Blockchain Bites: What the Bitcoin Halving Means for Miners and Prices
Bitcoin - the possible Pandora's Box of the currency world - has never been short of controversy. Whether it be aiding the black market or scamming users out of millions, bitcoin is no stranger to the front page.
Still, the jury is out on the legality and usefulness of bitcoin - leaving it in a proverbial grey area. Bitcoin's price has fluctuated throughout its history, falling and rising, currently hovering near $10,000. Perhaps you've found bitcoin while it looks to be on the rebound and find yourself interested in it as an investment.
However, there have been several legitimate bitcoin scams that have become infamous, and you need to know about them - but, what are the top 7 bitcoin scams? And how can you What is bitcoin mining yahoo dating them?
What Is a Bitcoin Scam?
For most cases, it may be pretty obvious what a scam is - but with bitcoin, and cryptocurrency in general, things become murkier. Bitcoin itself is an unregulated form of currency that essentially is a mere number that is only given value because of an agreement. It's basically like a moneybag with a lock on it - the code of which is given to the recipient of the bitcoin (an analogy drawn by Forbes in 2017).
Bitcoin scams have been famously criminal and public in nature. With no bank as a middleman in exchange, things What is bitcoin mining yahoo dating more complicated; so hackers and con men have had a heyday.
Top 7 Bitcoin Scams
There have been (and undoubtedly will be) nearly countless bitcoin scams, but these frauds make the list of the top 7 worst bitcoin scams to date. Take note.
1. Malware Scams
Malware has long been the hallmark of many online scams. But with cryptocurrency, it poses an increased threat given the nature of the currency in and of itself.
Recently, a tech support site called Bleeping Computer issued a warning about cryptocurrency-targeting malware in hopes of saving customers from sending cryptocoins via transactions, reported Yahoo Finance.
"This type of malware, called CryptoCurrency Clipboard Hijackers, works by monitoring What is bitcoin mining yahoo dating Windows clipboard for cryptocurrency addresses, and if one is detected, will swap it out with an address that they control," wrote Lawrence Abrahams, computer forensics and creator of Bleeping Computer.
The malware, CryptoCurrency Clipboard Hijackers (which reportedly manages 2.3 million bitcoin addresses) switches addresses used to transfer cryptocoin with ones the malware controls - thus transferring the coins to the scammers instead. And, according to Asia Times, even MacOS malware has been connected to malware scams involving cryptocurrency investors using trusted sites like Slack and Discord chats - coined "OSX. Dummy."
2. Fake Bitcoin What is bitcoin mining yahoo dating - BitKRX
Surely one of the easiest ways to scam investors is to pose as an affiliate branch of a respectable and legitimate organization. Well, that's exactly what scammers in the bitcoin field are doing.
South Korean scam BitKRX presented itself as a place to exchange and trade bitcoin, but was ultimately fraudulent. The fake exchange took on part of the name of the real Korean Exchange (KRX), and scammed people out of their money by posing as a respectable and legitimate cryptocurrency exchange.
BitKRX claimed to be a branch of the KRX, a creation of KOSDAQ, South Korean Futures What is bitcoin mining yahoo dating, and South Korean Stock Exchange, according to Coin Telegraph.
BitKRX used this faux-affiliation to ensnare people to use their system. The scam was exposed in 2017.
3. Ponzi Scheme - MiningMax
"Ponzi bitcoin scam" has got to be the worst combination of words imaginable for financial gurus. And, What is bitcoin mining yahoo dating reality What is bitcoin mining yahoo dating just as bad.
Several organizations have scammed people out of millions with Ponzi schemes using bitcoins, including South Korean website MiningMax. The site, which was not registered with the U. S. Securities and Exchange Commission, promised to provide investors with daily ROI's in exchange for an original investment and commission from getting others to invest (basically, a Ponzi scheme). Apparently, the site was asking people to invest $3,200 for daily ROI's over What is bitcoin mining yahoo dating years, and a $200 referral commission for every personally recruited investor, reports claim.
MiningMax's domain was privately registered in mid-2016, and had a binary compensation structure. The fraudulent crypto-currency scam was reported by affiliates, resulting in 14 arrests in Korea in December of 2017.
Korea has long been a leader in technological developments - bitcoin is no exception. However, after recent controversy, it seems as though this is changing.
"But a lot of governments are looking at this very carefully," Yoo Byung-joon, business administration professor at Seoul National University and co-author of the 2015 research paper "Is Bitcoin a Viable E-Business?: Empirical Analysis of the Digital Currency's Speculative Nature," told South China Morning Post in January. "Some are even considering putting their currencies on the blockchain system. The biggest challenge facing bitcoin now is the potential for misuse, but that's true of any new technology."
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"Bitcoin Is the Alpha and the Omega": CoinDesk Research Director
Speaking to Yahoo Finance senior writer Dan Roberts at the outlet's All Markets Summit: Crypto conference in New York City on Feb. 7, CoinDesk director of research Nolan Bauerle discussed his firm's recently released report, "State of Blockchain: 2018." The two addressed developments over the past year, from bitcoin's spiking transaction fees to Ripple's skyrocketing price and leveraged investments in cryptocurrencies.
The most memorable line from What is bitcoin mining yahoo dating conversation by far, however, was Bauerle's insistence that "bitcoin is the alpha and omega of all of this."
The late-2017 cyrptocurrency bubble saw investors in hot pursuit of the next big coin, the blockchain's killer app, and any number What is bitcoin mining yahoo dating other holy grails. While bitcoin logged incredible returns over the same period – before experiencing a profound correction around the New Year – the conversation in cryptocurrency investing often seemed to treat bitcoin as a given, if not old news.
Without directly addressing that perception, Bauerle emphasized turned the focus decisively back to the original cryptocurrency, saying that bitcoin is "the most secure financial system in the world." (See also, How Bitcoin Works.)
He cited the increase in the bitcoin network's hash rate over the past year, equating it to "security" (as in safety, not "a security" in the regulatory sense) and stressing that it was a more important metric than the notorious volatile price. Hash rate, the computing power bitcoin miners lend to network, shows the growth of "a whole network of computers to secure and protect this ecosystem."
Ripple? XRP?
Bauerle was less enthusiastic about XRP, Ripple's cryptocurrency, which saw the highest returns of any major token in 2017. Significant concerns have been raised about XRP, also referred to as "ripple" after the company that provides it, most recently by BitMEX, which wrote on Feb. 6 that XRP's "apparent distributed consensus mechanism doesn't serve a clear purpose" meaning that "Ripple does not appear to share many of the potentially interesting characteristics crypto tokens like Bitcoin or Ethereum may have." (See also, Should You Short Ripple?)
Bauerle did not endorse these sentiments, but explained cyrptocurrency enthusiasts' doubts about XRP in terms of the confusion they feel about "the idea that the coin and the company are two different things," a tension he compared to the confused terminology around Ripple/ripple/XRP. "You don't necessarily have a role to play in the consensus," Bauerle said, meaning "you own the coin" but not a "stake in the network."
He stressed, however, that Ripple is pursuing "incredible innovation" in attacking existing systems such as SWIFT.
Transaction fees
The conversation turned to bitcoin's transaction fees, which spiked to over $50 per transaction on average in late December 2017. Bauerle lent a positive spin to what What is bitcoin mining yahoo dating be considered one of the crytpocurrency's major drawbacks, saying that the rise in transaction fees reflects What is bitcoin mining yahoo dating demand. The surge in demand can also be What is bitcoin mining yahoo dating in the rise in the average size of a bitcoin block over 1 megabyte, he said, as well as – of course – the price.
Forks, ICOs and the Leverage Myth What is bitcoin mining yahoo dating found that more value was created through forks of cryptocurrencies in 2017 than through initial coin offerings (ICOs). They also found that, while the dollar value invested in ICOs increased precipitously (146%) in the fourth quarter, the increase in ether value invested in ICOs was milder (56%). What was not addressed, oddly enough, was the role ether's rising price almost certainly played in that disparity. Addressing the mentality retail investors should have when approaching ICOs, Bauerle said as long as you "don't come at it with an unserious mood," there's "nothing to be afraid of." (See also, Bitcoin's Biggest Unresolved Tax Question: Hard Forks.)
Finally, Bauerle addressed a common trope in reporting on cryptocurrencies: the idea that investors are buying bitcoin and its peers on leverage, even mortgaging their houses to do so. According to CoinDesk's survey, 82% of respondents did not use leverage to invest in cryptocurrencies; of those who did, 52% have paid it back. While that debt-fueled minority of investors can certainly experience – or cause – problems, Bauerle pointed out that "if this is a bubble, it would be the first one that's not built on leverage."
There are a lot of "hard numbers" underpinning bitcoin's growth, he concluded.
Investing in cryptocurrencies and other Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author does not have a position in any cryptocurrencies.
Pay Attention to These 7 Bitcoin Scams - TheStreet
A key measure of competition among Bitcoin miners just dropped by 15.95 percent – the second-largest decline in the network’s history.
The drop in so-called mining difficulty signals some miners have bowed out of the ongoing race to solve math problems to win freshly minted bitcoin (BTC), as a decline in the cryptocurrency’s price has made this activity less profitable. That said, the drop could work in favor for those who have chosen to stay in the game as less competition means individual miners would gain a bigger cut in Bitcoin’s daily mining output.
The world’s largest blockchain network by market capitalization adjusted its mining difficulty around 3:00 UTC on March 26 to 13.91 trillion (T), down from 16.55 T in the previous cycle recorded on March 9. Two weeks ago, bitcoin suffered its worst sell-off in seven years, and it has only partially recovered since.
Related:Geopolitical Crisis May Benefit Oil, Gold and CBDCs, Not Bitcoin
Mining requires powerful, specialized computers that consume copious amounts of electricity, and these businesses typically pay those hefty bills by selling or borrowing against their bitcoin.
The price drop has erased all gains in Bitcoin’s computing power from the last three months, pushing it back to the level seen What is bitcoin mining yahoo dating Dec. 20. The situation was weighing especially on mining operators that have been running with older equipment such as Bitmain’s AntMiner S9 and other equivalent models.
The third-biggest drop in Bitcoin mining difficulty was 15.13 percent, recorded in December 2018 amid a price crash at the time. The largest difficulty percentage drop in Bitcoin history dates back to October What is bitcoin mining yahoo dating mining difficulty is programmed to adjust itself every 2,016 blocks – which normally takes about 14 days – in order to keep the average block production interval at about 10 minutes.
Related:Miners Are Selling More Bitcoin Than They Are Mining
See also: How Bitcoin Mining Works
When a sizable amount of computing power on the network has been switched off during a 14-day cycle, it increases the time for remaining miners to produce the 2,016 blocks. As such, the bitcoin network would make it less difficult to mine in the next cycle.
Similarly, if a significant amount of processing power has plugged into the network in any cycle, shortening the average block production interval, the network will increase its difficulty in the next cycle. As a result, individual miners would generate less bitcoin since competition has intensified.
Bad timing
What has worsened the situation for mining operators in the last 17 days is that mining difficulty had reached an all-time high on March 9 – just a few days before the March 12 price crash – and yet still more than two weeks What is bitcoin mining yahoo dating before it could adjust itself.
The recent price plunge, coupled with record mining competition at the time, had made more than two dozen old bitcoin mining models unable to generate daily What is bitcoin mining yahoo dating in the past two weeks, according to data from mining pool f2pool, assuming electricity cost is at an average $0.05 per kilowatt-hour.
The total average computing power generated by all the mining equipment on the bitcoin network over the past two weeks has also declined from 118 exahashes per second (EH/s) in early March to now about 99 EH/s.
Chris Zhu, co-founder and COO of Chinese mining pool PoolIn said on March 12, following the price plunge, that he expected the network’s hash rate to drop by 20 to 30 percent in the next weeks, based on the hash rate decline on several major mining pools at the time.
Seealso: Bitcoin Halving, Explained
And that has led to the increase of the average block production interval to nearly 12 minutes, What is bitcoin mining yahoo dating prolonging the adjustment period to 17 days, meaning incumbent miner operators had to wait three more days than usual before they could mine more bitcoin while still having to pay electricity costs.
That said, with the significant mining difficulty drop in the current cycle and bitcoin’s price bouncing back above $6,600, older mining equipment like Bitmain’s AntMiner S9 is able to bring modest daily profits again, according to PoolIn’s data.
Meanwhile, the latest and most powerful miners delivered by Bitmain, What is bitcoin mining yahoo dating and Canaan since late 2019 continue to generate profits as they boast a higher mining efficiency.
All of the three major mining equipment manufacturers have also been racing to deliver even more top-of-the-line mining machines in What is bitcoin mining yahoo dating coming months as bitcoin’s halving event approaches, which will reduce the network’s mining rewards per block from 12.5 to 6.25 bitcoin.
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