Why Do Bitcoins Have Value?
Bitcoin was launched in 2009 as the world's first decentralized, private digital currency. Because it has no physical denominations , Bitcoin only exists inside of an interlinked computer network system. This is not entirely unique, as much of the U.S. dollar supply only exists in digital account balances instead of as actual green pieces of paper. Bitcoins are generated, or " mined ," through a sequence of complex mathematical formulas run through computers. The anonymous creator of Bitcoins set a cap on total Bitcoin volume. Once that number hits 21 million, no more Bitcoins can be generated. These digital coins can then be bought or sold with other currencies and used as an investment or money to buy goods from any sellers who accept them. Economics teaches society that values are subjective; items have economic value because people desire them for one reason or another. Currencies, or mediums of exchange, serve several different and crucial functions in an economy. For one, they make trade easier; money currencies trade for nearly any good or service. For example, suppose a person has 5 units of lumber and wishes to purchase a dog. Without currency, his only option is to find a lumber-wanting dog owner. With currency, like U.S. dollars, he can sell the lumber to anyone who wants it and then use the money to purchase a dog. Currency also provides a universal measurement for accounting purposes. For instance, without currency, it is difficult to compare companies that sell different goods. Currency is used as a store of value , which makes saving, investing and banking easier. Some currencies, like gold, have value because they are useful as a commodity. Government fiat currencies, like the U.S. dollar, have value because governments grant them legal tender status an Continue reading >>
Cryptocurrency Crash: Why Ripple Is Falling More Than Most | Money
Ripples dramatic price decline a staggering 46% over a six-day time period offers a stark reminder to investors and speculators: Not all cryptocurrencies are the same. The stratospheric rise of bitcoin over the past year has brought along a number of so-called alt-coins. Many of these alternative cryptocurrencies claim to offer investors more advanced technology than bitcoins blockchain and have benefitted from the cryptocurrency craze bitcoin created. But amid the broad cryptocurrency selloff in recent days, Ripples fall has been the most dramatic, more than doubling the losses of bitcoin. Ripples token XRP, which had been trading at around $3 at the start of this year, now sits below $1.70, according to the exchange bitstamp.net . There is limited upside in Ripple, argued Alexander Kravets, a former Wall Street trader and creator of Xtrade.io, a cryptocurrency trading platform. Its very overpriced and the smart money has sold at $3. To understand why Ripple has fallen so much, you have to understand how it differs from bitcoin and other alt-coins. Unlike most cryptocurrencies, which play up their decentralized structure, Ripples founders decided to go the other way. They have created a currency thats highly centralized, which means that the company not individual investors controls how much supply of XRP leaks out. In fact, some argue that Ripple isnt even a cryptocurrency because transactions are processed in a centralized fashion and no new XRP can be mined by investors, as is the case with Bitcoin and Ethereum . Well, it seems as if others have grown weary of that centralization, the absurdity of which peaked last week when Ripple co-founder Chris Larsen reportedly saw his net worth climb to $59 billion . Based on XRPs rise, he had a higher net worth than Facebook Continue reading >>
Cryptocurrencies Come To Campus
Technology |Cryptocurrencies Come to Campus New York University students in a cryptocurrency course taught by David Yermack, a business and law professor. He had to find a bigger lecture hall for the 225 who signed up. Credit Sam Hodgson for The New York Times BERKELEY, Calif. While the price of Bitcoin has dropped since Christmas, the virtual currency boom has shown no signs of cooling off in the more august precincts of Americas elite universities. Several top schools have added or are rushing to add classes about Bitcoin and the record-keeping technology that it introduced, known as the blockchain. Graduate-level classes this semester at Carnegie Mellon, Cornell, Duke, the Massachusetts Institute of Technology and the University of Maryland, among other places, illustrate the fascination with the technology across several academic fields, and the assumption that it will outlast the current speculative price bubble. There was some gentle ribbing from my colleagues when I began giving talks on Bitcoin, said David Yermack, a business and law professor at New York University who offered one of the first for-credit courses on the topic back in 2014. But within a few months, I was being invited to Basel to talk with central bankers, and the joking from my colleagues stopped after that. For a class this semester, Mr. Yermack originally booked a lecture hall that could fit 180 students, but he had to move the course to the largest lecture hall at N.Y.U. when enrollment kept going up. He now has 225 people signed up for the class. There was some gentle ribbing from my colleagues when I began giving talks on Bitcoin, Mr. Yermack said. But within a few months, I was being invited to Basel to talk with central bankers, and the joking from my colleagues stopped after that. Credi Continue reading >>
Bitcoin May Be Beat By These Cryptocurrencies In Coming Months | Fortune
In the past, when cryptocurrencies such as Bitcoin have split in two, it was as if money fell from the sky. Take Bitcoins August fork, for instance. Mathematically speaking, one split in half results in two halves. But instead of adhering to that set of logic, that particular fork resulted in one plus a little extra. So while the price of Bitcoin hovered around $2,750, the price of its forked coin, Bitcoin Cash, traded initially at $200 . Thus, investors who owned Bitcoin woke up the next day with one Bitcoin Cash for each Bitcoin they owned, and all the wealthier for it. Such forks are one way to get cryptocurrency airdrops, or apparently free digital coins distributed to users that meet certain criteria. And its a phenomenon some cryptocurrency investors have chased in recent months in the hopes of profits. As Fundstrats Thomas Lee notes, that interest is enough for tokens with upcoming forks to maybe do well. Notably, Lee calls for investors to generally stay out of smaller cryptocurrencies, and stick with giants of the space. Tokens with upcoming forks and airdrops have outperformed bitcoin by 4.8% since the peak of altcoins, wrote Lee in a note Thursday. We identify six major forks/airdrops in next 90 days, which could support interest in these tokens. Here are the scheduled forks and airdrops Lee highlighted: Continue reading >>
Ripple, Bitcoin & Ethereum Prices Are Crashing. Here's Why | Money
For the second time in less than three weeks, cryptocurrencies suffered a major correction. The 16 largest cryptocurrencies all saw major price declines over the past 24 hours, according to data from Coinmarketcap.com. Ripple, the third-largest digital currency, saw its price fall as much as 39% at one point. Bitcoin, the granddaddy of the crypto universe, saw its price fall as much as 14% on Monday. And Ethereum, the second-largest cryptocurrency which has gained in p opularity among businesses , dropped 12%, before rebounding somewhat. The question is why? Market watchers say you can point to one of three reasons: Investors are pointing to South Korean regulators as a possible reason for the latest declines. One of the greatest strengths but lurking weaknesses of cryptocurrencies is that they are largely unregulated by governments. This allows people to use them anonymously, which is also why criminals have taken to the online monetary system. But that means any whiff of new government oversight can make investors nervous. Last month, the South Korean government said it would increase its oversight of the digital currency market by banning anonymous crypto accounts and providing measures to shut down exchanges, if needed. And on Monday, South Korean officials inspected six major local banks, reviewing the institutions anti-laundering measures in connection with cryptocurrency trades. This spooked the global markets. We need regulators to look into the space more closely, the Korean exchanges have become crazy in terms of price differences so these regulatory actions would help the price stability, Naeem Aslam, chief market analyst at TF Global Markets told Bloomberg. Because it accounts for 35% of the total crypto market, Bitcoin is by definition the most influential Continue reading >>
What Is Cryptocurrency: Everything You Need To Know [ultimate Guide]
What is Cryptocurrency: Everything You Need To Know [Ultimate Guide] Angel Investors, Startups & Blockchain developers... What is cryptocurrency: 21st-century unicorn – or the money of the future? This introduction explains the most important thing about cryptocurrencies. After you‘ve read it, you‘ll know more about it than most other humans. Today cryptocurrencies have become a global phenomenon known to most people. While still somehow geeky and not understood by most people, banks, governments and many companies are aware of its importance. In 2016, you‘ll have a hard time finding a major bank, a big accounting firm, a prominent software company or a government that did not research cryptocurrencies, publish a paper about it or start a so-called blockchain-project. “Virtual currencies, perhaps most notably Bitcoin, have captured the imagination of some, struck fear among others, and confused the heck out of the rest of us.” – Thomas Carper, US-Senator But beyond the noise and the press releases the overwhelming majority of people – even bankers, consultants, scientists, and developers – have a very limited knowledge about cryptocurrencies. They often fail to even understand the basic concepts. So let‘s walk through the whole story. What are cryptocurrencies? Why should you learn about cryptocurrency? And what do you need to know about cryptocurrency? What is cryptocurrency and how cryptocurrencies emerged as a side product of digital cash Few people know, but cryptocurrencies emerged as a side product of another invention. Satoshi Nakamoto, the unknown inventor of Bitcoin , the first and still most important cryptocurrency, never intended to invent a currency. In his announcement of Bitcoin in late 2008, Satoshi said he developed “A Peer-to- Continue reading >>
Warren Buffett: Cryptocurrencies Will Come To A 'bad Ending'
Warren Buffett: Cryptocurrencies Will Come to a 'Bad Ending' Warren Buffett, the billionaire investor behind Berkshire Hathaway, is still not sold on bitcoin. In an interview with CNBC Wednesday,Buffett predicted the demise of cryptocurrencies, saying: "In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending ... When it happens or how or anything else I don't know." He continued to say he would bet on their price declining over the next five years if he could. The noted investor further conceded he did not know a lot about bitcoin futures, but added that Berkshire Hathaway did not own any and would "never have a position in them." Buffett's latest remarks come three months after he called bitcoin a " real bubble ," and said investors would not be able to value the world's largest cryptocurrency by market cap because bitcoin did not inherently produce value. The bitcoin bear joins JP Morgan Chase chief executive Jamie Dimon in reiterating concerns about the cryptocurrency this week. While Dimon told Fox Business that he regrets calling bitcoin a "fraud" last year, he still does not believe in the cryptocurrency. Shortly after his infamous comments, Dimon had doubled down, saying anybody " stupid enough to buy " bitcoin would "pay the price" for doing so. The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies . CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. Continue reading >>
Where Do Bitcoins Come From?
Cryptocurrency Mining Where Do Bitcoins Come From? Do you like our content? Or, do you want to test out a new wallet? Feel free to send some coins to one of our wallets public addresses. All donated funds will go toward improving the site. What Will Futures Trading Do to Bitcoin and Altcoins? Market Turns Bearish As Futures Trading Approaches Suggestions on What to Do if You Bought Bitcoin at the Top Bitcoin TIP: Set Stops, Average, Buy the Dips, and Hold Bitcoin Hits $15k, $16k, and $17k! Beware the Bitcoin FOMO (Fear of Missing Out on Bitcoin) Bitcoin Breaks $13k (Subject to Change) Upcoming Bitcoin Forks 2017 2018 Bitcoin Correction Weighs Down the Altcoin Market With Bitcoin on a Run Past $9k, Here are Some Things to Watch For The content of this website is provided for informational purposes only and cant be used as investment advice, legal advice, tax advice, medical advice, advice on operating heavy machinery, etc. Our site is not officially associated with any brand or government entity. Any mention of a brand or other trademarked entity is for the purposes of education, entertainment, or parody. Neither CryptocurrencyFacts.com nor its parent companies accept responsibility for any loss, damage, or inconvenience caused as a result of reliance on information published on, or linked to, from CryptocurrencyFacts.com. In other words, this is a website on the internet offering free information about cryptocurrency, this is not your accountant, lawyer, or fiduciary offering you professional tax, legal, or investment advice. See our about page for more disclaimers and information. Bitcoins are created from bitcoin mining (adding transactions to a public ledger). An algorithm controls mining difficulty and total coin creation (21 million). Because coins are created and Continue reading >>
How Do Cryptocurrencies Gain More Value?
There are actually a couple different ways cryptocurrencies gain their value but the main factors these days relate to supply and demand. Just like how commodities work, its roughly the same principle. You can think of it like gold. If you run out of money, you can print more money (while its value goes down), but you can definitely print more money. Unlike money we cant just make more gold. Theres a finite amount, just like a cryptocurrency's total supply. The lower the availability doesnt strictly determine its value though (supply). People wanting to acquire it will increase the need for it, which in turn increases its value (demand). Essentially, any cryptocurrency success depends on two factors: When Bitcoin started, its value was only cents. But due to all the financial problems (mainly caused by banks) many people started to adopt Bitcoin because they saw it as a reliable solution to the unstable global economy. Hence, people began trading (circulation), using for transactions and as a payment method. This gave Bitcoin power and solidity. Due to its main benefit (decentralized) where there are no boundaries (no restrictions and interference by governments and banks) it is more transparent than any fiat currency , bringing along all the trust (usage) we see right now. This is how cryptocurrency gains value. But also, any cryptocurrency can gain value even before it is available for people to market and trade. AdsCash , for instance, began stimulating its huge during the pre-launch phase, ensuring to circulate millions on launch day. Hence, this boosts even more the estimated value. With more than 400K people adopting such cryptocurrency from the inception, the initial boost produced an ongoing economy, allowing escalation created by a great level of acceptance. S Continue reading >>
Litecoins Rise To $1000 Will Be Just The Beginning Of Cryptocurrencys Silversurfer
Litecoins rise to $1000 will be just the beginning of cryptocurrencys silversurfer If youve been following my $LTC trading analysis , you will know who I am. Back in April I noticed parabolic wormhole being formed in the fabric of the universe in which Litecoin, the silver to bitcoins gold more than doubled in value over the following 48hrs as it traversed through it. But its not that I noticed this wormhole which was so unique its that I charted it in such a rediculous a way which took me from pleb to senior pleb status overnight. You could say I have made charting parabolic moves into an art, literally. I have analysed many different coins but its when I come back to talking about Litecoin that I really get arize. So here we are today at the same LTC/BTC price of ~.01BTC as when this wormhole was created above. Since then, the price of Litecoin in terms of USD has gone from a high of $15 to the high in the last 24h of $150. A 10x gain over 8 months. What Im going to show to you today however is that this was this was merely a blip of growth compared to what is about to come. I see another quantum leap that will take Litecoin from.01BTC to somewhere around.25BTC which in todays terms brings LTC to around $3,750 each. I know that sounds crazy and even I have struggled to come to grips with it, but once you do the math and look at the following data, the penny will drop and LTC will make a push to at least.1BTC very, very quickly. I expect it will come sooner and more surprisingly than most will be ready for. Silver to Gold. The analogy that works for everything except priceratio. Litecoin is considered the Silver to Bitcoins Gold and it was created to make up for the shortcomings in Bitcoin. As BTC grew, Charlie Lee aka @satoshilite saw the shortcomings of Bitcoin. He Continue reading >>
Is The Bitcoin Party Over? Why Cryptocurrencys Wild Ride Could Be Coming To An End
Is the Bitcoin party over? Why cryptocurrencys wild ride could be coming to an end After a wild 2017, Bitcoin's price has fallen this yearCredit:AFP It has produced overnight millionaires and even a handful of billionaires , been accused of killing the planet , and drawn the eye of authorities around the world. But after Bitcoin's record year, the party appears to be ending. Last week, the price of Bitcoin fell below $10,000 (7,190) , a 50pc fall from theall-time high it reached a little more than a month earlier. The fall is in stark contrast to much of last year, when the digital currency's rise seemed unstoppable. During the boom, amateur investorscaptivated by the crazebought Bitcoin on credit cards , mortgaged their properties and quit their jobs to trade cryptocurrencies. At the same time, awave of scams emerged online and senior financiers... Start a 30-day free trial for unlimited access to Premium articles Continue reading >>
What Is Cryptocurrency How It Works, History & Bitcoin Alternatives
Cryptocurrencies, or virtual currencies, are digital means of exchangecreated and used by private individuals or groups. Because most cryptocurrencies arent regulated by national governments, theyre considered alternative currencies mediumsof financial exchange that exist outside the bounds of state monetary policy. Bitcoin is thepreeminentcryptocurrency and first to be used widely. However, hundreds of cryptocurrencies exist, and more springinto being every month. Cryptocurrencies use cryptographic protocols, or extremely complex code systemsthat encrypt sensitivedata transfers, to secure their units of exchange. Cryptocurrency developers build these protocols onadvanced mathematics and computer engineering principles thatrender them virtually impossible to break, and thus to duplicate or counterfeit the protected currencies. These protocols also mask the identities of cryptocurrency users, making transactions and fund flows difficult to attribute to specific individuals or groups. Cryptocurrencies are also marked by decentralized control. Cryptocurrencies supply and value arecontrolled by the activities of their users and highly complex protocols built into their governing codes, not the conscious decisions of central banks or other regulatory authorities. In particular, the activities of miners cryptocurrency users who leverage vast amounts of computing power to record transactions, receiving newly created cryptocurrency units and transaction fees paid by other users in return are critical to currencies stability and smooth function. Importantly, cryptocurrencies can be exchanged for fiat currencies in special online markets, meaning each has a variableexchange rate with majorworld currencies (such as the U.S. dollar, British pound, European euro, and Japanese yen). Continue reading >>
How To Create Your Own Cryptocurrency
When you look at the complexities that go into making a physical dollar bill its plain to see why most people dont start trying to print a new form of currency every day, but making a new digital currency is surprisingly easy for someone with even basic coding skills. But coding isnt the only step to getting your digital currency off the ground. Here are the five steps you should follow according to the makers of three cryptocurrencies. When you think about creating a new digital currency its easy to assume the first step would be to begin coding your coin, but thats the wrong place to start, according to Chris Ellis, a London entrepreneur and a community activist at Feathercoin . The first step is to find a community and build a currency around them rather than building a currency and expecting everyone to show up, Ellis says. It has to be sensitive to their needs and be relevant to their cultural heritage and background. Feathercoin was created by Peter Bushnell in April 2013. Bushnell left his job as head of IT at Oxford Universitys Brasenose College because he wanted to start his own currency that put people at the center. This was in response to what he saw as a lack of community involvement and inclusiveness by the existing cryptocurrencies, such as Bitcoin, on the popular cryptocurrency site bitcointalk.org . Though he had not met Bushnell at the time, Ellis, who had been actively promoting and educating people on cryptocurrencies since last March, shared the sense of alienation and seclusion found on Bitcoin forums. These forums were very tech focused and not very welcoming to newcomers or minority groups which are often served better by smaller teams, Ellis says. The forums did not make it easy for people to get involved in the development of the coin. Many pe Continue reading >>
How Do People Give Value To Cryptocurrency And How Is The Price Of Cryptocurrency Defined? | Bitconnect
Precious metals gain their value/perceived value due to their utility and limited supply, and price is often tied to supply/demand. Supply/Demand is a simple economic factor that affects the price of many things. In some countries Bitcoin and other cryptocurrencies is classed as an asset, in others as a currency. Bitcoin, for example has a maximum of 21 million whole units, divisible 100 million times. With over 7 billion people on the planet, if even 1 billion were to adopt Bitcoin, 21 million whole units would not spread very far without a significant price tag. The supply is also bought in at a constant rate and is unchangeable due to the coconscious rules. This creates a supply that is limited, and thus people will pay more to get the coins they think have value. Block reward halvings, like the Bitcoin halving of 2016 caused the price to slowly increase as the halving approached, due to the reduced supply of new incoming coins imminent. This can affect the price of many cryptocurrencies, but in the case of Litecoin, did not even make a major dent in the price. The energy put into securing blockchains can be intensive. In the case of proof of work (POW) blockchains which are the most popular form, electricity usage can be intense. In the case of Bitcoin, the blockchain uses as much energy securing it at present as a small country uses. This has a factor on the price, as it takes a certain amount of energy on average to mine one Bitcoin. This goes up with difficulty increases. The more secure the blockchain and the higher the mining difficulty , the higher the perceived value and price and the harder the coins are to get through mining. This can have an impact on price and ties in with the energy usage above, in the case of proof of work blockchains such as Bitcoin a Continue reading >>
Cryptocurrency - Wikipedia
HitBTC cryptocurrency exchange terminal window A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions, to control the creation of additional units, and to verify the transfer of assets.    Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies . Bitcoin , created in 2009, was the first decentralized cryptocurrency.  Since then, numerous cryptocurrencies have been created.  These are frequently called altcoins, as a blend of bitcoin alternative.    Bitcoin and its derivatives use decentralized control  as opposed to centralized electronic money / central banking systems.  The decentralized control is related to the use of bitcoin's blockchain transaction database in the role of a distributed ledger .  Decentralized cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is defined when the system is created and which is publicly known. In centralized banking and economic systems such as the Federal Reserve System , corporate boards or governments control the supply of currency by printing units of fiat money or demanding additions to digital banking ledgers. In case of decentralized cryptocurrency, companies or governments cannot produce new units, and have not so far provided backing for other firms, banks or corporate entities which hold asset value measured in it. The underlying technical system upon which decentralized cryptocurrencies are based was created by the group or individual known as Satoshi Nakamoto .  As of September 2017 [update] , over a thousand cryptocurrency specifications exist; most are simil Continue reading >>