The Bitcoin mining game has changed

ASCI or Application Specific Integrated Circuit Machines have appeared in the Bitcoin mining market. The first machine arrived at a miner’s home at the end of January, and since then there have been reports of shipped ASCI machines making their way into bitcoin mining rigs.

Since ASCI machines are designed specifically for Bitcoin mining, they are very efficient machines at what they are designed for. High-end ASCI machines have hash rates of over 1 million per second. A typical CPU running Bitcoin mining software has a hash rate of 1.5 per second.

Needless to say, the supply of ASCI machines has been a game changer in the Bitcoin world. CPUs aren’t even supported by bitcoin mining software anymore, because a CPU running 24 hours a day likely won’t see bitcoins for years, even if it mined the pool.

This trend favors those interested in mining who also have thousands of dollars lying around to spend on expensive equipment, as well as early adopters of Bitcoin who likely made a significant profit from their first mining efforts. These early profits could be put towards the latest and greatest equipment and installation to continue generating bitcoins well into the future.

Those miners with relatively powerful GPUs were most affected by the development of ASCI. The difficulty of successfully mining a block of Bitcoin has increased to such a level that the cost of electricity can outweigh the payout a GPU miner will receive in Bitcoin year after year.

All these speculations are largely related to the stability of the Bitcoin price in the future. If Bitcoin stays around the current $30 level, innovation will continue to develop. ASCI has partially fueled Bitcoin’s rise over the past 2 months. The exchange rate of bitcoins rose from $10 to $30. It’s hard to find an investment with this kind of profit anywhere on the planet, so it’s only natural that Bitcoin has been gaining attention in recent days. But will this attention last? And if so, will it bring more scrutiny and volatility than the fledgling digital currency’s stability? In the long term, relative stability is the only trait that Bitcoin needs to establish in order to achieve its original goal of becoming a viable and competitive currency on a global scale.

So, has Bitcoin outgrown its current label as a speculative tool? The answer lies in a tangled web of variables that encompass the vast spectrum of humanity: politics, psychology, finance, fear, freedom, privacy, security…etc. Regardless of the outcome, it’s sure to be an entertaining show.

How to understand Bitcoin?

A Guide to Understanding Bitcoin and Cryptocurrency?

Although Bitcoin is one of the most searched terms (according to Google), it is a very technical topic for many people and can become too technical for non-humans. However, there are now hundreds of cryptocurrencies and more and more people are starting to want to know how they work, perhaps because of the mistrust of bankers, which is a whole other discussion.

It’s hard to get a layman’s explanation without using technical terms like “secret keys”, “digital keys”, “digital wallet” and “cryptocurrency”, so I’ll do my best to make things as simple as possible. it is possible.

The concept of maternity money, ie. paper currency, was formulated to make it easier for people to exchange goods or services instead of barter, since at best it would be limited to an exchange between two willing parties, while money allows you to provide your service or goods and then purchase any services or goods, that you need from another or others.

Therefore, I would argue that Bitcoin is the 21st century equivalent of barter as it works as an exchange of goods or services directly between two willing parties. Barter had to be based on every promise and trust to secure and deliver the promised goods or services.

Today, with Bitcoin or any other cryptocurrency, each party will need a unique file or unique key to exchange an agreed value between them.

Having a unique key or file makes it easier to keep track of each transaction. However, it also comes with challenges.

Barter is a simple exchange of skills or goods, as I said, the modern equivalent, or Bitcoin is susceptible to security breaches, ie. your transactions.

Basically you need a secure location to buy and hold your cryptocurrency/bitcoins. Hence the need for a hardware wallet.

So now that you’ve recorded/recorded which address holds which number of bitcoins and then updated each time a transaction was made, that file is called a “block chain” and keeps a record of all bitcoin transactions.

The next task is to make sure that our files remain unique.

I will deal with this in my next article.

Will crypto-based e-commerce wipe out the banking industry dinosaur-style?

Banking as we know it, has been around since the first currencies were minted – perhaps even before that in some form or another. The monetary unit, in particular the coin, grew out of taxation. In the early days of ancient empires, an annual tax of one pig might have been reasonable, but as empires expanded, this type of payment became less desirable.

However, since the Covid situation we seem to have not only moved to a ‘cashless’ society (how does anyone want to handle potentially ‘dirty money’ in a shop) and the level of ‘contactless’ credit card transactions has now increased to £45 and is now even acceptable tiny transactions like the daily newspaper or a bottle of milk are paid for by card.

Did you know that there are already over 5,000 cryptocurrencies in use, and of these, Bitcoin ranks high on the list? Bitcoin in particular has had a very volatile trading history since its inception in 2009. This digital cryptocurrency has seen a lot of action in its rather short life. Initially, bitcoins were traded almost worthless. The first real price increase occurred in July 2010, when the valuation of a single Bitcoin rose from about $0.0008 to $10,000 or more. Since then, the currency has experienced several major rallies and crashes. However, with the introduction of so-called “stable” coins – coins backed by the US dollar or even gold – this cryptocurrency volatility can now be brought under control.

But before we explore this new form of crypto-based e-commerce as a method of controlling and using our assets, including our “FIAT” currencies, let’s first look at how banks themselves have changed over the past 50 years or so.

Who remembers the good old checkbook? Before the advent of bank debit cards in 1987, checks were the primary way to transfer assets to others in commercial transactions. Then with bank debit cards as well as ATMs, it became much faster to get hold of your FIAT assets as well as for online commercial transactions.

A problem that has always existed with banks is that most of us need at least 2 personal bank accounts (a checking account and a savings account) and one for each business we own. Also, trying to “quickly” transfer money from your bank account, for example abroad, was something like SWIFT!

Another problem was the price. Not only did we have to pay regular service fees on each bank account, we also had to pay a significant fee for each transaction, and of course, on very rare occasions, we didn’t earn any decent interest on the money in our Checking Account.

To all this, Overnight stay Trading every night using experienced financial traders (or, more recently, artificial intelligence (AI) trading systems), all OUR assets will be traded, and with economies of scale, banks became the main profit on our assets – but not us! Take a look at the potential business that can be done with “OVERNIGHT Trading”.

So, to sum it up, banks not only charge a lot for storing and moving our assets using smart trading methods, they also make a lot of profit from trading our money overnight, which we see no use for.

Another point is do you trust your bank with all your assets?

How about the fact that Bank of Scotland, which was the National Bank of Scotland, is now owned by Lloyds Banking Group, was recently flagged in a September press release that said “The Lloyds bank asset fraud is the most serious financial scandal of our time.’

Why not google this website and then decide?

So let’s now see how a crypto-based e-commerce system should work and how the benefits enjoyed by the banks with OUR money can become a major profit center for the asset holders – the US!

At 10thousand New Major Crypto-Based E-Commerce Launches in October 2020 – FREEBAY.

In short, FreeBay, based in Switzerland, is a company that uses its own Blockchain technology with its own SAFE Crypto Coin (based on V999 technology) and allows its members to transfer their FIAT assets to Gold Bullion, eliminating the need to involve any BANK .

V999: Blockchain-enabled digital gold; digital token backed by physical gold V999 Gold (V999) is a digital asset. Each token is backed by one-tenth of a gram of gold bullion held in vaults. If you own V999, you own the underlying physical gold that is held in custody. Additionally, FreeBay members can purchase packages that include powerful intelligence-based automated trading robots.

So now you can not only achieve complete independence from a standard BANK, but you can also trade like banks with your digital gold assets in the form of V999 crypto tokens on OVERNIGHT systems, only now you, the asset owner, get the rewards, not the banks.

But there is another great advantage of trading V999 tokens. How would you be? Private token holder, so like banks, whenever the V999 token is traded (ie sold), say to buy bitcoins or any other cryptocurrency, a transaction fee is charged. Every time a transaction occurs, the common holder of the V999 token receives a small percentage of this fee.

Please note that once a trade takes place and the V999 token is sold in exchange for, say, Bitcoin or any other cryptocurrency, a small transaction fee is paid ORDINARY OWNER of that token (ie YOU). Because Freebay’s goal is to make V999 token one of the most sought-after secure cryptocoins, even after your token has been sold to another trader, as you are still Common owner of the V999 tokenwhenever this token is traded by any other trader, it is you who is the common owner of this token who is paid the trading commission.

It can not only create a large Passive income for you, for life, but will be available to your descendants – and no ordinary bank is involved anywhere.

So the more V999 tokens you buy and put into circulation, the bigger and better your residual income – not just for life, but possibly for your dependents – can become a reality.

Are you curious enough to learn more? Then click here.

Definition of Bitcoin

Bitcoin is known as the very first decentralized digital currency, basically coins that can be sent over the internet. 2009 was the year Bitcoin was born. The creator’s name is unknown, but this person was given the pseudonym Satoshi Nakamoto.

Advantages of Bitcoin.

Bitcoin transactions are made directly from person to person over the Internet. There is no need for a bank or clearing house to act as an intermediary. Thanks to this, the commission for transactions is much lower, they can be used in all countries of the world. Bitcoin accounts cannot be frozen, there are no prerequisites for opening them, the same with limits. Every day more and more merchants are starting to accept them. You can buy anything you want from them.

How Bitcoin Works.

You can exchange dollars, euros and other currencies for bitcoins. You can buy and sell as any other country’s currency. To keep your bitcoins, you have to store them in so-called wallets. These wallets reside on your computer, mobile device, or on third-party websites. Sending bitcoins is very easy. It’s as easy as sending an email. Bitcoins can be used to buy almost anything.

Why Bitcoin?

Bitcoin can be used anonymously to buy all kinds of goods. International payments are extremely easy and very cheap. The reason for this is that Bitcoins are not actually tied to any country. They are not subject to any regulation. Small businesses love them because they don’t charge credit card fees. There are people who buy bitcoins only for investment purposes, expecting them to increase in value.

Ways to buy bitcoins.

1) Buying on an exchange: People are allowed to buy and sell bitcoins on sites called bitcoin exchanges. They do this using their country’s currency or any other currency they have or like.

2) Transfers: People can simply send bitcoins to each other using their mobile phones, computers or online platforms. It’s the same as sending cash digitally.

3) Mining: The network is protected by individuals called Miners. They are regularly rewarded for all new verified transactions. These transactions are fully verified and then recorded in a so-called public transparent ledger. These people compete to mine these bitcoins by using computer hardware to solve complex mathematical problems. Miners invest a lot of money in equipment. Nowadays there is something called cloud mining. Using cloud mining, miners simply invest money in third-party sites, these sites provide all the necessary infrastructure, reducing equipment costs and energy consumption.

Safekeeping and custody of bitcoins.

These bitcoins are stored in so-called digital wallets. These wallets exist in the cloud or on people’s computers. A wallet is something like a virtual bank account. These wallets allow people to send and receive bitcoins, pay for things, or simply store bitcoins. Unlike bank accounts, these Bitcoin wallets are never FDIC insured.

Types of wallets.

1) Cloud Wallet: The advantage of a cloud wallet is that people don’t need to install any software on their computers and wait for long synchronization processes. The downside is that the cloud can be hacked and people can lose their bitcoins. However, these sites are very safe.

2) Desktop Wallet: The advantage of a desktop wallet is that people keep their bitcoins safe from the rest of the internet. The downside is that people can delete them when they format their computer or because of viruses.

Bitcoin anonymity.

There is no need to provide a person’s real name when making a Bitcoin transaction. Each Bitcoin transaction is recorded in a public ledger. This log contains only wallet IDs, not people’s names. so basically every transaction is private. People can buy and sell things without tracking.

Bitcoin innovation.

Bitcoin has created a whole new way of innovation. All bitcoin software is open source, meaning anyone can view it. Today, Bitcoin is changing global finance just as the Internet has changed everything about publishing. The concept is brilliant. When everyone has access to the entire global bitcoin market, new ideas emerge. Lower transaction fees are a fact of Bitcoin. Accepting Bitcoin costs anything, and it’s also very easy to set up. Refunds do not exist. The Bitcoin community will create spin-offs of all kinds.

Crypto TREND – Fifth Edition

As we expected, after the publication of Crypto TREND, we received many questions from readers. In this edition, we will answer the most common ones.

What changes could change the game in the cryptocurrency sector?

One of the biggest changes that will affect the world of cryptocurrencies is an alternative block verification method called Proof of Stake (PoS). We will try to keep this explanation at a fairly high level, but it is important to have a conceptual understanding of what the difference is and why it is an important factor.

Remember that the underlying technology behind digital currencies is called blockchain, and most digital currencies today use a verification protocol called Proof of Work (PoW).

With traditional payment methods, you need to trust a third party such as Visa, Interact, or a bank or clearing house to settle your transaction. These trusted entities are “centralized,” meaning they maintain their own private ledger that stores the transaction history and balance of each account. They will show you the transactions and you have to agree that it is correct or start a dispute. It is visible only to the parties to the transaction.

With Bitcoin and most other digital currencies, the ledgers are “decentralized,” meaning that everyone on the network gets a copy, so no one needs to trust a third party like a bank because everyone can directly verify the information. This verification process is called “distributed consensus”.

PoW requires “work” to be done to validate a new transaction to enter the blockchain. In the case of cryptocurrencies, this verification is done by “miners” who have to solve complex algorithmic problems. As algorithmic tasks become more complex, these “miners” need more expensive and more powerful computers to solve the tasks before everyone else. Mining computers are often specialized, typically using ASICs (Application Specific Integrated Circuits), which are more proficient and faster at solving these complex puzzles.

Here’s the process:

  • Transactions are combined into a “block”.
  • Miners verify the legitimacy of transactions in each block by solving a hashing algorithm puzzle known as the “proof-of-work problem.”
  • The first miner to solve a block’s “proof of work problem” is rewarded with a small amount of cryptocurrency.
  • Once verified, transactions are stored on a public blockchain across the network.
  • As the number of transactions and miners increases, so does the complexity of solving hashing problems.

​​​​​​While PoW has helped launch the blockchain and decentralized, trustless digital currencies, it has some real drawbacks, especially given the amount of electricity these miners consume trying to solve “proof-of-work problems” as quickly as possible. According to Digiconomist’s Bitcoin Energy Consumption Index, Bitcoin miners use more energy than 159 countries, including Ireland. As the price of each bitcoin rises, more and more miners try to solve the problems, consuming even more energy.

All of this power consumption just for verifying transactions has motivated many in the digital currency space to look for an alternative method of block verification, and a leading candidate is a method called Proof of Stake (PoS).

PoS is still an algorithm and the goal is the same as proof of work, but the process to achieve the goal is completely different. PoS does not have miners, but instead has “validators”. PoS relies on trust and the realization that all the people verifying transactions have skin in the game.

Therefore, instead of using energy to answer PoW puzzles, a PoS validator is limited to validating a percentage of transactions that reflects his or her ownership stake. For example, a validator who owns 3% of the available ether can theoretically only validate 3% of the blocks.

In PoW, the chances of you solving the proof-of-work problem depend on how much computing power you have. As for PoS, it depends on how much cryptocurrency you have “at stake”. The higher your bet, the higher the chance to solve the block. Instead of winning cryptocurrency, the winning validator receives a transaction fee.

Validators inject their stake by “locking up” a portion of their pool tokens. If they try to do something malicious against the network, such as creating an “invalid block”, their stake or security deposit will be confiscated. If they do their job and don’t break the network, but don’t win the right to validate the block, they get their stake or deposit back.

If you understand the basic difference between PoW and PoS, that’s all you need to know. Only those who plan to be a Miner or a Validator should understand the ins and outs of these two validation methods. Most of the general public who want to own cryptocurrencies will simply buy them through an exchange rather than participating in the actual mining or verification of block transactions.

Most in the crypto sector believe that in order for digital currencies to survive in the long term, digital tokens must move to a PoS model. As of this writing, Ethereum is the second largest digital currency after Bitcoin, and their development team has been working on their PoS algorithm called “Casper” for the past few years. We are expected to see Casper implemented in 2018, putting Ethereum ahead of all other major cryptocurrencies.

As we have seen before in this sector, major events like the successful implementation of Casper can cause Ethereum prices to rise significantly. We will keep you posted on the next editions of Crypto TREND.

Stay tuned for updates!

7 advantages of cryptocurrency

Cryptocurrency is a digital alternative to using credit cards or cash for everyday payments in a variety of situations. It continues to grow as a viable alternative to traditional payment methods, but still needs to become more stable before ordinary people will fully welcome it. Let’s take a look at some of the many benefits of using cryptocurrency:

Fraud – Any issues with fraud are minimized because cryptocurrency is digital, which can prevent chargebacks or counterfeit payments. This type of operation can be a problem with other traditional payment methods such as credit card due to chargebacks.

Identity Theft – There is no need to provide personal information that could lead to identity theft when using cryptocurrency. When you use a credit card, the store receives a lot of information related to your credit line, even for very small transactions. In addition, credit card payment relies on a withdrawal transaction when a certain amount is requested from the account. When paying in cryptocurrency, the transaction is based on a push payment, which gives the account holder the option to send only the exact amount without additional information.

Versatile use – Payment in cryptocurrency can be easily made according to certain conditions. A digital contract can be created to make a payment to be made in the future, to refer to external facts, or to obtain the approval of third parties. Even with a special contract, this type of payment is still very fast and efficient.

Ease of Access – Cryptocurrency usage is widely available to anyone with access to the Internet. It is becoming very popular in some parts of the world, such as Kenya, where almost 1/3 of the population uses a digital wallet through a local microfinance service.

Low Fees – One can complete a cryptocurrency transaction without having to pay any additional fees or charges. However, if a digital wallet or third-party service is used to store cryptocurrency, a small fee will likely apply.

International Trade – This type of payment is not subject to country-specific fees, transaction fees, interest rates or exchange rates, making cross-border transfers possible with relative ease.

Adaptability – With nearly 1,200 unique types of cryptocurrencies on the global market, there are many opportunities to use a payment method that fits specific needs. ​​​​​​While there are many uses for coins for everyday use, there are also those that are designed for a specific use or in a specific industry.

Margin Forex trading

Forex margin trading is very dangerous and risky for your trading account. Have you read about using forex? Those who understand this will know that this can be one of the most powerful features of forex trading. Usually, when you create an account with a broker, you are offered a margin of 1%. This means that you will only need to deposit 1% of the total amount of your trades. Your broker will lend you the remaining 99%.

To give you an example, if your account has trades of one hundred thousand dollars ($100,000) each, you will only need to invest one thousand dollars ($1000) on your side. This allows anyone else to be able to trade without shelling out hundreds of thousands. “Well, that’s a good deal!” you can say. However, you will need to know what the downsides of things are.

Never get a marginal call. This is what everyone in the forex trading world will tell you. So what does that mean? Every forex account has a margin limit. This is to minimize your forex risk while trading. If your trade loses and the account balance reaches the margin limit, you will receive the margin. If this happens, you will immediately close your trade, taking your losses with you. Forex margin trading will make it easy to get margin if your trades are not handled properly.

With the power of leverage, you can easily wipe margin trading out of your account. A small, unpredictable misalignment of the market can do just that. On the other hand, you can make a good profit if the market price moves in your favor.

Margin trading on forex with a margin of 1% is a very risky business. However, success can still be achieved with the right level of leverage and the right level of risk management. Another important factor that you will need to be aware of is having a really good risk management strategy. A professional trader always has his own powerful risk management strategy. Even with a powerful risk management portfolio, these professional traders are still exposing themselves to a lot of risk using margin forex trading.

6 tips to follow if you are a cryptocurrency trader or investor

Today, most people are aware of the potential of cryptocurrencies. This industry is revolutionizing the business world. This is the reason why more and more investors are joining this industry. Although it is easy to be a part of this industry, achieving success may not be easy for everyone. So in this article we are going to share with you some tips for success. Read on to learn more.

1. Explore and expand your knowledge

If you don’t have basic knowledge about something, you can’t invest your money in it. Likewise, if you are new to cryptocurrency trading, make sure you get some basic knowledge first.

In the beginning, you should start by learning the basic terms like private keys, digital coins, wallets, and public keys, just to name a few.

2. Consider diversifying your investments

It is important to remember that the value of cryptocurrency units will continue to fluctuate. You cannot predict when the value of a coin will rise or fall. So, if you want to be on the safe side, you may want to consider diversifying your investments.

This will help you minimize your risk and increase your chances of making a profit. So, you can follow this strategy especially if you are just starting out.

3. Invest consistently and avoid haggling

You should invest a couple of hours daily to learn how you can trade cryptocurrency. You have to learn how the market works. This will help you get a pretty good idea of ​​the popularity of a particular currency. As a result, you can choose the best investment strategy.

4. Be tech savvy

You also need to learn how to use the latest technology to your advantage. Since cryptocurrencies are a type of digital currency, you can buy and sell them using technology. So you need to learn how to use crypto ATMs and all the other things involved in the process.

5. Be aware of fraud

Regardless of the type of business you are going to invest in, you will have to deal with scammers. Therefore, if you know how to use the Internet, you can easily recognize a scam. If you are well informed, no one will be able to take advantage of you.

6. Consult with trusted professionals

It’s a great idea to consult with proven professionals in the field. If you follow their advice and use their helpful tips, you will be able to make better moves. In this case, you can also watch videos on YouTube and join related groups on Facebook.

You can also consult your friends and family if they have experience trading and investing in cryptocurrencies.

Final thoughts

In short, if you want to succeed after investing your money and cryptocurrency, we suggest you follow these 6 tips to succeed. Hopefully, you will be able to achieve success by following the instructions in this article.

Fear not, China is not banning cryptocurrency

In 2008, after the financial crisis, a paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” was published, detailing the concepts behind the payment system. Bitcoin was born. Bitcoin has gained world attention due to its use of blockchain technology and as an alternative to fiat currencies and commodities. Touted as the next best technology after the Internet, blockchain offers solutions to problems we have been unable to solve or ignored for the past few decades. I won’t go into the technical side of this, but here are some articles and videos I recommend:

How Bitcoin Works Under the Hood

A gentle introduction to blockchain technology

Have you ever wondered how Bitcoin (and other cryptocurrencies) actually work?

Fast forward to today, February 5th to be exact, the Chinese authorities have just introduced a new set of regulations banning cryptocurrency. The Chinese government already did this last year, but many of them went through foreign exchanges. It has now enlisted the all-powerful “Great Firewall of China” to block access to foreign exchanges in an attempt to prevent its citizens from conducting any cryptocurrency transactions.

To learn more about the Chinese government’s stance, let’s go back a couple of years to 2013, when Bitcoin was gaining popularity among Chinese citizens and prices were skyrocketing. Concerned about price fluctuations and speculation, the People’s Bank of China and five other government ministries issued an official notice in December 2013 titled “Bitcoin Financial Risk Prevention Notice” (link in Chinese). Several points were noted:

1. Due to various factors such as limited supply, anonymity, and lack of a centralized issuer, Bitcoin is not an official currency but a virtual commodity that cannot be used on the open market.

2. All banks and financial institutions are prohibited from offering Bitcoin-related financial services or engaging in Bitcoin-related trading activities.

3. All companies and websites offering Bitcoin-related services must register with the necessary government ministries.

4. Due to the anonymity and cross-border nature of Bitcoin, organizations providing Bitcoin-related services must implement preventive measures such as KYC to prevent money laundering. Any suspicious activity, including fraud, gambling and money laundering, should be reported to the authorities.

5. Organizations that provide Bitcoin-related services must inform the public about Bitcoin and the technology behind it and not mislead the public with misinformation.

In simple terms, Bitcoin is classified as a virtual commodity (such as in-game credits) that can be bought or sold in its original form, rather than exchanged for fiat currency. It cannot be defined as money – something that serves as a medium of exchange, a unit of account and a store of value.

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ from 2013, it is still relevant to the Chinese government’s stance on Bitcoin, and as mentioned, there is no sign of a ban on Bitcoin and the cryptocurrency. Rather, Bitcoin and blockchain regulation and education will play a role in China’s crypto market.

A similar message was published in January 2017, which again emphasized that Bitcoin is a virtual commodity and not a currency. In September 2017, the boom in Initial Coin Offerings (ICOs) led to the publication of a separate notice entitled “Financial Risk Prevention Notice of Issued Tokens”. Soon after, ICOs were banned and Chinese exchanges were investigated and eventually shut down. (Hindsight being 20/20, they made the right decision to ban ICOs and stop pointless gambling). Another blow was dealt to the Chinese cryptocurrency community in January 2018, when mining faced a major crackdown due to excessive power consumption.

Although there is no official explanation for the crackdown on cryptocurrencies, capital controls, illegal activities and protection of citizens from financial risks are among the main reasons cited by experts. Indeed, Chinese regulators have imposed tighter controls, such as restrictions on withdrawals and regulation of foreign direct investment, to limit capital flight and ensure domestic investment. The anonymity and ease of cross-border transactions have also made cryptocurrency a favorite vehicle for money laundering and fraud.

Since 2011, China has played a crucial role in the meteoric rise and fall of Bitcoin. At its peak, China accounted for more than 95% of the world’s bitcoin trading volume and three-quarters of its mining operations. With the intervention of regulators overseeing trade and mining operations, China’s dominance has been greatly reduced in exchange for stability.

With countries like Korea and India following their lead in cracking down, the future of cryptocurrency is now being cast in shadow. (I’ll repeat my point here: countries regulate cryptocurrency, not ban it). There is no doubt that in the coming months we will see more countries join in taming the booming crypto market. Indeed, some kind of order was long overdue. Cryptocurrencies have experienced unprecedented price volatility over the past year, with ICOs happening literally every other day. In 2017, total market capitalization rose from $18 billion in January to an all-time high of $828 billion.

Still, the Chinese community is in surprisingly good spirits despite the crackdown. Online and offline communities are thriving (I personally attended quite a few events and visited some firms) and blockchain startups are popping up all over China.

Major blockchain firms such as NEO, QTUM and VeChain are attracting a lot of attention in the country. Startups like Nebulas, High Performance Blockchain (HPB) and Bibox are also gaining a significant amount of traction. Even giants like Alibaba and Tencent are also exploring the possibilities of blockchain to improve their platform. The list goes on and on, but you get my point; it’s going to be HUGE!

The Chinese government is also using blockchain technology and has stepped up efforts to support the creation of a blockchain ecosystem in recent years.

China’s 13th Five-Year Plan (2016-2020) envisioned the development of promising technologies, including blockchain and artificial intelligence. It also plans to strengthen research on fintech applications in regulation, cloud computing and big data. Even the People’s Bank of China is also testing a blockchain-based digital currency prototype; however, since it will most likely be a centralized digital currency with encryption technology, its acceptance by Chinese citizens remains to be seen.

The launch of the Trusted Blockchain Open Lab and the China Blockchain Technology and Industry Development Forum by the Ministry of Industry and Information Technology are among other initiatives by the Chinese government to support blockchain development in China.

A recent report titled “2018 China Blockchain Development Report” (English version at the link) by the China Blockchain Research Center details the development of China’s blockchain industry in 2017, including the various measures taken to regulate cryptocurrency on the mainland. A separate section of the report highlights the optimistic outlook of the blockchain industry and the massive attention it has received from VCs and the Chinese government in 2017.

In summary, the Chinese government has shown a positive attitude towards blockchain technology, despite its application to cryptocurrencies and mining. China wants to control cryptocurrency, and China will get control. Repeated control measures by regulators were aimed at protecting citizens from the financial risks of cryptocurrencies and limiting capital outflows. At the moment, it is legal for Chinese citizens to hold cryptocurrencies, but they are prohibited from transacting in any form; hence the ban on exchanges. If the market stabilizes in the coming months (or years), we will undoubtedly see a revival of the Chinese crypto market. Blockchain and cryptocurrency go hand in hand (except on a private chain where a token is not needed). So countries can’t ban cryptocurrency without banning blockchain – great technology!

One thing we can all agree on is that blockchain is still in its infancy. There are many exciting developments ahead, and now is definitely the best time to lay the groundwork for a blockchain-enabled world.

Last but not least: HODL!

A step-by-step guide to investing in Bitcoin

Well, like almost everything else in life – if not everything – you have to buy it before you invest in it. Investing in bitcoins can be very difficult, and that is if you don’t have the step you need to take.

First you need to know that Bitcoin is a type of cryptocurrency, one of the very first digital currencies that was invented, designed and developed by Satoshi Nakamoto and was released to the public in 2009.

And since then, updates and improvements have been made by a network of highly experienced developers, and the platform has been partially funded by the Bitcoin Foundation.

Since Bitcoin has become a hot topic of interest and many people are investing in it, there is nothing wrong with acquiring digital wealth as well. It is interesting to note that back in 2012, Bitcoin firms were only able to raise $2.2 million.

Despite falling in price this year, the cryptocurrency continues to grow in both users and merchants accepting it as payment.

So how can you get in on the action? Investing in Bitcoins can be easy for the average Joe if he just buys them outright.

It has become easy to buy today, as many firms in the United States and around the world are involved in buying and selling.

For US investors, the easiest solution is Coin Base, which is a company that sells BTC to people at a markup that is usually around 1% of the current market price.

If you want a traditional exchange, Bit Stamp may be the best option because the users you will be trading with are not just the company, but the users.

The company acts only as an intermediary. Liquidity is higher and you can almost always find another person to take the other side of your trade.

Commissions start at 0.5% and go up to 0.2% if you have traded more than $150,000 in the last 30 days. All this is already an investment vehicle in its own way, because the more BTC you buy, the more profit you will make if you decide to keep it or resell it to other traditional buyers at a higher price than the one you purchased with the help of the real company .

You can also buy bitcoins in other ways besides exchange. One of the most popular offline routes is Local Bitcoins, a website that connects you with potential buyers and sellers. When buying coins, they are locked with the seller in escrow, from where they can be issued only to buyers.

But buying bitcoins offline should be done with some extra precautions which are always common like meeting a stranger. Meet during the day in a public place and if possible bring a friend with you.

Bitcoin is the most popular thing on the internet right now. Investors and venture capital firms are betting that it will stick around. There are many ways for the average Joe to invest and buy Bitcoins.

In the US, the most popular ways are Coin Base, Bit Stamp, and Local Bitcoins. Each has its own advantages and disadvantages, so do your research to find the best fit for you.