Bitcoin Blog a1

Tuesday, October 17, 2017

Bitcoin Car Talk 12: John McAfee



This video's quality is a little bit questionable. Maybe alot actually. Also, there is profanity, so you are warned. John enters the video a little after 1:20.






Sunday, October 15, 2017

More Forks

It seems bitcoin might have more forks up coming in the future, likely due to the success of the last hard fork, BCH. Despite my concerns that forks might cause confusion in the market and lower the price of bitcoin, it seems the opposite is true. Last time and this time, the price of bitcoin has raised prior to a fork. This new environment has made everyone have to take a stance on forks, like here is the policy for hard forks at my favorite faucet freebitco.in. (why not sign up right now)

HARD FORK POLICY

Bitcoin has 2 hard forks planned in the near future - "Bitcoin Gold" and "Bitcoin Segwit 2x". As we have done with the "Bitcoin Cash" hard fork in the past, we shall support withdrawals of all hard fork coins as long as they are viable - ie. have wallet support, a working blockchain and straightforward redemption policies. The "Bitcoin Gold" hard fork currently does not seem to be a viable fork - since they have not given any information about the fork on their website (btcgpu.org) and have no supported wallets yet. If there are no wallets that support it, we shall not be able to make "Bitcoin Gold" available for withdrawals. If however, there is wallet support for "Bitcoin Gold" before the hard fork date and the block number for the fork is announced in advance, we shall make it available for withdrawal.
We shall be supporting the "Bitcoin Segwit 2x" fork since it already has a working wallet and has announced the block number when the hard fork will happen. If a majority of miners switch to "Bitcoin Segwit 2x" and it has the chain with the most Proof-of-Work, we shall make it our primary coin and "Bitcoin Core" coins will be made available for withdrawal to your own wallets, otherwise "Bitcoin Core" shall remain our primary coin and "Bitcoin Segwit 2x" coins will be made available for withdrawal to your own wallets. In either case, users will receive coins in both the majority and minority chain equivalent to the balance that they had on the website prior to the hard fork.
We shall be pausing deposits and withdrawals temporarily before the "Bitcoin Segwit 2x" hard fork until a clear winner has emerged. Everything else on the website will function as usual. The fork is scheduled to happen at around the middle of November. We shall give advance notice of when deposits and withdrawals will be paused before the fork date.

It seems like a very accepting policy. Prior to the last bitcoin fork, many companies stated they would not honor the new fork. However, it seems most of the ones I dealt with did in fact give out BCH, although many did not have a continued use for it.

It has just come to my attention that ETH may have a fork tomorrow! Here is an article on it.


Also, don’t forget to follow btc+ on facebook.

Wednesday, October 11, 2017

Chance to win a hardware wallet

Here is an interesting offer with a chance to win a hardware wallet. Check it out.


Mike has a very good point that leaving crypto on an exchange is a bad idea. I don’t think buying a hardware wallet is 100% necessary, you can easily mitigate this using a desktop wallet.


In other news, I recently got a spam message on Reddit. Here is a post about it. I’m not sure what the spammer gets of this except perhaps some email addresses.


Saturday, September 30, 2017

Old news on BTC-e

Looks like once again, I have some old news I never published. So check it out now, months later!


BTC-e has been raided.

Well it looks like another bitcoin exchange is shutting down. This is different though, because it is for money laundering. There are lots of allegations going around. Some people are saying stolen funds from Mt. Gox ended up there. Others say 80% of Bitcoin ransom (payments to Ransomware) go through BTC-e. Well the U.S. government figured enough is enough and has shut the exchange down. The exchange has promised everyone that they will be paid.

This has perhaps put some people on edge, as they are worried another exchange will shut down. Many people openly worry about polo, which was offline a few hours earlier this week.

However, perhaps this worry is unwarranted. At least there is a reason it might be less than it was a few days ago. With the BCC split, many users took their crypto off of exchanges. This, in a way, audited these exchanges to see if they really have enough crypto to cover an increase in demand, and it seems like they passed. So perhaps things are a tiny bit safer than before.


Here you can even see the still seized website. Also here is another update by coindesk.

Don’t forget to check out my faucets for my favorite faucets! Get some of your own bitcoin and other coins!

Wednesday, September 13, 2017

Shine Bright like a Dimon (or not)

Like normal, traditional finance people discredit Bitcoin, this week Jamie Dimon did as well.

Jamie Dimon is the CEO of JP Morgan. Dimon was also the CEO prior to the great recession/ financial crisis of 2008/2009.  Here is the article.

One quote from the article is a little perplexing:

The bank chief said he wouldn’t short bitcoin because there’s no telling how high it will go before it collapses. The best argument he’s heard, he said, is that it can be useful to people in places with no other options -- so long as the supply of coins doesn’t surge. [emphasis added]”

It seems Dimon misunderstands a very fundamental aspect of Bitcoin, the supply of coins is totally predictable. How Bitcoin comes into existence is literally written down and, in essence, set in stone. So attaching uncertainty to the supply of Bitcoin is pointless.

That being said, I think Dimon’s comparison to tulip bulbs does have some merit.  Bitcoin prices have risen dramatically, and it's hard to really justify it. Sure, some speculators say it will keep going up and up.  John McAfee, yes that McAfee, said some slightly crass things about it.

Then again, Dimon did say, “If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that [how about Belize?], or if you were a drug dealer, a murderer, stuff like that [how about a drug kingpin?], you are better off doing it in bitcoin than U.S. dollars.”

Don’t get me wrong, I actually like John McAfee. I watch him debate in the libertarian debates last election cycle.

Lastly, it looks like some redditors want a debate with Dimon. We probably won’t respond. But McAfee would be an ideal opponent.

Monday, September 11, 2017

Ethereum and Eternium


This is a post I meant to publish a while ago about Ethereum. On a slightly related note, I was browsing the play store recently and saw an app that I thought was called Ethereum. I assumed it was an Ethereum wallet and since I’m studying Ethereum, I thought it would be a good idea to check it out. Well, the app was actually called Eternium, and it is actually a Diablo 2 style game. It is pretty decent. Anyways, here is my post of Ethereum.


New cryptos are a dime a dozen and a new currency generally isn’t particularly noteworthy. But sometimes a new currency gets so much attention it warrants my attention. And ETH is now one of those currencies. ETH is most noteworthy due to contracts. Contracts can be set up and executed when particular conditions are met. So a deal between two individuals can be enforced using the ETH blockchain.


In recent news, the price of ETH has raised dramatically. In addition, there is a lot of GPU miners of ETH. This demand seems to be so high, that many AMD graphics cards are out of stock. At this time, AMD cards are preferable for this kind of mining (note, this isn’t a SHA 256 encryption like bitcoin, which is best done with a ASIC).


Another thing to be aware of is that ETH is not the same as ETC. ETC is branded as Ethereum Classic. It is a hardfork from ETH (or ETH is a hardfork form ETC perhaps is a better way to say it). To explain a bit, a hardfork is essentially a point where two currencies are formed out of one. One coin follows a new, different protocol from the other. Up to this point, the blockchains are the same for the two coins, but after a hard fork, this is no longer the case. To my understanding, a hacker stole 50 million worth of ETH. The devs were able to stop this, the money was under restriction for 28 days, by altering the coins code. Some 90% of nodes supported the change. Those that didn’t became ETC. There also seems to be some distrust for ETC. Then again, people using ETC seem to distrust ETH. The point is, be aware of what you are getting into, if you want to get into ETC, just know it's not ETH.

Over the next few weeks I will try to investigate ETH more and show how to get started with it.

Tuesday, August 29, 2017

BCH and taxes, and possible Fraud

There are rumors going around that the recent Bitcoin fork, the creation of Bitcoin Cash (BCH), could be treated by the IRS as a taxable event. Here is an article on the topic. I only have one minor gripe with the article, where it says, "Bitcoin cash recipients could owe tax this year at rates as high as 39.6%". This quote is potentially slightly misleading. To mean it implies that there is something special about BCH that would cause it to be taxed at this rate, however, this is just the highest rate that ordinary income can be taxed at. There is nothing special about it.

So there is no guarantee BCH will be taxed. But it is interesting to think, what would be a tax payer's basis in BCH if its acquisition is not a taxable event? Perhaps part of their basis in BTC could be transferred?  Who knows, this is all unprecedented.


In other news, some people are predicted downward movements in Bitcoin's price. Here is one opinion on the subject.