include the TX in the next block when possible at no extra charge. A maximum of one hundred TXs submitted can be accelerated every hour.

Significant: Transactions are received on a very first come very first served basis so attempt to submit yours at the beginning of every hour to get into the queue before it fills up.

So I hope this clears things up a bit. Next time before sending a Bitcoin transaction make sure to add the adequate fee in accordance to the wallet you are using.

If you have any more questions or insights about Bitcoin fees feel free to leave them in the comment section below.

Why is My Bitcoin Transaction Pending for So Long? Fees explained

Why is My Bitcoin Transaction Pending for So Long? – Bitcoin Fees for Dummies

If you’re reading this post I assume that like many others, you sent a bitcoin transaction and was kind of confused as to why it’s still listed as “unconfirmed” or “pending” after a few hours or so.

I mean Bitcoin transactions are supposed to be instant right?

In this post I want to attempt and explain in a very basic way how a Bitcoin transaction works and why the fee that you fasten to each transaction has a crucial role in how long it will take the transaction to go through the network.

Here’s what happens when you send Bitcoins to someone

Table of Contents

Whenever you send someone Bitcoins, the transaction goes through different computers running the Bitcoin protocol around the world that make sure the transaction is valid. Once the transaction is verified it then “waits” inwards the Mempool (i.e. in some sort of a “limbo” state).

It’s basically waiting to be picked up by a Bitcoin miner and entered into a block of transaction on the Blockchain. Until it is picked up it’s considered an “unconfirmed transaction” or a “pending transaction”. A fresh block of transactions in added to the Blockchain every ten minutes on average.

However since there are so many transactions lately due to the price increase, and a block can only hold a finite amount of transactions, not all transactions are picked instantly. So you need to wait for a certain amount of time until a miner determined to pick your transaction out of all of those sitting around in the mempool.

Once your transaction is included in the block it receives its very first confirmation and it’s no longer pending. After another block of transactions is added it will get another confirmation and so on….here’s a brief movie explaining this:

How can you make sure your transaction will get included in the next block?

Ordinary. By adding a big enough mining fee to it. You see one of the ways miners get paid for their work is by collecting the fees on the different transactions. So naturally they would choose to include the transactions with the highest fees very first. If your fee is high enough – your transaction will go through swifter.

How can you tell how much is the right fee?

Fees are calculated by the size of the transaction. Every transaction has a size, just like a file size. The size depends on many factors that I won’t go in to at the moment. The fastest and cheapest transaction fee is presently 60 satoshis /byte . So if, for example, your transaction is two hundred fifty seven bytes, you will need to pay 257*60 = 15,420 Satoshis as a transaction fee in order to be included in the next block.

So now you’re very likely asking “How can I calculate my transaction size?”

You can’t, at least not without extensive skill of how Bitcoin works. Your wallet is supposed to do this for you. Most wallets today will either automatically add the required fee to get the transaction confirmed as soon as possible or will let you choose from a diversity of fees according to the requested confirmation time (e.g. quick, medium, slow).

However, since I wouldn’t want to leave you stringing up I determined to give you an overview of how the most popular wallets around treat their fees:

Coinbase – Coinbase pays the miner fees (typically 0.0003 BTC) on outer transactions in order to ensure these transactions propagate via the bitcoin network quickly. For very puny transaction amounts you may be prompted to pay the transaction / miner fee. (source)

Blockchain.info – The wallet implemented a dynamic fee structure.Dynamic fees work to detect switches in network volume and will raise or lower transaction fees accordingly. This means that the same transaction may require a higher fee during a period of network congestion, or a lower fee if sent during a period of decreased activity. If you set a custom-built fee a warning will display if a custom-made fee is thought to be unnecessarily high or riskily low. (source)

Electrum – Has the option to set dynamic fees (similar to Blockchain.info) or set your own fee through the implements -> preference tab. (source)

Greenaddress – GreenAddress is the very first Bitcoin wallet to include a replace-by-fee option. With it, users can increase fees on their transactions and increase the likelihood a miner will include a transaction in a block.

Clicking on the “bump fee” tab opens a mini-menu. On top of the menu, text displays how swift the transaction is expected to confirm. The menu permitted me to bump the fee: times 1.Five, times two or times Three.

if a transaction is not expected to be mined in the very first available block because the fee is too low, the mini-menu offers users the option to include a fee big enough to have the transaction included in the next two, three or six blocks. (source)

MyCelium – Mycelium does give you some control over the fee. In Settings/Miner Fee, you can select Standard, Economic, or Priority for (I think) 0.1mBTC, 0.01mBTC, or 0.5mBTC, respectively, per mB. (source)

Bitcoin QT -Bitcoin Core will use floating fees. Based on past transaction data, floating fees approximate the fees required to get into the `m`th block from now. Bitcoin Core will cap fees. Bitcoin Core will never create transactions smaller than the current minimum relay fee. Ultimately, a user can set the minimum fee rate for all transactions. (source)

TREZOR – Fees will be automatically calculated for you by the myTREZOR wallet. (source)

There’s a very helpful resource created by 21.co that shows how many Satoshis/byte you’ll need to pay in order to get included in the upcoming blocks. Here’s an example of the current situation inwards the Bitcoin network:

For each Satoshi/byte category you can see the number of unconfirmed transactions as opposed to the transactions that went through. For example, fifteen thousand four hundred five transactions with a fee of 11-20 Satoshis/byte went through the system in the last three hours as opposed to one thousand five hundred thirty three that are waiting for confirmation.

On the right mitt side you can see the estimated number of block confirmation / minutes you’ll have to wait until your transaction gets included.

What happens to transaction that don’t get confirmed ever?

Basically transactions stay in “limbo” (i.e. the mempool) until they are included in a block. However, if a transaction stays inwards the mempool for too long the different computers holding it (Bitcoin knots) may just drop it from their system. In this case the transaction will be canceled.

Some wallets may attempt to rebroadcast an expired transaction and therefor it will stay inwards the mempool for a long time until some miner determines to have pity on your soul and include it 🙂

VIA BTC offers a transaction accelerator service

Just recently VIABTC (one of the largest Bitcoin mining pools) embarked suggesting a fresh transaction accelerator service. With the Transaction Accelerator for delayed transactions, users can submit any TXID (Transaction ID) that includes a minimum 0.0001BTC/KB fee to ViaBTC. The pool will then prioritize to include the TX in the next block when possible at no extra charge. A maximum of one hundred TXs submitted can be accelerated every hour.

Significant: Transactions are received on a very first come very first served basis so attempt to submit yours at the beginning of every hour to get into the queue before it fills up.

So I hope this clears things up a bit. Next time before sending a Bitcoin transaction make sure to add the adequate fee in accordance to the wallet you are using.

If you have any more questions or insights about Bitcoin fees feel free to leave them in the comment section below.

Why is My Bitcoin Transaction Pending for So Long? Fees explained

Why is My Bitcoin Transaction Pending for So Long? – Bitcoin Fees for Dummies

If you’re reading this post I assume that like many others, you sent a bitcoin transaction and was kind of confused as to why it’s still listed as “unconfirmed” or “pending” after a few hours or so.

I mean Bitcoin transactions are supposed to be instant right?

In this post I want to attempt and explain in a very basic way how a Bitcoin transaction works and why the fee that you link to each transaction has a crucial role in how long it will take the transaction to go through the network.

Here’s what happens when you send Bitcoins to someone

Table of Contents

Whenever you send someone Bitcoins, the transaction goes through different computers running the Bitcoin protocol around the world that make sure the transaction is valid. Once the transaction is verified it then “waits” inwards the Mempool (i.e. in some sort of a “limbo” state).

It’s basically waiting to be picked up by a Bitcoin miner and entered into a block of transaction on the Blockchain. Until it is picked up it’s considered an “unconfirmed transaction” or a “pending transaction”. A fresh block of transactions in added to the Blockchain every ten minutes on average.

However since there are so many transactions lately due to the price increase, and a block can only hold a finite amount of transactions, not all transactions are picked instantly. So you need to wait for a certain amount of time until a miner determined to pick your transaction out of all of those sitting around in the mempool.

Once your transaction is included in the block it receives its very first confirmation and it’s no longer pending. After another block of transactions is added it will get another confirmation and so on….here’s a brief movie explaining this:

How can you make sure your transaction will get included in the next block?

Elementary. By adding a big enough mining fee to it. You see one of the ways miners get paid for their work is by collecting the fees on the different transactions. So naturally they would choose to include the transactions with the highest fees very first. If your fee is high enough – your transaction will go through swifter.

How can you tell how much is the right fee?

Fees are calculated by the size of the transaction. Every transaction has a size, just like a file size. The size depends on many factors that I won’t go in to at the moment. The fastest and cheapest transaction fee is presently 60 satoshis /byte . So if, for example, your transaction is two hundred fifty seven bytes, you will need to pay 257*60 = 15,420 Satoshis as a transaction fee in order to be included in the next block.

So now you’re very likely asking “How can I calculate my transaction size?”

You can’t, at least not without extensive skill of how Bitcoin works. Your wallet is supposed to do this for you. Most wallets today will either automatically add the required fee to get the transaction confirmed as soon as possible or will let you choose from a diversity of fees according to the requested confirmation time (e.g. swift, medium, slow).

However, since I wouldn’t want to leave you stringing up I determined to give you an overview of how the most popular wallets around treat their fees:

Coinbase – Coinbase pays the miner fees (typically 0.0003 BTC) on outer transactions in order to ensure these transactions propagate across the bitcoin network quickly. For very puny transaction amounts you may be prompted to pay the transaction / miner fee. (source)

Blockchain.info – The wallet implemented a dynamic fee structure.Dynamic fees work to detect switches in network volume and will raise or lower transaction fees accordingly. This means that the same transaction may require a higher fee during a period of network congestion, or a lower fee if sent during a period of decreased activity. If you set a custom-built fee a warning will display if a custom-made fee is thought to be unnecessarily high or unsafely low. (source)

Electrum – Has the option to set dynamic fees (similar to Blockchain.info) or set your own fee through the devices -> preference tab. (source)

Greenaddress – GreenAddress is the very first Bitcoin wallet to include a replace-by-fee option. With it, users can increase fees on their transactions and increase the likelihood a miner will include a transaction in a block.

Clicking on the “bump fee” tab opens a mini-menu. On top of the menu, text displays how quick the transaction is expected to confirm. The menu permitted me to bump the fee: times 1.Five, times two or times Trio.

if a transaction is not expected to be mined in the very first available block because the fee is too low, the mini-menu offers users the option to include a fee big enough to have the transaction included in the next two, three or six blocks. (source)

MyCelium – Mycelium does give you some control over the fee. In Settings/Miner Fee, you can select Standard, Economic, or Priority for (I think) 0.1mBTC, 0.01mBTC, or 0.5mBTC, respectively, per mB. (source)

Bitcoin QT -Bitcoin Core will use floating fees. Based on past transaction data, floating fees approximate the fees required to get into the `m`th block from now. Bitcoin Core will cap fees. Bitcoin Core will never create transactions smaller than the current minimum relay fee. Ultimately, a user can set the minimum fee rate for all transactions. (source)

TREZOR – Fees will be automatically calculated for you by the myTREZOR wallet. (source)

There’s a very helpful resource created by 21.co that shows how many Satoshis/byte you’ll need to pay in order to get included in the upcoming blocks. Here’s an example of the current situation inwards the Bitcoin network:

For each Satoshi/byte category you can see the number of unconfirmed transactions as opposed to the transactions that went through. For example, fifteen thousand four hundred five transactions with a fee of 11-20 Satoshis/byte went through the system in the last three hours as opposed to one thousand five hundred thirty three that are waiting for confirmation.

On the right palm side you can see the estimated number of block confirmation / minutes you’ll have to wait until your transaction gets included.

What happens to transaction that don’t get confirmed ever?

Basically transactions stay in “limbo” (i.e. the mempool) until they are included in a block. However, if a transaction stays inwards the mempool for too long the different computers holding it (Bitcoin knots) may just drop it from their system. In this case the transaction will be canceled.

Some wallets may attempt to rebroadcast an expired transaction and therefor it will stay inwards the mempool for a long time until some miner determines to have pity on your soul and include it 🙂

VIA BTC offers a transaction accelerator service

Just recently VIABTC (one of the largest Bitcoin mining pools) commenced suggesting a fresh transaction accelerator service. With the Transaction Accelerator for delayed transactions, users can submit any TXID (Transaction ID) that includes a minimum 0.0001BTC/KB fee to ViaBTC. The pool will then prioritize to include the TX in the next block when possible at no extra charge. A maximum of one hundred TXs submitted can be accelerated every hour.

Significant: Transactions are received on a very first come very first served basis so attempt to submit yours at the beginning of every hour to get into the queue before it fills up.

So I hope this clears things up a bit. Next time before sending a Bitcoin transaction make sure to add the suitable fee in accordance to the wallet you are using.

If you have any more questions or insights about Bitcoin fees feel free to leave them in the comment section below.

Why is My Bitcoin Transaction Pending for So Long? Fees explained

Why is My Bitcoin Transaction Pending for So Long? – Bitcoin Fees for Dummies

If you’re reading this post I assume that like many others, you sent a bitcoin transaction and was kind of confused as to why it’s still listed as “unconfirmed” or “pending” after a few hours or so.

I mean Bitcoin transactions are supposed to be instant right?

In this post I want to attempt and explain in a very basic way how a Bitcoin transaction works and why the fee that you fasten to each transaction has a crucial role in how long it will take the transaction to go through the network.

Here’s what happens when you send Bitcoins to someone

Table of Contents

Whenever you send someone Bitcoins, the transaction goes through different computers running the Bitcoin protocol around the world that make sure the transaction is valid. Once the transaction is verified it then “waits” inwards the Mempool (i.e. in some sort of a “limbo” state).

It’s basically waiting to be picked up by a Bitcoin miner and entered into a block of transaction on the Blockchain. Until it is picked up it’s considered an “unconfirmed transaction” or a “pending transaction”. A fresh block of transactions in added to the Blockchain every ten minutes on average.

However since there are so many transactions lately due to the price increase, and a block can only hold a finite amount of transactions, not all transactions are picked instantly. So you need to wait for a certain amount of time until a miner determined to pick your transaction out of all of those sitting around in the mempool.

Once your transaction is included in the block it receives its very first confirmation and it’s no longer pending. After another block of transactions is added it will get another confirmation and so on….here’s a brief movie explaining this:

How can you make sure your transaction will get included in the next block?

Plain. By adding a big enough mining fee to it. You see one of the ways miners get paid for their work is by collecting the fees on the different transactions. So naturally they would choose to include the transactions with the highest fees very first. If your fee is high enough – your transaction will go through quicker.

How can you tell how much is the right fee?

Fees are calculated by the size of the transaction. Every transaction has a size, just like a file size. The size depends on many factors that I won’t go in to at the moment. The fastest and cheapest transaction fee is presently 60 satoshis /byte . So if, for example, your transaction is two hundred fifty seven bytes, you will need to pay 257*60 = 15,420 Satoshis as a transaction fee in order to be included in the next block.

So now you’re very likely asking “How can I calculate my transaction size?”

You can’t, at least not without extensive skill of how Bitcoin works. Your wallet is supposed to do this for you. Most wallets today will either automatically add the required fee to get the transaction confirmed as soon as possible or will let you choose from a multitude of fees according to the requested confirmation time (e.g. prompt, medium, slow).

However, since I wouldn’t want to leave you stringing up I determined to give you an overview of how the most popular wallets around treat their fees:

Coinbase – Coinbase pays the miner fees (typically 0.0003 BTC) on outer transactions in order to ensure these transactions propagate across the bitcoin network quickly. For very puny transaction amounts you may be prompted to pay the transaction / miner fee. (source)

Blockchain.info – The wallet implemented a dynamic fee structure.Dynamic fees work to detect switches in network volume and will raise or lower transaction fees accordingly. This means that the same transaction may require a higher fee during a period of network congestion, or a lower fee if sent during a period of decreased activity. If you set a custom-made fee a warning will display if a custom-made fee is thought to be unnecessarily high or riskily low. (source)

Electrum – Has the option to set dynamic fees (similar to Blockchain.info) or set your own fee through the devices -> preference tab. (source)

Greenaddress – GreenAddress is the very first Bitcoin wallet to include a replace-by-fee option. With it, users can increase fees on their transactions and increase the likelihood a miner will include a transaction in a block.

Clicking on the “bump fee” tab opens a mini-menu. On top of the menu, text displays how quick the transaction is expected to confirm. The menu permitted me to bump the fee: times 1.Five, times two or times Trio.

if a transaction is not expected to be mined in the very first available block because the fee is too low, the mini-menu offers users the option to include a fee big enough to have the transaction included in the next two, three or six blocks. (source)

MyCelium – Mycelium does give you some control over the fee. In Settings/Miner Fee, you can select Standard, Economic, or Priority for (I think) 0.1mBTC, 0.01mBTC, or 0.5mBTC, respectively, per mB. (source)

Bitcoin QT -Bitcoin Core will use floating fees. Based on past transaction data, floating fees approximate the fees required to get into the `m`th block from now. Bitcoin Core will cap fees. Bitcoin Core will never create transactions smaller than the current minimum relay fee. Ultimately, a user can set the minimum fee rate for all transactions. (source)

TREZOR – Fees will be automatically calculated for you by the myTREZOR wallet. (source)

There’s a very helpful resource created by 21.co that shows how many Satoshis/byte you’ll need to pay in order to get included in the upcoming blocks. Here’s an example of the current situation inwards the Bitcoin network:

For each Satoshi/byte category you can see the number of unconfirmed transactions as opposed to the transactions that went through. For example, fifteen thousand four hundred five transactions with a fee of 11-20 Satoshis/byte went through the system in the last three hours as opposed to one thousand five hundred thirty three that are waiting for confirmation.

On the right forearm side you can see the estimated number of block confirmation / minutes you’ll have to wait until your transaction gets included.

What happens to transaction that don’t get confirmed ever?

Basically transactions stay in “limbo” (i.e. the mempool) until they are included in a block. However, if a transaction stays inwards the mempool for too long the different computers holding it (Bitcoin knots) may just drop it from their system. In this case the transaction will be canceled.

Some wallets may attempt to rebroadcast an expired transaction and therefor it will stay inwards the mempool for a long time until some miner determines to have pity on your soul and include it 🙂

VIA BTC offers a transaction accelerator service

Just recently VIABTC (one of the largest Bitcoin mining pools) embarked suggesting a fresh transaction accelerator service. With the Transaction Accelerator for delayed transactions, users can submit any TXID (Transaction ID) that includes a minimum 0.0001BTC/KB fee to ViaBTC. The pool will then prioritize to include the TX in the next block when possible at no extra charge. A maximum of one hundred TXs submitted can be accelerated every hour.

Significant: Transactions are received on a very first come very first served basis so attempt to submit yours at the beginning of every hour to get into the queue before it fills up.

So I hope this clears things up a bit. Next time before sending a Bitcoin transaction make sure to add the adequate fee in accordance to the wallet you are using.

If you have any more questions or insights about Bitcoin fees feel free to leave them in the comment section below.

Why is My Bitcoin Transaction Pending for So Long? Fees explained

Why is My Bitcoin Transaction Pending for So Long? – Bitcoin Fees for Dummies

If you’re reading this post I assume that like many others, you sent a bitcoin transaction and was kind of confused as to why it’s still listed as “unconfirmed” or “pending” after a few hours or so.

I mean Bitcoin transactions are supposed to be instant right?

In this post I want to attempt and explain in a very basic way how a Bitcoin transaction works and why the fee that you fasten to each transaction has a crucial role in how long it will take the transaction to go through the network.

Here’s what happens when you send Bitcoins to someone

Table of Contents

Whenever you send someone Bitcoins, the transaction goes through different computers running the Bitcoin protocol around the world that make sure the transaction is valid. Once the transaction is verified it then “waits” inwards the Mempool (i.e. in some sort of a “limbo” state).

It’s basically waiting to be picked up by a Bitcoin miner and entered into a block of transaction on the Blockchain. Until it is picked up it’s considered an “unconfirmed transaction” or a “pending transaction”. A fresh block of transactions in added to the Blockchain every ten minutes on average.

However since there are so many transactions lately due to the price increase, and a block can only hold a finite amount of transactions, not all transactions are picked instantly. So you need to wait for a certain amount of time until a miner determined to pick your transaction out of all of those sitting around in the mempool.

Once your transaction is included in the block it receives its very first confirmation and it’s no longer pending. After another block of transactions is added it will get another confirmation and so on….here’s a brief movie explaining this:

How can you make sure your transaction will get included in the next block?

Plain. By adding a big enough mining fee to it. You see one of the ways miners get paid for their work is by collecting the fees on the different transactions. So naturally they would choose to include the transactions with the highest fees very first. If your fee is high enough – your transaction will go through swifter.

How can you tell how much is the right fee?

Fees are calculated by the size of the transaction. Every transaction has a size, just like a file size. The size depends on many factors that I won’t go in to at the moment. The fastest and cheapest transaction fee is presently 60 satoshis /byte . So if, for example, your transaction is two hundred fifty seven bytes, you will need to pay 257*60 = 15,420 Satoshis as a transaction fee in order to be included in the next block.

So now you’re most likely asking “How can I calculate my transaction size?”

You can’t, at least not without extensive skill of how Bitcoin works. Your wallet is supposed to do this for you. Most wallets today will either automatically add the required fee to get the transaction confirmed as soon as possible or will let you choose from a diversity of fees according to the requested confirmation time (e.g. swift, medium, slow).

However, since I wouldn’t want to leave you dangling I determined to give you an overview of how the most popular wallets around treat their fees:

Coinbase – Coinbase pays the miner fees (typically 0.0003 BTC) on outward transactions in order to ensure these transactions propagate across the bitcoin network quickly. For very petite transaction amounts you may be prompted to pay the transaction / miner fee. (source)

Blockchain.info – The wallet implemented a dynamic fee structure.Dynamic fees work to detect switches in network volume and will raise or lower transaction fees accordingly. This means that the same transaction may require a higher fee during a period of network congestion, or a lower fee if sent during a period of decreased activity. If you set a custom-made fee a warning will display if a custom-built fee is thought to be unnecessarily high or unsafely low. (source)

Electrum – Has the option to set dynamic fees (similar to Blockchain.info) or set your own fee through the instruments -> preference tab. (source)

Greenaddress – GreenAddress is the very first Bitcoin wallet to include a replace-by-fee option. With it, users can increase fees on their transactions and increase the likelihood a miner will include a transaction in a block.

Clicking on the “bump fee” tab opens a mini-menu. On top of the menu, text displays how quick the transaction is expected to confirm. The menu permitted me to bump the fee: times 1.Five, times two or times Three.

if a transaction is not expected to be mined in the very first available block because the fee is too low, the mini-menu offers users the option to include a fee big enough to have the transaction included in the next two, three or six blocks. (source)

MyCelium – Mycelium does give you some control over the fee. In Settings/Miner Fee, you can select Standard, Economic, or Priority for (I think) 0.1mBTC, 0.01mBTC, or 0.5mBTC, respectively, per mB. (source)

Bitcoin QT -Bitcoin Core will use floating fees. Based on past transaction data, floating fees approximate the fees required to get into the `m`th block from now. Bitcoin Core will cap fees. Bitcoin Core will never create transactions smaller than the current minimum relay fee. Ultimately, a user can set the minimum fee rate for all transactions. (source)

TREZOR – Fees will be automatically calculated for you by the myTREZOR wallet. (source)

There’s a very helpful resource created by 21.co that shows how many Satoshis/byte you’ll need to pay in order to get included in the upcoming blocks. Here’s an example of the current situation inwards the Bitcoin network:

For each Satoshi/byte category you can see the number of unconfirmed transactions as opposed to the transactions that went through. For example, fifteen thousand four hundred five transactions with a fee of 11-20 Satoshis/byte went through the system in the last three hours as opposed to one thousand five hundred thirty three that are waiting for confirmation.

On the right forearm side you can see the estimated number of block confirmation / minutes you’ll have to wait until your transaction gets included.

What happens to transaction that don’t get confirmed ever?

Basically transactions stay in “limbo” (i.e. the mempool) until they are included in a block. However, if a transaction stays inwards the mempool for too long the different computers holding it (Bitcoin knots) may just drop it from their system. In this case the transaction will be canceled.

Some wallets may attempt to rebroadcast an expired transaction and therefor it will stay inwards the mempool for a long time until some miner determines to have pity on your soul and include it 🙂

VIA BTC offers a transaction accelerator service

Just recently VIABTC (one of the largest Bitcoin mining pools) embarked suggesting a fresh transaction accelerator service. With the Transaction Accelerator for delayed transactions, users can submit any TXID (Transaction ID) that includes a minimum 0.0001BTC/KB fee to ViaBTC. The pool will then prioritize to include the TX in the next block when possible at no extra charge. A maximum of one hundred TXs submitted can be accelerated every hour.

Significant: Transactions are received on a very first come very first served basis so attempt to submit yours at the beginning of every hour to get into the queue before it fills up.

So I hope this clears things up a bit. Next time before sending a Bitcoin transaction make sure to add the adequate fee in accordance to the wallet you are using.

If you have any more questions or insights about Bitcoin fees feel free to leave them in the comment section below.

Why is My Bitcoin Transaction Pending for So Long? Fees explained

Why is My Bitcoin Transaction Pending for So Long? – Bitcoin Fees for Dummies

If you’re reading this post I assume that like many others, you sent a bitcoin transaction and was kind of confused as to why it’s still listed as “unconfirmed” or “pending” after a few hours or so.

I mean Bitcoin transactions are supposed to be instant right?

In this post I want to attempt and explain in a very basic way how a Bitcoin transaction works and why the fee that you link to each transaction has a crucial role in how long it will take the transaction to go through the network.

Here’s what happens when you send Bitcoins to someone

Table of Contents

Whenever you send someone Bitcoins, the transaction goes through different computers running the Bitcoin protocol around the world that make sure the transaction is valid. Once the transaction is verified it then “waits” inwards the Mempool (i.e. in some sort of a “limbo” state).

It’s basically waiting to be picked up by a Bitcoin miner and entered into a block of transaction on the Blockchain. Until it is picked up it’s considered an “unconfirmed transaction” or a “pending transaction”. A fresh block of transactions in added to the Blockchain every ten minutes on average.

However since there are so many transactions lately due to the price increase, and a block can only hold a finite amount of transactions, not all transactions are picked instantly. So you need to wait for a certain amount of time until a miner determined to pick your transaction out of all of those sitting around in the mempool.

Once your transaction is included in the block it receives its very first confirmation and it’s no longer pending. After another block of transactions is added it will get another confirmation and so on….here’s a brief movie explaining this:

How can you make sure your transaction will get included in the next block?

Elementary. By adding a big enough mining fee to it. You see one of the ways miners get paid for their work is by collecting the fees on the different transactions. So naturally they would choose to include the transactions with the highest fees very first. If your fee is high enough – your transaction will go through quicker.

How can you tell how much is the right fee?

Fees are calculated by the size of the transaction. Every transaction has a size, just like a file size. The size depends on many factors that I won’t go in to at the moment. The fastest and cheapest transaction fee is presently 60 satoshis /byte . So if, for example, your transaction is two hundred fifty seven bytes, you will need to pay 257*60 = 15,420 Satoshis as a transaction fee in order to be included in the next block.

So now you’re most likely asking “How can I calculate my transaction size?”

You can’t, at least not without extensive skill of how Bitcoin works. Your wallet is supposed to do this for you. Most wallets today will either automatically add the required fee to get the transaction confirmed as soon as possible or will let you choose from a diversity of fees according to the requested confirmation time (e.g. rapid, medium, slow).

However, since I wouldn’t want to leave you stringing up I determined to give you an overview of how the most popular wallets around treat their fees:

Coinbase – Coinbase pays the miner fees (typically 0.0003 BTC) on outer transactions in order to ensure these transactions propagate across the bitcoin network quickly. For very petite transaction amounts you may be prompted to pay the transaction / miner fee. (source)

Blockchain.info – The wallet implemented a dynamic fee structure.Dynamic fees work to detect switches in network volume and will raise or lower transaction fees accordingly. This means that the same transaction may require a higher fee during a period of network congestion, or a lower fee if sent during a period of decreased activity. If you set a custom-made fee a warning will display if a custom-made fee is thought to be unnecessarily high or unsafely low. (source)

Electrum – Has the option to set dynamic fees (similar to Blockchain.info) or set your own fee through the devices -> preference tab. (source)

Greenaddress – GreenAddress is the very first Bitcoin wallet to include a replace-by-fee option. With it, users can increase fees on their transactions and increase the likelihood a miner will include a transaction in a block.

Clicking on the “bump fee” tab opens a mini-menu. On top of the menu, text displays how prompt the transaction is expected to confirm. The menu permitted me to bump the fee: times 1.Five, times two or times Three.

if a transaction is not expected to be mined in the very first available block because the fee is too low, the mini-menu offers users the option to include a fee big enough to have the transaction included in the next two, three or six blocks. (source)

MyCelium – Mycelium does give you some control over the fee. In Settings/Miner Fee, you can select Standard, Economic, or Priority for (I think) 0.1mBTC, 0.01mBTC, or 0.5mBTC, respectively, per mB. (source)

Bitcoin QT -Bitcoin Core will use floating fees. Based on past transaction data, floating fees approximate the fees required to get into the `m`th block from now. Bitcoin Core will cap fees. Bitcoin Core will never create transactions smaller than the current minimum relay fee. Eventually, a user can set the minimum fee rate for all transactions. (source)

TREZOR – Fees will be automatically calculated for you by the myTREZOR wallet. (source)

There’s a very helpful resource created by 21.co that shows how many Satoshis/byte you’ll need to pay in order to get included in the upcoming blocks. Here’s an example of the current situation inwards the Bitcoin network:

For each Satoshi/byte category you can see the number of unconfirmed transactions as opposed to the transactions that went through. For example, fifteen thousand four hundred five transactions with a fee of 11-20 Satoshis/byte went through the system in the last three hours as opposed to one thousand five hundred thirty three that are waiting for confirmation.

On the right mitt side you can see the estimated number of block confirmation / minutes you’ll have to wait until your transaction gets included.

What happens to transaction that don’t get confirmed ever?

Basically transactions stay in “limbo” (i.e. the mempool) until they are included in a block. However, if a transaction stays inwards the mempool for too long the different computers holding it (Bitcoin knots) may just drop it from their system. In this case the transaction will be canceled.

Some wallets may attempt to rebroadcast an expired transaction and therefor it will stay inwards the mempool for a long time until some miner determines to have pity on your soul and include it 🙂

VIA BTC offers a transaction accelerator service

Just recently VIABTC (one of the largest Bitcoin mining pools) embarked suggesting a fresh transaction accelerator service. With the Transaction Accelerator for delayed transactions, users can submit any TXID (Transaction ID) that includes a minimum 0.0001BTC/KB fee to ViaBTC. The pool will then prioritize to include the TX in the next block when possible at no extra charge. A maximum of one hundred TXs submitted can be accelerated every hour.

Significant: Transactions are received on a very first come very first served basis so attempt to submit yours at the beginning of every hour to get into the queue before it fills up.

So I hope this clears things up a bit. Next time before sending a Bitcoin transaction make sure to add the adequate fee in accordance to the wallet you are using.

If you have any more questions or insights about Bitcoin fees feel free to leave them in the comment section below.

Related video:

What Is Driving Bitcoin Price Up? Crypto Insider – Bitcoin and Blockchain News

What Is Driving Bitcoin Price Up?

Bitcoin price has been soaring recently. For many Bitcoin enthusiasts, it would not be a surprise to see a market capitalization of over two hundred billions in the next two years.

On April 24th, Erik Voorhees predicted a $300 billion market capitalization on Twitter: “Tokens as an asset class have surpassed $30 billion. I predict over $300 billion within four years.”

So what factors are contributing to driving Bitcoin price up?

Estimates and data are still demonstrating that more than eighty five percent of global Bitcoin trading comes from China. Other countries have a much smaller influence. Of course, with so many data coming from every directions, it’s hard to precisely get those numbers.

Market analysts, economists and financial experts, like CFA Prableen Bajpaiare, report current fears in China and Asia that the yuan could depreciate as reasons for enlargened investments in bitcoin.

Other analysts have the same opinion: “Signs indicate Bitcoin’s price has become linked to a number of macroeconomic factors in China,” said Vijay Michalik, research analyst for digital transformation at consultancy Frost & Sullivan.

“It highlights growing concerns about yuan currency deflation, as bitcoin’s appeal has grown as an alternative asset class for a population abandoned of many investment choices.”

“The most likely explanation shows up to be linked to market confidence in the Asia region, with low confidence in local currencies providing a major boost to bitcoin request,” said James Lynn, U.K. managing director at investment company Billon Group, in a two thousand sixteen CNBC interview.

Another relevant macro indicator is that there is a big devaluation of currencies in other emerging markets such as India and Russia. For example, the Indian Rupee went down twenty percent in two thousand seventeen compared to the US dollar (USD).

Even if the USD is going up compared to other fiat currencies, people all over the world are looking for alternatives to the USD. Recently, Bitcoin is one solid contender for alternatives! On the other mitt, Ripple, Ethereum and Litecoin have been boosting the altcoin markets. Inbetween March twelve to May 12, Ripple (XRP)’s market cap went from $250M to 7.5B, a phenomenal three thousand percent increase. That’s right: if you had invested $Ten,000 in XRP two months ago, you would have $300,000 today.

Let’s be fair, this is entirely insane!

Russia

We know that Russians were exchanging their depreciating rubles for Bitcoin in 2016. The ruble tumbled and billions of dollars were transacted in the latest months, which is big enough for the Russian Ministry of Finance to come up with statements about money laundering and the possibility to tax and regulate Bitcoin as an asset. Russia may recognize bitcoin and other cryptocurrencies in two thousand eighteen as authorities look to enforce rules against illegal transfers, Deputy Finance Minister Alexey Moiseev told Bloomberg in an interview in April 2017. Mr Moiseev added that “The state needs to know who at every moment of time stands on both sides of the financial chain”.

Blockchain companies funding

Another significant factor is the emergence of blockchain companies using tokens. Bitcoin start-ups, which have attracted massive investments in Bitcoin and blockchain companies with a total funding of $550 million in 2016, are now enlargening the bitcoin request in 2017.

Back to China

In a yuan currency deflation, Bitcoin is accessible and very appealing. Monetary policies and regulations also contribute to request for Bitcoin in China. In fact, many Chinese companies and rich individuals want to hide their assets from the government.

Bitcoin is now less volatile and more stable than previously, so thicker investors are tempted by the cryptocurrency. It has a better historical chart now, so people have more confidence in it.

“The fattest driver right now is you’re commencing to see institutional investors take a keen interest in the entire sector,” said Brian Kelly, founder of Brian Kelly Capital.

Japan, significant growth

BitFlyer is the thickest exchange in Japan, with seventy percent of the market, but the country accounts for a relatively puny world market slice of around Two.Five percent: $Legitimate,071,700 24h volume today. At the same time, there is a considerable increase in request in Japan. In the last six months Japan represented 0.91 percent of the total bitcoin trading volume, but in the last thirty days there has been a surprising increase to six percent, based on unofficial estimates and data provided by coinmarketcap.com and data.bitcoinity.org. So, things commence to get very interesting in Japan as well.

Koji Higashi, a writer that covers the Japanese crypto space, reports that a fresh wave of Japanese investors are boosting the price of altcoins.

Every thing is bright in the Bitcoin sky right now

What bad news could potentially derail this?

An increase in the price of commodities, especially gold, would hurt Bitcoin’s value, but this is not happening right now. Gold is down Four.58 percent in the last thirty days, almost -3 percent this year… and -22.32 percent in the last five years. This also goes in favor for Bitcoin. The Bitcoin / Gold chart is interesting.

A Bejing intervention could also halt the exchanges trades. While no one can predict what China will do this year, it seems plausible that at some point the government could take act. The trend toward higher transaction fees implemented by China’s thickest exchanges could proceed.

What Is Driving Bitcoin Price Up? Crypto Insider – Bitcoin and Blockchain News

What Is Driving Bitcoin Price Up?

Bitcoin price has been soaring recently. For many Bitcoin enthusiasts, it would not be a surprise to see a market capitalization of over two hundred billions in the next two years.

On April 24th, Erik Voorhees predicted a $300 billion market capitalization on Twitter: “Tokens as an asset class have surpassed $30 billion. I predict over $300 billion within four years.”

So what factors are contributing to driving Bitcoin price up?

Estimates and data are still showcasing that more than eighty five percent of global Bitcoin trading comes from China. Other countries have a much smaller influence. Of course, with so many data coming from every directions, it’s hard to precisely get those numbers.

Market analysts, economists and financial experts, like CFA Prableen Bajpaiare, report current fears in China and Asia that the yuan could depreciate as reasons for enhanced investments in bitcoin.

Other analysts have the same opinion: “Signs indicate Bitcoin’s price has become linked to a number of macroeconomic factors in China,” said Vijay Michalik, research analyst for digital transformation at consultancy Frost & Sullivan.

“It highlights growing concerns about yuan currency deflation, as bitcoin’s appeal has grown as an alternative asset class for a population neglected of many investment choices.”

“The most likely explanation emerges to be linked to market confidence in the Asia region, with low confidence in local currencies providing a major boost to bitcoin request,” said James Lynn, U.K. managing director at investment company Billon Group, in a two thousand sixteen CNBC interview.

Another relevant macro indicator is that there is a big devaluation of currencies in other emerging markets such as India and Russia. For example, the Indian Rupee went down twenty percent in two thousand seventeen compared to the US dollar (USD).

Even if the USD is going up compared to other fiat currencies, people all over the world are looking for alternatives to the USD. Recently, Bitcoin is one solid contender for alternatives! On the other palm, Ripple, Ethereum and Litecoin have been boosting the altcoin markets. Inbetween March twelve to May 12, Ripple (XRP)’s market cap went from $250M to 7.5B, a phenomenal three thousand percent increase. That’s right: if you had invested $Ten,000 in XRP two months ago, you would have $300,000 today.

Let’s be fair, this is entirely insane!

Russia

We know that Russians were exchanging their depreciating rubles for Bitcoin in 2016. The ruble tumbled and billions of dollars were transacted in the latest months, which is big enough for the Russian Ministry of Finance to come up with statements about money laundering and the possibility to tax and regulate Bitcoin as an asset. Russia may recognize bitcoin and other cryptocurrencies in two thousand eighteen as authorities look to enforce rules against illegal transfers, Deputy Finance Minister Alexey Moiseev told Bloomberg in an interview in April 2017. Mr Moiseev added that “The state needs to know who at every moment of time stands on both sides of the financial chain”.

Blockchain companies funding

Another significant factor is the emergence of blockchain companies using tokens. Bitcoin start-ups, which have attracted big investments in Bitcoin and blockchain companies with a total funding of $550 million in 2016, are now enlargening the bitcoin request in 2017.

Back to China

In a yuan currency deflation, Bitcoin is accessible and very appealing. Monetary policies and regulations also contribute to request for Bitcoin in China. In fact, many Chinese companies and rich individuals want to hide their assets from the government.

Bitcoin is now less volatile and more stable than previously, so fatter investors are tempted by the cryptocurrency. It has a better historical chart now, so people have more confidence in it.

“The largest driver right now is you’re kicking off to see institutional investors take a keen interest in the entire sector,” said Brian Kelly, founder of Brian Kelly Capital.

Japan, significant growth

BitFlyer is the largest exchange in Japan, with seventy percent of the market, but the country accounts for a relatively puny world market slice of around Two.Five percent: $Legal,071,700 24h volume today. At the same time, there is a considerable increase in request in Japan. In the last six months Japan represented 0.91 percent of the total bitcoin trading volume, but in the last thirty days there has been a surprising increase to six percent, based on unofficial estimates and data provided by coinmarketcap.com and data.bitcoinity.org. So, things commence to get very interesting in Japan as well.

Koji Higashi, a writer that covers the Japanese crypto space, reports that a fresh wave of Japanese investors are boosting the price of altcoins.

Every thing is bright in the Bitcoin sky right now

What bad news could potentially derail this?

An increase in the price of commodities, especially gold, would hurt Bitcoin’s value, but this is not happening right now. Gold is down Four.58 percent in the last thirty days, almost -3 percent this year… and -22.32 percent in the last five years. This also goes in favor for Bitcoin. The Bitcoin / Gold chart is interesting.

A Bejing intervention could also halt the exchanges trades. While no one can predict what China will do this year, it seems plausible that at some point the government could take act. The trend toward higher transaction fees implemented by China’s thickest exchanges could proceed.

Related video:

What Can I Buy With Bitcoin? MakeUseOf Explains

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What Amazon Hides: five Apps to Display Deals and Discounts to Save Money

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If you’ve never heard of Bitcoin before, then don’t worry because you’re in the majority. Let’s just say that it’s a virtual currency (meaning you’ll never be able to hold an actual Bitcoin in your palms) and leave it at that. For some people, that might sound bimbo. For others, Bitcoin is leisurely but surely becoming the currency of the future. You can learn more about Bitcoin from our Bitcoin guide.

Over the month of March, the value of a single Bitcoin almost quadrupled when it shot up from

$140 USD. Combine that with the fact that there are almost eleven million Bitcoins in circulation and you can see that Bitcoin isn’t something to scoff at. The concept of it is foreign, yes, and many distrust the integrity of the Bitcoin The BitCoin Dilemma: Can We Trust It? The BitCoin Dilemma: Can We Trust It? You’ve very likely heard of BitCoin, the Internet’s latest attempt at independent currency. It’s been all over the news for reasons both positive and negative – it’s a useful way of transferring funds anonymously, but the. Read More , but it’s turning into something that may very well be commonplace in a decade or so.

But as with all currencies, the main purpose of a currency is to permit the holder to purchase something using that currency. Who cares what the worth of a Bitcoin is if you can’t buy anything with it? So what can you buy with Bitcoins?

Before we delve into the uses of the Bitcoin, we need to understand what it is and why it exists. Learning this will give us insight into the kinds of people who have adopted the currency, the kinds of people who haven’t adopted the currency, and what sorts of goods and services fit the Bitcoin philosophy.

Simply put, Bitcoin is a decentralized digital currency. This decentralization – which means that there is no central person, group, or organization that produces or regulates the Bitcoin – is one of Bitcoin’s main draws. For example, the American Dollar is managed by the US. Bitcoin has no such proprietor, thus suggesting a level of anonymity that other currencies don’t provide. (Note: Bitcoin’s anonymity can be cracked, but that’s a topic for another time.)

The other draw of Bitcoin is its digital nature. The very first world has been moving towards online shopping in sweeping movements over the last decade or so, and digital transactions are all the rage due to their convenience factor. At the click of a button or the swipe of a card, you can quickly and painlessly purchase goods at your leisure, even while wearing your pajamas.

Combine the decentralized, anonymous nature of Bitcoin with the convenience of digital currency and you can see why people would love it, at least in theory. If you want to learn more about Bitcoin before you proceed, check out our very own MakeUseOf Bitcoin manual.

Now in order to hop into the Bitcoin economy and commence buying things, you very first need to get your arms on some Bitcoins. At this point, you have two options: you can either mine Bitcoins guiminer – An Extensive Contraption For Bitcoin Mining guiminer – An Extensive Contraption For Bitcoin Mining As of late there’s been a been a excellent hum going around about Bitcoin, the latest P2P digital currency. One of the main activities of getting Bitcoins is through a process called mining. No need. Read More yourself, or you can just buy Bitcoins off of someone who has them in exchange for real world currency.

The term “mining” tends to be somewhat confusing for fresh Bitcoin users and there’s no ensure that you’ll earn any Bitcoins for a while, so you should leave off mining until you’re better acquainted with the Bitcoin system. Until then, you’re better off just buying them off of trustworthy Bitcoin sources.

Once you have Bitcoins in your possession, how do you actually spend them? You need a Bitcoin wallet. This wallet is what tracks your Bitcoin status and it permits you to make Bitcoin transactions with other people or companies. Wallets can come in the form of software (computer programs), mobile (phone apps), or web (online sites). Be careful where you store your Bitcoins!

So by now, you’ve bought some Bitcoins to use and you have a decently functioning wallet. Where can you spend them and what sorts of items can you buy with them?

SpendBitCoins has a list of places that directly accept Bitcoins. The list is absolutely massive and the kinds of things you can buy are numerous. Their featured products include a Bitcoin-to-real-currency exchange, dedicated server hosting, and an online mining game.

The diversity of available purchases using Bitcoins is astounding. Don’t believe me?

  • WordPress began accepting Bitcoin payments last year.
  • BitMit is an online auction site not unlike Ebay.
  • StompRomp is an American guitar store that accepts Bitcoins.
  • BitJack21 is an Internet blackjack casino that uses Bitcoin as its main currency.
  • Coindl is similar to iTunes: buy music, books, games, and software.
  • Ogrr lets you buy and sell items from movie games, like World of Warcraft.
  • Bitcoin Store sells all kinds of electronics for Bitcoins.
  • Coinabul converts your Bitcoins into gold and silver.
  • Bitherbs sells herbal goods and natural products for Bitcoins.
  • BannerAdExchange lets you buy advertisement space for Bitcoins.

I’m not going to go through and list everywhere you can spend Bitcoins, but it should be apparent that Bitcoin popularity is on the rise and you’ll eventually be able to buy whatever you want with it. All you have to do is look in the right places and search well. Check out Bitcoin’s own trade page to find categorized vendors.

And if you’re making person-to-person transactions, then you can literally buy anything as long as you can find the right people who are selling the right goods or services. Recall how Bitcoin is decentralized and therefore anonymous to a degree? Well, there is a subset of Bitcoin users who use the currency for illicit purposes. Let’s leave it at that. MakeUseOf does not condone illegal behavior of any kind.

What can you buy with Bitcoins? As it turns out, you can buy a lot. We aren’t at the point where you can waltz down to your nearest grocery store and buy a few apples yet, but we’re getting there. I’ll be fair: I never expected Bitcoin to build up this much traction, but I’m glad it has. Hopefully they can keep the momentum going and revolutionize world currency.

Related video:

Understanding TumbleBit Part Two: The Endgame

Understanding TumbleBit Part Two: The Endgame — Instant, Anonymous, Scaleable Payment System On Top Of Bitcoin

In Understanding TumbleBit Part 1: Making the Case, I talked about the importance of privacy in general, the state of privacy in Bitcoin and compared TumbleBit with other alternatives. You do absolutely not need to read that in order to make sense to this article. To recap take a look at this tweet:

Today I will speculate on the SSJ God level. And maybe, just maybe you will feel like it all makes sense and become more excited than ever about the future of Bitcoin.

In this article I will outline the idea, the desire, the vision, the end game of TumbleBit: a trustless, instant, free, anonymous, scaleable payment system. On top of Bitcoin.

Ok, but how soon?

At the moment there are numerous implementations: a proof of concept from the creators in C++, a more advanced codebase from them in Python. And there is a NTumbleBit in .NET Core, a production ready TumbleBit: Classic Tumbler Mode, you know the Super Saiyan one. However it is yet untested, undocumented, user unfriendly and undeployed. Others are planning to implement it as well.

Generally Ethan Heilman and the other cryptographers from Boston University are concentrating more on the theoretical, the academic part, while Nicolas and me are on the practical, the implementation part.

In the end all of us are in daily contact, working together and helping each other. For example I just executed a brilliant and well-planned social engineering attack on Ethan:

So I can provide you the chance to contribute if you want: 199G7vQxuSYRNRrcM7qatY2kRH69g7qmpo

Using a payment hub vs on-chain mixing

There is a fundamental problem with on-chain mixing. Consider how mixing works: you send the Mixer some bitcoins and it sends back fully unrelated ones:

Imagine you bought two bitcoins. One to hodl and one to buy alpaca socks from the Silk Road, so you send 1btc to a mixer and buy the socks. But that is not how Bitcoin works. You actually have to spend all your 2btc. You spend 1btc to the mixer and 1btc switch goes back to you.

If you later acquire another 1btc and determine to buy something for 1.5btc that transaction would look like this:

So you are joining coins together. This is not ideal from a privacy point of view. This is one of the main reason why the blockchain surveillance companies are thriving. Therefore any bitcoin mixing that often visits the Bitcoin blockchain is not ideal.

So why not all of us just send all our bitcoins to CoinBase and and keep transacting inwards their system. Wait a moment: we now have instant transactions! Even better, we’ve just reclaimed our privacy, too!

There are two problems, tho’: 1. CB can steal our coins. Two. CB can deanonymize us. We only have an instant, free, scaleable payment system, but we want a trustless, instant, free, anonymous, scaleable payment system. This payment system would be CoinBase: Super Saiyan God mode, or in a lamer name: CoinBase: bi-directional payment hub mode.

So the question is: how do we take a centralized mixer, like CoinBase to Supa Saiya-jin Goddo level? Or rather how do I coax you it is possible?

Trustless

Using bi-directional multiparty payment channels we can make CoinBase trustless. I will not go into the details, you can read up on it at many places, I just would like to point out the fact for this to work CoinBase has to have at least as much bitcoins as much volume goes through it. This is a very real economic bottleneck and will most likely result many CoinBase hubs, or let’s say TumbleBit hubs from now on. On the other forearm this is a positive Bitcoin price pressure, so keep hodling.

Anonymous

But how can we hide who sends who inwards the payment hub from the payment hub? TumbleBit provides a fascinating solution for this. It is based on David Chaum’s blind signatures from 1999.

Here's the basic idea of blind signing in Chaumian e-cash: Let's suppose that a central issuer (Chaumian e-cash is…bitcoin.stackexchange.com

I should mention the SSJ God level is not written in stone yet, or sall I say not written in whitepaper? So its achieveability is uncertain at this point, only the SSJ3 level is certain, what I totally dismiss in this article, because it is about the end-game, not the middle-game of TumbleBit.

So what do you think? Will the creators go from a days long running, Bitcoin full-node requiring, untested, undocumented, user unfriendly, undeployed CLI software to a trustless, instant, free, anonymous, scaleable payment system? Find out in the next Tumble Bit Z episode…

Understanding TumbleBit Part Two: The Endgame

Understanding TumbleBit Part Two: The Endgame — Instant, Anonymous, Scaleable Payment System On Top Of Bitcoin

In Understanding TumbleBit Part 1: Making the Case, I talked about the importance of privacy in general, the state of privacy in Bitcoin and compared TumbleBit with other alternatives. You do absolutely not need to read that in order to make sense to this article. To recap take a look at this tweet:

Today I will speculate on the SSJ God level. And maybe, just maybe you will feel like it all makes sense and become more excited than ever about the future of Bitcoin.

In this article I will outline the idea, the wish, the vision, the end game of TumbleBit: a trustless, instant, free, anonymous, scaleable payment system. On top of Bitcoin.

Ok, but how soon?

At the moment there are numerous implementations: a proof of concept from the creators in C++, a more advanced codebase from them in Python. And there is a NTumbleBit in .NET Core, a production ready TumbleBit: Classic Tumbler Mode, you know the Super Saiyan one. However it is yet untested, undocumented, user unfriendly and undeployed. Others are planning to implement it as well.

Generally Ethan Heilman and the other cryptographers from Boston University are concentrating more on the theoretical, the academic part, while Nicolas and me are on the practical, the implementation part.

In the end all of us are in daily contact, working together and helping each other. For example I just executed a brilliant and well-planned social engineering attack on Ethan:

So I can provide you the chance to contribute if you want: 199G7vQxuSYRNRrcM7qatY2kRH69g7qmpo

Using a payment hub vs on-chain mixing

There is a fundamental problem with on-chain mixing. Consider how mixing works: you send the Mixer some bitcoins and it sends back fully unrelated ones:

Imagine you bought two bitcoins. One to hodl and one to buy alpaca socks from the Silk Road, so you send 1btc to a mixer and buy the socks. But that is not how Bitcoin works. You actually have to spend all your 2btc. You spend 1btc to the mixer and 1btc switch goes back to you.

If you later acquire another 1btc and determine to buy something for 1.5btc that transaction would look like this:

So you are joining coins together. This is not ideal from a privacy point of view. This is one of the main reason why the blockchain surveillance companies are thriving. Therefore any bitcoin mixing that often visits the Bitcoin blockchain is not ideal.

So why not all of us just send all our bitcoins to CoinBase and and keep transacting inwards their system. Wait a moment: we now have instant transactions! Even better, we’ve just reclaimed our privacy, too!

There are two problems, tho’: 1. CB can steal our coins. Two. CB can deanonymize us. We only have an instant, free, scaleable payment system, but we want a trustless, instant, free, anonymous, scaleable payment system. This payment system would be CoinBase: Super Saiyan God mode, or in a lamer name: CoinBase: bi-directional payment hub mode.

So the question is: how do we take a centralized mixer, like CoinBase to Supa Saiya-jin Goddo level? Or rather how do I woo you it is possible?

Trustless

Using bi-directional multiparty payment channels we can make CoinBase trustless. I will not go into the details, you can read up on it at many places, I just would like to point out the fact for this to work CoinBase has to have at least as much bitcoins as much volume goes through it. This is a very real economic bottleneck and will most likely result many CoinBase hubs, or let’s say TumbleBit hubs from now on. On the other mitt this is a positive Bitcoin price pressure, so keep hodling.

Anonymous

But how can we hide who sends who inwards the payment hub from the payment hub? TumbleBit provides a fascinating solution for this. It is based on David Chaum’s blind signatures from 1999.

Here's the basic idea of blind signing in Chaumian e-cash: Let's suppose that a central issuer (Chaumian e-cash is…bitcoin.stackexchange.com

I should mention the SSJ God level is not written in stone yet, or sall I say not written in whitepaper? So its achieveability is uncertain at this point, only the SSJ3 level is certain, what I totally dismiss in this article, because it is about the end-game, not the middle-game of TumbleBit.

So what do you think? Will the creators go from a days long running, Bitcoin full-node requiring, untested, undocumented, user unfriendly, undeployed CLI software to a trustless, instant, free, anonymous, scaleable payment system? Find out in the next Tumble Bit Z episode…

Related video:

These Are The Most Popular Digital Currencies Three Years Running

These Are The Most Popular Digital Currencies Three Years Running

In Bitcoin, there is much discussion about alt-coins, as if many of these are actually legitimate. Many alt-coins are pre-mined, causing them to lose much of their legitimacy. If a coin has been pre-mined, it should automatically be crossed off your digital currency investment list.

Further, many fairly simply don’t have the adoption rate to suggest any sort of liquidity or security. Still, inexperienced alt-coins are part of the space, and there are more all the time. They’re also a point of contention for many critics of crypto-currency generally, who point towards how effortless it is to create a crypto-currency these days. Of course, it wasn’t so effortless until Bitcoin demonstrated the model.

From the years 2013-2015, the three largest cryptocurrencies have remained constant: they are, Bitcoin, Ethereum, Ripple and Litecoin, respectively.

Bitcoin is well-publicized, but other options not so much.

A major switch happened in two thousand fourteen as Ripple overtook Litecoin for 2nd largest alt-coin in the market. As of December 2015, Ripple stands at a market cap of $211,089,007. Litecoin’s is $151,006, 662. Bitcoin’s is $6,596, 631,791.

Below these top three catches sight of, there is a lot of turnover. The stable options over the past two years have been Dogecoin, Bitshares, Stellar and Maidsafe coin below the top three alt-coins.

The most publicized of the Bitcoin Two.0 technologies, Ethereum has had an appreciable price increase YTD perhaps thanks to questions surrounding the block size limit in Bitcoin and rendering it the 2nd largest alternative digital currency.

The currency raised almost $20 million in order to ensure the project would get off the ground, and many people believe that Ethereum can achieve what Bitcoin cannot.

Ripple is different than Litecoin and Bitcoin. For one, its pre-mined, meaning its not a very good option for an investor, not to mention its lost more than 90% of its market cap over the past two years.

Ripple considers itself a “real-time gross settlement system”, and functions as a currency exchange and remittance network run by a private company, Ripple. The Ripple Protocol is a distributed open-source protocol with its own currency, called XRP or ripples. It’s likely that Ripple has served as a source of inspiration for many of the private financial institutions looking into Bitcoin.

Ripple All-Time Chart

In latest years, Ripple has turned its concentrate away from the crypto-currency movement to concentrate on the banking market perhaps symbolic of the synergy inbetween the financial industry and the Ripple model. Indeed, American Banker once wrote that “from [a] banks’ perspective, distributed ledgers like the Ripple system have a number of advantages over cryptocurrencies like bitcoin.”

Litecoin is the well-known crypto-currency designed by Charles Lee, who now works as Director of Engineering at Coinbase. This peer-to-peer internet currency is very much like Bitcoin from the user standpoint.

Open-source and global, Litecoin, like Bitcoin, is also fully decentralized, with mathematics securing the network. Some people point to Litecoin’s quicker transaction times as an improvement over Bitcoin.

Litecoin is one of the most proven crypto-currency experiments on the market and its proof-of-work algorithm uses scrypt, a different form of encryption, than Bitcoin. Charlie Lee envisaged the system as silver to Bitcoin’s gold analogy. He also foresaw that there might be a time when the Bitcoin network could not treat itself as a transaction network after a certain volume, and believed Litecoin could treat the spillover if Bitcoin every reached capacity.

I’m no pro on trading cryptocurrencies, as some are, but, unless you’re an accomplished, it’s most likely best to stay focused on Bitcoin. Until one feels convenient about the nuances of each crypto-currency, there’s no reason to explore other options, albeit Litecoin could be a brainy, inexpensive speculative play, just don’t invest more than you’re ready to lose. Once one does, even then, that doesn’t mean Litecoin and Ripple – or any other options – are a good choice for you.

Photos from Shutterstock, Ethereum, Ripple. Charts from CoinMarketCap.

These Are The Most Popular Digital Currencies Three Years Running

These Are The Most Popular Digital Currencies Three Years Running

In Bitcoin, there is much discussion about alt-coins, as if many of these are actually legitimate. Many alt-coins are pre-mined, causing them to lose much of their legitimacy. If a coin has been pre-mined, it should automatically be crossed off your digital currency investment list.

Further, many fairly simply don’t have the adoption rate to suggest any sort of liquidity or security. Still, fledgling alt-coins are part of the space, and there are more all the time. They’re also a point of contention for many critics of crypto-currency generally, who point towards how effortless it is to create a crypto-currency these days. Of course, it wasn’t so effortless until Bitcoin demonstrated the model.

From the years 2013-2015, the three largest cryptocurrencies have remained constant: they are, Bitcoin, Ethereum, Ripple and Litecoin, respectively.

Bitcoin is well-publicized, but other options not so much.

A major switch happened in two thousand fourteen as Ripple overtook Litecoin for 2nd largest alt-coin in the market. As of December 2015, Ripple stands at a market cap of $211,089,007. Litecoin’s is $151,006, 662. Bitcoin’s is $6,596, 631,791.

Below these top three catches sight of, there is a lot of turnover. The sustained options over the past two years have been Dogecoin, Bitshares, Stellar and Maidsafe coin below the top three alt-coins.

The most publicized of the Bitcoin Two.0 technologies, Ethereum has had an appreciable price increase YTD perhaps thanks to questions surrounding the block size limit in Bitcoin and rendering it the 2nd largest alternative digital currency.

The currency raised almost $20 million in order to ensure the project would get off the ground, and many people believe that Ethereum can achieve what Bitcoin cannot.

Ripple is different than Litecoin and Bitcoin. For one, its pre-mined, meaning its not a very good option for an investor, not to mention its lost more than 90% of its market cap over the past two years.

Ripple considers itself a “real-time gross settlement system”, and functions as a currency exchange and remittance network run by a private company, Ripple. The Ripple Protocol is a distributed open-source protocol with its own currency, called XRP or ripples. It’s likely that Ripple has served as a source of inspiration for many of the private financial institutions looking into Bitcoin.

Ripple All-Time Chart

In latest years, Ripple has turned its concentrate away from the crypto-currency movement to concentrate on the banking market perhaps symbolic of the synergy inbetween the financial industry and the Ripple model. Indeed, American Banker once wrote that “from [a] banks’ perspective, distributed ledgers like the Ripple system have a number of advantages over cryptocurrencies like bitcoin.”

Litecoin is the well-known crypto-currency designed by Charles Lee, who now works as Director of Engineering at Coinbase. This peer-to-peer internet currency is very much like Bitcoin from the user standpoint.

Open-source and global, Litecoin, like Bitcoin, is also fully decentralized, with mathematics securing the network. Some people point to Litecoin’s swifter transaction times as an improvement over Bitcoin.

Litecoin is one of the most proven crypto-currency experiments on the market and its proof-of-work algorithm uses scrypt, a different form of encryption, than Bitcoin. Charlie Lee envisaged the system as silver to Bitcoin’s gold analogy. He also foresaw that there might be a time when the Bitcoin network could not treat itself as a transaction network after a certain volume, and believed Litecoin could treat the spillover if Bitcoin every reached capacity.

I’m no pro on trading cryptocurrencies, as some are, but, unless you’re an accomplished, it’s very likely best to stay focused on Bitcoin. Until one feels comfy about the nuances of each crypto-currency, there’s no reason to explore other options, albeit Litecoin could be a wise, inexpensive speculative play, just don’t invest more than you’re ready to lose. Once one does, even then, that doesn’t mean Litecoin and Ripple – or any other options – are a good choice for you.

Photos from Shutterstock, Ethereum, Ripple. Charts from CoinMarketCap.

Related video:

The twenty one fattest bitcoin mining companies – Business Insider

The twenty one companies that control bitcoin

The race is on. Alexander Hassenstein/Getty Photos

Flashy startups like Coinbase, Circle, Blockchain, and BitPay are some of the most famous companiesВ inВ bitcoin.В

But arguably more significant are the miners — individuals and organisations who form the core backbone of bitcoin, ensuring the digital currency’s integrity.

Bitcoin runs on a blockchain, a decentralised and public ledger of every transaction made on the network.В By suggesting processing power towards this, users get a chance to win bitcoin — creating an arms race of miners scrambling to assemble ever-more sophisticated and powerful equipment to “mine” fresh bitcoin.

This decentralisation has massive benefits, but also comes with fresh risks: Right now, if just the top three organisations joined compels they would control 51% of the network — providing them the power to rewrite the blockchain as they see fit.

Some individuals go it alone; others join open “pools” where they combine their resources to improve their odds; some larger companies also have mining efforts. While the #1 spot can switch from week to week, we have ranked the fattest mining companies using data covering August five to August twelve fromВ bitcoin network analysis company Blocktrail.

View As: One Page Slips

21. Unknown Entity — 0.1%

An “unknown entity” is presently responsible for 0.1% of the hash power on the bitcoin network. It could be a private organisation calmly building a mining operation, or a public pool that is flying below the radar.

20. Unknown Entity — 0.28%

Another unknown entity.

Nineteen. P2Pool.org — 0.47%%

This relatively petite pool was created in two thousand eleven by programmer Forrest Voight. It claims to be “the most semitransparent mining pool on the planet” because it distributes all pool data for the public to view. As of September 2014, it had mined more than 78,000 bitcoin (ВЈ13.Four million or $20.9 million at current prices).

Eighteen. Solo CKPool — 0.47%

CKPool is a public pool created by an Australian anaesthetist and programmer, Con Kolivas, and bitcoinerВ “Kano.”

It was launched in September 2014, andВ for risk-takers, it also offers a separateВ “solo” pool. This means that users will pool their resources to find a bitcoin block swifter than they would alone — but only the user who detects the block gets any prize.

This entry refers to the soloВ pool specifically.

17. Unknown Entity — 0.66%

A third unknown entity, this one is responsible for a little overВ 0.5% of the total hash power.

16. Kano CKPool — 0.66%

CKPool is a public pool created by an Australian anaesthetist and programmer, Con Kolivas, and bitcoinerВ “Kano.”

It was launched in September 2014, andВ for risk-takers, it also offers a “solo” pool. This means that users will pool their resources to find a bitcoin block swifter than they would alone — but only the user who detects the block gets any prize.

This is the standard pool.

15. BitMinter — 0.76%

A veteran pool, BitMinter was created in two thousand eleven by Geir Harald Hansen. According to BitcoinWiki, a digital currency wiki, it has servers in the US and inВ Europe.

14. 8baochi — 0.85%

Bitcoin is flourishing in China, and 8baochi isВ one of the smaller China pools to make the list. It also offers litecoin mining, an alternative, less popular digital currency.

13. BitClub Network — 1.33%

Unlike some other pools, BitClub Network does not disclose its founders, telling only that it is “run by a team of programmers, digital mining experts and entrepreneurs who have come together with MLM experts from around the world.”

MLM stands for Multi-Level Marketing — a referral system whereby a user gains bonuses for each fresh user they bring in, who then gains bonuses for each fresh user they bring in, and so on. MLMs can be controversial because they resemble pyramid schemes, but BitClub Network insists that it is legitimate and not a “Ponzi Scheme.”

For some users, itВ works as a cloud mining pool: Users don’t have to own their own hardware, just pay to rent some possessed by BitClub. Miners with their own equipments can also join the network, however.

12. Unknown entity — 1.42%

This fourth, largest unknown entity is behind more than 1% of the network’s total hashing power.

11. Unknown — 1.9%

This is everything else on the network that is unknownВ andВ that managed to mine a block in the last week. (Other smaller pools and individuals that did not manage to of course also exist.)В

This could include miners attempting to go it alone, or pools andВ organisations too puny to register by themselves.

Ten. GHash.io — 1.99%

Ghash.io was launched in July two thousand thirteen and last year gained some notoriety through its success: In June 2014, it shortly gained control of 51% of the entire bitcoin network. This majority control is arguably the thickest threat to bitcoin, and demonstrates the power of miners when they get too large — it could have rewritten the blockchain however it eyed fit, potentially fatally unstabilising the network in the process.

Since then, its hash power has dropped off: It now sits just under 2%.В Londoner Jeffrey Smith, the company’s CIO, acts most frequently as its spokesperson. It also operates Cex.io, a bitcoin exchange.

9. Twenty one Inc. — Trio.79%

21 made sways in March two thousand fifteen when it announced it had raised $116 million (ВЈ74 million) — making it the best-funded bitcoin startup ever. Investors included top Silicon Valley VC fund Andreessen Horowitz, where twenty one CEO Balaji SrinivasanВ also works as a fucking partner.В

This mammoth round came despite powerful secrecy about what the company was even attempting to do. When it exited stealth mode in May, it announced what many had already suspected: That it is attempting to embed bitcoin network hardware into consumer goods.В

21 doesn’t suggest a public pool, and its chips are not yet available, but its own private hardware presently makes up a little underВ 4% of the network.

8. Slush — Four.08%

Launched in November 2010, Slush Pool is the world’s oldest public mining pool, and remains prominent today. Its formal name is Bitcoin Pooled Mining.

In real life, Slush isВ Marek Palatinus, a programmer from the Czech Republic. The pool is possessed by SatoshiLabs, which also runs a number of other digital currency projects.

7. KnCMiner — Four.27%

KnCMiner is a Swedish mining hardware company.В It hasn’t been worth mining bitcoin using standard consumer computer hardware for years because of the kind of processing power involved; the tremendous majority of ordinary members of public pools will have bought hardware from companies like KnCMiner.

It raised a $15 million (ВЈ9.6 million) Series B in February two thousand fifteen led by Accel Playmates. It boasts its green credentials on its website , and has data centres Sweden, with expansions planned forВ Iceland and Finland.

6. Eligius — Four.83%

Eligius is a North American public pool launched in April 2011. According to CryptoCoinsNews, its operator Luke Dashjr (or “Luke-Jr”) is a Catholic who has previously written religious messages onto the blockchain, the public ledger of all bitcoin transactions.

Saint Eligius, the pool’s namesake, is the patron saint of goldsmiths and coin collectors.

Five. BW Pool — 7.68%

BW Pool is another Chinese pool. It has almost no publicity in the English-speaking world, despite its size. It made a uncommon public statement in July 2015, when it co-signed a Reddit post in favour of an increase in block size — an ongoing technical question the bitcoin community is debating.

Four. BTC China Pool — 13.74%

A relative newcomer to the scene, the BTCChina Pool is one of the thickest players around despite only launching at the end of 2014. This growth is down to the fact that BTC China itself is one of China’s largest bitcoin exchanges, and also offers a number of other digital currency solutions.

It was founded in 2011, and is presently led by Bobby Lee, who became CEO after purchasing the exchange in 2013.

Trio. BitFury — 16.4%

BitFury is the best-funded mining hardware company in the business, raising $20 million (ВЈ12.8 million) in July 2015. It was, CoinDesk notes, its third round in two years, and it has now raised $60 million (38.Four million) in total.

The startup is headed up by Valery Vavilov, originally from Latvia. It does not operate a public pool, but has private mines in Finland, Iceland, and the Republic of Georgia. Despite its prominence in the mining industry, Vavilov insists that “we are not a mining company, I don’t like the word mining.”

Instead,В he told CoinDesk, “we’re a technology company, but we’re focused on bitcoin now. Our vision in the next three to five years is to stir into different areas where computing power is valuable. We plan to expand into other fields of skill where humanity needs a lot of computing power.”

Two. DiscusFish/P2Pool — 16.49%

Officially known as F2Pool, this Chinese pool is also known as DiscusFish due to its logo — a discus fish. It is operated by Wang Chun and Mao Shihang, “two Chinese technology enthusiasts,” Chun told CoinDesk in September 2014. A spokesperson told Business Insider that the pool wields no hardware itself; 100% of its hash power comes from users.

In July this year, F2Pool generated the largest bitcoin transaction ever in order to clear up a spam attack of “dust” or lil’ bitcoin transactions evidently intended to clog up the network.

1. AntPool — 17.82%

AntPool is run by Bitmain, a Chinese mining hardware company headquartered in Beijing. It boasts that its technology accounts for 56% of global bitcoin miners. It also claims to be the largest cloud miner in the world.

BitmainВ was launched in Q1 2013, and co-founder Jihan WuВ is the CEO.

Related video:

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 began with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very plain question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, witness this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to reaction this question the very first thing you need to response is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just kicking off, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to stir them into your own private wallet and never leave them at the exchange. My private recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a immobilized amount every month, week or even day across the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for beginners to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free violet wand. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are accomplish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will very likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Eventually, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of sophisticated and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comebacks. They will then begin off by paying these comebacks through money they get from fresh sign ups and create a big hum around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is most likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test contraption. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can most likely see that the response isn’t that elementary. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, embark by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to reaction this question. Recall – only you can response this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 began with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very ordinary question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, witness this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to reaction this question the very first thing you need to reaction is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just commencing, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to stir them into your own individual wallet and never leave them at the exchange. My private recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a stationary amount every month, week or even day via the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for new-comers to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free electric current. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are finish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Eventually, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of elaborate and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comebacks. They will then begin off by paying these comes back through money they get from fresh sign ups and create a big hum around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is very likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test instrument. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can most likely see that the reaction isn’t that plain. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, embark by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to reaction this question. Recall – only you can reaction this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 began with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very plain question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, observe this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to response this question the very first thing you need to reaction is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just commencing, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to stir them into your own individual wallet and never leave them at the exchange. My individual recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a immobile amount every month, week or even day via the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for newcomers to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free tens unit. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are accomplish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Eventually, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of elaborate and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comebacks. They will then commence off by paying these comes back through money they get from fresh sign ups and create a big hum around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is very likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test device. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can very likely see that the response isn’t that plain. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, begin by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to response this question. Reminisce – only you can response this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 commenced with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very elementary question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, observe this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to reaction this question the very first thing you need to response is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just beginning, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to budge them into your own individual wallet and never leave them at the exchange. My private recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a immovable amount every month, week or even day via the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for beginners to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free violet wand. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are finish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Eventually, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of elaborate and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comebacks. They will then embark off by paying these comes back through money they get from fresh sign ups and create a big hum around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is most likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test instrument. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can most likely see that the reaction isn’t that ordinary. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, commence by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to response this question. Reminisce – only you can response this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 began with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very plain question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, witness this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to reaction this question the very first thing you need to response is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just beginning, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to budge them into your own private wallet and never leave them at the exchange. My private recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a motionless amount every month, week or even day across the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for new-comers to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free electrical play. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are finish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Eventually, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of sophisticated and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comes back. They will then begin off by paying these comes back through money they get from fresh sign ups and create a big hum around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is very likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test implement. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can very likely see that the response isn’t that elementary. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, begin by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to response this question. Recall – only you can response this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 began with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very plain question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, observe this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to response this question the very first thing you need to reaction is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just commencing, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to budge them into your own individual wallet and never leave them at the exchange. My individual recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a immobile amount every month, week or even day across the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for newcomers to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free electro-therapy. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are accomplish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Ultimately, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of elaborate and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comes back. They will then embark off by paying these comebacks through money they get from fresh sign ups and create a big whirr around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is most likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test implement. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can very likely see that the response isn’t that elementary. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, commence by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to response this question. Recall – only you can reaction this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 began with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very ordinary question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, observe this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to reaction this question the very first thing you need to response is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just beginning, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to budge them into your own private wallet and never leave them at the exchange. My individual recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a immobilized amount every month, week or even day across the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for newcomers to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free tens unit. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are finish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Eventually, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of elaborate and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comes back. They will then commence off by paying these comes back through money they get from fresh sign ups and create a big hum around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is very likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test instrument. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can very likely see that the reaction isn’t that ordinary. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, commence by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to response this question. Reminisce – only you can response this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 began with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very plain question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, observe this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to response this question the very first thing you need to response is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just embarking, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to budge them into your own individual wallet and never leave them at the exchange. My private recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a immobilized amount every month, week or even day via the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for newcomers to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free violet wand. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are accomplish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Eventually, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of sophisticated and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comes back. They will then embark off by paying these comes back through money they get from fresh sign ups and create a big hum around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is very likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test device. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can most likely see that the response isn’t that plain. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, commence by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to response this question. Reminisce – only you can response this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 embarked with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very elementary question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, witness this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to reaction this question the very first thing you need to reaction is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just embarking, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to stir them into your own private wallet and never leave them at the exchange. My private recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a immovable amount every month, week or even day across the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for rookies to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free tens unit. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are finish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Ultimately, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of complicated and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comes back. They will then commence off by paying these comebacks through money they get from fresh sign ups and create a big whirr around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is very likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test device. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can most likely see that the reaction isn’t that elementary. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, embark by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to reaction this question. Recall – only you can response this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 embarked with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very plain question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, observe this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to response this question the very first thing you need to reaction is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just commencing, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to stir them into your own private wallet and never leave them at the exchange. My private recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a motionless amount every month, week or even day across the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for rookies to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free electro-stimulation. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are finish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Ultimately, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of sophisticated and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comes back. They will then embark off by paying these comes back through money they get from fresh sign ups and create a big whirr around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is most likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test implement. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can very likely see that the reaction isn’t that elementary. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, commence by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to response this question. Recall – only you can reaction this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 commenced with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very plain question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, see this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to response this question the very first thing you need to reaction is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just kicking off, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to stir them into your own individual wallet and never leave them at the exchange. My private recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a immobilized amount every month, week or even day across the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for new-comers to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free electrical play. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are accomplish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Eventually, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of sophisticated and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comebacks. They will then commence off by paying these comes back through money they get from fresh sign ups and create a big whirr around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is very likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test instrument. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can very likely see that the response isn’t that plain. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, embark by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to reaction this question. Recall – only you can response this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 commenced with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very plain question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, witness this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to reaction this question the very first thing you need to response is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just beginning, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to stir them into your own private wallet and never leave them at the exchange. My private recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a immobile amount every month, week or even day across the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for beginners to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free electrical play. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are accomplish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Ultimately, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of complicated and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comes back. They will then begin off by paying these comebacks through money they get from fresh sign ups and create a big whirr around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is most likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test contraption. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can very likely see that the response isn’t that elementary. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, commence by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to response this question. Reminisce – only you can reaction this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 began with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very elementary question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, witness this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to response this question the very first thing you need to response is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just embarking, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to budge them into your own private wallet and never leave them at the exchange. My individual recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a immobile amount every month, week or even day via the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for rookies to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free electro-therapy. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are accomplish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Eventually, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of sophisticated and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comes back. They will then begin off by paying these comebacks through money they get from fresh sign ups and create a big whirr around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is very likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test contraption. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can most likely see that the reaction isn’t that plain. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, begin by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to response this question. Reminisce – only you can response this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 embarked with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very ordinary question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, see this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to response this question the very first thing you need to response is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just embarking, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to budge them into your own private wallet and never leave them at the exchange. My private recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a immovable amount every month, week or even day via the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for beginners to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free violet wand. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are accomplish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Eventually, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of sophisticated and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comebacks. They will then embark off by paying these comes back through money they get from fresh sign ups and create a big whirr around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is most likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test device. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can very likely see that the response isn’t that ordinary. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, commence by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to response this question. Reminisce – only you can response this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 began with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very plain question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, see this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to response this question the very first thing you need to response is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just commencing, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to stir them into your own private wallet and never leave them at the exchange. My individual recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a immobilized amount every month, week or even day via the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for new-comers to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free tens unit. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are accomplish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Eventually, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of sophisticated and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comes back. They will then commence off by paying these comebacks through money they get from fresh sign ups and create a big hum around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is very likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test implement. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can very likely see that the reaction isn’t that elementary. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, begin by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to reaction this question. Recall – only you can reaction this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 began with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very plain question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, see this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to response this question the very first thing you need to response is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just beginning, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to budge them into your own private wallet and never leave them at the exchange. My private recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a immobile amount every month, week or even day via the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for rookies to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free tens unit. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are finish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Eventually, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of complicated and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comebacks. They will then embark off by paying these comes back through money they get from fresh sign ups and create a big whirr around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is very likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test instrument. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can most likely see that the response isn’t that elementary. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, begin by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to reaction this question. Reminisce – only you can response this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 commenced with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very plain question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, see this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to response this question the very first thing you need to reaction is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just kicking off, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to budge them into your own private wallet and never leave them at the exchange. My individual recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a immovable amount every month, week or even day via the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for new-comers to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free tens unit. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are finish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Eventually, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of sophisticated and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comebacks. They will then begin off by paying these comes back through money they get from fresh sign ups and create a big whirr around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is most likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test instrument. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can very likely see that the reaction isn’t that ordinary. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, begin by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to response this question. Recall – only you can reaction this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 began with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very ordinary question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, see this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to reaction this question the very first thing you need to response is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just kicking off, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to budge them into your own private wallet and never leave them at the exchange. My private recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a immobile amount every month, week or even day across the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for new-comers to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free electrical play. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are finish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will very likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Ultimately, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of sophisticated and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comebacks. They will then begin off by paying these comes back through money they get from fresh sign ups and create a big hum around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is very likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test instrument. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can very likely see that the reaction isn’t that ordinary. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, embark by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to reaction this question. Recall – only you can reaction this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 embarked with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very elementary question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, observe this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to reaction this question the very first thing you need to reaction is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just beginning, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to stir them into your own private wallet and never leave them at the exchange. My private recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a immovable amount every month, week or even day across the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for new-comers to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free electro-therapy. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are accomplish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will very likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Ultimately, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of elaborate and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comes back. They will then begin off by paying these comes back through money they get from fresh sign ups and create a big whirr around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is most likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test implement. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can most likely see that the reaction isn’t that plain. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, embark by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to reaction this question. Recall – only you can response this. You can consult others and read online but never go after someone’s advice blindly.

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

Should I Invest in Bitcoin in 2017? Here are four Things You Have to Know

2017 began with a bang as Bitcoin shot through the $1000 mark with no signs of slowing down. As a result I get about two emails a day from people around the world who are asking one very plain question: “Should I invest in Bitcoin?”

Before we begin, I want to get something out of the way – Bitcoin is not a company or a stock, it’s a currency. If you still don’t understand what Bitcoin is, witness this movie. So when you want to invest in Bitcoin you are basically buying the currency. However, there are also some other forms of investing in Bitcoin.

What does it mean to invest in Bitcoin?

Table of Contents

In order to response this question the very first thing you need to response is what do you mean when you say you want to invest in Bitcoin. Do you want to buy the currency in hopes it will appreciate it value? Do you want to invest in Bitcoin related companies? Are you looking to day trade with Bitcoins?

Buying and holding

The most common form of “investing” in Bitcoin is buying the currency in hopes it will appreciate in value (also knowns as “hodling”, see the origins of the term here). If this is the case then you need to determine for yourself if you think this is a good time to buy. Meaning, do you think the price will proceed to rise.

Don’t take anyone’s advice about what will happen with the currency, do your homework, learn about Bitcoin and come to a conclusion. Personally I believe we are just beginning, but that’s my own opinion and you shouldn’t consider that as investment advice as well.

A few pointers for buying and holding Bitcoins:

  1. Never invest more than you are willing/able to lose – Bitcoin is a very risky investment and you should keep in that in mind at all times.
  2. After buying Bitcoins make sure to budge them into your own individual wallet and never leave them at the exchange. My private recommendation is to use a hardware wallet to store your Bitcoins. If you can’t afford a hardware wallet, attempt a paper wallet.
  3. Make sure to buy Bitcoins only from exchanges that have proven their reputation.
  4. Buy Bitcoins through Dollar cost averaging – This means that you don’t buy all of your Bitcoins in one trade but instead buy a motionless amount every month, week or even day via the year. This way you average the price over the course of a entire year. Here’s a brief movie to explain this concept:

Trading in Bitcoins

Bitcoin trading is different than buying and holding. When you are trading Bitcoins it means that you are actively attempting to buy Bitcoins at a low price and sell them back at a higher price in relatively brief time interval. Trading successfully requires skill and practice. The trading market is occupied by very large players who are just waiting for newcomers to come in and throw their money away by trading aimlessly.

If you want to learn more about Bitcoin trading here are some practical tips to help you out.

Investing in Bitcoin mining

Some people would like to invest their money into mining Bitcoin. For the past few years mining Bitcoin is only profitable if done at large scales. This means you will need to get expensive mining equipment and hopefully have access to free electrical play. Also it’s usually much more cost effective to buy Bitcoins with this money instead of using it to buy mining equipment.

Some of you may have heard of all sorts of sites that permit you to mine Bitcoins through them. This is known as cloud mining and these sites fall into one out of two categories:

  1. They are accomplish scams that will run away with your money and don’t actually use it to mine Bitcoin.
  2. They are not scams, but they are bad investments since you will most likely get more Bitcoins if you just use that money to buy Bitcoins instead of paying the site.

If you want to learn more about my take on cloud mining read this post.

Invest in Bitcoin companies / grow your Bitcoins / HYIPs

Eventually, every other day I get a question about a site or company that claims to dual your Bitcoins, give you insane daily interest on your Bitcoins or help you invest them in some sort of sophisticated and obscure scheme. These sites can be categorized mostly as scams or HYIPs (high yield investment programs).

What these sites usually do is they take money from people around the web and promise to give them good comes back. They will then embark off by paying these comebacks through money they get from fresh sign ups and create a big hum around the site. Usually they will also have some sort of referral program so that users can bring in their friends. This will go on for around 3-4 months until one day the website will just go offline and the money will be gone. No more payments will be made and a lot of people will get mad that they got scammed.

I have reviewed many Bitcoin investment sites in the past three years (e.g. BTCJam, Bitcoin Trader) and I have yet to find a site that I can say is legit or safe to invest in. Any site that promises you something that is too good to be true is very likely just a facade for scammers attempting to steal your coins.

How can you find out if a site is a scam for yourself? Effortless, use our Bitcoin scam test implement. I can’t emphasis this enough – STAY AWAY FROM SITES THAT CLAIM THEY WILL Dual YOUR COINS OR GIVE YOU DAILY INTEREST ON THEM.

So should you invest in Bitcoin?

By now you can most likely see that the reaction isn’t that plain. It’s not just a matter of should you invest, but also a matter of how to invest. Like I said in the beginning, embark by educating yourself. Learn about the currency, what affects it, what are its advantages and disadvantages, etc. You can get a lot of basic education through our free Bitcoin crash course (sign up at the bottom of this post).

After you feel you’ve acquired some basic education it’s time to response this question. Reminisce – only you can reaction this. You can consult others and read online but never go after someone’s advice blindly.

Related video:

Scalability – Bitcoin Wiki

Scalability

[Note: This page is gravely outdated and largely unmaintained; due to past incidents of edit-warring it has not been subject to much peer review.]

A Bitcoin total knot could be modified to scale to much higher transaction rates than are seen today, assuming that said knot is running on a high end servers rather than a desktop. Bitcoin was designed to support lightweight clients that only process petite parts of the block chain (see simplified payment verification below for more details on this).

Please note that this page exists to give calculations about the scalability of a Bitcoin utter knot and transactions on the block chain without regards to network security and decentralization. It is not intended to discuss the scalability of alternative protocols or attempt and summarise philosophical debates. Create alternative pages if you want to do that.

Contents

Note to Readers

When techies hear about how bitcoin works they frequently stop at the word “flooding” and say “Oh-my-god! that can’t scale!”. The purpose of this article is to take an extreme example, the peak transaction rate of Visa, and demonstrate that bitcoin could technically reach that kind of rate without any kind of questionable reasoning, switches in the core design, or non-existent overlays. As such, it’s merely an extreme example— not a plan for how bitcoin will grow to address broader needs (as a decentralized system it is the bitcoin using public who will determine how bitcoin grows)— it’s just an argument that shows that bitcoin’s core design can scale much better than an intelligent person might guess at very first.

Dan rightly criticizes the analysis introduced here— pointing out that operating at this scale would significantly reduce the decentralized nature of bitcoin: If you have to have many terabytes of disk space to run a “total validating” knot then fewer people will do it, and everyone who doesn’t will have to trust the ones who do to be fair. Dan emerges (from his slips) to have gone too far with that argument: he seems to suggest that this means bitcoins will be managed by the kind of central banks that are common today. His analysis fails for two reasons (and the 2nd is the fault of this page being a bit misleading):

Very first, even at the astronomic scale introduced here the required capacity is well within the sphere of (wealthy) private individuals, and certainly would be at some future time when that kind of capacity was required. A system which puts private individuals, or at least puny groups of private parties, on equal footing with central banks could hardly be called a centralized one, tho’ it would be less decentralized than the bitcoin we have today. The system could also not get to this kind of scale without bitcoin users agreeing collectively to increase the maximum block size, so it’s not an outcome that can happen without the consent of bitcoin users.

2nd, and most importantly, the assumed scaling described here deals with Bitcoin substituting visa. This is a poor comparison because bitcoin alone is not a ideal replacement for visa for reasons downright unrelated to scaling: Bitcoin does not suggest instant transactions, credit, or various anti-fraud mechanisms (which some people want, even if not everyone does), for example. Bitcoin is a more finish replacement for checks, wire transfers, money orders, gold coins, CDs, savings accounts, etc. and if widely adopted most likely substitute the uses of credit cards which would be better served by these other things if they worked better online.

Bitcoin users sometimes gloss over this fact too quickly because people are too quick to call it a flaw but this is unfair. No one system is ideal for all usage and Bitcoin has a broader spectrum of qualities than most monetary instruments. If the bitcoin community isn’t willing to point out some things would better be done by other systems then it becomes effortless to make strawman arguments: If we admit that bitcoin could be used as a floor paraffin wax and desert topping, someone will always point out that it’s not the best floorwax or best desert topping.

It’s trivial to build payment processing and credit systems _on top_ of bitcoin, both classic ones (like Visa itself!) as well as decentralized ones like Ripple. These systems could treat higher transaction volumes with lower costs, and lodge frequently to the bitcoin that backs them. These could use other technics with different tradeoffs than bitcoin, but still be backed and denominated by bitcoin so still love its lack of central control. We see the beginnings of this today with bitcoin exchange and wallet services permitting instant payments inbetween members.

These services would build up the benefit of the stable inflation resistant bitcoin currency, users would build up the benefits of instant transactions, credit, and anti-fraud, bitcoin overall would love improved scaling from offloaded transaction volume without compromising its decentralized nature. In a world where bitcoin was widely used payment processing systems would very likely have lower prices because they would need to challenge with raw-bitcoin transactions, they also could be afford lower price because frequent bitcoin lodging (and zero trust bitcoin escrow transactions) would reduce their risk. This is doubly true because bitcoin could conceivably scale to substitute them entirely, even if that wouldn’t be the best idea due to the resulting reduction in decentralization.

Scalability targets

VISA treats on average around Two,000 transactions per 2nd (tps), so call it a daily peak rate of Four,000 tps. It has a peak capacity of around 56,000 transactions per 2nd, [1] however they never actually use more than about a third of this even during peak shopping periods. [Two]

PayPal, in contrast, treated around ten million transactions per day for an average of one hundred fifteen tps in late 2014. [Three]

Let’s take Four,000 tps as embarking objective. Obviously if we want Bitcoin to scale to all economic transactions worldwide, including cash, it’d be a lot higher than that, perhaps more in the region of a few hundred thousand tps. And the need to be able to withstand DoS attacks (which VISA does not have to deal with) implies we would want to scale far beyond the standard peak rates. Still, picking a target let us do some basic calculations even if it’s a little arbitrary.

Today the Bitcoin network is restricted to a sustained rate of seven tps due to the bitcoin protocol restricting block sizes to 1MB.

The protocol has two parts. Knots send “inv” messages to other knots telling them they have a fresh transaction. If the receiving knot doesn’t have that transaction it requests it with a getdata.

The big cost is the crypto and block chain lookups involved with verifying the transaction. Verifying a transaction means some hashing and some ECDSA signature verifications. RIPEMD-160 runs at one hundred six megabytes/sec (call it one hundred for simpleness) and SHA256 is about the same. So hashing one megabyte should take around ten milliseconds and hashing one kilobyte would take 0.01 milliseconds – swift enough that we can disregard it.

Bitcoin is presently able (with a duo of plain optimizations that are prototyped but not merged yet) to perform around eight thousand signature verifications per 2nd on an quad core Intel Core i7-2670QM Two.2Ghz processor. The average number of inputs per transaction is around Two, so we must halve the rate. This means four thousand tps is lightly achievable CPU-wise with a single fairly mainstream CPU.

As we can see, this means as long as Bitcoin knots are permitted to max out at least four cores of the machines they run on, we will not run out of CPU capacity for signature checking unless Bitcoin is treating one hundred times as much traffic as PayPal. As of late two thousand fifteen the network is treating 1.Five transactions/2nd, so even assuming enormous growth in popularity we will not reach this level for a long time.

Of course Bitcoin does other things beyond signature checking, most obviously, managing the database. We use LevelDB which does the bulk of the intense lifting on a separate thread, and is capable of very high read/write geysers. Overall Bitcoin’s CPU usage is predominated by ECDSA.

Network

Let’s assume an average rate of 2000tps, so just VISA. Transactions vary in size from about 0.Two kilobytes to over one kilobyte, but it’s averaging half a kilobyte today.

That means that you need to keep up with around eight megabits/2nd of transaction data (2000tps * five hundred twelve bytes) / one thousand twenty four bytes in a kilobyte / one thousand twenty four kilobytes in a megabyte = 0.97 megabytes per 2nd * eight = 7.8 megabits/2nd.

This sort of bandwidth is already common for even residential connections today, and is certainly at the low end of what colocation providers would expect to provide you with.

When blocks are solved, the current protocol will send the transactions again, even if a peer has already seen it at broadcast time. Fixing this to make blocks just list of hashes would resolve the issue and make the bandwidth needed for block broadcast negligable. So whilst this optimization isn’t fully implemented today, we do not consider block transmission bandwidth here.

Storage

At very high transaction rates each block can be over half a gigabyte in size.

It is not required for most fully validating knots to store the entire chain. In Satoshi’s paper he describes “pruning”, a way to delete unnecessary data about transactions that are fully spent. This reduces the amount of data that is needed for a fully validating knot to be only the size of the current unspent output size, plus some extra data that is needed to treat re-orgs. As of October two thousand twelve (block 203258) there have been 7,979,231 transactions, however the size of the unspent output set is less than 100MiB, which is puny enough to lightly fit in RAM for even fairly old computers.

Only a petite number of archival knots need to store the total chain going back to the genesis block. These knots can be used to bootstrap fresh fully validating knots from scrape but are otherwise unnecessary.

The primary limiting factor in Bitcoin’s spectacle is disk seeks once the unspent transaction output set stops fitting in memory. Once hard disks are phased out in favour of SSDs, it is fairly possible that access to the UTXO set never becomes a serious bottleneck.

Optimizations

The description above applies to the current software with only minor optimizations assumed (the type that can and have been done by one man in a few weeks).

However there is potential for even greater optimizations to be made in future, at the cost of some extra complexity.

Algorithms exist to accelerate batch verification over elliptic curve signatures. It’s possible to check their signatures at the same time for a 2x speedup. This is a somewhat more elaborate implementation.

Simplified payment verification

It’s possible to build a Bitcoin implementation that does not verify everything, but instead relies on either connecting to a trusted knot, or puts its faith in high difficulty as a proxy for proof of validity. bitcoinj is an implementation of this mode.

In Simplified Payment Verification (SPV) mode, named after the section of Satoshi’s paper that describes it, clients connect to an arbitrary total knot and download only the block headers. They verify the chain headers connect together correctly and that the difficulty is high enough. They then request transactions matching particular patterns from the remote knot (ie, payments to your addresses), which provides copies of those transactions along with a Merkle branch linking them to the block in which they appeared. This exploits the Merkle tree structure to permit proof of inclusion without needing the total contents of the block.

As a further optimization, block headers that are buried adequately deep can be thrown away after some time (eg. you only indeed need to store as low as two thousand sixteen headers).

The level of difficulty required to obtain confidence the remote knot is not feeding you fictional transactions depends on your threat model. If you are connecting to a knot that is known to be reliable, the difficulty doesn’t matter. If you want to pick a random knot, the cost for an attacker to mine a block sequence containing a bogus transaction should be higher than the value to be obtained by defrauding you. By switching how deeply buried the block must be, you can trade off confirmation time vs cost of an attack.

Programs implementing this treatment can have immobile storage/network overhead in the null case of no usage, and resource usage proportional to received/sent transactions.

Related work

There are a few proposals for optimizing Bitcoin’s scalability. Some of these require an alt-chain / hard fork.

  • Ultimate blockchain compression – the idea that the blockchain can be compressed to achieve “trust-free lite knots”
  • The Finite Blockchain paper that describes splitting the blockchain into three data structures, each better suited for its purpose. The three data structures are a finite blockchain (keep N blocks into the past), an “account tree” which keeps account balance for every address with a non-zero balance, and a “proof chain” which is an (ever growing) slimmed down version of the blockchain.
  • Lightning Network, an alternative protocol for transaction clearance in which knots set up micropayment channels inbetween each other and lodge up on the block chain sometimes. Ordinary users interact primarily or only with payment channels and only use the blockchain for large transfers and cold storage.

Scalability – Bitcoin Wiki

Scalability

[Note: This page is gravely outdated and largely unmaintained; due to past incidents of edit-warring it has not been subject to much peer review.]

A Bitcoin total knot could be modified to scale to much higher transaction rates than are seen today, assuming that said knot is running on a high end servers rather than a desktop. Bitcoin was designed to support lightweight clients that only process petite parts of the block chain (see simplified payment verification below for more details on this).

Please note that this page exists to give calculations about the scalability of a Bitcoin utter knot and transactions on the block chain without regards to network security and decentralization. It is not intended to discuss the scalability of alternative protocols or attempt and summarise philosophical debates. Create alternative pages if you want to do that.

Contents

Note to Readers

When techies hear about how bitcoin works they frequently stop at the word “flooding” and say “Oh-my-god! that can’t scale!”. The purpose of this article is to take an extreme example, the peak transaction rate of Visa, and demonstrate that bitcoin could technically reach that kind of rate without any kind of questionable reasoning, switches in the core design, or non-existent overlays. As such, it’s merely an extreme example— not a plan for how bitcoin will grow to address broader needs (as a decentralized system it is the bitcoin using public who will determine how bitcoin grows)— it’s just an argument that shows that bitcoin’s core design can scale much better than an intelligent person might guess at very first.

Dan rightly criticizes the analysis introduced here— pointing out that operating at this scale would significantly reduce the decentralized nature of bitcoin: If you have to have many terabytes of disk space to run a “utter validating” knot then fewer people will do it, and everyone who doesn’t will have to trust the ones who do to be fair. Dan emerges (from his slips) to have gone too far with that argument: he seems to suggest that this means bitcoins will be managed by the kind of central banks that are common today. His analysis fails for two reasons (and the 2nd is the fault of this page being a bit misleading):

Very first, even at the astronomic scale introduced here the required capacity is well within the field of (wealthy) private individuals, and certainly would be at some future time when that kind of capacity was required. A system which puts private individuals, or at least puny groups of private parties, on equal footing with central banks could hardly be called a centralized one, tho’ it would be less decentralized than the bitcoin we have today. The system could also not get to this kind of scale without bitcoin users agreeing collectively to increase the maximum block size, so it’s not an outcome that can happen without the consent of bitcoin users.

2nd, and most importantly, the assumed scaling described here deals with Bitcoin substituting visa. This is a poor comparison because bitcoin alone is not a flawless replacement for visa for reasons entirely unrelated to scaling: Bitcoin does not suggest instant transactions, credit, or various anti-fraud mechanisms (which some people want, even if not everyone does), for example. Bitcoin is a more finish replacement for checks, wire transfers, money orders, gold coins, CDs, savings accounts, etc. and if widely adopted most likely substitute the uses of credit cards which would be better served by these other things if they worked better online.

Bitcoin users sometimes gloss over this fact too quickly because people are too quick to call it a flaw but this is unfair. No one system is ideal for all usage and Bitcoin has a broader spectrum of qualities than most monetary instruments. If the bitcoin community isn’t willing to point out some things would better be done by other systems then it becomes effortless to make strawman arguments: If we admit that bitcoin could be used as a floor paraffin wax and desert topping, someone will always point out that it’s not the best floorwax or best desert topping.

It’s trivial to build payment processing and credit systems _on top_ of bitcoin, both classic ones (like Visa itself!) as well as decentralized ones like Ripple. These systems could treat higher transaction volumes with lower costs, and lodge frequently to the bitcoin that backs them. These could use other technics with different tradeoffs than bitcoin, but still be backed and denominated by bitcoin so still love its lack of central control. We see the beginnings of this today with bitcoin exchange and wallet services permitting instant payments inbetween members.

These services would build up the benefit of the stable inflation resistant bitcoin currency, users would build up the benefits of instant transactions, credit, and anti-fraud, bitcoin overall would love improved scaling from offloaded transaction volume without compromising its decentralized nature. In a world where bitcoin was widely used payment processing systems would most likely have lower prices because they would need to contest with raw-bitcoin transactions, they also could be afford lower price because frequent bitcoin lodging (and zero trust bitcoin escrow transactions) would reduce their risk. This is doubly true because bitcoin could conceivably scale to substitute them entirely, even if that wouldn’t be the best idea due to the resulting reduction in decentralization.

Scalability targets

VISA treats on average around Two,000 transactions per 2nd (tps), so call it a daily peak rate of Four,000 tps. It has a peak capacity of around 56,000 transactions per 2nd, [1] however they never actually use more than about a third of this even during peak shopping periods. [Two]

PayPal, in contrast, treated around ten million transactions per day for an average of one hundred fifteen tps in late 2014. [Trio]

Let’s take Four,000 tps as beginning purpose. Obviously if we want Bitcoin to scale to all economic transactions worldwide, including cash, it’d be a lot higher than that, perhaps more in the region of a few hundred thousand tps. And the need to be able to withstand DoS attacks (which VISA does not have to deal with) implies we would want to scale far beyond the standard peak rates. Still, picking a target let us do some basic calculations even if it’s a little arbitrary.

Today the Bitcoin network is restricted to a sustained rate of seven tps due to the bitcoin protocol restricting block sizes to 1MB.

The protocol has two parts. Knots send “inv” messages to other knots telling them they have a fresh transaction. If the receiving knot doesn’t have that transaction it requests it with a getdata.

The big cost is the crypto and block chain lookups involved with verifying the transaction. Verifying a transaction means some hashing and some ECDSA signature verifications. RIPEMD-160 runs at one hundred six megabytes/sec (call it one hundred for simpleness) and SHA256 is about the same. So hashing one megabyte should take around ten milliseconds and hashing one kilobyte would take 0.01 milliseconds – rapid enough that we can disregard it.

Bitcoin is presently able (with a duo of plain optimizations that are prototyped but not merged yet) to perform around eight thousand signature verifications per 2nd on an quad core Intel Core i7-2670QM Two.2Ghz processor. The average number of inputs per transaction is around Two, so we must halve the rate. This means four thousand tps is lightly achievable CPU-wise with a single fairly mainstream CPU.

As we can see, this means as long as Bitcoin knots are permitted to max out at least four cores of the machines they run on, we will not run out of CPU capacity for signature checking unless Bitcoin is treating one hundred times as much traffic as PayPal. As of late two thousand fifteen the network is treating 1.Five transactions/2nd, so even assuming enormous growth in popularity we will not reach this level for a long time.

Of course Bitcoin does other things beyond signature checking, most obviously, managing the database. We use LevelDB which does the bulk of the powerful lifting on a separate thread, and is capable of very high read/write explosions. Overall Bitcoin’s CPU usage is predominated by ECDSA.

Network

Let’s assume an average rate of 2000tps, so just VISA. Transactions vary in size from about 0.Two kilobytes to over one kilobyte, but it’s averaging half a kilobyte today.

That means that you need to keep up with around eight megabits/2nd of transaction data (2000tps * five hundred twelve bytes) / one thousand twenty four bytes in a kilobyte / one thousand twenty four kilobytes in a megabyte = 0.97 megabytes per 2nd * eight = 7.8 megabits/2nd.

This sort of bandwidth is already common for even residential connections today, and is certainly at the low end of what colocation providers would expect to provide you with.

When blocks are solved, the current protocol will send the transactions again, even if a peer has already seen it at broadcast time. Fixing this to make blocks just list of hashes would resolve the issue and make the bandwidth needed for block broadcast negligable. So whilst this optimization isn’t fully implemented today, we do not consider block transmission bandwidth here.

Storage

At very high transaction rates each block can be over half a gigabyte in size.

It is not required for most fully validating knots to store the entire chain. In Satoshi’s paper he describes “pruning”, a way to delete unnecessary data about transactions that are fully spent. This reduces the amount of data that is needed for a fully validating knot to be only the size of the current unspent output size, plus some extra data that is needed to treat re-orgs. As of October two thousand twelve (block 203258) there have been 7,979,231 transactions, however the size of the unspent output set is less than 100MiB, which is petite enough to lightly fit in RAM for even fairly old computers.

Only a petite number of archival knots need to store the utter chain going back to the genesis block. These knots can be used to bootstrap fresh fully validating knots from scrape but are otherwise unnecessary.

The primary limiting factor in Bitcoin’s spectacle is disk seeks once the unspent transaction output set stops fitting in memory. Once hard disks are phased out in favour of SSDs, it is fairly possible that access to the UTXO set never becomes a serious bottleneck.

Optimizations

The description above applies to the current software with only minor optimizations assumed (the type that can and have been done by one man in a few weeks).

However there is potential for even greater optimizations to be made in future, at the cost of some extra complexity.

Algorithms exist to accelerate batch verification over elliptic curve signatures. It’s possible to check their signatures at the same time for a 2x speedup. This is a somewhat more elaborate implementation.

Simplified payment verification

It’s possible to build a Bitcoin implementation that does not verify everything, but instead relies on either connecting to a trusted knot, or puts its faith in high difficulty as a proxy for proof of validity. bitcoinj is an implementation of this mode.

In Simplified Payment Verification (SPV) mode, named after the section of Satoshi’s paper that describes it, clients connect to an arbitrary total knot and download only the block headers. They verify the chain headers connect together correctly and that the difficulty is high enough. They then request transactions matching particular patterns from the remote knot (ie, payments to your addresses), which provides copies of those transactions along with a Merkle branch linking them to the block in which they appeared. This exploits the Merkle tree structure to permit proof of inclusion without needing the utter contents of the block.

As a further optimization, block headers that are buried reasonably deep can be thrown away after some time (eg. you only truly need to store as low as two thousand sixteen headers).

The level of difficulty required to obtain confidence the remote knot is not feeding you fictional transactions depends on your threat model. If you are connecting to a knot that is known to be reliable, the difficulty doesn’t matter. If you want to pick a random knot, the cost for an attacker to mine a block sequence containing a bogus transaction should be higher than the value to be obtained by defrauding you. By switching how deeply buried the block must be, you can trade off confirmation time vs cost of an attack.

Programs implementing this treatment can have immobile storage/network overhead in the null case of no usage, and resource usage proportional to received/sent transactions.

Related work

There are a few proposals for optimizing Bitcoin’s scalability. Some of these require an alt-chain / hard fork.

  • Ultimate blockchain compression – the idea that the blockchain can be compressed to achieve “trust-free lite knots”
  • The Finite Blockchain paper that describes splitting the blockchain into three data structures, each better suited for its purpose. The three data structures are a finite blockchain (keep N blocks into the past), an “account tree” which keeps account balance for every address with a non-zero balance, and a “proof chain” which is an (ever growing) slimmed down version of the blockchain.
  • Lightning Network, an alternative protocol for transaction clearance in which knots set up micropayment channels inbetween each other and lodge up on the block chain periodically. Ordinary users interact primarily or only with payment channels and only use the blockchain for large transfers and cold storage.

Scalability – Bitcoin Wiki

Scalability

[Note: This page is earnestly outdated and largely unmaintained; due to past incidents of edit-warring it has not been subject to much peer review.]

A Bitcoin total knot could be modified to scale to much higher transaction rates than are seen today, assuming that said knot is running on a high end servers rather than a desktop. Bitcoin was designed to support lightweight clients that only process puny parts of the block chain (see simplified payment verification below for more details on this).

Please note that this page exists to give calculations about the scalability of a Bitcoin utter knot and transactions on the block chain without regards to network security and decentralization. It is not intended to discuss the scalability of alternative protocols or attempt and summarise philosophical debates. Create alternative pages if you want to do that.

Contents

Note to Readers

When techies hear about how bitcoin works they frequently stop at the word “flooding” and say “Oh-my-god! that can’t scale!”. The purpose of this article is to take an extreme example, the peak transaction rate of Visa, and demonstrate that bitcoin could technically reach that kind of rate without any kind of questionable reasoning, switches in the core design, or non-existent overlays. As such, it’s merely an extreme example— not a plan for how bitcoin will grow to address broader needs (as a decentralized system it is the bitcoin using public who will determine how bitcoin grows)— it’s just an argument that shows that bitcoin’s core design can scale much better than an intelligent person might guess at very first.

Dan rightly criticizes the analysis introduced here— pointing out that operating at this scale would significantly reduce the decentralized nature of bitcoin: If you have to have many terabytes of disk space to run a “total validating” knot then fewer people will do it, and everyone who doesn’t will have to trust the ones who do to be fair. Dan emerges (from his glides) to have gone too far with that argument: he seems to suggest that this means bitcoins will be managed by the kind of central banks that are common today. His analysis fails for two reasons (and the 2nd is the fault of this page being a bit misleading):

Very first, even at the astronomic scale introduced here the required capacity is well within the field of (wealthy) private individuals, and certainly would be at some future time when that kind of capacity was required. A system which puts private individuals, or at least puny groups of private parties, on equal footing with central banks could hardly be called a centralized one, however it would be less decentralized than the bitcoin we have today. The system could also not get to this kind of scale without bitcoin users agreeing collectively to increase the maximum block size, so it’s not an outcome that can happen without the consent of bitcoin users.

2nd, and most importantly, the assumed scaling described here deals with Bitcoin substituting visa. This is a poor comparison because bitcoin alone is not a flawless replacement for visa for reasons entirely unrelated to scaling: Bitcoin does not suggest instant transactions, credit, or various anti-fraud mechanisms (which some people want, even if not everyone does), for example. Bitcoin is a more finish replacement for checks, wire transfers, money orders, gold coins, CDs, savings accounts, etc. and if widely adopted most likely substitute the uses of credit cards which would be better served by these other things if they worked better online.

Bitcoin users sometimes gloss over this fact too quickly because people are too quick to call it a flaw but this is unfair. No one system is ideal for all usage and Bitcoin has a broader spectrum of qualities than most monetary instruments. If the bitcoin community isn’t willing to point out some things would better be done by other systems then it becomes effortless to make strawman arguments: If we admit that bitcoin could be used as a floor paraffin wax and desert topping, someone will always point out that it’s not the best floorwax or best desert topping.

It’s trivial to build payment processing and credit systems _on top_ of bitcoin, both classic ones (like Visa itself!) as well as decentralized ones like Ripple. These systems could treat higher transaction volumes with lower costs, and lodge frequently to the bitcoin that backs them. These could use other technics with different tradeoffs than bitcoin, but still be backed and denominated by bitcoin so still love its lack of central control. We see the beginnings of this today with bitcoin exchange and wallet services permitting instant payments inbetween members.

These services would build up the benefit of the stable inflation resistant bitcoin currency, users would build up the benefits of instant transactions, credit, and anti-fraud, bitcoin overall would love improved scaling from offloaded transaction volume without compromising its decentralized nature. In a world where bitcoin was widely used payment processing systems would very likely have lower prices because they would need to challenge with raw-bitcoin transactions, they also could be afford lower price because frequent bitcoin lodging (and zero trust bitcoin escrow transactions) would reduce their risk. This is doubly true because bitcoin could conceivably scale to substitute them entirely, even if that wouldn’t be the best idea due to the resulting reduction in decentralization.

Scalability targets

VISA treats on average around Two,000 transactions per 2nd (tps), so call it a daily peak rate of Four,000 tps. It has a peak capacity of around 56,000 transactions per 2nd, [1] however they never actually use more than about a third of this even during peak shopping periods. [Two]

PayPal, in contrast, treated around ten million transactions per day for an average of one hundred fifteen tps in late 2014. [Trio]

Let’s take Four,000 tps as embarking objective. Obviously if we want Bitcoin to scale to all economic transactions worldwide, including cash, it’d be a lot higher than that, perhaps more in the region of a few hundred thousand tps. And the need to be able to withstand DoS attacks (which VISA does not have to deal with) implies we would want to scale far beyond the standard peak rates. Still, picking a target let us do some basic calculations even if it’s a little arbitrary.

Today the Bitcoin network is restricted to a sustained rate of seven tps due to the bitcoin protocol restricting block sizes to 1MB.

The protocol has two parts. Knots send “inv” messages to other knots telling them they have a fresh transaction. If the receiving knot doesn’t have that transaction it requests it with a getdata.

The big cost is the crypto and block chain lookups involved with verifying the transaction. Verifying a transaction means some hashing and some ECDSA signature verifications. RIPEMD-160 runs at one hundred six megabytes/sec (call it one hundred for simpleness) and SHA256 is about the same. So hashing one megabyte should take around ten milliseconds and hashing one kilobyte would take 0.01 milliseconds – prompt enough that we can overlook it.

Bitcoin is presently able (with a duo of elementary optimizations that are prototyped but not merged yet) to perform around eight thousand signature verifications per 2nd on an quad core Intel Core i7-2670QM Two.2Ghz processor. The average number of inputs per transaction is around Two, so we must halve the rate. This means four thousand tps is lightly achievable CPU-wise with a single fairly mainstream CPU.

As we can see, this means as long as Bitcoin knots are permitted to max out at least four cores of the machines they run on, we will not run out of CPU capacity for signature checking unless Bitcoin is treating one hundred times as much traffic as PayPal. As of late two thousand fifteen the network is treating 1.Five transactions/2nd, so even assuming enormous growth in popularity we will not reach this level for a long time.

Of course Bitcoin does other things beyond signature checking, most obviously, managing the database. We use LevelDB which does the bulk of the strenuous lifting on a separate thread, and is capable of very high read/write explosions. Overall Bitcoin’s CPU usage is predominated by ECDSA.

Network

Let’s assume an average rate of 2000tps, so just VISA. Transactions vary in size from about 0.Two kilobytes to over one kilobyte, but it’s averaging half a kilobyte today.

That means that you need to keep up with around eight megabits/2nd of transaction data (2000tps * five hundred twelve bytes) / one thousand twenty four bytes in a kilobyte / one thousand twenty four kilobytes in a megabyte = 0.97 megabytes per 2nd * eight = 7.8 megabits/2nd.

This sort of bandwidth is already common for even residential connections today, and is certainly at the low end of what colocation providers would expect to provide you with.

When blocks are solved, the current protocol will send the transactions again, even if a peer has already seen it at broadcast time. Fixing this to make blocks just list of hashes would resolve the issue and make the bandwidth needed for block broadcast negligable. So whilst this optimization isn’t fully implemented today, we do not consider block transmission bandwidth here.

Storage

At very high transaction rates each block can be over half a gigabyte in size.

It is not required for most fully validating knots to store the entire chain. In Satoshi’s paper he describes “pruning”, a way to delete unnecessary data about transactions that are fully spent. This reduces the amount of data that is needed for a fully validating knot to be only the size of the current unspent output size, plus some extra data that is needed to treat re-orgs. As of October two thousand twelve (block 203258) there have been 7,979,231 transactions, however the size of the unspent output set is less than 100MiB, which is puny enough to lightly fit in RAM for even fairly old computers.

Only a petite number of archival knots need to store the utter chain going back to the genesis block. These knots can be used to bootstrap fresh fully validating knots from scrape but are otherwise unnecessary.

The primary limiting factor in Bitcoin’s spectacle is disk seeks once the unspent transaction output set stops fitting in memory. Once hard disks are phased out in favour of SSDs, it is fairly possible that access to the UTXO set never becomes a serious bottleneck.

Optimizations

The description above applies to the current software with only minor optimizations assumed (the type that can and have been done by one man in a few weeks).

However there is potential for even greater optimizations to be made in future, at the cost of some extra complexity.

Algorithms exist to accelerate batch verification over elliptic curve signatures. It’s possible to check their signatures at the same time for a 2x speedup. This is a somewhat more complicated implementation.

Simplified payment verification

It’s possible to build a Bitcoin implementation that does not verify everything, but instead relies on either connecting to a trusted knot, or puts its faith in high difficulty as a proxy for proof of validity. bitcoinj is an implementation of this mode.

In Simplified Payment Verification (SPV) mode, named after the section of Satoshi’s paper that describes it, clients connect to an arbitrary total knot and download only the block headers. They verify the chain headers connect together correctly and that the difficulty is high enough. They then request transactions matching particular patterns from the remote knot (ie, payments to your addresses), which provides copies of those transactions along with a Merkle branch linking them to the block in which they appeared. This exploits the Merkle tree structure to permit proof of inclusion without needing the total contents of the block.

As a further optimization, block headers that are buried adequately deep can be thrown away after some time (eg. you only truly need to store as low as two thousand sixteen headers).

The level of difficulty required to obtain confidence the remote knot is not feeding you fictional transactions depends on your threat model. If you are connecting to a knot that is known to be reliable, the difficulty doesn’t matter. If you want to pick a random knot, the cost for an attacker to mine a block sequence containing a bogus transaction should be higher than the value to be obtained by defrauding you. By switching how deeply buried the block must be, you can trade off confirmation time vs cost of an attack.

Programs implementing this treatment can have immobilized storage/network overhead in the null case of no usage, and resource usage proportional to received/sent transactions.

Related work

There are a few proposals for optimizing Bitcoin’s scalability. Some of these require an alt-chain / hard fork.

  • Ultimate blockchain compression – the idea that the blockchain can be compressed to achieve “trust-free lite knots”
  • The Finite Blockchain paper that describes splitting the blockchain into three data structures, each better suited for its purpose. The three data structures are a finite blockchain (keep N blocks into the past), an “account tree” which keeps account balance for every address with a non-zero balance, and a “proof chain” which is an (ever growing) slimmed down version of the blockchain.
  • Lightning Network, an alternative protocol for transaction clearance in which knots set up micropayment channels inbetween each other and lodge up on the block chain periodically. Ordinary users interact primarily or only with payment channels and only use the blockchain for large transfers and cold storage.

Scalability – Bitcoin Wiki

Scalability

[Note: This page is gravely outdated and largely unmaintained; due to past incidents of edit-warring it has not been subject to much peer review.]

A Bitcoin total knot could be modified to scale to much higher transaction rates than are seen today, assuming that said knot is running on a high end servers rather than a desktop. Bitcoin was designed to support lightweight clients that only process puny parts of the block chain (see simplified payment verification below for more details on this).

Please note that this page exists to give calculations about the scalability of a Bitcoin utter knot and transactions on the block chain without regards to network security and decentralization. It is not intended to discuss the scalability of alternative protocols or attempt and summarise philosophical debates. Create alternative pages if you want to do that.

Contents

Note to Readers

When techies hear about how bitcoin works they frequently stop at the word “flooding” and say “Oh-my-god! that can’t scale!”. The purpose of this article is to take an extreme example, the peak transaction rate of Visa, and display that bitcoin could technically reach that kind of rate without any kind of questionable reasoning, switches in the core design, or non-existent overlays. As such, it’s merely an extreme example— not a plan for how bitcoin will grow to address broader needs (as a decentralized system it is the bitcoin using public who will determine how bitcoin grows)— it’s just an argument that shows that bitcoin’s core design can scale much better than an intelligent person might guess at very first.

Dan rightly criticizes the analysis introduced here— pointing out that operating at this scale would significantly reduce the decentralized nature of bitcoin: If you have to have many terabytes of disk space to run a “utter validating” knot then fewer people will do it, and everyone who doesn’t will have to trust the ones who do to be fair. Dan emerges (from his slips) to have gone too far with that argument: he seems to suggest that this means bitcoins will be managed by the kind of central banks that are common today. His analysis fails for two reasons (and the 2nd is the fault of this page being a bit misleading):

Very first, even at the astronomic scale introduced here the required capacity is well within the area of (wealthy) private individuals, and certainly would be at some future time when that kind of capacity was required. A system which puts private individuals, or at least petite groups of private parties, on equal footing with central banks could hardly be called a centralized one, however it would be less decentralized than the bitcoin we have today. The system could also not get to this kind of scale without bitcoin users agreeing collectively to increase the maximum block size, so it’s not an outcome that can happen without the consent of bitcoin users.

2nd, and most importantly, the assumed scaling described here deals with Bitcoin substituting visa. This is a poor comparison because bitcoin alone is not a ideal replacement for visa for reasons entirely unrelated to scaling: Bitcoin does not suggest instant transactions, credit, or various anti-fraud mechanisms (which some people want, even if not everyone does), for example. Bitcoin is a more finish replacement for checks, wire transfers, money orders, gold coins, CDs, savings accounts, etc. and if widely adopted most likely substitute the uses of credit cards which would be better served by these other things if they worked better online.

Bitcoin users sometimes gloss over this fact too quickly because people are too quick to call it a flaw but this is unfair. No one system is ideal for all usage and Bitcoin has a broader spectrum of qualities than most monetary instruments. If the bitcoin community isn’t willing to point out some things would better be done by other systems then it becomes effortless to make strawman arguments: If we admit that bitcoin could be used as a floor paraffin wax and desert topping, someone will always point out that it’s not the best floorwax or best desert topping.

It’s trivial to build payment processing and credit systems _on top_ of bitcoin, both classic ones (like Visa itself!) as well as decentralized ones like Ripple. These systems could treat higher transaction volumes with lower costs, and lodge frequently to the bitcoin that backs them. These could use other mechanisms with different tradeoffs than bitcoin, but still be backed and denominated by bitcoin so still love its lack of central control. We see the beginnings of this today with bitcoin exchange and wallet services permitting instant payments inbetween members.

These services would build up the benefit of the stable inflation resistant bitcoin currency, users would build up the benefits of instant transactions, credit, and anti-fraud, bitcoin overall would love improved scaling from offloaded transaction volume without compromising its decentralized nature. In a world where bitcoin was widely used payment processing systems would very likely have lower prices because they would need to contest with raw-bitcoin transactions, they also could be afford lower price because frequent bitcoin lodging (and zero trust bitcoin escrow transactions) would reduce their risk. This is doubly true because bitcoin could conceivably scale to substitute them entirely, even if that wouldn’t be the best idea due to the resulting reduction in decentralization.

Scalability targets

VISA treats on average around Two,000 transactions per 2nd (tps), so call it a daily peak rate of Four,000 tps. It has a peak capacity of around 56,000 transactions per 2nd, [1] however they never actually use more than about a third of this even during peak shopping periods. [Two]

PayPal, in contrast, treated around ten million transactions per day for an average of one hundred fifteen tps in late 2014. [Trio]

Let’s take Four,000 tps as commencing aim. Obviously if we want Bitcoin to scale to all economic transactions worldwide, including cash, it’d be a lot higher than that, perhaps more in the region of a few hundred thousand tps. And the need to be able to withstand DoS attacks (which VISA does not have to deal with) implies we would want to scale far beyond the standard peak rates. Still, picking a target let us do some basic calculations even if it’s a little arbitrary.

Today the Bitcoin network is restricted to a sustained rate of seven tps due to the bitcoin protocol restricting block sizes to 1MB.

The protocol has two parts. Knots send “inv” messages to other knots telling them they have a fresh transaction. If the receiving knot doesn’t have that transaction it requests it with a getdata.

The big cost is the crypto and block chain lookups involved with verifying the transaction. Verifying a transaction means some hashing and some ECDSA signature verifications. RIPEMD-160 runs at one hundred six megabytes/sec (call it one hundred for simpleness) and SHA256 is about the same. So hashing one megabyte should take around ten milliseconds and hashing one kilobyte would take 0.01 milliseconds – rapid enough that we can disregard it.

Bitcoin is presently able (with a duo of elementary optimizations that are prototyped but not merged yet) to perform around eight thousand signature verifications per 2nd on an quad core Intel Core i7-2670QM Two.2Ghz processor. The average number of inputs per transaction is around Two, so we must halve the rate. This means four thousand tps is lightly achievable CPU-wise with a single fairly mainstream CPU.

As we can see, this means as long as Bitcoin knots are permitted to max out at least four cores of the machines they run on, we will not run out of CPU capacity for signature checking unless Bitcoin is treating one hundred times as much traffic as PayPal. As of late two thousand fifteen the network is treating 1.Five transactions/2nd, so even assuming enormous growth in popularity we will not reach this level for a long time.

Of course Bitcoin does other things beyond signature checking, most obviously, managing the database. We use LevelDB which does the bulk of the powerful lifting on a separate thread, and is capable of very high read/write geysers. Overall Bitcoin’s CPU usage is predominated by ECDSA.

Network

Let’s assume an average rate of 2000tps, so just VISA. Transactions vary in size from about 0.Two kilobytes to over one kilobyte, but it’s averaging half a kilobyte today.

That means that you need to keep up with around eight megabits/2nd of transaction data (2000tps * five hundred twelve bytes) / one thousand twenty four bytes in a kilobyte / one thousand twenty four kilobytes in a megabyte = 0.97 megabytes per 2nd * eight = 7.8 megabits/2nd.

This sort of bandwidth is already common for even residential connections today, and is certainly at the low end of what colocation providers would expect to provide you with.

When blocks are solved, the current protocol will send the transactions again, even if a peer has already seen it at broadcast time. Fixing this to make blocks just list of hashes would resolve the issue and make the bandwidth needed for block broadcast negligable. So whilst this optimization isn’t fully implemented today, we do not consider block transmission bandwidth here.

Storage

At very high transaction rates each block can be over half a gigabyte in size.

It is not required for most fully validating knots to store the entire chain. In Satoshi’s paper he describes “pruning”, a way to delete unnecessary data about transactions that are fully spent. This reduces the amount of data that is needed for a fully validating knot to be only the size of the current unspent output size, plus some extra data that is needed to treat re-orgs. As of October two thousand twelve (block 203258) there have been 7,979,231 transactions, however the size of the unspent output set is less than 100MiB, which is petite enough to lightly fit in RAM for even fairly old computers.

Only a puny number of archival knots need to store the total chain going back to the genesis block. These knots can be used to bootstrap fresh fully validating knots from scrape but are otherwise unnecessary.

The primary limiting factor in Bitcoin’s spectacle is disk seeks once the unspent transaction output set stops fitting in memory. Once hard disks are phased out in favour of SSDs, it is fairly possible that access to the UTXO set never becomes a serious bottleneck.

Optimizations

The description above applies to the current software with only minor optimizations assumed (the type that can and have been done by one man in a few weeks).

However there is potential for even greater optimizations to be made in future, at the cost of some extra complexity.

Algorithms exist to accelerate batch verification over elliptic curve signatures. It’s possible to check their signatures at the same time for a 2x speedup. This is a somewhat more elaborate implementation.

Simplified payment verification

It’s possible to build a Bitcoin implementation that does not verify everything, but instead relies on either connecting to a trusted knot, or puts its faith in high difficulty as a proxy for proof of validity. bitcoinj is an implementation of this mode.

In Simplified Payment Verification (SPV) mode, named after the section of Satoshi’s paper that describes it, clients connect to an arbitrary utter knot and download only the block headers. They verify the chain headers connect together correctly and that the difficulty is high enough. They then request transactions matching particular patterns from the remote knot (ie, payments to your addresses), which provides copies of those transactions along with a Merkle branch linking them to the block in which they appeared. This exploits the Merkle tree structure to permit proof of inclusion without needing the total contents of the block.

As a further optimization, block headers that are buried adequately deep can be thrown away after some time (eg. you only indeed need to store as low as two thousand sixteen headers).

The level of difficulty required to obtain confidence the remote knot is not feeding you fictional transactions depends on your threat model. If you are connecting to a knot that is known to be reliable, the difficulty doesn’t matter. If you want to pick a random knot, the cost for an attacker to mine a block sequence containing a bogus transaction should be higher than the value to be obtained by defrauding you. By switching how deeply buried the block must be, you can trade off confirmation time vs cost of an attack.

Programs implementing this treatment can have immovable storage/network overhead in the null case of no usage, and resource usage proportional to received/sent transactions.

Related work

There are a few proposals for optimizing Bitcoin’s scalability. Some of these require an alt-chain / hard fork.

  • Ultimate blockchain compression – the idea that the blockchain can be compressed to achieve “trust-free lite knots”
  • The Finite Blockchain paper that describes splitting the blockchain into three data structures, each better suited for its purpose. The three data structures are a finite blockchain (keep N blocks into the past), an “account tree” which keeps account balance for every address with a non-zero balance, and a “proof chain” which is an (ever growing) slimmed down version of the blockchain.
  • Lightning Network, an alternative protocol for transaction clearance in which knots set up micropayment channels inbetween each other and lodge up on the block chain periodically. Ordinary users interact primarily or only with payment channels and only use the blockchain for large transfers and cold storage.

Scalability – Bitcoin Wiki

Scalability

[Note: This page is gravely outdated and largely unmaintained; due to past incidents of edit-warring it has not been subject to much peer review.]

A Bitcoin utter knot could be modified to scale to much higher transaction rates than are seen today, assuming that said knot is running on a high end servers rather than a desktop. Bitcoin was designed to support lightweight clients that only process puny parts of the block chain (see simplified payment verification below for more details on this).

Please note that this page exists to give calculations about the scalability of a Bitcoin total knot and transactions on the block chain without regards to network security and decentralization. It is not intended to discuss the scalability of alternative protocols or attempt and summarise philosophical debates. Create alternative pages if you want to do that.

Contents

Note to Readers

When techies hear about how bitcoin works they frequently stop at the word “flooding” and say “Oh-my-god! that can’t scale!”. The purpose of this article is to take an extreme example, the peak transaction rate of Visa, and display that bitcoin could technically reach that kind of rate without any kind of questionable reasoning, switches in the core design, or non-existent overlays. As such, it’s merely an extreme example— not a plan for how bitcoin will grow to address broader needs (as a decentralized system it is the bitcoin using public who will determine how bitcoin grows)— it’s just an argument that shows that bitcoin’s core design can scale much better than an intelligent person might guess at very first.

Dan rightly criticizes the analysis introduced here— pointing out that operating at this scale would significantly reduce the decentralized nature of bitcoin: If you have to have many terabytes of disk space to run a “total validating” knot then fewer people will do it, and everyone who doesn’t will have to trust the ones who do to be fair. Dan emerges (from his slips) to have gone too far with that argument: he seems to suggest that this means bitcoins will be managed by the kind of central banks that are common today. His analysis fails for two reasons (and the 2nd is the fault of this page being a bit misleading):

Very first, even at the astronomic scale introduced here the required capacity is well within the area of (wealthy) private individuals, and certainly would be at some future time when that kind of capacity was required. A system which puts private individuals, or at least puny groups of private parties, on equal footing with central banks could hardly be called a centralized one, tho’ it would be less decentralized than the bitcoin we have today. The system could also not get to this kind of scale without bitcoin users agreeing collectively to increase the maximum block size, so it’s not an outcome that can happen without the consent of bitcoin users.

2nd, and most importantly, the assumed scaling described here deals with Bitcoin substituting visa. This is a poor comparison because bitcoin alone is not a ideal replacement for visa for reasons downright unrelated to scaling: Bitcoin does not suggest instant transactions, credit, or various anti-fraud mechanisms (which some people want, even if not everyone does), for example. Bitcoin is a more accomplish replacement for checks, wire transfers, money orders, gold coins, CDs, savings accounts, etc. and if widely adopted very likely substitute the uses of credit cards which would be better served by these other things if they worked better online.

Bitcoin users sometimes gloss over this fact too quickly because people are too quick to call it a flaw but this is unfair. No one system is ideal for all usage and Bitcoin has a broader spectrum of qualities than most monetary instruments. If the bitcoin community isn’t willing to point out some things would better be done by other systems then it becomes effortless to make strawman arguments: If we admit that bitcoin could be used as a floor paraffin wax and desert topping, someone will always point out that it’s not the best floorwax or best desert topping.

It’s trivial to build payment processing and credit systems _on top_ of bitcoin, both classic ones (like Visa itself!) as well as decentralized ones like Ripple. These systems could treat higher transaction volumes with lower costs, and lodge frequently to the bitcoin that backs them. These could use other mechanisms with different tradeoffs than bitcoin, but still be backed and denominated by bitcoin so still love its lack of central control. We see the beginnings of this today with bitcoin exchange and wallet services permitting instant payments inbetween members.

These services would build up the benefit of the stable inflation resistant bitcoin currency, users would build up the benefits of instant transactions, credit, and anti-fraud, bitcoin overall would love improved scaling from offloaded transaction volume without compromising its decentralized nature. In a world where bitcoin was widely used payment processing systems would very likely have lower prices because they would need to contest with raw-bitcoin transactions, they also could be afford lower price because frequent bitcoin lodging (and zero trust bitcoin escrow transactions) would reduce their risk. This is doubly true because bitcoin could conceivably scale to substitute them entirely, even if that wouldn’t be the best idea due to the resulting reduction in decentralization.

Scalability targets

VISA treats on average around Two,000 transactions per 2nd (tps), so call it a daily peak rate of Four,000 tps. It has a peak capacity of around 56,000 transactions per 2nd, [1] however they never actually use more than about a third of this even during peak shopping periods. [Two]

PayPal, in contrast, treated around ten million transactions per day for an average of one hundred fifteen tps in late 2014. [Trio]

Let’s take Four,000 tps as embarking objective. Obviously if we want Bitcoin to scale to all economic transactions worldwide, including cash, it’d be a lot higher than that, perhaps more in the region of a few hundred thousand tps. And the need to be able to withstand DoS attacks (which VISA does not have to deal with) implies we would want to scale far beyond the standard peak rates. Still, picking a target let us do some basic calculations even if it’s a little arbitrary.

Today the Bitcoin network is restricted to a sustained rate of seven tps due to the bitcoin protocol restricting block sizes to 1MB.

The protocol has two parts. Knots send “inv” messages to other knots telling them they have a fresh transaction. If the receiving knot doesn’t have that transaction it requests it with a getdata.

The big cost is the crypto and block chain lookups involved with verifying the transaction. Verifying a transaction means some hashing and some ECDSA signature verifications. RIPEMD-160 runs at one hundred six megabytes/sec (call it one hundred for plainness) and SHA256 is about the same. So hashing one megabyte should take around ten milliseconds and hashing one kilobyte would take 0.01 milliseconds – swift enough that we can disregard it.

Bitcoin is presently able (with a duo of plain optimizations that are prototyped but not merged yet) to perform around eight thousand signature verifications per 2nd on an quad core Intel Core i7-2670QM Two.2Ghz processor. The average number of inputs per transaction is around Two, so we must halve the rate. This means four thousand tps is lightly achievable CPU-wise with a single fairly mainstream CPU.

As we can see, this means as long as Bitcoin knots are permitted to max out at least four cores of the machines they run on, we will not run out of CPU capacity for signature checking unless Bitcoin is treating one hundred times as much traffic as PayPal. As of late two thousand fifteen the network is treating 1.Five transactions/2nd, so even assuming enormous growth in popularity we will not reach this level for a long time.

Of course Bitcoin does other things beyond signature checking, most obviously, managing the database. We use LevelDB which does the bulk of the intense lifting on a separate thread, and is capable of very high read/write fountains. Overall Bitcoin’s CPU usage is predominated by ECDSA.

Network

Let’s assume an average rate of 2000tps, so just VISA. Transactions vary in size from about 0.Two kilobytes to over one kilobyte, but it’s averaging half a kilobyte today.

That means that you need to keep up with around eight megabits/2nd of transaction data (2000tps * five hundred twelve bytes) / one thousand twenty four bytes in a kilobyte / one thousand twenty four kilobytes in a megabyte = 0.97 megabytes per 2nd * eight = 7.8 megabits/2nd.

This sort of bandwidth is already common for even residential connections today, and is certainly at the low end of what colocation providers would expect to provide you with.

When blocks are solved, the current protocol will send the transactions again, even if a peer has already seen it at broadcast time. Fixing this to make blocks just list of hashes would resolve the issue and make the bandwidth needed for block broadcast negligable. So whilst this optimization isn’t fully implemented today, we do not consider block transmission bandwidth here.

Storage

At very high transaction rates each block can be over half a gigabyte in size.

It is not required for most fully validating knots to store the entire chain. In Satoshi’s paper he describes “pruning”, a way to delete unnecessary data about transactions that are fully spent. This reduces the amount of data that is needed for a fully validating knot to be only the size of the current unspent output size, plus some extra data that is needed to treat re-orgs. As of October two thousand twelve (block 203258) there have been 7,979,231 transactions, however the size of the unspent output set is less than 100MiB, which is petite enough to lightly fit in RAM for even fairly old computers.

Only a puny number of archival knots need to store the utter chain going back to the genesis block. These knots can be used to bootstrap fresh fully validating knots from scrape but are otherwise unnecessary.

The primary limiting factor in Bitcoin’s spectacle is disk seeks once the unspent transaction output set stops fitting in memory. Once hard disks are phased out in favour of SSDs, it is fairly possible that access to the UTXO set never becomes a serious bottleneck.

Optimizations

The description above applies to the current software with only minor optimizations assumed (the type that can and have been done by one man in a few weeks).

However there is potential for even greater optimizations to be made in future, at the cost of some extra complexity.

Algorithms exist to accelerate batch verification over elliptic curve signatures. It’s possible to check their signatures at the same time for a 2x speedup. This is a somewhat more elaborate implementation.

Simplified payment verification

It’s possible to build a Bitcoin implementation that does not verify everything, but instead relies on either connecting to a trusted knot, or puts its faith in high difficulty as a proxy for proof of validity. bitcoinj is an implementation of this mode.

In Simplified Payment Verification (SPV) mode, named after the section of Satoshi’s paper that describes it, clients connect to an arbitrary total knot and download only the block headers. They verify the chain headers connect together correctly and that the difficulty is high enough. They then request transactions matching particular patterns from the remote knot (ie, payments to your addresses), which provides copies of those transactions along with a Merkle branch linking them to the block in which they appeared. This exploits the Merkle tree structure to permit proof of inclusion without needing the utter contents of the block.

As a further optimization, block headers that are buried adequately deep can be thrown away after some time (eg. you only indeed need to store as low as two thousand sixteen headers).

The level of difficulty required to obtain confidence the remote knot is not feeding you fictional transactions depends on your threat model. If you are connecting to a knot that is known to be reliable, the difficulty doesn’t matter. If you want to pick a random knot, the cost for an attacker to mine a block sequence containing a bogus transaction should be higher than the value to be obtained by defrauding you. By switching how deeply buried the block must be, you can trade off confirmation time vs cost of an attack.

Programs implementing this treatment can have stationary storage/network overhead in the null case of no usage, and resource usage proportional to received/sent transactions.

Related work

There are a few proposals for optimizing Bitcoin’s scalability. Some of these require an alt-chain / hard fork.

  • Ultimate blockchain compression – the idea that the blockchain can be compressed to achieve “trust-free lite knots”
  • The Finite Blockchain paper that describes splitting the blockchain into three data structures, each better suited for its purpose. The three data structures are a finite blockchain (keep N blocks into the past), an “account tree” which keeps account balance for every address with a non-zero balance, and a “proof chain” which is an (ever growing) slimmed down version of the blockchain.
  • Lightning Network, an alternative protocol for transaction clearance in which knots set up micropayment channels inbetween each other and lodge up on the block chain from time to time. Ordinary users interact primarily or only with payment channels and only use the blockchain for large transfers and cold storage.

Related video:

Research Paper Makes the Case for a $Five

Research Paper Makes the Case for a $Five.8 Million Bitcoin Price

A fresh research paper from a pseudonymous author puts the valuation of a single bitcoin at $Five.8 million. The paper makes the case that bitcoin is the best form of money in existence today and should be valued as the superior world currency.

Via the paper, points are made around bitcoin’s intrinsic value, the use cases of the digital asset, eventual levels of adoption, and a finish take over as the world’s most widely-used form of money.

The paper is titled Bitcoin: A $Five.8 Million Valuation and the author is listed as Mr. Game & See, which is the name of a playable character in the Super Smash Bros. movie game series based on various generic characters from the Game & Observe series of games from Nintendo. When asked for more information about his identity, Mr. Game & Witness told CoinJournal:

“I choose not to share my identity. The article advocates many serious crimes, and may offend many significant people. Also, I would hope that the words speak for themselves. I will say that I am American and my background is in academia — that much would lightly be guessed.”

Bitcoin’s Intrinsic Value

Before making the case for a $Five.8 million bitcoin price, the pseudonymous author of the paper discusses the “intrinsic value” of a bitcoin.

“The [bitcoin] collectible is required to make use of the [Bitcoin] payment network — even for transactions denominated in USD (not BTC),” states the abstract of the paper. “The payment network is of enormous general utility, particularly to criminals and victims of political oppression worldwide.”

The abstract also notes that bitcoin can maintain its useful properties even when under powerful harassment from a wealthy or violent adversary (such as a government). The author does not view altcoins as a threat to bitcoin’s dominance, mainly due to the invention of sidechains, which permit bitcoins to effectively be transferred to alternative blockchains with unique features and value propositions.

The paper goes on to explain bitcoin’s intrinsic value in clearer terms:

“BTC’s intrinsic value is that it alone will permit the wielder to access the network’s blockspace. In turn, the intrinsic value of blockspace is that it, together with BTC, enables special USD transactions – we will call these ‘Peer-to-Peer Digital USD Payments’, or ‘PDUPs’.”

Bitcoin Use Cases and Adoption

After making the case for bitcoin’s intrinsic value, the author goes into further detail about the pros and cons of Bitcoin as a payment system and the types of people that have a need for PDUPs.

The requirement to learn a fresh technology and transaction process, interact with fresh intermediaries like wallet providers and exchanges, and bitcoin’s price volatility are mentioned as disadvantages of the Bitcoin payment system. In terms of advantages, potential anonymity (which can be improved upon) and the inability to censor or shut down the payment network are covered.

“These PDUPs cannot be made without BTC,” the paper reinforces.

In the author’s view, there are a multiplicity of reasons as to why someone would speculate on the bitcoin price, but those who actually use bitcoin do so to take advantage of this so-called PDUP service.

The author then gets blunt about the types of use cases that are made possible with Bitcoin.

“Because PDUPs come back financial sovereignty to the user, they are, for better or for worse, optimal for illegal transactions,” states the paper. “PDUPs are often the cheapest (or only) way to engage in gambling, capital flight, tax evasion, and payments for ransomware.”

The paper later adds, “As the enabler of the PDUP, Bitcoin is therefore intrinsically valuable. BTC helps its proprietor get paid, cheat on his taxes, shield his assets from a messy divorce, gamble, engage in underage drinking, defend his life and property, get stoned, and get laid.”

According to the author, this intrinsic value of bitcoin is said to be “quite sustainable” because it will persist wherever a local government is uncompetitive.

The $Five.8 Million Bitcoin Price

The author of this research paper eventually asks the reader to consider bitcoin as the superior world currency. If such a consideration is deemed acceptable, then the author believes that correctly valuing bitcoin is a ordinary exercise of estimating the total value of all the world’s money, which leads to the $Five.8 million bitcoin price.

Estimates from the World Bank on the total amount of “broad money” in existence are used as an estimate of all the money in the world in the paper.

For some of the reasoning behind this claim of bitcoin as the world’s most superior currency, Mr. Game and Witness turns to Nassim Taleb.

Taleb has observed that almost all of the drinks sold in the United States are Kosher, even tho’ less than 0.3% of Americans are Kosher. This asymmetry is explained by the fact that it is lighter for stores to carry one type of drink and those who aren’t Kosher don’t much care if the drinks they consume are Kosher or not.

The author believes this same phenomenon exists with bitcoin.

“The generalization also applies to Bitcoin, as both factors are strongly present,” states the paper.

“First, sellers of goods (or of labor) far choose to use a single currency, over two. 2nd, there exists a selective intolerance of the USD – some USD-users are willing to become BTC-users, but many BTC-users are incapable to become USD users.”

Other reasons for the further adoption of bitcoin included in the paper are eventual network capacity, cultural norms, and self-fulfilling prophecies.

Research Paper Makes the Case for a $Five

Research Paper Makes the Case for a $Five.8 Million Bitcoin Price

A fresh research paper from a pseudonymous author puts the valuation of a single bitcoin at $Five.8 million. The paper makes the case that bitcoin is the best form of money in existence today and should be valued as the superior world currency.

Across the paper, points are made around bitcoin’s intrinsic value, the use cases of the digital asset, eventual levels of adoption, and a finish take over as the world’s most widely-used form of money.

The paper is titled Bitcoin: A $Five.8 Million Valuation and the author is listed as Mr. Game & Observe, which is the name of a playable character in the Super Smash Bros. movie game series based on various generic characters from the Game & Observe series of games from Nintendo. When asked for more information about his identity, Mr. Game & Observe told CoinJournal:

“I choose not to share my identity. The article advocates many serious crimes, and may offend many significant people. Also, I would hope that the words speak for themselves. I will say that I am American and my background is in academia — that much would lightly be guessed.”

Bitcoin’s Intrinsic Value

Before making the case for a $Five.8 million bitcoin price, the pseudonymous author of the paper discusses the “intrinsic value” of a bitcoin.

“The [bitcoin] collectible is required to make use of the [Bitcoin] payment network — even for transactions denominated in USD (not BTC),” states the abstract of the paper. “The payment network is of enormous general utility, particularly to criminals and victims of political oppression worldwide.”

The abstract also notes that bitcoin can maintain its useful properties even when under mighty harassment from a wealthy or violent adversary (such as a government). The author does not view altcoins as a threat to bitcoin’s dominance, mainly due to the invention of sidechains, which permit bitcoins to effectively be transferred to alternative blockchains with unique features and value propositions.

The paper goes on to explain bitcoin’s intrinsic value in clearer terms:

“BTC’s intrinsic value is that it alone will permit the wielder to access the network’s blockspace. In turn, the intrinsic value of blockspace is that it, together with BTC, enables special USD transactions – we will call these ‘Peer-to-Peer Digital USD Payments’, or ‘PDUPs’.”

Bitcoin Use Cases and Adoption

After making the case for bitcoin’s intrinsic value, the author goes into further detail about the pros and cons of Bitcoin as a payment system and the types of people that have a need for PDUPs.

The requirement to learn a fresh technology and transaction process, interact with fresh intermediaries like wallet providers and exchanges, and bitcoin’s price volatility are mentioned as disadvantages of the Bitcoin payment system. In terms of advantages, potential anonymity (which can be improved upon) and the inability to censor or shut down the payment network are covered.

“These PDUPs cannot be made without BTC,” the paper reinforces.

In the author’s view, there are a multiplicity of reasons as to why someone would speculate on the bitcoin price, but those who actually use bitcoin do so to take advantage of this so-called PDUP service.

The author then gets blunt about the types of use cases that are made possible with Bitcoin.

“Because PDUPs comeback financial sovereignty to the user, they are, for better or for worse, optimal for illegal transactions,” states the paper. “PDUPs are often the cheapest (or only) way to engage in gambling, capital flight, tax evasion, and payments for ransomware.”

The paper later adds, “As the enabler of the PDUP, Bitcoin is therefore intrinsically valuable. BTC helps its possessor get paid, cheat on his taxes, shield his assets from a messy divorce, gamble, engage in underage drinking, defend his life and property, get stoned, and get laid.”

According to the author, this intrinsic value of bitcoin is said to be “quite sustainable” because it will persist wherever a local government is uncompetitive.

The $Five.8 Million Bitcoin Price

The author of this research paper eventually asks the reader to consider bitcoin as the superior world currency. If such a consideration is deemed acceptable, then the author believes that correctly valuing bitcoin is a ordinary exercise of estimating the total value of all the world’s money, which leads to the $Five.8 million bitcoin price.

Estimates from the World Bank on the total amount of “broad money” in existence are used as an estimate of all the money in the world in the paper.

For some of the reasoning behind this claim of bitcoin as the world’s most superior currency, Mr. Game and Witness turns to Nassim Taleb.

Taleb has observed that almost all of the drinks sold in the United States are Kosher, even however less than 0.3% of Americans are Kosher. This asymmetry is explained by the fact that it is lighter for stores to carry one type of drink and those who aren’t Kosher don’t much care if the drinks they consume are Kosher or not.

The author believes this same phenomenon exists with bitcoin.

“The generalization also applies to Bitcoin, as both factors are strongly present,” states the paper.

“First, sellers of goods (or of labor) far choose to use a single currency, over two. 2nd, there exists a selective intolerance of the USD – some USD-users are willing to become BTC-users, but many BTC-users are incapable to become USD users.”

Other reasons for the further adoption of bitcoin included in the paper are eventual network capacity, cultural norms, and self-fulfilling prophecies.

Related video:

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