Monday, May 29, 2017

Bitcoin

Units of measure

Science Fiction has always shaped reality. Tablets were predicted by Star Trek, Hitchhiker’s Guide to the Galaxy, and many more. Mashable even published a list of sci-fi books that predicted future events. I’m not implying that theses people posses some special skill, but rather that society follows ques. Science fiction writers happen to be particularly adept at telling what science may actually do in the near to long term future. In one specific case many sci-fi games & movies have currencies that are defined by “credits” or “units”. Theses terms both represent possession, rather than wealth. Some of these movies …continue reading

Altcoins are about to go crazy

At some point late last year the price of bitcoins started to go crazy. We saw huge month over month gains, anyone who got in at the right time did fairly well. Altcoins are just about to do the same thing. If you buy into Gresham’s Law this all starts to make a lot more sense. The value of money is directly related to it’s security. Security is comprised of two components, price stability and actual security. Price stability is still tough with crypto-currency but things are getting better, albeit slowly. Security on the other hand is pretty simple. Assuming …continue reading

Why I’m not worried about GHash and 51%

The bitcoin wiki explains what an attacker with 51% of the network can do: An attacker that controls more than 50% of the network’s computing power can, for the time that he is in control, exclude and modify the ordering of transactions. This allows him to: Reverse transactions that he sends while he’s in control. This has the potential to double-spend transactions that previously had already been seen in the block chain. Prevent some or all transactions from gaining any confirmations Prevent some or all other miners from mining any valid blocks The attacker can’t: Reverse other people’s transactions Prevent …continue reading

Taxes, Bitcoin & the Future

Yesterday the IRS decided on a tax treatment for bitcoin. This seems to have left a lot of people scratching their heads. There’s one decent synopsis here. Now, lets get to their ruling, and why I don’t think this can possibly stand. Bitcoin miners are just like many businesses the IRS has seen before. It’s a fairly simple value add model. Miners spend a fixed amount of money on a shiny metal box that helps them produce revenue while incuring other variable costs, most notably HVAC and power. Every major miner knows his or her cost per coin or at …continue reading

Why we cannot, and should not save Mt. Gox

A recent document has surfaced suggesting that Mt. Gox is indeed insolvent and that they plan on reaching out to the bitcoin community to help rectify their recent problems. While this may seem like a genuine way to help bolster the already struggling price of bitcoin (At the time of writing the winkdex is at $512.95) it is a ploy that we must not follow through on. The volatility and risk associated with Mt. Gox has been built into their price for months. The only risk that Gox every truly posed to the bitcoin community was re-enabling bitcoin withdrawals, which …continue reading

Bitcoin Black Friday

Mt. Gox announced Friday that they were disabling BTC withdrawals. Markets reacted instantly, sinking approximately $200 USD/BTC. Combined with the June 20th

Bitcoin Network Growth is Finally Slowing

Image from http://bitcoin.sepa.be The graph says it all. Bitcoin network growth is finally slowing. With the introduction, and mass shipping, of 28nm chips from both KNC Miner and CoinTerra it appears that bitcoin growth has finally started to slow. This is where things get interesting. Now that rapid acceleration in growth has stopped this game of technical chicken is more about capital than anything else. There are a small number of individuals worldwide who will be able to amass enough hashing power and begin to corner the market. This isn’t a bad thing for bitcoin, per se, but rather a …continue reading

Bitcoin ASIC Supplier Shootout

I’ve been mining crypto-currencies for about 6 months now; mostly Bitcoin, Litecoin and Namecoin in that order. We were [relatively] early in the asics market and the biggest thing stopping us from being wildly successful has been scams and late ship dates. This is based purely on my personal experiences and nothing more so take it with a grain of salt. The order is based on how long we have been running gear from this supplier: WTCR – Some of the first gear we purchased was Block Erupter Blades. WTCR was awesome to deal with (Thanks Sean!), they ship extremely …continue reading

Why bitcoin will survive the firey hell that fiat cannot

The other night I read a post on hacker news that just seems overly angry at the success of the bitcoin community. Bitcoin cannot, should not, and will not die in a fiery hell. There are a lot of reasons for this, and despite recent volatility there are lots of reasons why bitcoin is great. It’s a new system, new systems tend to attract lots of hate and loathing from those who are uninitiated. In the case of the author I’m referencing I think he’s just plain jealous of those of us who are winning I’m not sure why (s)he …continue reading

Bitcoin Bolsters Banks

There seem to be a lot of people thinking that banks should be “scared” of bitcoin, or that bitcoin will replace modern banking. This is simply not the case. To quote the FDIC “8.2 percent of US households are unbanked. This represents 1 in 12 households in the nation, or nearly 10 million in total.” An additional 10% or 14 million households are considered underbanked. It is this unbanked and underbanked population that stands to gain the most from technologies like bitcoin. The pros for the unbanked population are clear, while the gains for the underbanked population are a little …continue reading