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Bitcoin what is it and is it still worth investing in 2017

Bitcoin what is it?

Firstly this will be the single location where I post everything to do with my investment in BTC, I want to keep it in a central location so that you can easily come back and see updates. But as you see my progression the price of BTC will change, and it will change lots too, so if you want to just jump on the Bitcoin train then first head over to here, sign up (its free) and have a good read.

bitcoinBTC is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.

It’s the first example of a growing category of money known as cryptocurrency.

What makes it different from normal currencies?

Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.

However, bitcoin’s most important characteristic, and the thing that makes it different to conventional money, is that it is decentralized. No single institution controls the BTC network. This puts some people at ease, because it means that a large bank can’t control their money.

Who created it?

A software developer called Satoshi Nakamoto proposed bitcoin, which was an electronic payment system based on mathematical proof. The idea was to produce a currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees.

Who prints it? (Bitcoin)

No one. This currency isn’t physically printed in the shadows by a central bank, unaccountable to the population, and making its own rules. Those banks can simply produce more money to cover the national debt, thus devaluing their currency.

Instead, bitcoin is created digitally, by a community of people that anyone can join. Bitcoins are ‘mined’, using computing power in a distributed network.

This network also processes transactions made with the virtual currency, effectively making bitcoin its own payment network.

So you can’t churn out unlimited bitcoins?

That’s right. The BTC protocol – the rules that make it work – say that only 21 million bitcoins can ever be created by miners. However, these coins can be divided into smaller parts (the smallest divisible amount is one hundred millionth of a BTC and is called a ‘Satoshi’, after the founder of bitcoin).

What is bitcoin based on?

bitcoinConventional currency has been based on gold or silver. Theoretically, you knew that if you handed over a dollar at the bank, you could get some gold back (although this didn’t actually work in practice). But bitcoin isn’t based on gold; it’s based on mathematics.

Around the world, people are using software programs that follow a mathematical formula to produce bitcoins. The mathematical formula is freely available, so that anyone can check it.

The software is also open source, meaning that anyone can look at it to make sure that it does what it is supposed to.

What are its characteristics?

BTC has several important features that set it apart from government-backed currencies.

1. It’s decentralized

The BTC network isn’t controlled by one central authority. Every machine that mines bitcoin and processes transactions makes up a part of the network, and the machines work together. That means that, in theory, one central authority can’t tinker with monetary policy and cause a meltdown – or simply decide to take people’s bitcoins away from them, as the Central European Bank decided to doin Cyprus in early 2013. And if some part of the network goes offline for some reason, the money keeps on flowing.

2. It’s easy to set up

Conventional banks make you jump through hoops simply to open a bank account. Setting up merchant accounts for payment is another Kafkaesque task, beset by bureaucracy. However, you can set up a bitcoin address in seconds, no questions asked, and with no fees payable.

3. It’s anonymous

Well, kind of. Users can hold multiple BTC addresses, and they aren’t linked to names, addresses, or other personally identifying information. However…

4. It’s completely transparent

…bitcoin stores details of every single transaction that ever happened in the network in a huge version of a general ledger, called the blockchain. The blockchain tells all.

If you have a publicly used BTC address, anyone can tell how many bitcoins are stored at that address. They just don’t know that it’s yours.

There are measures that people can take to make their activities more opaque on the BTC network, though, such as not using the same bitcoin addresses consistently, and not transferring lots of bitcoin to a single address.

5. Transaction fees are miniscule

Your bank may charge you a £10 fee for international transfers. The BTC Crypto Currency doesn’t.

6. It’s fast

bitcoin

You can send money anywhere and it will arrive minutes later, as soon as the bitcoin network processes the payment.

7. It’s non-repudiable

When your BTC is sent, there’s no getting them back, unless the recipient returns them to you. They’re gone forever.

So, BTC has a lot going for it, in theory. But how does it work, in practice? Read more to find out how bitcoins are mined, what happens when a bitcoin transaction occurs, and how the network keeps track of everything.


 

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Onegold Customers Can Now Purchase Digital Bullion With Bitcoin

Online bullion marketplace Onegold announced on Tuesday that its customers can now purchase precious metals with bitcoin cash (BCH) and bitcoin core (BTC). Onegold’s digital silver and gold products are fully allocated physical metals stored at the Royal Canadian Mint and can be redeemed at any time through Apmex.

Onegold Now Accepts Cryptocurrencies

Onegold Customers Can Now Purchase Digital Bullion With Bitcoin Cryptocurrency proponents can now purchase digital gold and silver bullion products on the Onegold platform using BCH and BTC. Onegold is a blockchain-based platform that stores precious metals and allows customers to redeem their digital bullion holdings at any time. The concept was created by the precious metals e-retailer Apmex and alternative asset manager Sprott. Their recent decision to support BCH and BTC is due to a partnership with Bitpay which already has a prior relationship with Apmex.

“Bitpay and Apmex have worked together for years, making it easy for Apmex to accept cryptocurrency — When they started Onegold, we were ready to help them accept bitcoin and bitcoin cash through Bitpay,” explained the chief commercial officer at Bitpay, Sonny Singh.

Singh continued:

Cryptocurrency is an ideal payment method for e-commerce and precious metals where the risk of chargebacks, fraud and identity theft with traditional credit cards is high.

International Bullion Buyers Are Interested in Alternative Payment Methods

Onegold Customers Can Now Purchase Digital Bullion With Bitcoin Ken Lewis, chief executive officer at Onegold, explained that credit card chargebacks were one of the big reasons the company chose to accept BCH and BTC. Because the digital assets act like cash and are a “push transaction” system, users need to pay for products up front, making traditional fraud cases much harder to accomplish. Lewis also detailed that blockchain payments provide greater accountability and some international buyers are more apt to purchase Onegold’s collateralized assets using cryptocurrencies.

“We anticipate a large number of cryptocurrency buyers from international markets, where accepting credit cards is not always practical,” Lewis explained during the announcement. “In addition to helping protect our own interests, adding bitcoin and bitcoin cash to the payment options for Onegold also increases our payment transparency and efficiency.”

Onegold Believes Cryptographically Secured Metals Are Better Than Exchange-Traded Funds

Onegold believes that its digital bullion is far superior to gold-backed paper like exchange-traded funds (ETF), such as the gold trust Comex and LBMA Gold. Both products are similar because they can be electronically traded, but Onegold is cryptographically secured by a distributed ledger and has 100 percent physical metal backing.

Onegold Customers Can Now Purchase Digital Bullion With Bitcoin
The Onegold system.

Onegold customers can redeem their stored assets with the click of a button, and have physical metals shipped to their door by Apmex. Quite a few gold and silver ETFs cannot be redeemed so quickly and some cannot be traded for physical assets at all, making customers settle for fiat. Onegold believes adding the ability to purchase digital metals with cryptocurrencies was the company’s next logical step.

What do you think about Onegold adding BCH and BTC support for digital bullion purchases? Let us know in the comments section below.


Images via Shutterstock, Onegold, and Pixabay.


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The post Onegold Customers Can Now Purchase Digital Bullion With Bitcoin appeared first on Bitcoin News.

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Xsolla Adds MobileGO (MGO) as New Payment Method for Developers and Gamers Globally

OCTOBER 22, 2018 — LOS ANGELES — Xsolla, which provides game developers with a comprehensive suite of flexible tools and services to help launch, monetize and scale their games globally, today started accepting made-for-gaming cryptocurrency — MobileGO (MGO) — for its PC and mobile games partners.

For the first time ever, developers are able to receive royalty payouts in a cryptocurrency, MGO, on a sliding scale percentage of their choice. As more and more digital entrepreneurs move their savings and retirement investments to the blockchain, Xsolla is there to help its clients cash out in whatever currency is most convenient for them.

“Xsolla’s mission is to always be at the forefront of innovative technology, continuously adding tools and services that enable developers to grow and monetize their games globally,” said Aleksandr Agapitov, founder and CEO of Xsolla. “MGO will accelerate transformative opportunities for our community. Game developers will now receive their royalty payouts much faster, and owners of MGO will soon be able to engage in peer-to-peer match play and organize decentralized gaming tournaments in a way never before possible. MGO is essentially the Bitcoin of the gaming industry, the most trusted cryptocurrency that Xsolla is making available to more than half a billion gamers today.”

Gamers now have more choice to pay for games and in-game transactions with the addition of MGO to Xsolla’s over 700 payment methods. With a current roster of over 500 games — and more added daily — that can accept the tokens, the audience continues to grow. Xsolla’s tools and services operate in over 200 countries and territories, more than 20 languages, and 130 currencies. It is the only payment platform and end-to-end product suite focusing solely on the game development community worldwide.

In addition to gaining popularity with gamers, preparing for this massive adoption MGO tokens have managed to secure their position on major exchanges such as Bitfinex, DigiFinex, BitForex, HitBtc and GateCoin.

About MGO
MGO is Etherium based ERC223 token created to foster a new era in the gaming industry. Its ultimate goal is massive adoption becoming a universal currency for 2.6 billion gamers worldwide, and help both large and small game developers to grow their business as well as to provide gamers with benefits of smart contracts and transparency. For more information, visit https://www.mobilego.io or watch this video.

About Xsolla
Xsolla gives video game developers, publishers, and platform partners access to the flexible tools, services, and collaboration needed to launch, monetize, and scale their games and products globally. Serving only the video game industry, the Xsolla product suite caters to businesses from indie to enterprise, with: Pay Station and its #1 Anti-fraud solution, Partner Network, Site Builder, Store, Login, and Launcher. Headquartered in Los Angeles, with offices worldwide, Xsolla operates as a merchant and seller of record for major gaming entities like Valve, Twitch, Ubisoft, Epic Games, and PUBG Corporation. For more information, visit www.xsolla.com.

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Japanese Regulated Exchange Zaif Hacked – Nearly 6000 BTC Stolen

Japanese government-approved cryptocurrency exchange Zaif has confirmed that it has been hacked. After a preliminary investigation, the exchange says at least 5,966 BTC have been stolen, with an estimated total damage of $60 million. Some of the stolen coins belong to the exchange but the majority belong to customers.

Also read: 160 Crypto Exchanges Seek to Enter Japanese Market, Regulator Reveals

Zaif Hacked

Japanese Regulated Exchange Zaif Hacked – Nearly 6000 BTC StolenJapanese crypto exchange Zaif has been hacked, its operator announced on Wednesday, Sept. 19. Tech Bureau Inc., which operates Zaif, explained that the exchange “detected server abnormality” on Monday and immediately suspended several services, including deposit, withdrawal, and merchant payment services.

The company revealed that unauthorized access to its hot wallet was detected between 17:00 and 19:00 on Sept. 14, elaborating:

Some of the deposit and withdrawal hot wallets were hacked by unauthorized access from the outside, and part of the virtual currencies managed by us was illegally discharged to the outside.

Japanese Regulated Exchange Zaif Hacked – Nearly 6000 BTC StolenThe exchange believes that three cryptocurrencies may have been stolen: BTC, BCH, and MONA. While it has confirmed that 5,966 BTC were stolen, the theft of the other two cryptocurrencies is still being investigated. Tech Bureau explained that the extent of the damage is currently unknown because the exchange’s server will not be restarted until it is confirmed to be secured in order to prevent further damage. Nonetheless, the company clarified:

It is estimated that the total loss due to the damage…is equivalent to about 6.7 billion yen [~US$60 million] (including MONA and BCH) in Japanese yen.

Out of the total damage, the company says 2.2 billion yen (~$19.6 million) belong to the exchange and 4.5 billion yen (~$40 million) belong to customers. Tech Bureau said it has asked for 5 billion yen (~$44.6 million) in assistance from a subsidiary of Fisco Ltd. to help repay affected customers, Kyodo News described.

Investigating and Rebuilding

In its announcement, Tech Bureau stated that it reported the breach to the Treasury Department on Sept. 18. “This case is a criminal case,” the company wrote, adding that it has requested an investigation into the breach. The company detailed:

Currently, we are checking and strengthening security, rebuilding the server, etc., in order to restart the system of depositing / withdrawing virtual currency.

The Osaka-based exchange, established in 2014, is one of the 16 government-approved crypto exchanges in Japan. The country’s Financial Services Agency (FSA) issued the company two business improvement orders: the first was on March 8 and the second on June 22. The agency ramped up its oversight of crypto exchanges after hackers stole 58 billion yen (~$534 million) worth of the cryptocurrency NEM from Coincheck in January.

What do you think of Zaif’s hack? Let us know in the comments section below.


Images courtesy of Shutterstock and Zaif.


Need to calculate your bitcoin holdings? Check our tools section.

The post Japanese Regulated Exchange Zaif Hacked – Nearly 6000 BTC Stolen appeared first on Bitcoin News.



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