The run on Ether, the digital currency of the Ethereum network, is in full swing. Some of the industry’s major miners are also magically attracted to the success of the new digital currency alongside Bitcoin and are preparing themselves for ether mining.
Bitcoin or ether miners bundle transactions and try to put them together in groups or blocks. Once a block has been successfully bundled or excavated, it is accepted by the network and the Miner or Mining Pool receives the digital currency in return for the computing power it has invested. Bitcoin or Ether Mining is only profitable for the miners if the power and acquisition costs of the required hardware do not exceed the price of the coins received. Some therefore refer to the mining business as resource arbitrage.
So it is not surprising that the success of Ethereum has brought some Bitcoin miners onto the scene: https://www.geldplus.net/en/bitcoin-news-trader-review/. Even the CEO of BitBank China, Chandler Guo, publicly acknowledged himself as Bitcoin news on Facebook:
Guo operates a gigantic Bitcoin mine in China (BTC-Echo reported). Guo also talked on Facebook about his plans for a crowdfunding campaign in which he wants to offer a 2% return on all 100,000 ethers dug by his mining rigs. Only on 12 May did Guo finish a crowdfunding campaign where he offered 14 percent of 3,500 mined Bitcoins.
Ether CloudMining: Start directly with Bitcoin formula and get 3% discount on all your orders with the following code: vS2DmY Since then Guo has regularly posted images of the Chinese Bitcoin formula mine, including images of the Ether Mining rigs consisting of hundreds of graphics cards.
Guo doesn’t seem to be alone with the first ethereal mining tests. At least other greats in the industry, besides Bitcoin, are also sounding out the waters of ether mining.
It all started a few years ago with CPU mining. At that time it was still possible to calculate (dig) several Bitcoins on a single day with a home computer. Today this process with the CPU would take months or even years. After CPU mining, GPU mining with graphics cards became more and more popular. But even this computing power was not sufficient after a “short” time and the era of ASIC Mining began. Here the development is unstoppable and needs a constant update of the hardware skills.
Transactions of the Ethereum network are currently still calculated and transferred using GPU power. Just as with Bitcoin mining, there are mining pools in which the computing power is bundled in order to find the much sought-after blocks more quickly. Here there are long-term plans for a proof-of-stake method to reach a consensus in the transaction history.
Other miners have also announced their plans to mine at ETH Zurich. These include the Chinese F2Pool, which according to data from Blockchain.info has generated the most bitcoins within the last 24 hours, and the Virginia-based mining pool BTCS. BTCS already announced a pilot project for the Ether Mine (ETH) in March.
According to Ethstats, the Ethereum network currently generates a hashrate of 2.8 terahashes per second.
At first glance, the Dubai headquarters of the Telekom giant Du looks like a typical showcase for the mobile tech industry. The registration office, on the other hand, looks very different.
It seems as if they want to illustrate the gap between the Bitcoin profit that create information and those that verify and manage Bitcoin profit. Each visitor to the Du Anmeldeestele is first asked to show a plastic ID card, which is then placed in a blue wooden box. A yellow piece of paper is then handwritten to indicate how many ID cards are already in the “State-of the Art” box. This can easily become up to 700 IDs.
However, a technology is already being researched far above the entrance, in the administration, which could solve this problem.
Jose Valles, vice president for Commerce, is working on possible blockchain applications that could put the company in a whole new light when it comes to authentication and registration.
Together with Etisalat, you are one of two authorized telecom providers in the United Arab Emirates with more than 7 million customers. According to Valles, you have enough reach and customers to bring a wide range of blockchain solutions to the market.
“The number of possibilities is inexhaustible. The Bitcoin profit blockchain can be used for an infinite number of applications. Wherever a Bitcoin profit takes place”.
As a first step towards future-oriented technology, you joined the first Global Blockchain Council in Dubai (GBC), which already has 40 members from the regulatory, financial institution and tech start-ups sectors. They all work together under the umbrella of the “Museum oft he Future”, an incubator of the government, on possible blockchain applications.
To illustrate the progress made so far, the GBC delivered seven initial proofs of concept last week, one of which caused a great stir: the approach to managing and storing patient files.
According to Valles, the healthcare market investigation was inspired by the government’s current search for a solution to better protect confidential patient data.
In addition to the applications in the healthcare industry, you are also pursuing a long-term perspective with Blockchain technology in a country surrounded by crystal clear water, white sandy beaches and 7 star hotels.
Even if Valles was still covering its heels about how and when a registration and authentication of customers could be implemented via the blockchain, one can already guess where the rice could go:
“I think there is an important business opportunity for blockchain technology. Since our customers have to go through a Know-Your-Customer (KYC) procedure, we could imagine a verification by telephone, for example.”
“The blockchain will enrich people’s lives in the future,” says Valles.
The current course drop can be explained by using Bitcoin as Safe Haven, as indicated elsewhere.
One of Bitcoin’s roles is that the crypto currency can be a virtual counterpart to gold in terms of its internal structure. This is why Bitcoin is often referred to as Digital Gold.
As with gold, people hope that investments in Bitcoin will be secure against financial or political crises.
The original motivation behind the development of the Bitcoin code was the creation of a digital currency. Many people still hope today that at some point the Bitcoin code will be used as such by the majority on a regular basis.
And yes, you can see that the use of Bitcoin increases every year. But what kind of use is increasing? Of course, Bitcoin transactions have increased steadily since the Genesis block, as you can see at a glance.
But if one can ask oneself whether this number comes about through exchange in fiat currencies, through movements between different wallets of a single user (e.g. between mobile wallet and hardware wallet), through Altcoin trading, fauces or games – or through the purchase of goods with Bitcoin.
When you talk about a virtual currency, it is this latter application that counts. The others speak rather for the use than digital gold.
And here we are dealing with a kind of vicious circle: Is such a use of Bitcoin as a currency really sensible in times of volatility, as we have experienced in recent months with the rising Bitcoin price in particular?
If you remember how a pizza was sold for 10,000 BTC in those days, you notice that people became much more reluctant to give away their coins. And rightly so: the value of the Bitcoin code continued to rise over the last year, while the world became a little more absurd every day with Brexit, Trump, the referendum in Italy and the monetary policies of India, Greece, Cyprus, Australia, China or Venezuela.
That’s why Bitcoin code should be seen as a safe haven rather than a currency. The question now is what could be a good candidate for a digital currency? After all, with Monero or Dash, there are Krpyto currencies that could fulfil this role.
Author’s commentary (Philipp Giese):
Well, for now Bitcoin is hard at falling again. Nevertheless, I think that the idea that Bitcoin is digital gold makes more sense than that of a currency (despite all the grandiose projects like Bitcoin City Arnhem or Bitcoin Kiez). It is often noted that the time taken to confirm a transaction is too slow compared to real financial transactions. This may be too slow for many applications associated with a digital currency. But for a safe haven, or generally for transfers that don’t have to be instantaneous, it’s perfectly sufficient. In this respect, I agree that the main role of Bitcoin may be seen more in digital gold.
Now, however, the current price development shows that the calculation “negative political developments = bullish Bitcoin price” also goes in the other direction. This should also be borne in mind when considering a safe haven.
The Bitcoin exchange Huobi is planning its own stable coin solution. However, instead of issuing a new token, as is currently the case with many others, the company is working on a solution to connect the existing coins.
Stable coins are a controversial issue in the Bitcoin ecosystem. Although they are theoretically very practical, they promise a one-to-one mapping of fiat currencies such as the US dollar. This allows one to switch directly between crypto and fiat when trading on the Bitcoin exchanges, without having to go through any bank accounts.
In practice, however, doubts repeatedly arise about the supposed stability of stable coins. As the Tether case has recently shown, there are currently still some problems in the implementation. Even in the sheer mass of stable coins, you can sometimes ask yourself the question: Do we really need several stable coins? A stable currency should actually be enough.
Be that as it may, the Bitcoin exchange Huobi is now throwing its own stable Bitcoin formula review onto the market, which in turn is to represent other stable coins: the HUSD. According to the official announcement, Huobi wants to release a stable coin, which represents a total of four stable Bitcoin formula review coins. These are Paxos Standard (PAX), TrueUSD (TUSD), USD Coin (USDC) and Gemini Dollars (GUSD). If you transfer stable coins to your Huobi account in the future, the stable coin balance will be displayed directly in HUSD – a conversion and an exchange into one of the stable coins will be done directly by the exchange’s own token.
As you can see from the blog post, the Stable Coins PAX, TUSD, USDC and GUSD can be deposited on the Bitcoin trader scam exchange from October 16th. The trading pair USDT/HUSD for Tether will be available on the Bitcoin exchange from 22 October. The BTC/HUSD and ETH/HUSD trading pair will probably have to wait some time. Huobi first wants to evaluate the “market conditions”.
Phillip HorchPhillip Horch is head of the BTC-ECHO service and responsible for the structuring and planning of editorial content. He gained several years of editorial experience during his studies and then worked as a freelance journalist before joining BTC-ECHO as an editor in January 2018. Phillip holds a Master’s degree in Literature, Art and Media Studies from the University of Constance and the Universidad de Valparaíso.
At the beginning of August Bitcoin had to accept the first “Hard Fork”, who keeps his Bitcoins in his own wallet now has the same amount of “Bitcoin Cash”. But what if the Bitcoins are at an online exchange? Does it have to issue the new crypto coins?
An article by legal expert Dr. Bernhard Freund, lawyer and specialist lawyer for IT law (published on Planit.legal).
Like most crypto currencies, Bitcoin is based on a blockwise updated public transaction register, the blockchain. New blocks are continuously generated by so-called miners in a computationally intensive process (the power consumption already exceeds that of Croatia!). If the new “minted” blocks comply with the rules stored in the Bitcoin software, they are accepted by the nodes of the network and attached to the block chain. The transactions recorded therein are thus confirmed.
However, the Bitcoin concept must be adapted to the technical development and enormous growth of the network. This occasionally requires changes to the rules in the Bitcoin software. Due to the decentralized organization of the Bitcoin community, agreeing on such rule changes is a major challenge. In the worst case, part of the community will follow its own concept and accept a spin-off from the original Bitcoin currency.
Since then, part of the community has pursued its own blockchain, which on the one hand allows for much larger blocks and on the other rejects a new function called SegWit, on which the majority had agreed. By splitting the blockchain, the new, independent crypto currency Bitcoin Cash was created parallel to the Bitcoin.