Gsbt

One of the fundamental questions many people have about Bitcoin revolves around the tokens themselves. Questions about its value, security and history, all eventually lead to one place: Where do bitcoins come from? While traditional money is created through (central) banks, bitcoins are “mined” by Bitcoin miners: network participants that perform extra tasks. Specifically, they chronologically order transactions by including them in the Bitcoin blocks they find. This prevents a user from spending the same bitcoin twice; it solves the “double spend” problem. Skipping over the technical details, finding a block most closely resembles a type of network lottery. For each attempt to try and find a new block, which is basically a random guess for a lucky number, a miner has to spend a tiny amount of energy. Most of the attempts fail and a miner will have wasted that energy. Only once about every ten minutes will a miner somewhere succeed and thus add a new block to the bl

The digital currency Bitcoin has a dedicated following, regularly makes headlines and inspires countless investors to consider making digital currency part of their portfolios. Yet it enjoys the backing of no government or third-party entity like a bank, and it can be hard to understand where its perceived value comes from. So, you may be asking, what makes bitcoin valuable? Fundamentally, bitcoins derive their value just as anything else does: because people want them. Like any other currency, bitcoin follows the basic rules of supply and demand. Currencies have always been useful tools to make trade easier, enabling holders to convert goods into a widely tradable commodity through sale, then use the proceeds of that sale to purchase nearly anything they wish. While fiat currencies derive value from the governments that back them, currencies like gold are valuable in and of themselves. Currently, bitcoin isn’t like other currencies in that it is not universally

If you are thinking through the process of accruing bitcoins, you may be wondering where to keep them once you’ve done so. After investing time and resources into the digital asset, can you be sure they are locked safely away for when you want to use them? In truth, bitcoins aren’t “stored” anywhere. As a purely digital entity, it is not as if they are held in bank vaults or stuffed under mattresses. They are accessible through Bitcoin addresses, which require a set of digital keys for entry. So, the question of how to securely store bitcoins comes down to the security of these keys. Every Bitcoin address has two keys: a “public key” and a “private key.” Bitcoin addresses are derived from public keys, and these Bitcoin addresses are shared. Think of it like sharing your email address with someone: they can send you an email but can’t get into your inbox to read your mail. Similarly, nobody can get into a wallet and take bitcoins from it with a public key; it can only b

Tax season can be confusing enough with complicated rules about what types of income are taxable and which are not; what can be written off and what can’t; and which assets need to be listed and which do not. Add to that the confusion around digital currency and its status in the eyes of governments, and there are bound to be questions about how Bitcoin relates to taxes. In the United States, for example, “taxable income” encompasses anything received as payment for goods and services. There is no reason that this would exclude payment in bitcoin. Bitcoin received from another person in the exchange counts as gross income, which is subject to income tax. Bitcoin earned through trade or by running a bitcoin exchange could fall under the “capital gains” category, like gold, and will be taxed. Bitcoins that are mined are counted as income received from the act of mining and are taxable with the expenses accrued (such as computing power) being deductible. When miners s

Victims lost $1.33 billion to cyber criminals in 298,728 cases, with hackers stealing and extorting $28.3 million in cryptocurrencies in 2016. On June 22, the Federal Bureau of Investigation presented its annual  Internet Crime Report  for the year of 2016. The FBI analyzed the victim reports at the  Internet Crime Complaint Center  (IC3) and used the information from their database to publish the annual study. It is important to mention that, according to the Department of Justice’s research, only an  estimated 15 percent  of the U.S. fraud victims reported their crimes to law enforcement. The FBI highlighted multiple “hot topics” regarding internet crimes for the year of 2016. This included Business Email Compromise (BEC), which resulted in the loss of $360 million from victims, currently standing in first place in the category of most damage caused. BEC is a sophisticated scam targeting companies working with international or foreign businesses or suppliers who conduct wire

Digital currency practices have exploded in recent months, bringing to the forefront new regulations. This means VC investors looking to get a piece of the action need to do further due-diligence and remain informed on the legal side. According to  Inside Bitcoins , last year two Bitcoin and blockchain-related startups raised over $1 billion in total investment. This is a massive increase from the $347 million invested in the space in 2014. So what are the latest issues around cryptocurrencies? How will the recent  SEC announcement  impact investors? Bob Graham, partner and head of the digital currency services practice at  Friedman LLP , has been receiving inquiries from both Bitcoin and blockchain-related firms and investor funds asking for audits and advice. Graham tells  Bitcoin Magazine  in an exclusive interview what VC investors should be aware of and how Bitfinex recently engaged Friedman to assist with an audit. What issues are VCs facing related to digital currency? The

A fork could change the equation for thousands of bitcoin users. The biggest, newest fear for bitcoin investors and users is a fork. In financial terms, a fork isn’t for eating — it represents a split in the currency that could significantly destabilize the cryptocurrency’s value by splitting it into two completely different currencies — “bitcoin classic” and “bitcoin current.” Right now, bitcoin’s price has been rising, but come August 1, there’s a small chance its future could change forever. So when will Bitcoin fork, and what does that mean for the future of the currency? The answer is a bit complicated. To understand it, here’s a rundown of the central problem facing bitcoin and the various ways its software-savvy community is trying to fix it. The problem Bitcoin has one central problem — it’s slow as heck. The world’s leading cryptocurrency is crippled by its meager ability to facilitate a mere seven transactions per second. As more and more people buy in and adopt the cry

Bitcoin Press Launch: Hubcoin gets on a mission to unite altcoin programmers by producing different devices for them and also helping the whole crypto-community with financial investments and also promotions.July 25, 2017, Minsk, Belarus– Belarus-based blockchain company Hubcoin prefers to report that 300,000 (10%) of the complete pre-mined HUB symbols was dispersed between all other altcoin programmers, that consented to receive them. The decision corresponds with the ongoing  HubCoin ICO, running from July 17, 2017, till July 31, 2017. During the ICO, the platform has made continuing to be 3,000,000 CENTER tokens readily available for purchase to the investors.The Hubcoin platform thinks that the recent experiments with reasonable coins have actually revealed wonderful success and also yet leaves a great deal of unrealized protocol. Complying with other premine distribution tasks like NEM as well as Auroracoin, Hubcoin has determined to designate 10% of all its premined HUB tokens

Image caption"Accepting cryptocurrencies broadens my client-base," says Eleesa Dadiani Why is the art world getting excited about digital currency Bitcoin and its underlying technology blockchain? Eleesa Dadiani owns and runs an art gallery in London's famous Cork Street. She was born in Georgia in the Caucasus and was "breastfed by gypsies". But she is also a passionate believer in the power of Bitcoin and other digital currencies. When we meet she is busy preparing for an exhibition of sculptures made from the exhausts of former Formula 1 racing cars. One of these strange rib-cage-like creations made from the super-strong alloy inconel has been gold-plated and will sell for about £35,000. "These are pieces of history," she tells me. In a first for the tradition-bound art world of Cork Street, her international clientele will have the opportunity to pay using Bitcoin, the digital cryptocurrency underpinned by blockchain technology. The galle

Bitcoin price is pushing on with its bullish gains as the cryptocurrency continues to reach the dizzying heights scaled in early March during the lead-up the SEC decision of the Winklevoss bitcoin electronic traded fund (ETF). It has been a month of continuing gains with a positive trend for the world’s most prominent cryptocurrency. Having started April at $1,068 on the Bitstamp Price Index (BPI), today’s trading shows price reach a high of $1,274. Bitcoin has now gained nearly 20% in value since the turn of April. Bitcoin prices since April began. BPI data reveals trading on Monday begain at $1,241 and a sustained trading period has seen an upward climb for the value of the cryptocurrency. Bitcoin prices were hovering above $1,250 at the start of Tuesday (midnight UTC) into the early hours of the day. At 07:30, a surge spurred prices from $1,252 to $1,260 in a 2-hour period. A more notable spike followed in the next 2-hour period as price pushed upwards of $1,270 to peak at $1,2

If you’re planning to hold bitcoins long term, one of the easiest, best ways to store them is in paper wallets, somewhere safe, such as a safe for instance, that you have control over. More technological methods such as the Trezor hardware wallet and others have come about, and we are hoping to acquire one of those for review purposes soon. But the paper wallet serves a lot of important purposes in Bitcoin. Perhaps its most novel purpose is shattering the idea that computers are necessarily required to transact in bitcoins. Indeed, if dealing with an actually trusted party, receiving bitcoins via private key on a paper wallet is as secure as any other way of receiving them. The key word there is trusted party. If two parties have access to a private key, that private key can be swept into another wallet very easily. Thus, if the party was a stranger or an untrusted party, they could as easily sweep the coins into another wallet directly after or minutes before handing over a paper wal

Bitcoin  and  digital currency  are exciting new areas of business and finance, and an ideal target for anybody looking to break into the tech industry or change career paths. The revolutionary potential of digital currency is only just starting to be fulfilled, meaning that there is a huge range of opportunities for businesses to take advantage of. But because of the fact that it is so new and different, there is also a huge shortage of knowledgeable, experienced and skilled professionals able to take on the challenge of helping businesses to capitalize on the potential of Bitcoin and digital currency. All of which means that this is an ideal time for tech savvy workers looking to get a job in Bitcoin or other digital currency related companies. If you are a digital currency enthusiast with a bit of knowledge about the industry, and any transferable skills such as in marketing, journalism, business admin, or actually writing programming code, then you can expect to command a great s

In a surprising move, the network’s share of Bitcoin Unlimited jumped by more than 10% in the past 24 hours, rising from around 20% to more than 30%, the highest any alternative client has ever achieved. PayPal is giving out $500 worth of Bitcoi n Bitcoin Unlimited Gains More than 30% of the Network’s Share –  image from nodcounter The significant increase coincides with the sudden arrival of 100 Bitcoin Unlimited nodes earlier this week. Although there were suggestions these nodes are fake, it now appears more likely that someone, probably a miner, has switched to Bitcoin Unlimited. Current Bitcoin Unlimited Node Count –  image from nodecounter A new pool has indeed joined with a small amount of hashrate, the Canoe pool. They appear to have left BW.com, which has seemingly lost hashrate, but we cannot currently confirm. Another miner is meant to leave BW.com. Chandler Guo has  stated  he will take out his hashrate form BW.com to form his own pool which will min

Executive Brief The US regulation of digital currencies is out of date, impractical, and damaging to a potentially lucrative economy. The lack of unity in state regulations has created an unworkable system that makes the operations of Fintech (Financial Technology) companies complicated and confusing. A unified and clear regulatory policy would clear these muddy waters and benefit the digital currency industry, and have a positive impact on the American economy as a whole. Read the full story below.  The US Once Led the Bitcoin Revolution Every country is feeling their way through this relatively new digital currency, but America was initially proactive in the digital currency industry. For example, the US Senate was the first to conduct hearings on Bitcoin in 2013. The IRS was the first to release information on taxes in relation to Bitcoin, and FINCEN (Financial Crimes Enforcement Network) was the first crime agency to make any reference to the digital currency.

Germany’s most popular and largest financial news network and platform, is listing bitcoin amongst other major reserve currencies such as US Dollar, Japanese Yen and Chinese yuan on the company’s “most important exchange rates” section. The list contains rates of 7 major reserve currencies which Finanzen.net consider operate as the basis of the global economy. Listing of bitcoin on the exchange rates section implies that Finanzen.net, a key player within the German financial and media industries, considers bitcoin as one of the most important currencies in the world. In its widely-utilized currency converter and rates ticker platform, Finanzen.net also provides native support for bitcoin, demonstrating year-long charts of bitcoin price and listing the digital currency among all of the reserve currencies listed by the company. Over the past few months, Finanzen.net consistently broadcasted and reported bitcoin-related news to its nationwide audience and readers in Germany. E

Investors are betting the Securities and Exchange Commission (SEC) will approve at least one of the three proposed bitcoin-focused exchange-traded funds, despite doubts expressed by Wall Street analysts, according to  MarketWatch . Futures contracts traded on BitMEX , an exchange incorporated in the Republic of Seychelles, and the falling premium of the Grayscale bitcoin trust shares traded on the secondary market, indicate participants are expecting approval, said Spencer Bogart, an analyst at Needham & Co., one of the few Wall Street analysts who cover bitcoin. Trust Premium NAV Drops The trust’s premium over bitcoin’s net asset value (NAV) has dropped from around 42.21 percent in early January to about 13% in recent trade, according to Grayscale. The falling premium reflects less willingness to pay for shares since investors expect near-term approval of one of the ETFs, Bogart said. Shares of a bitcoin ETF would trade closer to bitcoin’s net asset value, accordi

A tech leader and software company director has said that the setup of a national FinTech organization will push New Zealand’s economic growth. Mitchell Pham, tech leader and director of NZTech, said that New Zealanders should care about FinTech as electronic interactions will play an important role across the country’s economy, according to  Scoop News , a New Zealand news website. After gathering support from NZTech and the New Zealand government, FinTechNZ was launched last week. Pham is reported as saying that e-commerce as a subset of FinTech is important for the future of small to medium businesses, enabling them to export globally. He added that on March 24, FinTech experts from the U.K. and Australia, two of the biggest FinTech communities, will be connecting with FinTechNZ members when they visit New Zealand. He said: This will help expand connections for our fintech community to grow, which in turn will contribute to New Zealand’s economic growth. N