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 a decentralized digital currency. There is no physical existence of Bitcoin, just the verification and value it has been given by a global peer-to-peer network. All these transactions are recorded in Blockchains.
The blockchain is very much like a public shared ledger. All the confirmed transactions performed ever using Bitcoins are recorded in this ledger. These blocks are an ultra-secure data, treated like cash. All the transactions are received and sent through wallets which are digitally signed. To ensure security, bitcoin wallets come with a private key or seed. These signatures ensure that the transaction is performed by the current owner of the wallet and provides with the mathematical proof. In reality, there is no transfer of Bitcoins but the change of ownership and quantities of Bitcoins.
How Does a Transaction Work?
If person A needs to transfer Bitcoins to person B, the transaction carries three parts.
- An Input- record of wallet of person A
- An Amount- the number of bitcoins person A sends to person B
- An output- person B’s wallet
How Can You send Bitcoins?
To send the Bitcoins to anybody you require two things.
- Bitcoin address
- Private key
A bitcoin address is generated by an individual randomly. It mainly consists of a sequence of numbers and letters.
A private is a secret key with a unique sequence of numbers and letters.
When person A wants to send coins to person B, she signs a message with her private key to authorize the transaction. The transaction will include,
- Input (source wallet)
- Number of Bitcoins to sent
- Output (person B’s address)
Person A then sends the number of Bitcoins to the Bitcoin network from her wallet. Once entered in the network, miners will then verify the transaction included in the blockchain. The miners will then solve the mathematical puzzle and in the end, it will verify that person B is the new owner of the specified number of coins.
Just like account ledgers containing amount and names, blockchains function almost the same. People exchange money by changing this file.
For instance, if person A sells a product to person B for $5, person A’s balance goes up by $5 and person B will have a reduced balance of $5.
There are no third parties involved in the system, like banks or other financial institutions. So, who takes control and responsibility of controlling and maintain this ledger? Every coin holder maintains their own copy of the ledger. All the participants can see each other’s ledger and their balances. In Bitcoin ledgers, these names are exchanged with specific numbers to ensure anonymity.
To keep every ledger synced and harmonized, there is a protocol that needs to be followed. To do a transaction you tell everyone by broadcasting a message with your account number, the receiver’s account number and the amount to be transferred. Every coin holder around in the world will update their ledger.
There are people who help in maintaining the system. You can simply use the system to perform the transaction without maintaining the ledger.
To ensure sender is the real owner of the account, Bitcoin requires a signature to verify it, but a mathematical signature.
When an account is created, a private key is generated mathematically linked to that account number. The private key and the text from the transaction are processed through a special cryptographic function to generate a signature. To make sure the signature is done by the wallet owner and to the specific transaction, another function allows the other people to verify the signature. These signatures cannot be copied as they are unique to each transaction.
The main problem with the system is that this cannot verify when a transaction was performed.
For example, if a person falsely has to withdraw 2 cheques out of an account but it has enough money to cover one account. the bank will refuse the second cheque due to an inadequate amount of cash after the with drawl of the first cheque. It is much harder to determine the order in Bitcoin. Due to the scattered individuals all over the world taking part in the transaction, there may be a delay in different orders in different places. Fraudsters could lie about these time lapses.
Two recipients might both think their transaction is first and ship a product allowing the fraudster two spent the money twice.
New transactions go into a pool of pending transactions. These transactions then get into the giant chain that locks in their order. A lottery is then held, enabling participants to choose a transaction of their choice to solve a special problem to link them to the end of the chain. The person to find the solution first wins and gets their transaction next in the chain.
That’s how pretty much all the transactions in the Bitcoin system are performed.
Bitcoin Mining News:
Bitcoin mining is getting more difficult with the passage of time, so now it is taking more money and electricity to mine for the digital currency than ever before.
The rising worth of Ether, another digital currency, and the appreciation of Bitcoin can help to maintain the productivity of Bitcoin mining, in spite of increasing costs and difficulty.
It is becoming more difficult and problematic to mine bitcoins, but miners are not packing up their servers because of this. the number of available bitcoins for mining has decreased from 50 Bitcoin per block. According to a financial technology analytics service “NEXT”, the number of bitcoins available for mining was 12.5 Bitcoin per block when it initially came onto the scene. According to a Bitcoin countdown site, this number has set to decrease about to 6 Bitcoin on June 19, 2020.
In the starting days of the technology, a few computer systems were able to mine hundreds of coins in about three to four days. Sebastian Quinn-Watson, a consultant with a bitcoin mining firm reveals that is not what the fall looks like today. Sebastian Quinn-Watson said, today, about 1700 bitcoins are generated per day. Basically, we all are fighting for about one coin every 10 minutes.
Quinn-Watson said the rise in the value of Ether is a trend which can help Bitcoin miners.
Ethereum on The Rise:
Ether is the most prominent rival of Bitcoin which is controlled by the Ethereum blockchain, Ether has gone high over 2000% since last year. Until the June, the digital currency was on its way to beat Bitcoin as the largest digital currency of the world, by market cap, according to Coindesk, since its market share has pulled back.
According to Sebastian Quinn-Watson, miners could get benefit from the future appreciation in the price of Bitcoin. If the appreciation of Bitcoin was to overtake the rise in the mining cost, then the productivity of the business will remain unaffected.
Business Inside Volatility:
To be sure, the price of Bitcoin is high about 250% since last year. But it has experienced recently extreme swings in its price. Some miners have credited this instability to current civil war between crypto-power brokers. This did not bother Sebastian Quinn-Watson, he told that the Business Inside instability or volatility is exciting. He said, we welcome the volatility and look at this as required aftershock of the Cambrian explosion which Blockchain.
Story Credit: businessinsider.com
Along with being accessible through networks such as Tor and I2P, Monero implements various cryptography techniques to unlock an extensive level of security and privacy:
1. Untraceable Stealth Address
As we all know, reusing the same address for bitcoin transactions is a common privacy issue of Bitcoin. Receiving or sending multiple transactions to the same address can allow anyone who knows your address to track its activity. Thus, bitcoin is not a tool that should be used on the darknet, especially for privacy purposes.
On the other hand, Monero has no such privacy concerns. Monero’s blockchain is secured in such a way that only the sender and receiver are able to identify the destination address. Only a unique cryptographic hash is provided, to each and every transaction that can be decoded by just the send or receiver to disclose the real address. These encrypted addresses are called “stealth addresses.”
Related: Bitcoin’s current price
2. Unique Separated Transaction Units
When you send XMR to any address, it arrives as several separate payment units. Basically, each unit would appear on the Monero blockchain as being transferred to its appointed and distinct stealth address. This process is applied to the sender as well as the miners when any fees are paid to them. This makes tracking of any transactions far more complicated.
3. Undetectable Ring Signature Payments
Ring Signatures is another technique that adds up to the cryptographic system behind Monero’s blockchain.
Just to be clear, similar to Bitcoin, Monero also consists of a public and private key in order to engage in buying or selling of XMR.
For example, if you are to send 18 XMR to a shop, the XMR get sub-divided into 10,5 and 3 XMR streams, these flow into distinct Monero addresses of the ship. The private key that authorizes any 10, 5 and 3 streams sent across the network, becomes a possible signatory to the transaction. The number of possible signatories is dependent on the “mixing depth” you set. As your transaction splits into units, ring signatures guarantee that transactions can’t be stalked back to any system’s IP address.
In the end, it’s almost impossible to track or identify Monero users
These 3 techniques provide maximum privacy and prevention from roaming trackers. Monero’s code ensures the anonymity of every user and leaves barely any possibility of a linkage to take place.
Related: Read more about Altcoins
10 July 2017. Bitcoin is continually hitting new heights, now its standing at $2500 per coin. The digital currency trades down 3.7% at $2510. And, is intimidating its lowest close since June 2017. Its contending, ethereum is also under pressure.
Bitcoin’s price is stuck between $2400 and $2500 since last Monday. This was the day when the head of the Goldman Sachs warned about the sliding price of the bitcoin as low as $1857 before rushing as high as $3915.
Back in early June, Mark Cuban declare Bitcoin as a “bubble”. He tweeted, “I think it’s in a bubble. I just don’t know when or how much it corrects. When everyone is bragging about how easy they are making $=bubble.”
Last week, Jeffrey Kleintop also suggested that “Bitcoin was in a bubble unlike any we had ever seen before.”
News and picture credit: business insider.com