Bitcoin Blog a1

Saturday, September 24, 2016

BitTXGenerator - False Bitcoin Transaction Generator

Update, the video I shared was a scam! Hopefully no one actually downloaded it. However, my intention was to show that cation should be exercised when using bitcoin. I will do a write up on this later.

I haven't shared a video in a while, but I just saw this on youtube and thought I would share it. Like have mentioned before, make sure you you get confirmations on your transactions when conducting business in btc!

Wednesday, September 21, 2016

Not another 2017 price prediction, but sort of.

99 bitcoin, a blog I follow, had some interesting things to say about the price of bitcoin next year. There are a few flaws in the article though. One, it asserts that the halving increases price. This is not necessarily true; the halving is just a reduction to the increase in supply. This potentially could help sustain a higher price, as less fiat needs to be spent on btc in order to keep the exchange rate constant.

I go over this concept in another article, but when bitcoin was, near its peak, $1000 a coin, $25,000 every 10 minutes had to be spent on the 25 new bitcoins being mined in order to maintain this price. With the number of bitcoins being mined reduced by half ( that is 1 2.5 bitcoins every 10 minutes), only $12,500 would need to be spent on new bitcoins to maintain the same $1000 price per bitcoin. This potentially means that a higher price is easier to sustain. But this reduction to the increase in supply, in and of itself, does not cause an increase in price.

In short, I don’t think that the halving means bitcoin will rise in price next year. It is possible it will for other reasons, but I won’t attribute this to the halving.

Sunday, September 11, 2016

Days late and dollars short

A few weeks ago I mentioned that one on my loans on BTC pop was in default. Well just the other day I finally received a insurance payout. I invested 0.00386900 but I got  back  .00143100 instead, the biggest issue is the loan was due just a little more than a week after it was created on 07/07/2016. But because it defaulted, I wasn’t paid until the insurance payout came, just a few days ago. So my money was tied up for a long time and generated no interest. So I lost money, and I lost the opportunity to make interest on my money. But this is all part of the risk of lending to people.

The insurance system uses collateral held by the borrower to help guarantee repayment of the loan. This loan was insured using shares of POP, which is stock in BTCpop. There are a few other stocks offered on BTCpop, but in my opinion POP is probably the best. After all, my biggest worry is that BTCpop might go the way of Mt. Gox. If it did, all of the securities would become worthless. But, none POP shares also have the risk that the company itself will go under, in other words, they can become worthless in two different ways.

Well, I guess this Ivan fellow hasn’t given me any money. But at least he gave me a ok story. This is the loan, if you wanted to see it for yourself.

I just tested my link and you need an account to view it. Fortunately, you can sign up free here.