Kvě 05

I Am Satoshi: Will Dr. Wright Cause Panic in the Bitcoin Markets?

Source: bitcoin

craig Wright

Will Craig Wight´s “I am Satoshi” claim cause people to panic sell their bitcoins? If he is Satoshi, then he controls a large supply of the total coins in existence and could sell them. The last two times in recent bitcoin history when there was a major news event, the price tanked and then recovered. It appears that until Wright moves some bitcoin that are from a block that Satoshi is known to control, people don´t care. At least they do not care enough to sell their bitcoin just yet. The price has been very flat compared to the reactions seen with the launch of XT and Mike Hearn´s departure announcement.

Also read: BitcoinAverage: The Evolution of an Index

Bitcoin XT

In the summer of 2015, Bitcoin XT was launched. August 18th just happened to be a day when some of the r/bitcoin mods were off as well, and the discussion about XT vs. Core went wild. The price crashed from 257$ to 162$ at Bitfinex. The exchange had so many people selling that there were problems with people closing leveraged positions. In total the launch of XT combined with exchange glitches caused a near $100 decline in the bitcoin price.

Hern Quits

With another Medium post, a hallmark of the Bitcoin debate, Hern announced his resignation from Bitcoin development, saying that it was time to move on. The blog post marked the end of Bitcoin XT and the start of Bitcoin Classic. The news caused enough uncertainty, and the price dropped from $429 to $351, then hitting $427 just days later at Bitfinex. After an approximate $80 decline in price, the markets recovered in a matter of days.

Craig Wright: ‘I am Satoshi’

You would think that another news event of similar proportions would cause a similar reaction. If Satoshi comes out now, will he or she sell some of the old bitcoins kept in his or her possession? Satoshi controls around one million bitcoins; selling even part of that on the open market would crash the price. As the news of Craig Wright’s “I am Satoshi” claim surfaced Monday morning, there was a selloff of about $15 on Bitfinex. Besides that, the market has been flat. A lot of people are waiting to see what happens and are tired of all the drama, highly skeptical of Wright’s claims.

However, if there is any movement of coins that Satoshi is known to control — for example from a block containing the Hal Finney transaction — or if he is able to sign a message using a real private key from the genesis block, then some people might panic and decide to sell their bitcoin with the fear that Satoshi could sell some of his and crash the market. Thus, with the markets awaiting further proof from Dr. Wright, we can expect a continuation of recent sideways activity — at least temporarily.

Would you sell your bitcoins if Craig Wright proves that he is, in fact, Satoshi? Let us know in the comments below!


Images courtesy of Forbes, Krach via TradingView.

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I Am Satoshi: Will Dr. Wright Cause Panic in the Bitcoin Markets?

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Led 23

Ethereum’s Market Cap Takes The Number Three Spot

Source: bitcoin

Ethereum’s Market Cap Takes The Number Three Spot

The turing complete token Ethereum has been making strides towards the top spot in cryptocurrency capitalizations. This week the digital currency has bumped Litecoin out of the third position on the coinmarketcap.com list hitting a cap of over $138 million USD.

Also read: Number of Ethereum Nodes Grows Exponentially

The past few months have been active for Ethereum, who has seen development, investment and positive media within its crypto-environment. The built-in turing-complete programming language as a layer configured into the ETH blockchain has intrigued developers and investors. This system is said to enable businesses and ordinary people the ability to construct autonomous organizations, smart contracts, and applications. The tokens currently have an available supply of 76,471,765 ETH and are worth $1.80 USD at press time seeing quite a bit of value increase.   

Recently the tech-giant Microsoft announced earlier last year that they would be using Ethereum with its cloud-based Blockchain-as-a-Service (BaaS) Azure platform. Microsoft included other distributed ledger services within its research and development including Ripple, EmercoinFactom and others. On January 20th R3 CEV the blockchain infrastructure project backed by 42 well-known banks announced its use of Ethereum and Microsoft Azure. IBtimes UK reports that R3 is connecting 11 legacy institutions together with these distributed ledger technologies. The banks included in this venture are Barclays, UBS, Credit Suisse, HSBC, Wells Fargo, Unicredit, Natixis, Commonwealth Bank of Australia, BMO Financial, TD Bank, and the Royal Bank of Scotland. CTO for the Investment Bank at Barclays, Brad Novak explains the protocol is well known saying:

“Ethereum is a well-known open source technology in this space and we also look forward to collaborative experiments using other technologies.”

Since these announcements made by Microsoft Azure and the latest statements made by R3 the Ethereum value has seen quite the gains. January 2016 has seen a lot of trading volume and about a 20% jump in price. However not everyone is on the Ethereum train and see competition coming in the future from camps like Rootstock, Tau Chain, Maidsafe, Counterparty, Bitshares, Coinprism and more. Despite this, the Ethereum community has seen significant development under its hood and many side projects using its protocol.

Devcon1 held last year had shown innovative concepts from teams like Slock.it. The founder of Slock.it Stephan Tual explained the Ethereum Computer with his Medium post showing off the IoT use cases with the ETH protocol. At Devcon1, the device is shown locking and unlocking a simple household doorknob at the event. The summer of 2015 heated up for Ethereum when it was an unknown source said that the project was planned on being experimented with by BNP Paribas, Barclays, and UBS.    

There have been a few in the cryptocurrency community who have said that Ethereum was trying to take Bitcoin’s lunch as it approaches the number three spot on the capitalization totem. However it’s got a long way to go to get near Bitcoin’s 5.8 billion market cap and network effect with thousands of merchants, devices, and software applications. After Mike Hearns announcement that the protocol had failed in his eyes while preparing to join the R3 team, coincidentally coins like Dash and Ethereum had seen a price spike. The price of Bitcoin dropped about 17% immediately after the developers public message. Also reports of an ETH enthusiast spamming people with direct messages via /r/bitcoin saying “Ethereum will defeat Bitcoin” recently spread around the crypto-community after Hearn decided to say farewell. I have also received this reddit message in my private inbox.

The Bitcoin price has jumped back up rebounding shortly after Hearn’s statements and Ethereum has seen quite the value increase moving up its position. Will it be a competitor of Bitcoin or complement the current king of digital currency? Only time will tell as it seems the turing-complete programming language system wants to continue to leave its mark on the landscape of virtual money, IoT and many financial processes.

What do you think about Ethereum’s rise? Let us know in the comments below. 


Images courtesy of Shutterstock, Pixbay, and Wiki Commons 

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Ethereum’s Market Cap Takes The Number Three Spot

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Led 20

Bitcoin Classic’s Magical Mystery Tour

Source: bitcoin

Bitcoin Classic’s Magical Mystery Tour

Michael Toomim, a main proponent of Bitcoin Classic, and brother of main developer, recently made enlightening comments in a Slack developer channel dedicated to Bitcoin Core.

Also Read: KnC Miner Endorses Bitcoin Classic

Toomim has been associated closely with the newest Bitcoin client purporting to be the solution Bitcoin needs in order to scale amid its block size debate.

The comments were verified as vintage Toomim numerous times by people in the chat at the time and by Bitcoinist during a chat with a member who partook in a Google Hangout with Toomim. Toomim waxed transparently about his numerous beliefs.

In the chat Sunday night, Toomim, who participates in Bitcoin-related Github conversations, discussed his ideas for the future of Bitcoin, while apparently, at least high on marijuana, and possibly on LSD.

Toomim remained adamant about Bitcoin Classic’s intentions, revealing how he felt that much of Bitcoin is marketing. 

 

Later in the chat, Jonathon Toomim – Michael’s brother and partner at Bitcoin Classic – came in and stated that, perhaps, they needed a PR team. Conversation moved swiftly from Michael’s comments to discussion about how Bitcoin Classic can move forward and be the solution for Bitcoin to scale amid the block size debate.

The comments come as Bitcoin has splintered into numerous factions. While Bitcoin-XT had been the most popularly marketed solution to allow Bitcoin to scale before Classic, Classic team members claimed Bitcoin-XT had failed while heralding their own project. Gavin Andresen recently mentioned Bitcoin Unlimited, yet another solution, which could supplant Bitcoin Classic as the leading hard-fork. Still others champion a soft-fork as a safer more efficient solution.

Toomim’s comments underscore a certain, naive aspect of the Bitcoin industry. The solutions being heralded in the community have appeared more as marketing campaigns than anything, and Michael Toomim acknowledges this in his comments in the Bitcoin Core Slack channel. Bitcoin Classic marketed its 2MB increase, doubling the size of blocks for Bitcoin, then claimed to have miner support, while many miners have shown skepticism in regard to the new project since it first gained press attention.

To be sure, there’s nothing wrong with LSD. There have been academic studies proving it aids in the defeat of depression and other psychological maladies. Not only has LSD research indicated this to be so, but entheogen research in general – though limited – has suggested other substances with positive results when used in patients.

People’s reactions to the discussion have been mixed, with people pointing out that the discussion was inappropriate in a group of essentially strangers. Furthermore, Bitcoin has been associated with drug use throughout its entire history, and perhaps it is in the interest of the community to separate itself from that.

Others say that, on a Sunday night, Michael was merely taking to the community to have an informal discussion and I am an idiot for writing this article. But, if Michael Toomim’s behavior under the influence of marijuana or LSD (posting in public forums) is symptomatic of the behavior of the Bitcoin Classic team, then the project might get trippy. At least we’ll know why.

For a transcript of the full discussion, click here.

What are your thoughts on this development? Let us know in the comments below!

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Bitcoin Classic’s Magical Mystery Tour

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Led 19

The War on Bitcoin Has Only Just Begun With Mike Hearn Leaving

Source: bitcoin

Bitcoinist_Bitcoin

Unlike what people might believe right now, Bitcoin has not failed by any means. Even though Mike Hearn outlined the sentence how “Bitcoin has failed” in his opinion, the ecosystem is trucking along nicely and carries on with or without him. Mainstream media outlets are rubbing their hands to spread more negativity about Bitcoin to mainstream consumers. Political games are slowly entering the Bitcoin world, and this will not be the last attack made against the digital currency.

Also read: Number of Ethereum Nodes Grows Exponentially

Redefining The Mike Hearn Meaning of Failure In Bitcoin

A title such as “Bitcoin has failed” can be interpreted in a variety of ways. First and foremost, there is the most obvious conclusion the popular digital currency will not grow any further, and how people should cash out while they still have the chance. This is the message spread by mainstream media outlets all over the world, as they love selling bad news about Bitcoin at any given moment.

The people who are knowledgeable about Bitcoin and mainstream media outlets could use some of these people to get their facts straight – will gladly tell you Bitcoin has not failed by any means. The concept of failure in the digital currency world is vastly different from any other financial sector in existence today, as the entire Bitcoin project can not just “fail” because one person’s advice is not being followed.  

A recent video by Max Keiser and Simon Dixon of BnkToTheFuture details exactly this statement. Both gentlemen strongly feel this announcement by Mike Hearn is a political game in favor of bankchains. With so many major financial players looking to harness blockchain technology for their own purposes, their private blockchain alternative will be far more secure in their opinion.

Truth be told, the departure of Mike Hearn is not something that people didn’t anticipate. Even though he raised some interesting points, a lot of people felt Hearn was nothing more than a strawman planted to gain inside knowledge of the Bitcoin ecosystem and take it to the banks at a later date. If you can’t beat the technology, join them at an opportune time, as the saying goes.

Making an announcement about how Bitcoin has failed is just a stab in the back of the digital currency community. Don’t be mistaken in thinking this will be the last attack on the Bitcoin ecosystem, as the political games have only just begun. Keiser and Dixon even went as far as saying how “the war on Bitcoin” has only just started, and they could very well be right.

Conflicting Messages From Banks And Mainstream Media

A few days before the announcement was made by Mike Hearn, the Royal Bank of Scotland announced how investors should get rid of all other financial assets, and put their funds into long-term investments, such as high-value bonds. In a way, people could see this as a validation of Bitcoin as well, as the digital currency operates outside of the realm of traditional finance, and it is a long-term investment. After all, a lot of the banks are in favor of the blockchain, and Bitcoin is an instrument issued on this technology. 

Mainstream media tends to spin these articles as a way to nudge investors towards more traditional commodities, such as precious metals. However, as Simon Dixon explained in the video, gold does not hedge against financial uncertainty by any means.Cash is not a valid option as well, as looking for currencies to hold in cash is quite risky. Bitcoin is the only currency scalable and secure financial tool, which is a lot more than just a traditional “currency” itself.

 

What are your thoughts on the ongoing war on Bitcoin? What will be the next play by the powers that be who want to stop the march of digital currency? Let us know in the comments below!

Source: Youtube

Images courtesy of Shutterstock, Mike Hearn

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The War on Bitcoin Has Only Just Begun With Mike Hearn Leaving

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Led 18

Bitcoinist Weekly News Re-Hash: Mike Hearn has Fled the Building

Source: bitcoin

Mike Hearn

What started out as a relatively quiet week ended in tragedy, as news of Mike Hearn abandoning Bitcoin sent the community into an uproar. Following this announcement from Hearn, the price fell below $400, and even found itself in the $350s for a brief time. Overall, the price declined by 15.54% this week, and most of those losses occurred during the shock caused by Hearn.

Also read: Carl Force’s Lawyer is Pessimistic About Ulbricht’s Appeal 

Daily Bitcoin Price Action

  • January 11: $449.60
  • January 12: $446.52
  • January 13: $430.20
  • January 14: $431.07
  • January 15: $416.43
  • January 16: $371
  • January 17 Open: $383.07
  • January 17 Close: $379.74

Total Change: -15.54%

The Week in Summary: Peter Todd Double Spends, Mike Hearn Abandons Bitcoin

The week started on January 11, 2015 with the bitcoin price sitting at $449.60. With the markets determined to hold on to the $440s range established last week, the price stayed within the mid $440s for the rest of the day after falling out of the high $440s in the early morning.

Meanwhile, in the news, Bitcoin developer Peter Todd surprised the community when he revealed that he successfully completed a double spend attack against Coinbase. Todd took $10 from Coinbase and purchased Reddit gold for Jeremy Gardner of the Augur project. Coinbase is a popular wallet provider and exchange service in the bitcoin community — especially for newcomers — so the concerned reaction from the community was understandable.

Tuesday opened at $446.52, and proved to be the last day of the $440s range that Bitcoiners enjoyed for some time. Trading activity was remarkably flat for the majority of the day. Starting at 6 PM, though, there was a large bout of selling, and the bitcoin price fell into the $420s.

On Tuesday, we reported on another development in the drama surrounding Theymos and his policies of censorship in the Bitcoin-related assets that he controls. Coinbase was reinstated on the Theymos-controlled Bitcoin.org. This reinstatement comes after the company was removed following an announcement that Coinbase planned to test BIP 101 — more commonly known as Bitcoin XT. BIP 101 is the implementation drafted by Gavin Andresen, and would change the Bitcoin protocol to accommodate for large block size increases. Theymos has stood firmly against Andresen and BIP 101, removing any discussions regarding the implementation from r/bitcoin on Reddit, and BitcoinTalk.org.

Bitcoin rose to the low $430s at the start of the 13th and established a holding pattern in the high $420s-low $430s range that persisted for the entire day.

January 14 began with the bitcoin price at $431.07. The markets held in the low $430s for most of the day. However, during the evening hours, a massive price drop commenced. The price began dipping slightly at 5 PM, and by the end of the day the small decline turned into a massive selloff. By the close of the 14th, the price had fallen into the low $400s.

This sudden decline can be attributed to former Core developer Mike Hearn’s dramatic exit from the Bitcoin community. In a blog post, Hearn declared Bitcoin “doomed” because of a supposed inability of the community to reach consensus on the block size debate. Hearn said that since the network refused to accept his and Gavin Andresen’s XT proposal, the block size problem would continue to get worse until Bitcoin died. Citing mining centralization in China and issues with Chinese network infrastructure and regulation as additional pitfalls, Hearn stated that he decided to sell all of his coins and leave Bitcoin for good.

This Hearn-induced selloff continued well into Friday, January 15. The day opened at $416.43, and the price fell for the entirety of the day. The price fell below $400 at 8 AM, sinking to $392 by midday. Another large drop at 5 PM sent the price into the $360s, and after a small recovery the day ended in the $370s.

January 16 started with the bitcoin price at $371. As the community began to process the news from Hearn, it seems like traders composed themselves, and the markets stabilized. The decline bottomed out at $4352 in the early morning; afterwards, what looked like a recovery got underway. The price rose steadily throughout the entire day, reaching the high $380s in the evening.

Sunday, January 17 opened at $383.07, with the markets apparently stabilized in the $380s. Aside from a few brief dips into the high $370s, the price saw modest growth for most of the day, reaching the high $380s in the early evening. Some downward pressure at 6 PM sent the bitcoin price down to $380, and it spent the rest of the night hovering between $379 and $380. The week closed at $379.74, making for a massive 15.54% loss for the week.

What do you think will happen with Bitcoin in the coming week? Let us know in the comments below!

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Bitcoinist Weekly News Re-Hash: Mike Hearn has Fled the Building

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Led 15

Mike Hearn Has Left The Bitcoin Building

Source: bitcoin

Mike Hearn Has Left The Bitcoin Building

Reaching consensus can be difficult, and that’s something Mike Hearn wanted to tell the world on January 14th. In a Medium post, he calls “The resolution of the Bitcoin experiment” long-time Bitcoin developer Mike Hearn has left the industry. The statement that is quite long goes into a very detailed testimony to why he’s left and that he sold all his bitcoins.

Also read: Peter Todd Double Spends on Coinbase

Mike Hearn, Former Bitcoin Developer

Mike Hearn former Google engineer and the first person to implement Bitcoin in Java, lead developer of the controversial XT fork, and a person whose software he’s “written has been used by millions of users” is all done with the Bitcoin protocol. In fact, he said that it was a “failure” throughout much of the very extensive testimony. Hearn says:

“But despite knowing that Bitcoin could fail all along, the now inescapable conclusion that it has failed still saddens me greatly.”

Hearn follows this statement with great detail to why he’s leaving the Bitcoin protocol and moving on. He believes that most people don’t know that “people had issues moving money, erratic fees, mining is controlled by China, and companies involved are in an open civil war” Not only does he mention this array of failure points he adds that a reversal feature was added to the code. This “allowed buyers to take back payments they’d made after walking out of shops, by simply pressing a button (if you aren’t aware of this “feature” that’s because Bitcoin was only just changed to allow it)”  

The block size issue was mentioned throughout much of the post. He contends that the blockchain is full saying, “you may wonder how it is possible for what is essentially a series of files to be “full”. The answer is that an entirely artificial capacity cap of one megabyte per block, put in place as a temporary kludge a long time ago, has not been removed and, as a result, the network’s capacity is now almost completely exhausted.” Hearn blames the mining industry for this matter most notably the core of miners based in China. He details the Scaling Bitcoin Conference had 90% of the network sitting upon the stage. He claims that because of certain restrictions in China the miners who reside there have some manipulation in the game. This gives them tremendous incentive to play the game this way he states:

The Chinese internet is so broken by their government’s firewall that moving data across the border barely works at all, with speeds routinely worse than what mobile phones provide. Imagine an entire country connected to the rest of the world by cheap hotel wifi, and you’ve got the picture. Right now, the Chinese miners are able to — just about — maintain their connection to the global internet and claim the 25 BTC reward ($11,000) that each block they create gives them. But if the Bitcoin network got more popular, they fear taking part would get too difficult and they’d lose their income stream. This gives them a perverse financial incentive to actually try and stop Bitcoin becoming popular.”

The former developer also explains the hardships involved with the XT fork. He details how the XT network of users had suffered from severe DDoS attacks and the discussion was met with much hatred. Hearn explains,  “It was a massive DDoS that took down my entire (rural) ISP. Everyone in five towns lost their internet service for several hours last summer because of these criminals. It definitely discouraged me from hosting nodes.” He goes into great description of the censorship on reddit and the battle of Coinbase and Bitcoin.org.

Then he goes into his own arguments with developers in the industry. Hearn seems to feel many different arguments have distorted the roadmap and states his reasons to why he did not attend the “bogus” scaling conference. He then describes his stance on how this discussion moved into the range of reversed fees. Hearn states, “Bitcoin Core has a brilliant solution to this problem — allow people to mark their payments as changeable after they’ve been sent, up until they appear in the block chain. The stated intention is to let people adjust the fee paid, but in fact, their change also allows people to change the payment to point back to themselves, thus reversing it. —This protocol change will be released with the next version of Core (0.12), so will activate when the miners upgrade. It was massively condemned by the entire Bitcoin community, but the remaining Bitcoin Core developers don’t care what other people think so that the change will happen.”

Hearn concludes the post by explaining that Bitcoin is in “dangerous” territory, but not all is lost. He says he was happy to work with many of the entrepreneurs in the space and all the innovative minds. But now even after many people from the “uncensored” reddit begged him to stay he is leaving. His final words to the crypto-audience states, “I’m afraid I’ve moved on to other things. To those people I say: good luck, stay strong, and I wish you the best.”

What do you think about Mike Hearn leaving? Let us know in the comments below.


Images courtesy of Pixbay, Twitter, and Shutterstock

 

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Mike Hearn Has Left The Bitcoin Building

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