Gatecoin is a Hong Kong based cryptocurrency exchange that claims Bitcoin’s price is to reach $5000 by the end of 2017.
Headlined “Bloomberg Daybreak: Asia,” this price prediction was made during an interview with Aurelien Menant, Gatecoin’s CEO, and founder. He said that the markets are responsible for driving increased interest in Bitcoin.
“Another factor that is very important is the arrival of more and more institutional investors in bitcoin,” Menant said. “Historically we used to have a few hatch funds trading bitcoin in Europe and the U.S. Now we have around 60 or 70 of them that are starting to trade bitcoin.”
Some funds are now dedicated to digital currencies. “So, this is definitely driving a surge in the price,” he said.
News Credits: coindesk.com
Image Credits: steemit.com
Bitcoin is basically an anonymous, centralized digital currency. So, theoretically, it was built to be the untraceable version of cash. Not money but cash. The idea of having a digital unhackable and invulnerable decentralized currency got so well liked by people that they started treating it more like a commodity than the currency. Just like gold, People started investing and hodling (the typical term of holding coins till they generate profit) the coins. It soon turned out to be an investment vehicle and the basic idea of it being a digital currency got dragged down the tunnel somewhat.
So, yeah it is basically both a currency and a commodity. Yet untraceable! Sounds like a win-win?
Bitcoin is a secure and decentralized digital currency. It’s also a trad-able financial asset like bonds and stocks. Think if you want to pay or transfer another person a hundred dollar. What you do is you transfer your money to that other person. But in reality, what actually you are doing is asking a third commodity to deduct the cash from your account and transfer it to that person’s account. Bitcoin eliminates this interference of the third or fourth entity. It establishes this direct transfer link between you and the other person.
Unlike other monetary and economic affairs, Bitcoin is not regulated by any financial body or the government entity. Unlike stock market and shares, there is no fundamental rule or practice that can predict or determine the future value of the currency. Due to its incredible price volatile nature, the transactions or investment in the currency can be extremely complicated.
Why Criminals like Bitcoin?
Bitcoin is a totally secured and anonymous network. Anybody can come up and make an account and start the transactions. It requires literally no name, address or any else personal information. This encrypted platform generates a unique user ID, wallet IDs to the operator. During the transaction, only that specific ID will be visible and displayed to the viewer.
Due to this feature of the Bitcoin structure, making all the transactions complete anonymously, a lot of criminals were attracted. They used this platform to hide their identity and their transactions to practice illegal and unauthorized dealings.
With the ability to buy or sell anything without your name ever being revealed, a huge set up of the black market started running in around 2011. Silk Bank became an online transaction hub for all these illegal activities using Bitcoin. FBI broke the phenomena resting that these Bitcoins were untraceable. They were traced and Silk Bank was shut down. All the Bitcoins were subsequently acquired by the FBI.
21 Million… Ever!
One of the most amusing and interesting things about Bitcoins is that there are only 21,000 Bitcoins to be mined. Ever!! Yes, the total amount of these bitcoins will never exceed this amount no matter what. These coins are generated through a process called ‘mining’. Around 17 million of these coins have been generated till now. These coins are in circulation around the world balancing the network. This means, only 5 million of these coins are left to be mined to reach the limited threshold.
Generally, there is a new winner every 10 minutes, winning about 12.5 coins every time. This reward of 12.5 coins is halved every year too. So that means, in about 2140 we will be able to mine all these 21 million coins once in for all. Every existing Bitcoin is created using this same method. Anyone can mine these coins, provided with suitable supporting systems.
Merchants and consumers are slowly accepting and becoming comfortable with this digital currency. So, will this sum of 21,000 million enough bearing the collective economy pressure someday?
A bitcoin is divisible up to 8 decimal parts. Being deflationary in nature, if the market rises on a continues basis making its value to trillions, there will be an adequate amount resting with every coin in circulation.
Enigma, a cryptocurrency investment platform was miserably hacked on August 21st, during their training for a crypto-token sale for their Initial coin (Ethereum, Bitcoin, etc.) offering (ICO). It was meant to be a method of raising capital using digital currencies. that would be launched on 11 September.
Unfortunately, the company’s website, slack accounts and mailing lists were overtaken by hackers. Furthermore, the website was changed and many fake emails and messages were sent to visitors and those interested, influencing them to deposit money.
It was reported by TechCrunch that the $500,000 worth of Ethereum currency stolen was not from the company alone, but the large Enigma community with their slack members, mailing list, and Ethereum exchange. That’s a shocker since the Enigma staff had imposed a strict warning that they would never request for money this way yet, a large amount of the digital currency was stolen.
Highlight The Security Errors:
When it comes to thinking how such an attack could be carried out, reports prove that there were some weak points like two-factor authentication missing from the affected channels. There must’ve been a leakage of at least one of the account passwords, which would lead to this.
The company has broadcasted temporary closing of its Slack channel.
Story Credits: siliconrepublic
One of the concerns every Bitcoin user has is how to keep their bitcoins safe from criminals. Well, the answer to that is to store them in a paper wallet, completely away from the internet in an offline environment.
If you do it right, you’ve just initiated one of the safest ways to store your bitcoin. Although, if you mess up in between, it’s still more secure than storing coins in any Bitcoin exchange platform.
Creating a Simple PapeWallet
Start off with a desktop that is clear from all virus.
If you’re having doubts about this, install a copy of the OS on a USB. This is just for safety purposes, you don’t have to do this step. Although, make sure your computer is completely free from all sorts of malicious and nasty viruses. We don’t want your operating system wiping out on you.
Use incognito mode on your browser, and go on to a bitcoin paper wallet creation site
The most well-known paper wallet creation site is said to be bitadress.org, so use your incognito mode to log on to the site.
Turn off your internet connection once bitaddress.org loads
After the site has loaded, turn off your Wi-Fi or unplug your ethernet cable. This will completely remove any leads for your private keys to leak through the internet without your knowledge.
Don’t worry, bitaddress.org was programmed to function perfectly fine even without an internet connection.
Follow the instructions given to the side and move your cursor randomly across the screen
This is the fun part. You’re required to randomly move your cursor around the screen to generate a seed that will be used by BitAddress to generate your personal wallet.
You have now created two QR codes with a combination of random letters and numbers
Congratulations! You’ve officially created your first paper wallet.
The two QR codes are:
- Bitcoin Address- It will be a long string of letters and numbers jumbled together. This is what you’re going to be sharing with others in order to send and receive Bitcoins.
- Private Key- This too is a lengthy combination of alphanumeric, but you’re supposed to keep this secret. You CANNOT share your private key with anyone nor can you store it on a computer and, definitely not on the web.
Remember this. If you lose your key, your bitcoins are lost forever and if someone else gets a hold of your private key, they can easily empty your wallet.
Keep your paper wallet safe
The next step is having an offline copy of your Bitcoin Address. While you’re still disconnected from the internet, print the address (make sure your printer is not connected through wi-fi either). Now you have created a hard copy of your Bitcoin address, which you can later add Bitcoin to for a final cold storage solution.
Always keep a backup of your wallet in another location and make sure it is completely secure. If someone gets their hands on it, you’ve lost everything.
Adding funds to your cold storage wallet
You need to use your online wallet for this. Scan the bitcoin address on the paper wallet or just copy it, then send your fund to your cold storage.
- Make sure to store your wallet someplace away from moisture, because you don’t want it getting damaged. Try storing it in a Ziploc bag or laminate it, in order to avoid it from coming in contact with any liquid.
- Use an Operating System that never goes online, to prevent your PC from leaking out your private keys. Print your wallet offline and never go online from that computer in the future.
- You can store large sums of bitcoins in your cold storage rather than carrying it with you in an online wallet. Keep small amounts of bitcoin in your online wallet for daily transactions and the rest offline, in a secure spot.
Throwback Thursday: Kentucky Police Chief Asks to be Paid in Bitcoin
Vicco, Ky., is a town that’s known to be one of the smallest of the smallest towns, with a population of just around 330 people. But hey, don’t judge a town by the number of its inhabitants, right? Well in 2013, that was definitely the case here since that did not keep a Police Chief named Tony Vaughn away from the trends of the internet and rising cryptocurrencies.
Considering back then Bitcoin was still gradually growing and beginning to stabilize, it was a story that gave the currency quite a boost and hopes of becoming a payment method one day. Luckily, the city commission approved of this and after standard federal and state reductions in US dollars, Vaughn had received the bitcoins in his personal account.
Fast forward four years and Bitcoin has earned and is still earning a lot of fame and popularity as major investors have accepted the cryptocurrency as a means of payment. Also, let’s not forget the endless amount of altcoins following right behind. One can safely say that we are, as a matter of fact, entering a world of digitization.
Story Credits: cnet.com