Bitcoin SV and information asymmetry

You are into cryptocurrencies, but not interested in Bitcoin SV? Let me … Bitcoin SV follows economics and enables growth, while BTC and other …

You are into cryptocurrencies, but not interested in Bitcoin SV? Let me kindly diagnose you with a severe case of information asymmetry.

Explaining the obvious is no fun at all: A has all information, B has none—who wins?

The crypto sphere is one of a kind when it comes to information asymmetry. Especially since Bitcoin SV came to life, information asymmetry has reached a ludicrous level to be astonished about. There are tons of false information on the one hand, and wild efforts made to hide true information on the other hand.

Whether you are an investor, a developer or a user of cryptocurrencies: you do not want to get hit by information asymmetry. It is devastating.

Let us face the current information asymmetry in the crypto sphere

Most people involved in cryptocurrencies gather information from crypto media outlets and crypto influencers. They do not put any effort in source based research themselves.

How come these kinds of people get punished by the market in the end? It is because they serve no function in the market. If they would actually do source based research, they would contribute to the finding of true information, even if they would not share their findings with the public. However, as they only follow the easily available mass media information, the market treats them as leeches and shakes them off eventually—just as nature does.

What can we do about information asymmetry? Use it for our own benefit, or help people to get out of it?

It depends. Sometimes I wander on “crypto Twitter” like a lost soul. If someone wants to know the truth about Bitcoin SV, I am honored to deliver true information. However, if someone only wants confirmation for an already set believe system, I do not deliver true information. I let this person crawl deeper into the freely chosen information asymmetry. Sounds cruel? If there is no longing for truth in a person, I feel no empathy.

Overlooked facts concerning the Bitcoin SV

The crypto sphere does not recognize cryptocurrencies as economics, but as politics or even religion. Bitcoin SV follows economics and enables growth, while BTC and other cryptocurrencies follow social media.

Let me introduce you to some facts that are overlooked by the vast majority of the crypto community:

Bitcoin SV uses a stable protocol. With a stable protocol that no developer or influential person can mess with, Bitcoin SV establishes a sound foundation for growth. Just like constitutional rights, which cannot or at least should not be subject to discussion in order to enable a functional rule of law for the rest of one’s lifetime, a stable protocol in economic terms makes long-term investments and planning easy for everyone. This is why already successful applications like Twetch, Peergame and Cryptofights chose to build on Bitcoin SV, because they are economically safe to do so by not having to fear any protocol changes in the future.

Bitcoin SV enables true peer-to-peer transactions by SPV as described in the whitepaper. SPV allows secure, efficient and fast payment—unlike other transactional models such as Lightning Network, where there is no peer-to-peer transacting, but peer-to-miner-to-lightning-to-miner-to-peer transacting only.

Bitcoin SV scales massively to meet the demand of the upcoming informational capitalistic driven society. Other cryptocurrencies are busy preparing anti-scaling efforts to prevent any use case at all—it makes no economic sense!

Bitcoin SV is secured by a patent fortress. This forces developers to build their applications that need a scalable blockchain exclusively on Bitcoin SV. Furthermore, patenting blockchain solutions puts pressure on competitors to invent creative ways in order to prevent licensing fees.

Bitcoin SV rejects the idea of an anonymous transactional system. In Bitcoin SV, you have and will have even more privacy in the future, but privacy does not equal anonymity. Any anonymous coin has no future due to anti-money laundering regulation. Regulatory friendliness is a true USP of Bitcoin SV.

There is much more to know about Bitcoin SV. Start reading CoinGeek.com and work yourself into source based research in order to prevent suffering from information asymmetry. If you need help or have any questions, there are literally thousands of Bitcoin SV proponents out there happy to hear from you.

Information asymmetry by choice and by force

All of the points mentioned above are free information, easy to be gathered. There is no hidden agenda in Bitcoin SV and the only reason why people do not take a closer look is due to their own choice for information asymmetry.

Instead of looking out for economic reasons behind this or that coin, they seek confirmation of their emotions and beliefs—yet they call themselves investors, developers and influencers. On the one hand, they suffer from information asymmetry already, and on the other hand they perpetuate information asymmetry for others and themselves. It is a deadly cycle. They deserve all of its consequences.

Information asymmetry can be used as a tool. In political terms, dictatorship governments make sure real information does not hit the public. In economic terms, information asymmetry is a competitive advantage or disadvantage. In legal terms, information asymmetry can turn around court cases apart from the actual substantive legal situation. One could go on and on with examples.

It is obvious that influential crypto personalities and crypto enterprises nowadays do not suffer from information asymmetry themselves—they are well aware of the points mentioned above. Yet, they decide to force information asymmetry on their followers and customers in order to prevent them from having a reasonable look into Bitcoin SV.

Getting hit by information asymmetry

If you are on the wrong side of information asymmetry, life is paradise for a while, because you are not aware of the fact that you are actually on the wrong side. You get annihilated eventually, but hey, it takes its time.

If you are on the right side of information asymmetry though, life is hell for a while, because you wait and wait for information asymmetry to finally crush your opponents. Unfortunately, this also takes its time and in the meanwhile, you may very well lose your mind.

In an informational asymmetric environment, at least one party gets devastated in the end. When information asymmetry finally dissolves, it hits hard and fast.

Emotions and beliefs do not play any role in information asymmetry. You do not like Dr. Craig Wright? Does not matter. You think transaction volume is irrelevant for cryptocurrencies? Does not matter. You hate patents? You hate big blocks? You hate a set in stone protocol? You think it is clever to “verify the blockchain” on your pocket calculator from 1990?

Bitcoin is economics. Economics is true information. Whether you are an investor, a developer or a user of cryptocurrencies: seek true information.

The real world—businesses and businesses and businesses—is very well aware of any danger coming from information asymmetry. They are incentivized to seek truth. You should be, too.

New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.

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Bitcoin, Ethereum are most profitable investments of the decade

As the decade draws to a close, it’s time to look at the investments that were the most successful. And, unsurprisingly, cryptocurrencies top the list of …

As the decade draws to a close, it’s time to look at the investments that were the most successful. And, unsurprisingly, cryptocurrencies top the list of the most profitable investments of the decade.

Up first, is Bitcoin. The first cryptocurrency, built by an anonymous programmer known as Satoshi Nakamoto, it led to the creation of many Bitcoin forks—alternative versions running on similar code—and thousands of altcoins, either using the same code or trying out new features. But, if you got in early, you had the chance to make a quick buck.

Since the first bitcoin was available for trading, its price has accelerated 62,500 percent. Outshining many traditional stocks, it even spawned an entire culture built around prices “mooning” and the promise of lovingly labelled “lambos.” Due to the extreme rise, many critics have called it a Ponzi Scheme and say that its price pumps are bubbles that keep popping. But despite the criticism, an entire industry has been built around Bitcoin and other cryptocurrencies, leading many countries around the world to start adoption blockchain technology.

Much of the promise of blockchain technology can be seen with Ethereum. It offers features known as smart contracts, which allow for the creation of decentralized apps. These have interesting applications, particularly in the world of finance.

The price of Ethereum has shot up too. Even though the price has dropped heavily since its all-time high in January 2018, the price of Ethereum is still up by 17,900 percent. One ETH is currently worth $132.

However, some traditional stocks have not been far off. Netflix had a strong performance this decade, rising 4,280 percent. It’s not too surprising given how ubiquitous it now is. Even new films are now launching on Netflix instead of heading to the cinema. But it’s epic rise has led to an increase in the number of competitor video streaming companies. Will it be able to fend off the competition going into 2020?

Along with the rise of Netflix, and watching TV at home in general, another company did particularly well. Domino’s Pizza saw an increase in share price of 3,000 percent. Who knew pizza and TV were a winning combination?

In line with the trend of not needing to go outside, Amazon grew considerably in the last decade, rising 1,250 percent. It’s worth noting that not only does Amazon ship products to your door but it also offers a TV streaming service. What’s next, Amazon pizza?

Those doing yoga, trying to work off the 1,000 calorie pizzas, helped to boost the price of Lululemon shares, a retailer known for creating activewear and clothes for “most other sweaty pursuits.” They rose by 1,300 percent.

On a different track, healthcare company Abiomed saw a 2,000 percent rise in the last decade. It creates medical devices, such as artificial hearts.

Shotly behind Amazon is NVIDIA, known for creating computer chips. Interestingly, it pulled in $1.95 billion in revenue from its crypto mining business. But it wasn’t without controversy. In September, critics accused it of surreptitiously influencing the development of an upgrade to the Ethereum network. But nothing was ever proved.

Other profitable investments of the decade were payments processors, including Mastercard and VISA, up 1,100 percent and 760 percent respectively. Google shares rose by 350 percent and Apple shares went up by 840 percent.

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Bitcoins and Cryptocurrency: Myths and realities

Now I’m sure many of you will know bits and pieces of this story that I’m about to begin: who is the founder of Bitcoin – Satoshi Nakamoto; why did he …

Part 2: The Journey

This is a story of secret beginnings. A story of a brilliant idea, born of trying times. A tale of ups and downs, theft and despair and triumphant comebacks. The story of an underdog, attempting to overcome the odds. No, this is not a fairy tale, but a real-life story of a… currency. Yes, you read right – currency. This is the story of the beginning of Bitcoin and its journey through the years. And the best part? The story isn’t quite finished… yet.

Now I’m sure many of you will know bits and pieces of this story that I’m about to begin: who is the founder of Bitcoin – Satoshi Nakamoto; why did he start this new currency – because of the 2008 financial crisis; how did he manage to fix the problem of double-spending that had been plaguing the digital currencies of the time – by using blockchain. But this is a mere summary of what is, quite truthfully, a saga. And as the saying goes, the devil is in the details… So, let’s dive in.

Legend has it, that Satoshi Nakamoto first began working on the concept of Bitcoin in 2007, but the concept was only documented and presented to the public through his Bitcoin whitepaper in October of 2008. What was so special about this little old paper? Well, for one, it described the Bitcoin currency, but far more importantly it detailed the use of a new technology called blockchain so that the Bitcoin currency could never be copied, thus solving the problem of double-spending.

About a week after the white paper was published the Bitcoin Project was registered on SourceForge.net – a website that was focused on the development and distribution of open-source software. A couple of months later, on January 3 of 2009, the Genesis Block was mined.

Got a few questions after reading that last sentence? I’m sure you do. So, let’s get some answers. First off, what is mining? Well, if you read on, there’s a whole section dedicated to mining, so we’ll get to that in a while. For now, simply think of mining as a highly competitive, magical process that results in a miner (a user on the Internet) finding a Bitcoin – much like miners in the old ages finding gold nuggets.

Second, what is a Genesis Block? That, I believe we should find out right now. The Genesis Block or Block 0 of the Bitcoin blockchain is the granddaddy of every other bitcoin block out there. How is this possible? Well, each new block that is created in the blockchain is connected to the one that came before it hence they all trace back to Block 0.

Generally, the difficulty of mining blocks is so great that it requires a specialized graphics card but Satoshi Nakamoto was able to mine Block 0 by simply using a CPU since, at the time, the difficulty was set to 1 – much like the first levels of a computer game would start at a difficulty level of ‘Easy’. Compare that with a difficulty level of 10,183,488,432,889 – which is the difficulty level of mining a block on the Bitcoin blockchain as at the time of writing this article – and you will perhaps begin to get an inkling of how the Bitcoin blockchain has expanded in the past decade or so.

Unlike in any of the blocks that came after, Satoshi Nakamoto decided to leave a little message in the code of Block 0. It read “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”. This was a reference to an article that appeared in the London Times on the day that the Genesis Block was created, and it provided details on yet another bailout of banks by the British government. Although the message was brief and didn’t give any more details as to why this article was important, many have interpreted this as a message from Satoshi, expressing his distaste for the banks and the middlemen and pointing to yet another reason why he created a more people-driven currency. A lesser-known, yet interesting fact about the Genesis Block is that throughout the years, people have been treating it as a sort of wishing well. How so? Well, the original Genesis Block contained 50 Bitcoins in total and these have never been spendable – they have always stayed put. But since the beginning of the system people have been sending bitcoins to this address (yes this ‘address’ business will be explained later) as a sort of tribute to the creator, in the process quite possibly making all of those coins un-spendable. The Genesis Block is, for many Bitcoin aficionados, synonymous with Satoshi Nakamoto, so in a way, sending Bitcoins to this address is a way for them to be closer to their Crypto God, the Creator of the Bitcoin Universe.

After establishing the Genesis Block, Version 0.1 of Bitcoin was released on January 9, 2009, and interestingly enough, in the release note of the software, Satoshi talked about the fact that the total circulation of Bitcoins would be 21 million, meaning that there would only ever be 21 million coins in the Bitcoin ecosystem. Now, no one really knows why Satoshi decided on this exact figure, although as is common with everything related to Bitcoin, there are many theories floating around, and in this case, many of those theories tend to be highly technical.

To put things into perspective, let us say that the overall supply of Bitcoin can be divided into three parts. One is circulating supply, meaning the number of coins that are out in circulation, either being traded or held by users on the network. Certain cryptocurrencies have all their coins pre-mined, or release all the coins from the beginning of the project, or even mine the coins over time.

Irrespective of which method is used, the circulating supply means whatever is available and circulating at present. Second is the total supply – referring to the number of coins in existence at the moment. This would include all created coins, whether in circulation or not. And thirdly, there is the maximum supply for a coin – meaning that if a number exists for maximum supply, then that particular coin will not be created again once it reaches this number. According to CoinMarketCap, an aggregator website on cryptocurrency information, at the time of writing this article, the total circulating supply of Bitcoin stood at 17,907,850 – roughly 18 million coins. With a maximum supply of 21,000,000 coins, this means that we have a further 3 million coins to mine.

And this perhaps is the best place to delve into the question of mining. Now I do plan to get a little technical here, so those of you who don’t want to clutter your brain with the details should skip right on ahead. For the rest of you brave souls, let us start with the basics. Simply put, mining is a way for you to earn cryptocurrency without having to buy it using money.

Interestingly, when Bitcoin first started, mining one block would earn a miner 50 BTC (Bitcoin). In 2012, it was halved to 25 BTC, in 2016 again halved to 12.5 BTC and is expected to go down to 6.25 BTC in 2020. This halving process occurs once in every 210,000 blocks or roughly every 4 years. Right, back to the topic at hand – what do miners actually DO when they mine? They are in essence being paid to work as auditors of the system. They are verifying past Bitcoin transactions to ensure that double spending has not occurred.

Imagine you had a Rs.100 note and a copy of that same note. If you were to go out and spend both those bills, someone taking the trouble to look at both bills carefully would know that the serial numbers on the notes are the same and hence would know that one of them is a fake.

What miners do is somewhat similar to this. Currently, when a miner has verified 1MB (megabyte) worth of transactions to ensure there is no double-spending, then they are eligible for the reward of 12.5 BTC. Eligible – yes, but not certain to receive it. Why? Well, in order to receive the reward, the miner has to meet conditions. One is that he has to verify 1MB worth of transactions.

But second, he has to be the first miner to get the right answer to a numeric problem. For those of you interested in the Bitcoin jargon, this process is known as ‘proof of work’. The good news here is that there is really no advanced mathematics involved in this process – it’s just a lot of guesswork. What the miner is actually trying to do is come up with a 64-digit hexadecimal number called a ‘hash’, that is less than or equal to a given target hash. Think of it this way. I have 4 friends to whom I say that I’m thinking of a number between 1 and 100 and they’re required to guess what it is. My number is 25.

A and B guess numbers above 25 and therefore are immediately out of the running. C guesses 24 and D guesses 20. They’d both be right because 24<25 and 20<25. No extra points for C just because he guessed closer! C and D are both eligible for the reward.

This happens quite often in the Bitcoin network where multiple miners guess right and the decision for the reward is then based on which miner has verified the most transactions. So, transpose this problem of guessing the number to the Bitcoin network – now the number that the miners are guessing is not between 1 and 100 but a 64-digit number and instead of just 4 people guessing, there are now millions.

There are pages and pages of more details for anyone interested in the subject of mining but since too much of a good thing is never advisable, I believe it is in our best interests to gently leave this topic here.

The writer is an Assistant Director at the Central Bank of Sri Lanka.

The views expressed in this article are those of the writer and do not necessarily reflect those of the Central Bank of Sri Lanka.

– To be continued next week

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How the World Is Becoming Pro-Crypto

When Satoshi Nakamoto released “Bitcoin: A Peer to Peer Electronic Cash System” in 2008, the world probably thought that the new digital currency …

When Satoshi Nakamoto released “Bitcoin: A Peer to Peer Electronic Cash System” in 2008, the world probably thought that the new digital currency would just be the next PayPal. But as we began to understand how it works and what it represents, it became clear that it is a serious existential threat to fiat money.

Fast forward to 2019. Fiat currency is still the standard, but cryptocoins are growing both in numbers and in influence.

According to Fortunly, the global cryptocurrency community was just 35 million strong as of December 2018. But crypto adoption is likely to explode in the near future.

Despite losing 85% of its value by the end of 2018, the cryptocurrency market considered the Bitcoin bubble popping as merely a bump in the road. There has actually been plenty of activity behind the crypto world’s veneer of dormancy since the crash.

Facebook announced its vision to launch its own blockchain-based payment network and stablecoin to get rid of the standard 2% to 3% merchant fees.

The number of Bitcoin ATMs keep increasing as well. As of the first half of 2019, 5,000 are found in 90 countries; over 50% of these machines are located in the United States. June was a hectic month, seeing six installations built per day.

Blockchain, as a concept, proved to be proof against financial bubbles. More than three-fourths of incumbent financial institutions will continue to adopt it by 2020. Over half of them have joined forces with fintech startups to accelerate the development of the technology and innovate much faster.

Much of the planet is already pro-crypto, and there is no turning back anymore. To learn more about how cryptocurrency is disrupting several industries, check out the infographic below!

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Bobby Lee Believes Bitcoin Will Hit $200K In Cycles To Come

… China’s quest affected his crypto exchange, BTCC, Lee was confident that bitcoin’s price could not be brought down. Not even by Satoshi Nakamoto, …
BTC At $11k, Hear From Industry Leaders On What's Next For Bitcoin: Exclusive

Bobby Lee, the founder of China’s first cryptocurrency exchange, assures the community that BTC will hit $200K. In his words, bitcoin will see more “boom and bust” days, and in one of those, the crypto asset will make its way to the $200K mark.

Bitcoin Will Hit $200K Someday

What has kept the faith among crypto holders this long is the fact that bitcoin will be worth a fortune someday. A couple of analysts in the past have given their views on the direction of bitcoin, some giving short-term and others predicting long-term.

Bobby Lee joins these growing list of enthusiastic analysts as he speaks in an interview with Yahoo! Finance recently. In his opinion, there was no reason for people to feel “doom and gloom” as he says there will be many of such to come. In his words, Lee says;

“We are in one of many, many cycles to come. Any cycle will take us to higher and higher heights. I’m quite confident sitting on my bitcoin investment that in a very short amount of time we’ll exceed $20,000 and go to $50,000, $100,000, even $200,000.”

He further added, “When I say a short time, I don’t mean minutes or hours, I mean maybe months, if not a few years.”

Bobby Lee is Certain That Bitcoin’s Price Cannot Crash

Sometime in 2017, while speaking to a group of audience, Bobby Lee exposed China’s secret plan to tank bitcoin’s price. This was the era when China banned ICOs and later, cryptocurrency exchanges in the country.

Though China’s quest affected his crypto exchange, BTCC, Lee was confident that bitcoin’s price could not be brought down. Not even by Satoshi Nakamoto, he says.

What Lee’s Been Up To

Since Lee sold BTCC, he’s spent most of his time “giving speeches, traveling, taking some vacation, and spending time with family,” he says.

However, he’s also found some interesting to do; making secure unhackable hardware wallets. This idea, he reveals, was born as people came to him to store their bitcoin investments for them.

The best way he thought, would be to come up with something super easy to use and also which will keep their crypto assets secure.

What’s Your Thought On This?, Let Us Know In the Comment Section Below.


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