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History of Ethereum Hard Forks: Will Istanbul Support ETH Prices?
Ethereum is easily the most versatile and dynamic invention in the blockchain era. For a long time, Ethereum has been the second-largest cryptocurrency, second only to Bitcoin. Furthermore, smart contracts have fundamentally revolutionized the cryptosphere. For a platform that has been in a usable format only since 2020, this ascendance is remarkable. Smart contracts have complex applications that are disrupting many sectors in real life.
The Ethereum blockchain has subsequently become the foundation for numerous other cryptocurrencies thanks to its ability to run self-executing and autonomous code. In general, the brilliance of Ethereum is providing developers with tools to build decentralized applications that run on blockchain technology. That means immutability, reliability, and censorship resistance.
Even then, Ethereum has had to undergo some changes to adapt to the prevailing user interests. Initially, proof-of-work (POW) mining seemed suitable for many cryptocurrency platforms. However, as popularity increased, issues like scalability in Bitcoin and Ethereum became evident. These issues necessitated structural adjustments to make cryptocurrencies and their respective platforms adaptable and fit for the market.
Accordingly, Ethereum activated the Constantinople and Petersburg Hard Fork on February 25, 2020, after several postponements, taking it on the verge of Serenity (also known as Ethereum 2.0). To achieve Serenity, it has taken the form of a series of hard forks and upgrade phases to complete the evolution.
Let’s look at Ethereum’s timeline up to the most recent upgrade.
History of Ethereum Upgrades
The Ethereum blockchain came into public existence in July 2020 after the ninth and final proof-of-concept open testnet. Ethereum founder Vitalik Buterin announced a reward of 25,000 ETH for developers who had contributed to stress-testing the network.
The stress-testing particularly focused on how the network would handle high-traffic. Therefore, the core areas of focus were transaction activity, virtual machine usage, mining prowess, and general punishment. Scalability was, and still remains, the biggest issue for major cryptocurrency platforms.
For Ethereum, this is even more pressing because of the pressure to offer scalable solutions for enterprise customers and developers. The stress-testing concluded with the mining of the Ethereum genesis block on July 20, 2020. Subsequently, the Ethereum community continued to grow.
Here are the basic features of the raw Ethereum Frontier chain:
- Block Reward:This is a basic feature of decentralized cryptocurrencies where miners get a reward in ETH when they successfully mine a block into existence on the Ethereum blockchain. Frontier had a block reward of 5 ETH per block.
- GAS:Gas essentially refers to the price value that Ethereum transactions or smart contract need to reach completion on the Ethereum blockchain platform. Initially, the gas limit per block was hardcoded at 5,000 gas. This provided buffer time to allow miners to start operations and allow early adopters to install their clients. The gas limit was automatically removed after a few days, and the Ethereum Network was henceforth capable of handling transactions and executing smart contracts.
- Canary Contracts:These were a part of Frontier to notify users of bad or vulnerable chains. Canary contracts got either a “0” or a “1.” Users who had an issue got a “1” and were notified to ensure they wouldn’t mine. Canary contracts gave Ethereum developers a tool to prevent operations or transactions on the network should something begin to go wrong. In that context, it was a major feature in creating a protection mechanism early on in Ethereum’s existence.
The first Ethereum hard fork was executed on May 14, 2020, at a block height of 1,150,000. In effect, the Homestead upgrade removed the canary contracts. Additionally, Homestead introduced new code in Solidity, the programming language used on Ethereum, and added the MIST wallet. This feature allowed users to hold or transact ETH and write or deploy smart contracts.
What is significant about the Homestead upgrade is that it was one of the earliest implementations of Ethereum Improvement Proposals (EIPs). These are proposals that the Ethereum community gives and are included in the network upgrades. The Homestead upgrade included three EIPs:
- EIP 2.1, which increased the cost of creating smart contracts via a transaction from 21,000 gas to 53,000 gas. Before this, the cost of creating a contract using another contract was more expensive than transaction costs. This EIP incentivized users to go back to creating contracts via contracts.
- EIP 2.2, which invalidated all transaction signatures with an s-value greater than secp256k1n/2. That said, the Elliptic Curve Digital Signature Algorithm (ECSDA) could still recover precompiled contracts.
- EIP 2.4, which removed an incentive that allowed users to create blocks with slightly higher difficulty. As such, the upgrade stabilized block times between 10 to 20 seconds, which was in line with the overall approximate target time of 15 seconds per block.
EIPs are therefore a valuable channel for community participation and ensure the network applies user ideas for better output. EIP-8, for instance, was an improvement proposal for future network upgrades. Subsequently, all client software could accommodate future protocol updates.
The DAO Incident | July 20, 2020
The exploitation of a decentralized autonomous organization (DAO) in 2020 was a significant event in the timeline of Ethereum. This DAO was one of the standout features of the Ethereum ecosystem. The platform was intended to be a channel to disperse funds to various different Ethereum projects, and it raised $150 million in a token sale.
On July 20, 2020, however, an unknown hacker stole about 3.6 million ETH. The Ethereum community decided on an unplanned hard fork to restore the funds to the original wallets and seal the vulnerability. However, this was not a consensus decision, and some Ethereum users continued to mine and make transactions on the original chain.
As such, the original chain with the stolen ETH unreturned became Ethereum Classic. This incident was controversial, with some crypto users claiming that Vitalik Buterin had used the hard fork to bail out his friends and colleagues. Buterin has consistently denied this.
That said, the majority of the Ethereum community continues working off the forked chain, with the hacked ETH reverted to the original owners, making it the predominant Ethereum blockchain.
The third stage in the Ethereum roadmap is known as Metropolis. To get there, the network underwent two stages: Byzantium and Constantinople, respectively. Byzantium went live in October 2020, specifically at block 4,370,000.
Byzantium contained nine EIPs. This stage came in the form of a hard fork with a community consensus. Major improvements included the introduction of zk-SNARKS, the delay of the “time bomb,” the implementation of early proof-of-stake (PoS), transaction status receipts, and smart contract upgrades.
Ethereum’s Early History
Constantinople is the second stage of the Metropolis upgrade. It is mostly considered a “maintenance and optimization” upgrade but has faced a number of delays to, among other reasons, eliminate security loopholes. The Constantinople upgrade went live at a block height of 7,280,000 on February 28, 2020, as the hard fork was activated.
Currently, the Ethereum network is in the Constantinople phase, with the first stage, Petersburg, executed in Q1 2020 and the second stage, Istanbul, set for activation in mid-October 2020. The hard fork coordinators insisted the decision was made through technical consideration and the drive for perfection rather than speed. The Petersburg phase of Constantinople has included five different EIPs, of which the “difficulty bomb,” the centerpiece of the upgrade, has taken center stage. The overall goal was to facilitate a smooth lockstep transition from POW mining to proof of stake (POS), which Vitalik Buterin said is more energy-efficient.
Of the five EIPs, four didn’t have any impact in the end, as they were largely technical optimizations enhancing the network’s performance. EIP 145, for example, is a bitwise shifting on the Ethereum Virtual Machine (EVM), further easing arithmetic operations in certain classes within Ethereum.
However, it was EIP 1234, proposed by Afri Schoedon, that slashed miners’ reward from three to two in what has been dubbed the “thirdening.” An inflation-adjustment hard fork, the total ETH in supply is reduced from 7.4 to 4.9 million per year, consequently reducing the annual ETH inflation from 7.8 to 4.9 percent. Unlike the Byzantium hard fork, where the network’s difficulty adjustment was decreased, the difficulty level didn’t change, resulting in natural miner attrition while effectively setting the foundation for Casper’s proof of stake.
The software upgrade did negatively impact the ETH mining industry in the sense that the reduction of mining rewards translated to low profits, and with low ETH prices at that time, the total recovery period became longer and even more unprofitable for small miners, forcing some to switch their computing power to other blockchains.
Eventually, the “difficulty bomb” will be activated, meaning it will take longer for blocks to be mined as the network readies for Casper. There are two proposals: Casper CBC (correct by construction), suggested by Vlad Zamfir, an Ethereum Foundation researcher, and Casper FFG (friendly finality gadget), advocated by Vitalik Buterin, the co-founder of Ethereum. As it is, Casper FFG will initiate the eventual rollout of Ethereum 2.0, with CBC likely complementing FFG in the future. Notably, Casper FFG will drive the initial phase, the Beacon Chain, whose testnet will go live in early January 2020.
The Roadmap to Serenity
The previous upgrades have made the Ethereum blockchain more secure and efficient. The DAO hack was an unintended upgrade, but it has since become a prominent fixture in the Ethereum timeline.
In the future, Serenity is the ultimate destination of the Ethereum blockchain. By the time Ethereum gets to the Serenity phase, the network will have completed the transition to proof of stake.
Other important upgrades will be the introduction of the Beacon Chain, sharding, and the eventual transition from the Ethereum Virtual Machine (EVM) to Ethereum-flavored Web Assembly (eWASM).
October 2020 Istanbul Hard Fork and What It Means for Prices
What lies ahead in the immediate future is the Istanbul hard fork. Ethereum Istanbul is a system-wide upgrade that will change a few facets of Ethereum functionality, including the data storage process, mining protocol, and code execution. The objective of this hard fork is to bring the network closer to developers’ needs by building dApps on the Ethereum blockchain.
The Istanbul hard fork will activate six EIPs. The introduction of the ProgPoW consensus will further entrench decentralization by balancing forces in the network. Ethereum’s Istanbul launch is set for October 16, 2020.
The changes from this hard fork are meant to ensure the network is cheaper, faster, and more scalable. These upgrades will ensure Ethereum remains competitive in the blockchain space in the face of upstarts like EOS and TRON.
The specific EIPs are EIP-152, EIP-1108, EIP-1344, EIP-1884, EIP-2028, and EIP- 2200. Other goals of the Istanbul upgrade include the following:
- Align the cost of opcodes and computational costs as well as improve denial-of-service attack resilience
- Ensure layer-2 solutions based on SNARKs and STARKs are more performant
- Facilitate Ethereum and Zcash interoperability
- More creative functions for smart contracts
Impact on ETH prices
The uncertainty a hard fork creates affects digital asset prices, as has been observed in several networks with Bitcoin Cash being adversely affected. Similarly, Bitcoin hard forks, considering what’s at stake, have been notorious for price upheavals, and the Istanbul upgrade, though bringing a less pronounced impact, will likely show in ETH pricing.
Given the planned nature of most Ethereum blockchain upgrades, Istanbul will probably not rock prices negatively. Even if there is an initial dip or stagnation, the long-term impact of the Istanbul hard fork will likely be positive because of the upgrade’s improvements for scalability, cost, and operating speed.
Moreover, ETH is transforming in terms of how the currency operates. At the peak of the ICO boom, ETH attracted a temporary reservation demand and hoarding because investors needed a store of ETH. Then, as ICOs became less lucrative, prices went down dramatically.
However, ETH is getting more demand as utility for gas and investment due to speculation as more DeFi apps gain traction. This encourages the use of ETH as money in crypto circles. Incidentally, the use of ETH in gas fees, staking, and storage fees is more prominent, which helps promote ETH as a solid medium of exchange and store of value (SOV).
Considering everything, Istanbul is not only a necessary upgrade but can also herald a booming era for ETH prices. Presently, prices are edging higher, and immediate resistance has been observed to be at around $400. If Istanbul is successful, the ETH price rally to new 2020 highs will likely be accelerated.
As Ethereum approaches Serenity, the entire community is following keenly and participating to ensure this new era of blockchain utility comes true.
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How does Ethereum regulate the time between blocks?
I was reading “Explanation of genesis file” and I found the description of the timestamp:
A scalar value equal to the reasonable output of Unix’ time() function at this block inception.
This mechanism enforces a homeostasis in terms of the time between blocks. A smaller period between the last two blocks results in an increase in the difficulty level and thus additional computation required to find the next valid block. If the period is too large, the difficulty, and expected time to the next block, is reduced.
The timestamp also allows to verify the order of block within the chain (Yellowpaper, 4.3.4. (43)).
Note: Homeostasis is the property of a system in which variables are regulated so that internal conditions remain stable and relatively constant.
How does, generally speaking, Ethereum maintain it’s homeostasis and regulate the time between blocks? Now it’s 15 sec, but is it possible for the Ethereum developers to increase or decrease that time without touching the client or is this a paramether harcoded in the client? How can I set, for example, a 30 sec time between blocks on my testnet?
19 Great Inventions That Revolutionized History
Here is a list of some of the most important inventions which thoroughly transformed our world as we see it today.
The current day that we live in may seem as a result of rapid innovations and discoveries. But if we venture to trace back the facilities and machines of today, most of them are advances of devices that were built well into the past.
Transportation, communication and information exchange all follow the same route of continuous innovation on an invention that dates back hundreds of years ago.
Let’s look at some of the greatest inventions that revolutionized history.
1. The Wheel (3500 BC) – Let’s Get Things Rolling
When we look back in history, the first invention that changed the future of mankind was the invention of the wheel. Whether its travel or the transportation of goods, the invention of wheels made it much easier than ever before.
Wheels were not only used on vehicles in prehistoric times; they were also used in pulley systems. Surprisingly though, the application of wheels was not primarily used on carts or carriages.
Evidence suggests that they were first used as potter’s wheel in 3500 B.C. Today, wheel and its derivative are present all around us, serving us in easing our efforts and getting the job done!
2. The Compass (206 BC) – The Pathfinder
Throughout the history, humans had an unquenchable thirst for exploring the unknown. But it wouldn’t have been possible without knowing the reference points that helped in identifying the geographical location.
This is why compasses were one of the most important tools that helped mankind to explore and record the land and water masses around the world. In today’s world of satellites and GPS, it may seem irrelevant, but it was one of the key inventions that changed the world for better!
The compass was invented by the Chinese to aid in fortune telling, but its scope in travel and navigation was realized only in 11 th century AD.
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3. Waterwheel (50 BC) – The Overlooked Invention
Water wheels are often neglected from the most notable inventions that changed history. But let’s not forget about the first invention that helped mankind to generate power from sources other than humans and animals.
The waterwheel was invented by Roman engineer Vitruvius. It converts the force exerted by flowing or falling water into mechanical energy. This mechanical energy was then used to crush grains, power lathes, drive sawmills, power textiles, forge bellows, and much more.
It is reported that there was nearly 6000 of them in Europe in 1086.
4. Calendar (45 BC) – Save The Date
The modern calendar did not come into use until the 1600s, so there were many forms of calendars that were used to fill in for a unified system.
The first form of the calendar used by Egyptians was the solar calendar. Then, Julius Caesar brought the Julian calendar that used a 12-month system.
But, it had a major flaw as it was off by 11 minutes. The Gregorian calendar or the modern calendar we use today was introduced by Pope Gregory XIII in 1582.
5. Pozzolana (27 BC) – The Ancient Concrete
We live in a world that is built using bricks and mortar. All the buildings that stand tall from skyscrapers to even the single storied ones use the same combination of materials that keep them together without toppling over – Concrete.
The invention of concrete dates back to ancient Rome. The Romans used a different combination of elements to create a binding mixture than their modern-day equivalent.
Pozzolana uses an aluminous and siliceous mixture which reacts with calcium hydroxide at room temperature in the presence of water to form a substance that has cementitious properties.
No wonder why Romans colosseums and cathedrals stood the test of time without losing its beauty or aura!
6. Clock (725 AD) – the First Mechanical Clock
Imagine modern civilization without having a sense of time. A scenario where deadlines don’t matter nor the working hours. Frightening, isn’t it?
Time is something that helps us keep track of everything. Humans didn’t invent clock as such, as it was a redesign of the sundial.
Sundials were the first devices that man used to keep track of time, and its use dates back as long as 6 thousand years.
The Egyptians and the Chinese used water clocks to keep track of time. The first mechanical clock was made by Yi Xing of China in 725 AD.
7. The Printing Press (1450) – The Gutenberg Effect
The printing press is a prominent part of the foundation on which modern civilization was built upon. It was the invention of Johannes Gutenberg from Germany.
The machine helped to mass produce newspapers and other forms of informative pieces. It also meant that the prices on printed paper came down and it was accessible for many.
The printing press served a great role in the industrial revolution, and by then, even the lower classes were able to afford newspapers and get to know what happened around them.
The impact of the printing press in history can’t be put together better than the words of Mark Twain himself “What the world is today, good and bad, it owes to Gutenberg.”
8. The Steam Engine (1712) –The Invention that Started a Revolution
Industrial revolution kick-started with a piece of invention that powered industries and locomotives alike. It all started with the invention of the steam engine by Thomas Newcomen.
Do not confuse his invention with the steam-powered train as it was later invention by another inventor. The Newcomen engine was stationary and was used as a stationary pump or a motor.
It was the driving force behind the industrial revolution.
9. Vaccines (1796) –One of the Most Important Inventions for Humankind
Vaccines have helped us in curbing a ton of life-threatening epidemics. It was estimated that nearly 500 million deaths were registered because of smallpox alone.
Edward Jenner was the first person recorded to have created a vaccine. He invented the smallpox vaccine that saved countless lives and earned him the title of Father of Immunology.
The world benefited a lot from the invention of vaccines as its derivatives helped the humankind to transgress periods of deadly diseases.
10. The Steam Powered Train (1814) – Chugging Along the Industrial Revolution
The first successful steam engine locomotive was built by George Stephenson in 1814. George Stephenson built the steam engine based on the design by John Blenkinsop.
It ran on the engine design put forward by James Watt. The invention of the steam engine and its capability in carrying massive loads made it the best way to carry tons of load across vast stretches of land quickly.
Soon miles and miles of railroad was laid down to connect states and even countries.
11. Electric Battery (1800) – Volta’s Remarkable Feat
In the 1800s, people had no continuous electric lines that carried a constant supply of power. So, production of electricity was not at all an easy task.
This changed when the Italian inventor Alessandro Volta invented the first ever battery using zinc and silver discs placed alternatively in the form of a cylindrical pile. The battery was able to produce repeated sparks and helped to operate many apparatuses.
12. Computer (1822) – The First Mechanical Computer by Babbage
Computers are one of humanity’s greatest inventions without a doubt. Primarily built for doing complex mathematical calculations, the computers of the past have evolved into machines that can be used to chart the movement of stars and rocks in space in advance.
The first mechanical computer was invented by Charles Babbage. But it was vastly different from what we have now.
It used moving parts to do the computations and weighed tons. The compact computers we use today are a result of inventions like the transistors and integrated circuits.
13. Refrigerator (1834) – Beating the heat in 1834
According to the report of 2009 by the U.S Department of energy, 99% of US homes have at least one refrigerator. This statistic itself is representative of the popularity of the refrigerator in the modern world.
A refrigerator helps in keeping perishable food products last much longer than they would otherwise survive. The working of the refrigerator is very simple – to remove heat from an area of creating the cold condition.
The first vapour-compression refrigeration cycle was put forward by Jacob Perkins, who is also known as the father of refrigeration. His refrigeration machine, built in 1834, was based on the theory put forward by Oliver Evans.
14. Telegraph (1830-1840) – The Communication Device that Introduced the Morse Code
The Telegraph was the forerunner in communication prior to the invention of the telephone by Antonio Meucci. It was developed by Samuel Morse and his team of engineers.
With the invention of the telegraph, long-distance communication no longer had to depend on messengers. With the use of Morse code, long distance communication became easier, and people could communicate with their loved ones over long distances by sending their messages through telegram offices.
The batteries invented by Alessandro Volta enabled telegrams to be operated in controlled environments.
15. Steel (1850) – From Pins to the Brooklyn Bridge
Steel is one of the most commonly used building materials. It triumphs over iron and other costly building materials by a great margin. The weight to strength ratio made steel a preferred choice of builders over other materials.
But steel is a relatively new invention as it was a result of Henry Bessemer’s experiment with Iron. He wanted to lower the carbon content of iron than what was possible at that time.
The result was something that was flexible than cast iron, but stronger than wrought iron – the perfect mixture – Steel!
16. Electric Bulb (1880) – Lighting Up the World
The efforts to create a lightbulb started in around 1800s. But the inventions back then were not sustainable as the filament broke after a few days of use.
This made the commercial use of bulbs, not a feasible option. But fast forward to 1879, Thomas Alva Edison and his group of engineers perfected the lightbulb by using tungsten as the filament material.
The patents for the modern day filaments received between the years 1879-1880. The invention of lightbulbs liberated humanity from the dependence of just daylight and brought about a scenario where people can work or do other labour-intensive chores at night under sufficient lighting conditions.
17. The Airplane (1903) – Making the Flying Dream Come True
The human body was not engineered to make the flight and those who thought it could be achieved failed in their efforts. Leonardo da Vinci was one of the visionaries who believed that man could indeed fly, provided that he can build an apparatus that can aid in flight.
The Wright Brothers were the ones who showed human flight in Action in 1903. Their invention evolved over the years to become what we now call as modern day airplanes.
Now humans can cover thousands of miles in a matter of hours thanks to the achievement of Wilbur and Orville Wright.
18. Transistors (1947) – The Secret of Modern Day Computing
The electronics age owe its inception to transistors. They were used to amplify electric signals, and their use in history primarily was reserved to telephones.
The use of transistors means that cross-country telecommunication was possible as strategically placed transistors would amplify signals at certain points along the transmission line. It paved the way for signals to travel much farther without having a major impact on quality.
Transistors were developed by Bell Laboratories to replace vacuum tubes that were used to amplify signals. Nowadays, transistors are used in CPUs and numerous other electronic devices.
19. ARPANET (1969) – The Primitive Internet
Some of you might not be familiar with the term ARPANET, but you might be well accustomed to its modern-day version – the Internet. There is no single person who can be credited with the invention of the internet as it was done by many.
The internet started out as a project undertaken by the United States Department of Defence called the ARPANET or the Advanced Research Projects Agency Network. It was invented for sharing data between multiple nodes spaced over larger distances.
By 1970s, Transmission Control protocol was developed by the scientist Vinton Chef that enabled computers to communicate with each other. The internet we know today was developed by a computer programmer named Tim Berners-Lee as he created the World Wide Web, which essentially was a web of information that people can access.
A Long Way Indeed!
Looking back at these ground-breaking inventions, one thing is clear – our desire to thrive and improve. We see a society that invented the wheel to tread ground quickly, who mastered the skies and waves. It is truly remarkable and something that we will continue to do for ages to come!
Bitcoin and Ethereum for Dummies: What You Should Know About Cryptocurrencies
The Bitcoin is often called the biggest technological creation since the invention of the Internet. But, what is it really ?
- Bitcoin is the first cryptocurrency.
- Cryptocurrency is a digital currency that functions using a blockchain.
- The blockchain is an innovative technology created by an anonymous person (or a group of people) known as Satoshi Nakamoto.
This is a peer-to-peer ledger, which contains each and every transaction that has ever happened in the Bitcoin network. Every peer stores a complete history of all transactions, so there is no chance one can deceive the system. This database is constantly growing and is now around 130+ gigabytes.
The reason Bitcoin has become so popular is not just because it is technologically innovative. Many see it as an easy way to get rich quickly. And here is where we get to mining.
What is Mining?
Mining is the only way to increase the overall amount of cryptocurrency. The role of miners is to process every Bitcoin transaction and to secure the network using the computing power of their mining devices. In return, they are rewarded with newly created Bitcoins.
Just a few years ago a relatively powerful PC was enough for competitive Bitcoin mining. After the difficulty increased, more expensive solutions were introduced. Some hardware companies offer readymade solutions – so-called “miners” consisting of several powerful graphic cards (GPUs). Huge mining farms consisting of thousands of devices are used too.
An average mining device pays off in 10 months.
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Which cryptocurrencies are worth mining and investing in?
Currently, there are over 1000 cryptocurrencies in the world. Many of them are not mineable, and most are not worthy of your attention due to being mere clones of Bitcoin. The two cryptocurrencies on which I would recommend you to focus on are the aforementioned Bitcoin (BTC) and Ethereum (ETH) (not Ethereum Classic (ETC)!).
Bitcoin is the first, the most popular, and the most stable cryptocurrency in the world.
Ether is one of the most promising cryptocurrencies, which grew by 5000% in just a year. It is important to notice that there are two currencies with a similar name – Etherium and Etherium Classic. The latter is the initial version of Ethereum, which is not as widely used.
Unlike Bitcoin, Ethereum is not just a digital currency. It has great potential wherever cryptography is used including online banking.
Frequently Asked Questions
Q: Which is more profitable: mining cryptocurrency, or just buying it?
A: Mining is for those, who want to invest not only their money but also their time into cryptocurrencies. If you can buy some Bitcoins or Ether right now, then do it.
Q: Is it a bubble or a pyramid?
A: Only time will tell if it is a bubble. Right now, it’s more like a reversed pyramid. It has no “top” typical for common financial pyramids, so no one will benefit from its failure.
Q: What is the most profitable cryptocurrency in which to invest ?
A: At the moment, it would be wise to distribute your investments, preferably using several wallets. If you want to play safe, invest some money in alternative coins such as LiteCoin as well.
Q: Who is the Bitcoin CEO?
A: The whole blockchain is powered by millions of miners. It is even more decentralized and free than the Internet itself (which is, to a large extent, controlled by ICANN and similar legal entities). Thus, Bitcoin doesn’t have a CEO or a central government of any kind.
Q: Is Bitcoin mining legal?
A: In most countries, it is. However, it is illegal in Bangladesh, Bolivia, Ecuador & Kyrgyzstan. To the contrary, such countries as Russia and Venezuela are planning to incorporate cryptocurrencies into their economies.
Q: Is Bitcoin anonymous?
A: Yes. It is anonymous and open at the same time. This means that everyone can see how many Bitcoins are on a certain wallet, but nobody can see to whom they belong to.
Q: Is it possible to reverse a Bitcoin transaction?
A: No, Bitcoin transactions can’t be canceled or reversed, as they are directly connected to the global network.
Q: How can I calculate my mining profitability?
A: There are plenty of calculators on the Internet. They take into account not only the performance of your mining farm but also its power consumption and cost per KW/h. One of such calculator is offered by Cryptocompare.
Q: What is the most secure way to store my Bitcoins?
A: Your Bitcoin wallet is basically a combination of your public and private keys. In order to provide maximum security for your digital money, use only trusted wallet software and duplicate your keys (e.g. write them down on a sheet of paper).
Q: What happens when all of the 21 million Bitcoins are mined?
A: Mining will become fully reliant on transaction fees. Bitcoins will continue circulating within the system, but no new coins will be produced.
7 Amazing Facts about Bitcoin
- A significant quantity of Bitcoins is lost forever. About 20-30% of all Bitcoins can’t be used anymore because their owners don’t have access to their wallets. The more valuable the Bitcoin becomes, the more careful people will be not to lose them .
- The FBI obtained 26,000 bitcoins after they shut down Silk Road – the largest illegal drug marketplace on the Darknet.
- Satoshi Nakamoto is reported to own approximately 1.000.000 Bitcoins worth almost $4B as of September 2020. They are distributed across numerous wallets.
- In the last 7 years, the Bitcoin has risen in price dramatically. $100 worth of Bitcoins in 2020, is now worth $73 million.
- 64% of all Bitcoins have never been in circulation and remain dormant in user accounts.
- The total computing power of the Bitcoin network surpasses the combined power of the 500 most powerful supercomputers in the world.
- The largest transaction ever made was for 194,993 Bitcoin worth $147 million.
It’s completely up to you whether or not you consider cryptocurrencies a worthy product in which to invest. They are more volatile and difficult to predict than other assets, but at the same time, they promise unbelievable profits. I’d recommend that you start with a tiny bit of a Bitcoin or an Ether and see how it works for you.
Good luck with your investment experiments!
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