Bitcoin Fork Wants to Help you Earn Interest After Your Digital Cash

The latest bitcoin hard fork aims to lift the interest-bearing benefits of traditional banking and bring it into the cryptocurrency world.

Bitcoin Interest, the latest spinoff of the first cryptocurrency Bitcoin, aims to lift the interest-bearing benefits of traditional banking and bring them into the cryptocurrency world. Starting with “Bitcoin Cash” last August, Bitcoin has seen around 19 hard forks so far and this year experts predict up to 50 more forks will roll out.

A familiar innovation for the crypto-economy

The main idea behind Bitcoin Interest (BCI) is very similar to that of an interest bearing savings account, with a decentralized approach. If you park your BCI coins for a certain interest period – “weekly or monthly” – the system will proportionally allocate interest payments to its participants.

One of the main advantages of Bitcoin Interest is that there is no set interest rate, and the rate is usually higher than that of a traditional savings account. The interest rate is calculated based on how many coins are generated and placed in the interest pool, and by how many users are participating in the interest round.

Hard forking for a hard problem

While both ICOs and Bitcoin hard forks end up in the creation of a new cryptocurrency, the main difference between Initial Coin Offerings (ICOs) and hard forks is that the latter initiates an immediate value for Bitcoin holders. Hard forks are essentially improving on the Bitcoin blockchain in order to bring benefits such as security, speed and efficiency for the so called ‘digital gold’. According to experts, the development of hard forks could further ensure the stability and the maintenance of the decentralized platform which has seen unprecedented growth and reach over the last few years.

Another issue with Bitcoin is the skyrocketing transaction fees – from around 20 cents to about $15 – throughout the course of 2017. Along with other obstacles, this inspired an avalanche of hard forks starting with Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond which was followed by many others.

To overcome the shortcomings of Bitcoin, these forks have attempted to change the blockchain one way or another. For instance, Bitcoin Cash increased the block size from 1MB to 8MB making the processing of a larger number of transactions to be possible within the 10-minute period. This resulted in transactions becoming faster, and also made them cheaper.

Investing into the future

Bitcoin Interest stands out among other forks because apart from the usual reward for mining, investors can also earn interest by parking their BCI coins. This interest earning characteristic makes Bitcoin Interest an appealing choice in the booming cryptocurrency market. HitBTC already expressed its support in favor of Bitcoin Interest, and Okex, a world-leading digital asset exchange has also agreed to support the snapshot, however, whether or not they will support deposit, trading and withdrawal remains to be seen as that decision is based on the status of the Blockchain after the fork.

Even though the popularity and use of cryptocurrencies has gone through the ceiling in the last couple of years, trust and volatility have remained a serious issue for most of the blockchain industry. With the introduction of Bitcoin Interest, the company offers a type of service which many investors are already comfortable with, but has been missing in the digital currency world – earning interest on their coin holdings. Encouraging people to hold their savings instead of spending them might be able to stabilize the ongoing volatility of the cryptocurrency market and bring much needed assurance to investors.

You can learn more about bitcoin interest by visiting their website here.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

Source: Coin Telegraph




My current recommendations:

HashFlare for automated Bitcoin cloud mining - Currently ROI in around 60 days only

Bitclub Network allows you to buy mining shares with daily payouts

CCG Mining now offers open end contracts. Bitcoin, Ethereum, Zcash, Litecoin and others

Cointracking keeps track of all your coins automatically. Many exchanges and wallets supported

 

Is Bitcoin’s Reign as King of Cryptocurrency in Danger?

Crypto market moves fast and if something does not happen soon, Bitcoin could become obsolete.

Regardless of where your allegiances lie in the crypto community, homage should be paid to the original Blockchain solution – Bitcoin. However, it has been 10 long years now since Bitcoin came into being (an eternity in the cryptocurrency space) and things are starting to get away from the King.

Bitcoin’s path was forever changed in August 2017 when a new challenger stepped up to the plate amid the rapidly escalating scaling debate. Bitcoin Cash appeared with its backers claiming it to be the one true ruler. Not long after this came Segwit 2x's failure to launch, which essentially confirmed Bitcoin’s status as digital gold. As a digital gold, it may have no rivals, but in the world of cryptocurrency it may have played its last move.

Scaling is a constant topic for evolving cryptocurrencies, and if Bitcoin cannot scale properly soon, it could be abandoned by investors for a more forward thinking cryptocurrency.

An aging King

After bringing in millions of users to the cryptocurrency space, Bitcoin has hit a log jam on its network as available blocks fill up with transactions quicker than they can be mined. This backlog has led to higher transaction fees and longer waiting times.

These factors all end up being counterproductive to the principles underpinning cryptocurrency which are to eliminate the power that banks have over money. Banking fees and centralised waiting times are part and parcel of the irritation that comes from another entity being in control of one's money. Bitcoin is increasingly picking up these bad habits, leaving its users with a feeling of déjà vu harking back to the days when banks held a monopoly over monetary services.

Waiting in the wings

Bitcoin’s move towards digital gold was a communal decision, and therefore blame cannot really be laid purely on the currency’s shoulders. But in that short time, frustrations amongst investors have grown with regards to the scaling issues.

There are other currencies waiting to try and take the mantle away from Bitcoin, and already this has been demonstrated as Bitcoin suffers a 50 percent drop in market dominance since November. Currently, market share for Bitcoin is just over 33 percent, having not too long ago been at over 60.

Bitcoin Cash is the most direct competitor to Bitcoin, trying to replace it as a ‘peer-to-peer electronic cash system’, as outlined in its white paper. However Bitcoinc has more than just its potential replacements to worry about, as the adoption rate of the currency is reversing. Bitcoin once held sway over a number of large companies who had adopted it as a form of electronic payment, but have since reneged on their adoption. Steam, formerly a strong supporter, no longer accepts Bitcoin, while Microsoft caused confusion when they looked to stop accepting only to rebut this and state:

“Microsoft has restored Bitcoin as a payment option after working with our provider to ensure lower Bitcoin amounts would be redeemable by customers.”

As companies turn away from Bitcoin, even some of the more established names in cryptocurrency join the march for the door. Civic CEO Vinny Lingham, who is well respected for his opinions in the crypto community said:

“When I look at it from the product standpoint, I think the greater demand is for peer-to-peer cash than for digital gold.”

Where to for Bitcoin?

There are currently plans underway for the oldest and most well-known digital coin to try and overcome this scaling issue. Some of the solutions being considered include the Lightning Network, or major upgrades to the network like changing block sizes.

Lightning Network, a technology which is being tested slowly but surely on the Bitcoin network, involves taking the transactions off-chain and opening payment channels. With these transactions taking place off chain, the result is an almost instantaneous transaction, at a much cheaper rate. This kind of upgrade will require a lot of consensus, and will need to undergo a lot more testing and proof before it becomes entrenched and usable on a large scale, which is another issue that Bitcoin has.

Even the idea of making big changes to the network could again fail and flounder. We have already seen this with the failure of the Segwit2x potential upgrade. Bigger blocks could solve the problem, but then Bitcoin will essentially going down the same path as Bitcoin Cash, and with too many staunch supporters in the community, this is unlikely to happen.

Hard to dethrone

Bitcoin is well entrenched in the cryptocurrency space, and will likely be a leading currency for a good while more as people refer to Bitcoin first before anything else. But, as the community matures, explores, and demands more, Bitcoin could be in trouble. Changes need to happen, and while Bitcoin will not fall on its sword too soon, if it does not make changes, then the potential for failure will continue to increase.

Source: Coin Telegraph




My current recommendations:

HashFlare for automated Bitcoin cloud mining - Currently ROI in around 60 days only

Bitclub Network allows you to buy mining shares with daily payouts

CCG Mining now offers open end contracts. Bitcoin, Ethereum, Zcash, Litecoin and others

Cointracking keeps track of all your coins automatically. Many exchanges and wallets supported

 

Facebook Bans Cryptocurrency, ICO Ads Because Of ‘Deceptive Promotional Practices’

Social media platform Facebook has announced that it bans ads that use “deceptive promotional practices,” which apparently includes ICOs and cryptocurrencies.

Facebook has updated its advertising policy, announcing in a blog post Tuesday, Jan. 30 that it prohibits ads that use “misleading or deceptive promotional practices,” which, according to the social media platform, includes ads of cryptocurrencies and Initial Coin Offerings (ICOs).

The announcement claims that there are “many companies” that use Facebook’s platform to advertise financial products, such as binary options, cryptocurrencies and ICOs, but do so “[not operating] in good faith”.

Because of that, the blog post continues, Facebook is going to make it “harder for scammers to profit” from a presence on the social platform by banning all such ads. The announcement also encourages the users to help police the community by reporting content that violates the new rule.

“Two of our core advertising principles outline our belief that ads should be safe, and that we build for people first,” said Facebook.

Source: Coin Telegraph




My current recommendations:

HashFlare for automated Bitcoin cloud mining - Currently ROI in around 60 days only

Bitclub Network allows you to buy mining shares with daily payouts

CCG Mining now offers open end contracts. Bitcoin, Ethereum, Zcash, Litecoin and others

Cointracking keeps track of all your coins automatically. Many exchanges and wallets supported

 

Bitfinex, Tether Get Subpoenas From US Regulators

Bitcoin has reacted sharply to news Bitfinex and Tether received subpoenas from US regulators last week.

Update: Nathaniel Popper, a reporter from New York Times, has claimed in a tweet that the subpoenas were delivered on Dec. 6 and not last week, according to ‘source familiar with the matter.’

Major cryptocurrency exchange Bitfinex and token issuer Tether have received subpoenas from US regulators as questions continue to arise about the latter’s ‘true’ value.

As Bloomberg reports Tuesday, Jan. 30 quoting sources who opted to remain anonymous, Tether’s notional USD peg has come under increasing suspicion, with authorities “routinely” querying its legal providence.

“We routinely receive legal process from law enforcement agents and regulators conducting investigations,” the publication quotes emailed statements from Bitfinex and Tether sent this week. “It is our policy not to comment on any such requests.”

Controversy has swelled around Tether, whose chief executive officer Jan Ludovicus van der Velde is also the CEO of Bitfinex, after volatility and rumors of Bitcoin price manipulation surfaced late last year.

While it remains unclear as to what specifically triggered the subpoenas, which both companies received last week, the move comes as less of a surprise amid the flurry of suspicion surrounding them on social media in January.

In reactions following the news, cryptocurrency industry commentators had mixed opinions.

WhalePanda, who has become known for his trading and business-related tweets, noted the lack of connection between Bitfinex, Tether and US authorities.

Meanwhile, Bitcoin prices have taken a plunge on Tuesday, likely caused in part by the news. Charlie Shrem considered those selling off Bitcoin to be “truly stupid,” as Tether holdings presented the risk and cryptocurrency presented a “way out” of any financial losses.

As of press time Tuesday, Tether was trading at an average of $0.998, just below parity, with prices having swung as high as $1.05 in the last month.

Bitcoin fell an average of 11% according to data from Coinmarketcap.

Source: Coin Telegraph




My current recommendations:

HashFlare for automated Bitcoin cloud mining - Currently ROI in around 60 days only

Bitclub Network allows you to buy mining shares with daily payouts

CCG Mining now offers open end contracts. Bitcoin, Ethereum, Zcash, Litecoin and others

Cointracking keeps track of all your coins automatically. Many exchanges and wallets supported

 

Samsung Enters Crypto Mining Market, “Mass Producing” ASIC Chips For China

Samsung announced a deal on Monday to produce ASIC chips with Taiwanese foundry TSMC, Bitmain’s supplier of mining hardware.

Samsung announced a deal on Monday, Jan. 29 to manufacture ASIC mining hardware with Taiwanese manufacturer TSMC. “Mass production” of the ASIC chip has already begun in January, according to Korean news outlet The Bell.

An ASIC chip, which stands for Application-Specific Integrated Circuit, is a specialized piece of hardware designed to only mine cryptocurrencies based on a specific hashing algorithm, such as SHA256 or Scrypt (which Bitcoin and Litecoin run on, respectively). It makes up part of a crypto mining device.

TSMC supplies the ASIC chips needed for cryptocurrency mining to Bitmain, a China-based Bitcoin mining company. Bitmain also manufactures its own hardware, having released two ASIC-style products in September 2017 to relatively negative fanfare as well as an unexpected launch of a SiaCoin miner on Jan. 19.

In regards to the profitability of Samsung entering the crypto mining market, Hwang Min-seong, an analyst at Samsung Securities, told The Bell:

“Samsung Electronics could increase its revenues through ASIC chip manufacturing but because the foundry only accounts for a small portion of the company’s semi-conductor manufacturing plant, it is difficult to predict that the firm’s mining venture will have a significant impact on the company’s revenues.”

South Korea-based Samsung’s deal with TSMC comes after a turbulent month in the crypto markets in Asia, with exchanges banned in China and accusations of insider trading and confusion over regulation in South Korea leading to losses across the board.

Source: Coin Telegraph




My current recommendations:

HashFlare for automated Bitcoin cloud mining - Currently ROI in around 60 days only

Bitclub Network allows you to buy mining shares with daily payouts

CCG Mining now offers open end contracts. Bitcoin, Ethereum, Zcash, Litecoin and others

Cointracking keeps track of all your coins automatically. Many exchanges and wallets supported