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Ways to Earn Bitcoin

Bitcoin is a notoriously volatile digital currency, yet a number of investors trying to exploit this currency keeps on growing each day. As with speculative market and extreme volatility, investing in Bitcoin can be a risky move and can cost you huge sums of real money. The best advice for those looking to invest in Bitcoin is to proceed with caution.

How Do Bitcoin Exchanges Work?

Bitcoin exchanges work the same way physical currency exchanges do. It’s like buying one currency with another.

The value of a country’s physical currency is a reflection of the economic and financial well-being of that country.

For example, the US dollar is worth more than that of Mexican peso due to disparities between the two economies. Therefore, a US dollar can buy plenty of Mexican pesos.

And same rules apply for Bitcoin. The only difference here is that the value of Bitcoin is not economy based but the work performed by your computer.

Bitcoin exchanges act as intermediaries for a transaction, converting bitcoins to dollars/other currencies, and then converting those currencies back to Bitcoin or dollars. These constantly shifting values provide savvy investors with the golden opportunity to capitalize on these trends. However, the money can be lost as easily as earned due to the extreme Bitcoin volatility.

How to Make Your Way into Bitcoin?

After knowing all the risks involved, if you still want to take a dive and make your way into Bitcoin, here are some of the ways to start your Bitcoin venture.

Bitcoin Mining:

The easiest way into Bitcoin is mining, but it’s also the slowest. The miners are required to:

  • Setup a computer that is dedicated to bitcoin decryption (Learn how to set up a Bitcoin miner)
  • Install a bitcoin mining software like BitcoinCore
  • Wait until it completes the decryption

All this can take up to a few weeks to more than a year to decrypt a single block. If you want the coins faster, you will be required to buy a purpose-built mining rig. But sadly, these rigs are unbelievably expensive. A 128 GHs rig costs around $2,400 and the prices only go up from there. The more advanced the rig, the costlier it is.

Join Mining Pools:

Another way to earn Bitcoin is by joining a mining pool. A mining pool is a cluster of internet-connected computers that breaks the work of a block into smaller blocks. These blocks are then shared among the participating computers.

As soon as the decryption completed, the coins are awarded to the miners based on their contribution.

Want Faster Coins? Play the Markets:

The quickest way to make Bitcoin is going straight to the markets. All you have to do is to sign up on a reputed Bitcoin exchange such as Mt. Gox and respond to a confirmation mail to verify your mail address.

The system then asks you to confirm your residence address of last six months and provide a photo ID.

Once you have gone through the verification process, then it’s just a matter of depositing money and waiting for the market to offer a perfect opportunity to make money.

Just like every other Bitcoin exchange Mt. Gox charges a fee of .25% to .60% per transaction.

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Digital currency under regulatory scrutiny- SEC

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Cryptocurrencies

After being spooked by the massive digital tokens crackdown, cryptocurrencies got another pushback by the feds recently. The Securities and Exchange Commission in the U.S has decided to gun down all the cryptocurrencies, especially Ethereum under regulatory scrutiny to whether consider it as security or commodity. After a remarked high range in digital currency world, this bull to bearish reversal is the result of investor anxiety gushes over the squabble between Securities and Exchange Commission (SEC) and Commodities Futures Trading Commission (CFTC).

ethereum icos

The second most popular digital currency after Bitcoin in the charts, Ethereum is considered under the category of security will have hard consequences. Not only for Ethereum cryptocurrency, but all digital currencies crowdfunded through ICOs, that is Initial Coin Offerings.

Coming under increased regulatory scrutiny by the U.S government, all these cryptocurrencies are viewed as securities due to their speculative nature all around. Regulators have already declared bitcoin as security. But undermining the liquidity of this second popular cryptocurrency can prove out to be disastrous for it and also the cryptocurrency economy. Though the basic mechanism working behind these two digital currencies is not merely same, but they contribute majorly to the cryptocurrency world.

Initial coin offering

Until the mid-2017, selling transaction of these tokens was not much of an exhausting task. A team would emerge through these blockchains and present their purpose of tokens in a ‘white paper’. They would then arrange an Initial Coin Offering Service, ICOs where they would offer coins to nearly anyone who would exchange them for cash or Bitcoins.

The main idea or theory behind this ICO was to fund and support the construction of that newly emerging online service. But later in a few cases, these ICOs were proved to be scams. Absconding of these organizers created an upthrust, where SEC fired a warning claiming that tokens sold in ICO may be considered as securities and their declaration will be mandatory. SEC values Ethereum similar to any public Company who strives every act to value their stock.

Now the developers are concerned that due to the fact that Ethereum ICOs investors bought the tokens in hope that their value will increase in the near future, it could be classed as security. But the plethora of issues is not that straight and easy here.

Ethereum co-founder denies

The whole dilemma was observed and addressed by the co-founder of Ethereum, Joseph Lubin in a conference. He says that the scrutiny doesn’t upset him. According to him and the developers, this does not meet the requirements of security and doesn’t have to be regulated, therefore. There were no concerns about the potential issues about the cryptocurrency. he further said, he never considered and identified the system as security ever.

The Howey Test

A case resided between the SEC and WJ Howey Co in 1946. In this case, the foundation to determine the event to be a commodity or a security was set. It is now known as the Howey Test.

In simpler terms, Howey Co. sold a part of their citrus farm to some investors. Their idea behind it was to gain profits from the operations performed on the farm. It was considered as a securities contract by the judge explaining that the scheme focuses on the idea to obtain profits from the efforts and labor of others.

Basically, in simpler terms, this test helps to determine if a transaction or profit is obtained solely by the hard work and labor of one party and not by the other party, combined in an agreement. This Howey Test has been greatly talked and argued about in the regard of these cryptocurrencies and ICO. As the basic phenomena in Ethereum ICOs reside the same. The investor expects profits primarily from others hard work and efforts.

Securities classification arguments

According to wall street journals, the future of the cryptocurrencies is under debate, whether it would be identified as security or not. Commodities and securities under which the legislation falls are regulated by different authority bodies. They are regulated and operated in different markets and agencies. These differences will greatly affect the investors, sellers, and buyers in the cryptocurrency market.

Despite all the fuss and controversy about the issue, a lot of experts are very positive and hopeful about the future and growth of Ethereum cryptocurrencies. Many have come up suggesting that Ethereum and such cryptocurrencies may be considered as unregistered securities after a continues refusal by the founders of them being never entertained as security. The growing market capitalization of Ethereum cryptocurrency has shown that this is not going anywhere this soon!

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Winklevoss Twins Will Not Sell, Regardless Of How High The Bitcoin Price Goes

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Winklevoss twins, the most renowned bitcoin millionaires, still believe that Bitcoin is one of the finest investment opportunities out there and that they won’t sell bitcoin if its value goes over $300k.

Won’t Even Sell At $8 Trillion Market Cap:

In 2012, when Facebook opened up to the world, the Winklevoss twins got $45 million from a settlement with Facebook CEO Mark Zuckerberg. Despite their legal advisors’ proposal to take the settlement of $45 million, the Winklevoss twins received it in Facebook shares. By 2013, the Winklevoss twins amassed a fortune of $300 million, as the shares of Facebook soared.

After a fruitful exit from Facebook, the Winklevoss twins began to buy bitcoin at $10, amid a period in which just a handful of investors such as Roger Ver and Charlie Shrem had put resources into the crypto cash. Over the next couple of months, the Winklevoss twins obtained 120,000 bitcoins at an $11 million valuation.

Today, the 120,000 bitcoins acquired by the Winklevoss twins are worth $1.68 billion, and the Twins have gotten a benefit of ~$1.7 billion within merely four years.

The Winklevoss twins have emphasized that they won’t sell bitcoin even if its market cap surpasses that of gold at $8 trillion or when its price surpasses $380,000. Tyler Winklevoss believes that bitcoin is superior to gold since it is programmable as cash and has many advantages over traditional assets such as transportability, fungibility, divisibility, and security.

“In a funny way, we’re not sure if we’d sell it even at $380,000. Bitcoin is better than gold. It’s a programmable cash and may continue to innovate.” Said Tyler Winklevoss in an interview with New York Times.

More importantly, Tyler included that the Winklevoss twins are not influenced by the high unpredictability and rapid value movements of bitcoin because they have faith in the long-term execution of the digital currency and the innovation behind bitcoin.

“We are extremely comfortable in high-risk conditions with absolutely no assurance of success. I don’t mean existing in that condition for days, weeks or months. I mean a seemingly endless amount of time.”

 

Story Credits: ccn.com

Image: Google images

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chinese Stock Exchange Takes Action Against Blockchain-Related Company

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Shenzhen Stock Exchange (SZSE) is one of the major stock exchanges of China. China is taking action against companies that are planning to start Blockchain research labs as on 21st March, a local media reported that SZSE has started an investigation against a company that has announced its plans to start a Blockchain research lab for applications in the medicinal industry.

blockchain research lab

Stock Trading Company

The stock trading of healthcare device manufacturer, Lifesense has been suspended by SZSE temporarily and now the company is required to provide all the information, explaining why Blockchain technology is so important for the company, also the project’s plans for the next three-years, as well as the amount of Lifesense’s funding shares.

Letter Issued by SZSE

On Tuesday, March 20, SZSE issued a letter and ordered Lifesense to reveal all the details about its plans to launch a “Blockchain laboratory.” SZSE is also expecting to get a reply from Lifesense by 23rd March. The announcement of Lifesense project is the move that made the company’s share price upsurge by 10% as it succeeded to grab the attention of the stock exchange while the price hit the daily limit of SZSE.

A similar inquiry was sent by SZSE to Zhejiang Enjoyor Electronics earlier this week, which made Enjoyor Electronics confiscate its announcement on WeChat as it claimed to launch the very first Blockchain-based electrical data forensic certificate, all around the world. A warning was also issued by SZSE in January that it’s going to carefully observe those companies that are using the popularity of Blockchain to improve their stock prices.

Companies Investigated By SZSE

According to China Money Network, over 20 listed companies have been investigated by SZSE due to the baseless claims about Blockchain technology. Earlier, a report was published on companies that were using the ‘Blockchain’ word in the US to improve their share prices through the publicity surrounding the innovative technology.

In February, SEC suspended three companies from trading that revealed statements about getting “Blockchain technology-related assets.”Also,

U.S. SEC (Securities and Exchange Commission) has announced more investigation of companies in the US, who alter their name to add the word “Blockchain” into it.

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Bitcoin – puzzling rise of the bitcoin

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Bitcoin info: An insane rise in the value of the bitcoin is providing a new discussion to the technology world.

A number of people are really wondering about the origin of it, they are puzzled by this phenomenon? surprise how it is physical? how they withhold on it? how bitcoin works? or whether a new bubble like this, is on its way?

Whereas others count that the currency change brings the sans regulations.

If we look back, one Bitcoin was at the value of $0.003 in 2010. Whereas, its value in 2017 raises to $2500. Clearly, means that one bitcoin is equal to the 2500 US dollars. By multiplying the perspectives bitcoin’s value is 879,999 times.

 So, which thing people buy in actual????

On another side, people think about the hoarding of the bitcoins.

One of the trader’s point of view is, “Of course, you can spend bitcoins to purchase items at places where they are accepted. But a lot of traders are buying on speculation because the supply of bitcoin is limited”.
All we know that there is 21 million total supply of the bitcoins and 70% are mined already from the internet. And, a sharp increase of the bitcoin is associate it with “bubble” word.

Billionaire Mark Cuban already admit that it has a worth, it has a value in blockchain technology. And named it as a bubble early in this month.

Few of them relate this bitcoin hype to the “Tulipmania. A well-known episode in Dutch history 1636-1637.  Where the value of tulip bulb was pushed by the gamblers to rapid heights.

Unfortunately, the bubble burst and bulbs price crashed. The main reason for this crash was, no existence of the fundamental value of a bulb.

But, in the case of the bitcoin, you are free to spend your coin and get goods and services. This scope is continually expanding. Traders of the bitcoin are the well-wisher of this technology and claims that bitcoin’s attractiveness directly lies in its potential.

Furthermore, it is possible that fiat money also doesn’t have original value but it is controlled by the different sources. That is a reason for long-term investment.

Japanese government legalized the bitcoin, it is a live example that cryptocurrencies are making their ways into the mainstream.

Bitcoin is not only one cryptocurrency, which is available with the limited supply. In fact, there are more than 900 digital currencies available on the internet. Whereas, cryptocurrencies are basically decentralized digital money, which is not created by any government or central bank.

Additional tag: Bitcoin stock market

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Bank of England Governor Says, “Bitcoin Failed as a Currency so far”

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Mark Carney (Bank of England governor) resisted lately that bitcoin has failed to be a legitimate currency estimated by the standard benchmarks, as it’s neither a store of value nor a useful medium of exchange.

At London’s Regent’s University, the central banker told students that bitcoin has failed to meet those “two-key” requirements to emerge as a legitimate currency. He said that during a live Q/A session. To him, the top-cryptocurrency has failed so far. He added, no one uses it like a medium of exchange as it’s not a store of value.

Business Insider noted, that bitcoin is a medium of exchange and it is acknowledged on the “dark web”. Even though its instability deters its acceptance, still hundreds of traders accept this cryptocurrency and these also include Microsoft and Overstock.

bitcoin has failed

Stripe, which is a payment processor, recently stepped away from the cryptocurrency and stated, that there were only few cases for which paying or accepting with the top-cryptocurrency (bitcoin) makes sense. Steam, which is a pretty famous gaming/digital distribution platform has stopped accepting bitcoin, due to high fees and instability in the price of Bitcoin.

The argument that bitcoin is a store of value is based on its volatility, so that if you are looking for investing in it, make sure that its price won’t fluctuate immensely. Even though the cryptocurrency has lately seen an increase in its value around about 30% in a week, government failures can almost wipe out the fiat currencies. In countries like Venezuela and Zimbabwe, where fiat currencies failed to emerge as a legitimate cryptocurrency, bitcoin trades at the top.

Mark Caney Views on Bitcoin:

Mark Carney’s remarks are not really surprising and fall in accordance with those central bankers/Wall Street personalities, who’ve been recently assessing the bitcoin and the cryptocurrency ecosystem. Head of the Bundesbank, Jens Weidmann, lately argued that exchanging fiat with bitcoin is quite hazardous. He also stated, that for stabilizing monetary and economic system, we do not need crypto-tokens.

In the beginning of this month, board member of European Central Bank, Yves Mersch said, cryptocurrencies are not money, while Bank of International Settlements general manager, Agustin Carstens, argued that bitcoin was just a “bubble”, in which global stock markets were losing trillions of dollars.
At the same time, the head of South Korea’s financial regulator has confirmed the government is finally going to support cryptocurrency trading while promoting banks to enable transactions with exchanges.

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