88.0% of all Bitcoins mined, as 2.5 million BTCs left to ...

Bittrex Review: One of the First Crypto Exchanges Part 1

Bittrex Review: One of the First Crypto Exchanges Part 1

By Rinat Arslanov, CEO at Revain
Despite the fact that digital asset trading is a relatively new phenomenon, among cryptocurrency exchanges Bittrex is considered a time-tested trading platform that can guarantee a high level of security and reliable service. Today, in this all-encompassing review, we will study how Bittrex Global, one of the most popular and secure crypto exchanges, operates.

Review Contents:

  • Bittrex History and Founders
  • What Bittrex Is and How It Works

1. Bittrex History and Founders

Bittrex Global is currently the oldest holding company concerned professionally with digital assets, as well as having access to major US and European financial markets. It grew out of a small cryptocurrency exchange that started with mining bitcoins for $30 back in 2011. Now the holding, whose headquarters is located in the Principality of Liechtenstein, provides a trading infrastructure to its users, enjoying a reputation of one of the safest exchanges in the world.
Bittrex Global has managed to gain such customer trust and loyalty through the continuous development and implementation of the most advanced technologies that have proven their worth by continuous and reliable operation throughout the 7 years of their existence. The company always ensures fair opportunities for investing in and trading digital assets for all clients, regardless of trading experience.
https://preview.redd.it/e6xsv33codc51.jpg?width=974&format=pjpg&auto=webp&s=748c76c281116a157abb5cf03da0f4bb274170bf
https://preview.redd.it/y2csce7dodc51.jpg?width=974&format=pjpg&auto=webp&s=4409bf9032e0c3d5f2ca0b2b528310af8267e8ba
To this day, since January 2018, Bitcoin has not been able to rise higher than that time.
https://preview.redd.it/nqcifr3hodc51.jpg?width=974&format=pjpg&auto=webp&s=dfb81067c58d42dcf423b303b2e108d04c5121c9
The future Bittrex team really wanted a way to acquire Bitcoins again. Mining was going to prove untenable, so they brainstormed and started the first crypto-based business—GiftcardBTC.
At that time, Bittrex had a simple idea of earning through selling gifts and calling cards for Bitcoin. It was so easy to earn cryptocurrency and then convert it into fiat US dollars, and that endeavor made it possible to offset the costs. Then, the founders of the future cryptocurrency platform designed a Bitcoin miner that started to earn money continuously, but this was not the limit of their dreams.
Less than a year later, the first cryptocurrencies—Bitcoin and its fork Litecoin—got up in price many times and then the creators of Bittrex added Litecoin to their package. Using Coinpayments.net infrastructure for processing payments, they ran into problems, since there were still practically no abilities to convert or withdraw cryptocurrencies into fiat currencies. The founders began to look for convenient automatic ways to do this but at that time exchanges could not provide such services.
At that time, Bill Shihara and Richie Lai regularly traveled to Las Vegas and in late 2013, during one of such trips, they were discussing the problems they faced for many hours, trying to find a solution and considering various options. In the end, they decided to start software development in the west. Now this decision is considered the birthday of the Bittrex trading crypto platform.
They decided to invite a professional from Microsoft, Rami Kawach, to discuss their idea. After some time, they had an ambitious plan to develop and launch a platform for crypto exchange in less than two months. The plan was accompanied by a gentleman's dispute among Rami, Richie, and Bill over a bottle of 25-year-old whiskey, which concerned the timing of the plan.
The formed team began to work actively on a project to which they devoted all their free time and worked day and night. In mid-February 2014, they launched the Bittrex website, and on the last day of February, they made it accessible for the general public. As a result, Richie and Rami won over whiskey against Bill.
https://bitcointalk.org/index.php?topic=463202.0 and started sharing on February 28 https://bitcointalk.org/index.php?topic=492758.0
https://preview.redd.it/o4aoa20rodc51.jpg?width=973&format=pjpg&auto=webp&s=0606a27b9da4bb5018e570dab91a7dac1fcb218c
https://preview.redd.it/5ft1k4wsodc51.jpg?width=974&format=pjpg&auto=webp&s=21bf5285c1394534ed92379495f8fa76edcb1277
https://preview.redd.it/wy9fs3hvodc51.jpg?width=430&format=pjpg&auto=webp&s=452ab77dca6b1a0d4a9a225c4efe7d358bf24c6c
It was then when a large partnership began; later, the alliance ensured the joint company’s future success. They formulated several postulates that became the cornerstone of their business:
  1. We ourselves will never trade cryptocurrencies on our exchange. Too many shadows occurred in too many places, and we will not trade against our clients.
  2. We will always maintain honesty on our exchange. No one gets special information. No one gets special prices. Transparency is paramount.
  3. We will never sacrifice long-term gain for short-term gain. We have been together for a long time.
https://preview.redd.it/f9yhldizodc51.jpg?width=744&format=pjpg&auto=webp&s=a0aef8b924395ea7bb3ba3e62ac92fd84bd6be19
Bill Shihara: https://www.linkedin.com/in/billshihara/Co-Founder, CEO at Bittrex GlobalJanuary 2014 to present
Professional Experience:
  • Amazon: 2 years 1 month. Manager, Security Engineer
  • BlackBerry: 2 years 5 months. Manager, Security Engineer
  • Microsoft: 7 years 6 months. Lead Program Manager, Security Program Manager
https://preview.redd.it/ebduvms1pdc51.jpg?width=867&format=pjpg&auto=webp&s=e51beea4f788618c73db69316e3bedad378b813f
Richie Lai: https://www.linkedin.com/in/richielai, https://twitter.com/richielaCo-Founder, CIO at Bittrex GlobalJanuary 2014 to present
Professional Experience:
  • Amazon: 6 years 11 months. Senior Security Engineer, Senior Security Manager
  • Microsoft: 12 years. Software Security Engineer — Principal Development Manager

https://preview.redd.it/i95qdy85pdc51.jpg?width=779&format=pjpg&auto=webp&s=cb15a07174c2e71df0e8f54dbd66ed9150c129b1
Rami Kawach: https://www.linkedin.com/in/rami-kawach-413a63194/, https://twitter.com/ramikawachCTO at Bittrex Global
Professional Experience:
  • Amazon: 7 years. PSA
  • Microsoft: Software Security Engineer, Principal Development Manager

Crypto Exchange Partners

Bittrex is constantly moving forward, embedding a strategy that leads the innovative future of the crypto-financial industry. To implement its strategy, the platform interacts with the most interesting innovative crypto projects based on blockchain technology. They have developed an affiliate program that helps launch trading platforms from 13 countries around the world.
Today Bittrex cooperates with the following businesses across the globe:
  • Bitmonex
  • RAIN
  • Bitvoicex
  • VCC
  • Bitsdaq/BQ.net
  • Biteeu
  • Cryptofacil
  • VALR
  • Ibitt
  • Catalx

2. What Bittrex Is and How It Works

Bittrex is a multi-currency trading platform where you can exchange, buy, or sell cryptocurrency and fiat money. The exchange is available in all facets: you have great opportunities in making foreign exchange transactions, both with digital assets and with ordinary money.
Not everyone understands what fiat currencies are, but in fact, these are the good old usual paper cash and non-cash money that are issued by the central banks of various states. Fiat money mainly differs from cryptocurrencies in that it is regulated by governments, which can influence their output and exchange rate.
On the Bittrex crypto exchange, you will find more than a quarter of thousand of various types of cryptocurrencies and 364 currency pairs. A currency pair is a pair of currencies that can be exchanged one for another at a certain rate. The most common currencies can be exchanged for hundreds and thousands of other currencies, both digital and fiat. Cryptocurrencies such as Bitcoin Litecoin or Ether have the largest number of pairs available for exchange.
Appearance cements the first impression, and the user interface is key in any digital. In Bittrex, the interface is intuitive even for those taking their first steps in trading. Not only does it look sleek but it’s also very easy-to-use. You only see what you need on the trading screen.
Here you can see structured information about trading pairs, history of changes in exchange rates, and wallets. The website will guide you on how to make a deposit, how to work with orders, what happens to your money, and how to withdraw it.
All work with such a platform begins with the opening of an exchange account. You can find everything you need to configure a wallet in Settings.
submitted by mPrestige to revain_org [link] [comments]

List of Today's and Tomorrow's Upcoming Events

I will be bringing you upcoming events/announcements every day. If you want improvements to this post, please mention houseme in the comments. We will make improvements based on your feedback.
 
https://kryptocal.com | /kryptocal | Android | iOS | Telegram Interactive Bot (add cryptocalapp_bot) | Telegram Channel @kryptocal
 

ADD AN EVENT

If you like an event to be added, click Submit Event, and we will do the rest.
 

NEXT DAY UPCOMING EVENTS

 
General
ASIC Miners Released August 31, 2020
NEM(XEM) Website Updates August 31, 2020
IOTA(MIOTA) IOTA 1.5 Phase 1 August 31, 2020
TRON(TRX) Klever Staking August 31, 2020
Ark(ARK) Mainnet Launch August 31, 2020
Edgeless(EDG) Network Upgrade August 31, 2020
Stox(STX) Town Hall August 31, 2020
StrongHands(SHND) New Identity, Logo, & GUI August 31, 2020
StakeNet(XSN) DEX Launch August 31, 2020
Dock(DOCK) Danforth Testnet August 31, 2020
Libra Credit(LBA) Ama with CEO August 31, 2020
Digitex Futures(DGTX) ETH/USD Futures Market August 31, 2020
Digitex Futures(DGTX) The DGTX Converter August 31, 2020
IoTeX(IOTX) DEX Launch August 31, 2020
QuarkChain(QKC) Five DeFi Products August 31, 2020
OneLedger(OLT) Validator Staking-Mainnet August 31, 2020
OneLedger(OLT) Mainnet Update (Kratos) August 31, 2020
OneLedger(OLT) Governance August 31, 2020
Kava(KAVA) Kava Testnet 9000 August 31, 2020
Synthetix Network Token(SNX) Pollux Release August 31, 2020
Chiliz(CHZ) Multi-flash Sale August 31, 2020
Azbit(AZ) Weekly AZ Burn August 31, 2020
TrustSwap(SWAP) Testnet Launch August 31, 2020
bZx Protocol(BZRX) Protocol Relaunch August 31, 2020
ARPA Chain(ARPA) Dev Update August 31, 2020
JUST(JST) Yield Farming August 31, 2020
ILCoin(ILC) Retribution Release August 31, 2020
Mcashchain(MCASH) MCASH for MAS holders August 31, 2020
Verasity(VRA) Esports Platform Update August 31, 2020
Sparkpoint(SRK) Staking Contract August 31, 2020
Sparkpoint(SRK) SparkPlay Reveal August 31, 2020
PCHAIN(PI) Monthly Burn August 31, 2020
Akropolis(AKRO) Delphi Mainnet Launch August 31, 2020
Avalanche IOU(AVAX) Avalanche Mainnet August 31, 2020
Globex(GEX) Globex Farm Expansion August 31, 2020
Globex(GEX) Staking Program August 31, 2020
Jupiter(JUP) Swap deadline August 31, 2020
Perlin(PERL) Staking Reward August 31, 2020
Perlin(PERL) Snapshot August 31, 2020
Sentivate(SNTVT) Rebrand Rollout August 31, 2020
Feellike(FLL) Staking Algorithm August 31, 2020
Newscrypto(NWC) Expand to Asian Region August 31, 2020
MargiX(MGX) Testnet MảrgiX Chain August 31, 2020
MargiX(MGX) DeFi Integration August 31, 2020
MargiX(MGX) MargiX Chain Testnet August 31, 2020
MANTRA DAO(OM) AMA with Co-founder August 31, 2020
The Sandbox(SAND) AMA w/NanoNews August 31, 2020
MultiVAC(MTV) New Roadmap August 31, 2020
Augur(REP) V2.2 September 1, 2020
Augur(REP) V2.x September 1, 2020
Decentraland(MANA) NEW Platformer Mechanics September 1, 2020
BlackCoin(BLK) HolyTransaction Staking September 1, 2020
Bitcore(BTX) BitCore BTX Algo-switch September 1, 2020
KickCoin(KICK) Token Buyback September 1, 2020
Insolar(xns) Swap Deadline September 1, 2020
VITE(VITE) Mainnet Launch September 1, 2020
Auxilium(AUX) AUX IEO on XT September 1, 2020
Auxilium(AUX) Interest Distribution September 1, 2020
ADAMANT Messenger(ADM) ADAMANT Messenger v2.8.0 September 1, 2020
DEEX(DEEX) DEEX Unleashed September 1, 2020
Zenon(ZNN) QSR Third Snapshot September 1, 2020
Enecuum(ENQ) Token Mainnet Transfer September 1, 2020
AZBI CORE(AZBI) AZBI.DEV Launch September 1, 2020
DarkPay(D4RK) D4RK Second Anniversary September 1, 2020
WazirX(WRX) WazirX New Feature September 1, 2020
 
Exchanges
Factom(FCT) Exchange Listings August 31, 2020
Bitcoin Private(BTCP) ProBit Listing August 31, 2020
Sparkpoint(SRK) CEX Exchange Listing August 31, 2020
ETHPlus(ETHP) Probit ETH Pair Listing August 31, 2020
Celo(CELO) Coinbase Pro Listing August 31, 2020
Meter Governance(MTRG) MXC Listing August 31, 2020
sLINK(sLINK) BKEX Listing August 31, 2020
Sora(XOR) Graviex Listing September 1, 2020
WaykiChain Governance Coin(WGRT) CoinTiger Listing September 1, 2020
 
Software/Platforms
Pundi X [NEW](NPXS) System Update August 31, 2020
DAPS Token(DAPS) DAPS Web Wallet August 31, 2020
Kingdom Game 4.0(KDG) KDG 2.0 Release August 31, 2020
 
Blockchains
DEEX(DEEX) Deex Blockchain Explorer September 1, 2020
 
 
submitted by cryptocalbot to CryptoMarkets [link] [comments]

List of Today's and Tomorrow's Upcoming Events

I will be bringing you upcoming events/announcements every day. If you want improvements to this post, please mention houseme in the comments. We will make improvements based on your feedback.
 
https://kryptocal.com | /kryptocal | Android | iOS | Telegram Interactive Bot (add cryptocalapp_bot) | Telegram Channel @kryptocal
 

ADD AN EVENT

If you like an event to be added, click Submit Event, and we will do the rest.
 

NEXT DAY UPCOMING EVENTS

 
General
ASIC Miners Released August 31, 2020
NEM(XEM) Website Updates August 31, 2020
IOTA(MIOTA) IOTA 1.5 Phase 1 August 31, 2020
TRON(TRX) Klever Staking August 31, 2020
Ark(ARK) Mainnet Launch August 31, 2020
Edgeless(EDG) Network Upgrade August 31, 2020
Stox(STX) Town Hall August 31, 2020
StrongHands(SHND) New Identity, Logo, & GUI August 31, 2020
StakeNet(XSN) DEX Launch August 31, 2020
Dock(DOCK) Danforth Testnet August 31, 2020
Libra Credit(LBA) Ama with CEO August 31, 2020
Digitex Futures(DGTX) ETH/USD Futures Market August 31, 2020
Digitex Futures(DGTX) The DGTX Converter August 31, 2020
IoTeX(IOTX) DEX Launch August 31, 2020
QuarkChain(QKC) Five DeFi Products August 31, 2020
OneLedger(OLT) Validator Staking-Mainnet August 31, 2020
OneLedger(OLT) Mainnet Update (Kratos) August 31, 2020
OneLedger(OLT) Governance August 31, 2020
Kava(KAVA) Kava Testnet 9000 August 31, 2020
Synthetix Network Token(SNX) Pollux Release August 31, 2020
Chiliz(CHZ) Multi-flash Sale August 31, 2020
Azbit(AZ) Weekly AZ Burn August 31, 2020
TrustSwap(SWAP) Testnet Launch August 31, 2020
bZx Protocol(BZRX) Protocol Relaunch August 31, 2020
ARPA Chain(ARPA) Dev Update August 31, 2020
JUST(JST) Yield Farming August 31, 2020
ILCoin(ILC) Retribution Release August 31, 2020
Mcashchain(MCASH) MCASH for MAS holders August 31, 2020
Verasity(VRA) Esports Platform Update August 31, 2020
Sparkpoint(SRK) Staking Contract August 31, 2020
Sparkpoint(SRK) SparkPlay Reveal August 31, 2020
PCHAIN(PI) Monthly Burn August 31, 2020
Akropolis(AKRO) Delphi Mainnet Launch August 31, 2020
Avalanche IOU(AVAX) Avalanche Mainnet August 31, 2020
Globex(GEX) Globex Farm Expansion August 31, 2020
Globex(GEX) Staking Program August 31, 2020
Jupiter(JUP) Swap deadline August 31, 2020
Perlin(PERL) Staking Reward August 31, 2020
Perlin(PERL) Snapshot August 31, 2020
Sentivate(SNTVT) Rebrand Rollout August 31, 2020
Feellike(FLL) Staking Algorithm August 31, 2020
Newscrypto(NWC) Expand to Asian Region August 31, 2020
MargiX(MGX) Testnet MảrgiX Chain August 31, 2020
MargiX(MGX) DeFi Integration August 31, 2020
MargiX(MGX) MargiX Chain Testnet August 31, 2020
MANTRA DAO(OM) AMA with Co-founder August 31, 2020
The Sandbox(SAND) AMA w/NanoNews August 31, 2020
MultiVAC(MTV) New Roadmap August 31, 2020
Augur(REP) V2.2 September 1, 2020
Augur(REP) V2.x September 1, 2020
Decentraland(MANA) NEW Platformer Mechanics September 1, 2020
BlackCoin(BLK) HolyTransaction Staking September 1, 2020
Bitcore(BTX) BitCore BTX Algo-switch September 1, 2020
KickCoin(KICK) Token Buyback September 1, 2020
Insolar(xns) Swap Deadline September 1, 2020
VITE(VITE) Mainnet Launch September 1, 2020
Auxilium(AUX) AUX IEO on XT September 1, 2020
Auxilium(AUX) Interest Distribution September 1, 2020
ADAMANT Messenger(ADM) ADAMANT Messenger v2.8.0 September 1, 2020
DEEX(DEEX) DEEX Unleashed September 1, 2020
Zenon(ZNN) QSR Third Snapshot September 1, 2020
Enecuum(ENQ) Token Mainnet Transfer September 1, 2020
AZBI CORE(AZBI) AZBI.DEV Launch September 1, 2020
DarkPay(D4RK) D4RK Second Anniversary September 1, 2020
WazirX(WRX) WazirX New Feature September 1, 2020
 
Exchanges
Factom(FCT) Exchange Listings August 31, 2020
Bitcoin Private(BTCP) ProBit Listing August 31, 2020
Sparkpoint(SRK) CEX Exchange Listing August 31, 2020
ETHPlus(ETHP) Probit ETH Pair Listing August 31, 2020
Celo(CELO) Coinbase Pro Listing August 31, 2020
Meter Governance(MTRG) MXC Listing August 31, 2020
sLINK(sLINK) BKEX Listing August 31, 2020
Sora(XOR) Graviex Listing September 1, 2020
WaykiChain Governance Coin(WGRT) CoinTiger Listing September 1, 2020
 
Software/Platforms
Pundi X [NEW](NPXS) System Update August 31, 2020
DAPS Token(DAPS) DAPS Web Wallet August 31, 2020
Kingdom Game 4.0(KDG) KDG 2.0 Release August 31, 2020
 
Blockchains
DEEX(DEEX) Deex Blockchain Explorer September 1, 2020
 
 
submitted by cryptocalbot to kryptocal [link] [comments]

Default English word list

Alright so, I took the default database from there https://skribbliohints.github.io/ and with the help of html, I extracted the words to a list separated by commas. It's useful when you want to translate those words into your native language.
Word of advice, when using google translate, do not put all words at once there, it can rapidly worsen the translation.
(And there is a last thing. Their algorithm of picking only custom words is not working really good, at least for me. Meaning that I often get duplicates, despite having a list this big and without duplicates. I'm still trying to find some solution to this, so if somebody is experiencing this as well, share the knowledge please, I will do the same.)
SOLUTION: Thanks for the reply from PepegaWR who identified the cause. I also tested it and there seems to be a custom words limit of 5000 characters. The easiest way in my opinion is to shuffle the words before each session to minimize the impact. Also thanks to the flynger who had the same idea before me :)
Finally, here it is, enjoy the scribbling ^^ :

ABBA, AC/DC, Abraham Lincoln, Adidas, Africa, Aladdin, America, Amsterdam, Android, Angelina Jolie, Angry Birds, Antarctica, Anubis, Apple, Argentina, Asia, Asterix, Atlantis, Audi, Australia, BMW, BMX, Bambi, Band-Aid, Barack Obama, Bart Simpson, Batman, Beethoven, Bible, Big Ben, Bill Gates, Bitcoin, Black Friday, Bomberman, Brazil, Bruce Lee, Bugs Bunny, Canada, Capricorn, Captain America, Cat Woman, Cerberus, Charlie Chaplin, Chewbacca, China, Chinatown, Christmas, Chrome, Chuck Norris, Colosseum, Cookie Monster, Crash Bandicoot, Creeper, Croatia, Cuba, Cupid, DNA, Daffy Duck, Darwin, Darwin Watterson, Deadpool, Dexter, Discord, Donald Duck, Donald Trump, Dora, Doritos, Dracula, Dumbo, Earth, Easter, Easter Bunny, Egypt, Eiffel tower, Einstein, Elmo, Elon Musk, Elsa, Eminem, England, Europe, Excalibur, Facebook, Family Guy, Fanta, Ferrari, Finn, Finn and Jake, Flash, Florida, France, Frankenstein, Fred Flintstone, Gandalf, Gandhi, Garfield, Germany, God, Goofy, Google, Great Wall, Greece, Green Lantern, Grinch, Gru, Gumball, Happy Meal, Harry Potter, Hawaii, Hello Kitty, Hercules, Hollywood, Home Alone, Homer Simpson, Hula Hoop, Hulk, Ikea, India, Intel, Ireland, Iron Giant, Iron Man, Israel, Italy, Jack-o-lantern, Jackie Chan, James Bond, Japan, JayZ, Jenga, Jesus Christ, Jimmy Neutron, John Cena, Johnny Bravo, KFC, Katy Perry, Kermit, Kim Jong-un, King Kong, Kirby, Kung Fu, Lady Gaga, Las Vegas, Lasagna, Lego, Leonardo DiCaprio, Leonardo da Vinci, Lion King, London, London Eye, Luigi, MTV, Madagascar, Mario, Mark Zuckerberg, Mars, McDonalds, Medusa, Mercedes, Mercury, Mexico, Michael Jackson, Mickey Mouse, Microsoft, Milky Way, Minecraft, Miniclip, Minion, Minotaur, Mona Lisa, Monday, Monster, Mont Blanc, Morgan Freeman, Morse code, Morty, Mount Everest, Mount Rushmore, Mozart, Mr. Bean, Mr. Meeseeks, Mr Bean, Mr Meeseeks, Mummy, NASCAR, Nasa, Nemo, Neptune, Netherlands, New Zealand, Nike, Nintendo Switch, North Korea, Northern Lights, Norway, Notch, Nutella, Obelix, Olaf, Oreo, Pac-Man, Paris, Patrick, Paypal, Peppa Pig, Pepsi, Phineas and Ferb, Photoshop, Picasso, Pikachu, Pink Panther, Pinocchio, Playstation, Pluto, Pokemon, Popeye, Popsicle, Porky Pig, Portugal, Poseidon, Pringles, Pumba, Reddit, Rick, Robbie Rotten, Robin Hood, Romania, Rome, Russia, Samsung, Santa, Saturn, Scooby Doo, Scotland, Segway, Sherlock Holmes, Shrek, Singapore, Skittles, Skrillex, Skype, Slinky, Solar System, Sonic, Spain, Spartacus, Spiderman, SpongeBob, Squidward, Star Wars, Statue of Liberty, Steam, Stegosaurus, Steve Jobs, Stone Age, Sudoku, Suez Canal, Superman, Susan Wojcicki, Sydney Opera House, T-rex, Tails, Tarzan, Teletubby, Terminator, Tetris, The Beatles, Thor, Titanic, Tooth Fairy, Tower Bridge, Tower of Pisa, Tweety, Twitter, UFO, USB, Uranus, Usain Bolt, Vatican, Vault boy, Velociraptor, Venus, Vin Diesel, W-LAN, Wall-e, WhatsApp, William Shakespeare, William Wallace, Winnie the Pooh, Wolverine, Wonder Woman, Xbox, Xerox, Yin and Yang, Yoda, Yoshi, Youtube, Zelda, Zeus, Zorro, Zuma, abstract, abyss, accident, accordion, ace, acid, acne, acorn, action, actor, addiction, addition, adorable, adult, advertisement, afro, afterlife, air conditioner, airbag, aircraft, airplane, airport, alarm, albatross, alcohol, alien, allergy, alley, alligator, almond, alpaca, ambulance, anaconda, anchor, angel, anglerfish, angry, animation, anime, ant, anteater, antelope, antenna, anthill, antivirus, anvil, apartment, apocalypse, applause, apple, apple pie, apple seed, apricot, aquarium, arch, archaeologist, archer, architect, aristocrat, arm, armadillo, armor, armpit, arrow, ash, assassin, assault, asteroid, astronaut, asymmetry, athlete, atom, attic, audience, autograph, avocado, axe, baboon, baby, back pain, backbone, backflip, backpack, bacon, bad, badger, bag, bagel, bagpipes, baguette, bait, bakery, baklava, balance, balcony, bald, ball, ballerina, ballet, balloon, bamboo, banana, bandage, bandana, banjo, bank, banker, bar, barbarian, barbecue, barbed wire, barber, barcode, bark, barn, barrel, bartender, base, basement, basket, basketball, bat, bathroom, bathtub, battery, battle, battleship, bayonet, bazooka, beach, beak, bean, bean bag, beanie, beanstalk, bear, bear trap, beatbox, beaver, bed, bed bug, bed sheet, bedtime, bee, beef, beer, beet, beetle, bell, bell pepper, bellow, belly, belly button, below, belt, bench, betray, bicycle, bill, billiards, bingo, binoculars, biology, birch, bird, bird bath, birthday, biscuit, bite, black, black hole, blackberry, blacksmith, blanket, bleach, blender, blimp, blind, blindfold, blizzard, blood, blowfish, blue, blueberry, blush, boar, board, boat, bobsled, bodyguard, boil, bomb, booger, book, bookmark, bookshelf, boomerang, boots, border, bottle, bottle flip, bounce, bouncer, bow, bowl, bowling, box, boy, bracelet, braces, brain, brainwash, branch, brand, bread, breakfast, breath, brick, bricklayer, bride, bridge, broadcast, broccoli, broken heart, bronze, broom, broomstick, brownie, bruise, brunette, brush, bubble, bubble gum, bucket, building, bulge, bull, bulldozer, bullet, bumper, bungee jumping, bunk bed, bunny, burglar, burp, burrito, bus, bus driver, bus stop, butcher, butler, butt cheeks, butter, butterfly, button, cab driver, cabin, cabinet, cactus, cage, cake, calendar, camel, camera, campfire, camping, can, can opener, canary, candle, canister, cannon, canyon, cap, cape, cappuccino, captain, car wash, cardboard, carnival, carnivore, carpenter, carpet, carrot, cartoon, cash, casino, cast, cat, catalog, catapult, caterpillar, catfish, cathedral, cauldron, cauliflower, cave, caveman, caviar, ceiling, ceiling fan, celebrate, celebrity, cell, cell phone, cello, cement, centaur, centipede, chain, chainsaw, chair, chalk, chameleon, champagne, champion, chandelier, charger, cheek, cheeks, cheerleader, cheese, cheeseburger, cheesecake, cheetah, chef, chemical, cherry, cherry blossom, chess, chest, chest hair, chestnut, chestplate, chew, chicken, chihuahua, child, chime, chimney, chimpanzee, chin, chinchilla, chocolate, chopsticks, church, cicada cigarette, cinema, circle, circus, clap, clarinet, classroom, claw, clay, clean, clickbait, cliff, climb, cloak, clock, cloth, clothes hanger, cloud, clover, clown, clownfish, coach, coal, coast, coast guard, coaster, coat, cobra, cockroach, cocktail, coconut, cocoon, coffee, coffee shop, coffin, coin, cola, cold, collapse, collar, color-blind, comb, comedian, comedy, comet, comfortable, comic book, commander, commercial, communism, community, compass, complete, computer, concert, condiment, cone, confused, console, continent, controller, conversation, cookie, cookie jar, copper, copy, coral, coral reef, cord, cork, corkscrew, corn, corn dog, corner, cornfield, corpse, cotton, cotton candy, country, cousin, cow, cowbell, cowboy, coyote, crab, crack, crate, crawl space, crayon, cream, credit, credit card, cricket, cringe, crocodile, croissant, crossbow, crow, crowbar, crucible, cruise, crust, crystal, cube, cuckoo, cucumber, cup, cupboard, cupcake, curry, curtain, cushion, customer, cut, cute, cyborg, cylinder, cymbal, dagger, daisy, dalmatian, dance, dandelion, dandruff, darts, dashboard, daughter, day, dead, deaf, deep, deer, defense, delivery, demon, demonstration, dent, dentist, deodorant, depressed, derp, desert, desk, desperate, dessert, detective, detonate, dew, diagonal, diagram, diamond, diaper, dice, dictionary, die, diet, dig, dinner, dinosaur, diploma, dirty, disaster, disease, dishrag, dispenser, display, diss track, distance, diva, divorce, dizzy, dock, doctor, dog, doghouse, doll, dollar, dollhouse, dolphin, dome, dominoes, donkey, door, doorknob, dots, double, dough, download, dragon, dragonfly, drain, drama, drawer, dream, dress, drink, drip, drive, driver, drool, droplet, drought, drum, drum kit, duck, duct tape, duel, dwarf, dynamite, eagle, ear, earbuds, earthquake, earwax, east, eat, echo, eclipse, eel, egg, eggplant, elbow, elder, 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folder, food, forehead, forest, forest fire, fork, fort, fortress, fortune, fossil, fountain, fox, frame, freckles, freezer, fridge, fries, frog, frostbite, frosting, frown, fruit, full, full moon, funeral, funny, fur, furniture, galaxy, gang, gangster, garage, garbage, garden, gardener, garlic, gas, gas mask, gasoline, gasp, gate, gem, gender, generator, genie, gentle, gentleman, geography, germ, geyser, ghost, giant, gift, giraffe, girl, gladiator, glass, glasses, glitter, globe, gloss, glove, glow, glowstick, glue, glue stick, gnome, goal, goat, goatee, goblin, godfather, gold, gold chain, golden apple, golden egg, goldfish, golf, golf cart, good, goose, gorilla, graduation, graffiti, grandmother, grapefruit, grapes, graph, grass, grasshopper, grave, gravedigger, gravel, graveyard, gravity, greed, grenade, grid, grill, grin, groom, grumpy, guillotine, guinea pig, guitar, gumball, gummy, gummy bear, gummy worm, hacker, hair, hair roller, hairbrush, haircut, hairspray, hairy, half, halo, ham, hamburger, hammer, hammock, hamster, hand, handicap, handle, handshake, hanger, happy, harbor, hard, hard hat, harmonica, harp, harpoon, hashtag, hat, hazard, hazelnut, head, headache, headband, headboard, heading, headphones, health, heart, heat, hedgehog, heel, heist, helicopter, hell, helmet, hen, hermit, hero, hexagon, hibernate, hieroglyph, high five, high heels, high score, highway, hilarious, hill, hip hop, hippie, hippo, hitchhiker, hive, hobbit, hockey, holiday, homeless, honey, honeycomb, hoof, hook, hop, hopscotch, horizon, horn, horse, horsewhip, hose, hospital, hot, hot chocolate, hot dog, hot sauce, hotel, hourglass, house, hovercraft, hug, hummingbird, hunger, hunter, hurdle, hurt, husband, hut, hyena, hypnotize, iPad, iPhone, ice, ice cream, ice cream truck, iceberg, icicle, idea, imagination, impact, incognito, industry, infinite, injection, insect, inside, insomnia, internet, intersection, interview, invasion, invention, invisible, iron, island, ivy, jacket, jackhammer, jaguar, jail, jalapeno, janitor, jaw, jazz, jeans, jeep, jello, jelly, jellyfish, jester, jet ski, joker, journalist, journey, judge, juggle, juice, jump rope, jungle, junk food, kangaroo, karaoke, karate, katana, kazoo, kebab, keg, kendama, ketchup, kettle, key, keyboard, kidney, kindergarten, king, kiss, kitchen, kite, kitten, kiwi, knee, kneel, knife, knight, knot, knuckle, koala, kraken, label, laboratory, ladder, lady, ladybug, lake, lamb, lamp, landlord, landscape, lane, language, lantern, lap, laptop, laser, lasso, laundry, lava, lava lamp, lawn mower, lawyer, leader, leaf, leak, leash, leather, leave, leech, legs, lemon, lemonade, lemur, lens, leprechaun, lettuce, levitate, librarian, library, licorice, lid, light bulb, lighter, lighthouse, lightning, lightsaber, lily, lilypad, limbo, lime, limousine, line, link, lion, lips, lipstick, litter box, lizard, llama, loading, loaf, lobster, lock, log, logo, lollipop, loot, loser, lotion, lottery, lounge, love, low, luck, luggage, lumberjack, lung, lynx, lyrics, macaroni, machine, macho, mafia, magazine, magic, magic trick, magic wand, magician, magma, magnet, magnifier, maid, mailbox, mailman, makeup, mall, mammoth, manatee, manhole, manicure, mannequin, mansion, mantis, map, maracas, marathon, marble, margarine, marigold, market, marmalade, marmot, marshmallow, mascot, mask, massage, match, matchbox, mattress, mayonnaise, mayor, maze, meal, meat, meatball, meatloaf, mechanic, meerkat, megaphone, melon, melt, meme, mermaid, message, messy, metal, meteorite, microphone, microscope, microwave, midnight, military, milk, milkman, milkshake, mime, miner, minigolf, minivan, mint, minute, mirror, missile, model, mohawk, mold, mole, money, monk, monkey, monster, moon, moose, mop, morning, mosquito, moss, moth, mothball, mother, motherboard, motorbike, motorcycle, mountain, mouse, mousetrap, mouth, movie, mud, muffin, mug, murderer, muscle, museum, mushroom, musket, mustache, mustard, nachos, nail, nail file, nail polish, napkin, narwhal, nature, navy, neck, needle, neighbor, neighborhood, nerd, nest, network, newspaper, nickel, night, nightclub, nightmare, ninja, noob, noodle, north, nose, nose hair, nose ring, nosebleed, nostrils, notebook, notepad, nothing, notification, novel, nugget, nuke, nun, nurse, nut, nutcracker, nutmeg, nutshell, oar, observatory, ocean, octagon, octopus, office, oil, old, omelet, onion, open, opera, orange, orangutan, orbit, orca, orchestra, orchid, organ, origami, ostrich, otter, outside, oval, overweight, owl, oxygen, oyster, paddle, page, pain, paint, paintball, pajamas, palace, palette, palm, palm tree, pan, pancake, panda, panpipes, panther, pants, papaya, paper, paper bag, parachute, parade, parakeet, parents, park, parking, parrot, party, password, pasta, pastry, path, patient, patio, patriot, pause, pavement, paw, peace, peach, peacock, peanut, pear, peas, peasant, pedal, pelican, pencil, pencil case, pencil sharpener, pendulum, penguin, peninsula, penny, pensioner, pepper, pepperoni, perfume, periscope, person, pet food, pet shop, petal, pharmacist, photo frame, photograph, photographer, piano, pickaxe, pickle, picnic, pie, pig, pigeon, piggy bank, pigsty, pike, pill, pillar, pillow, pillow fight, pilot, pimple, pin, pinball, pine, pine cone, pineapple, pink, pinky, pinwheel, pipe, pirate, pirate ship, pistachio, pistol, pitchfork, pizza, plague, planet, plank, plate, platypus, player, playground, plow, plug, plumber, plunger, pocket, pogo stick, point, poison, poisonous, poke, polar bear, policeman, pollution, polo, pond, pony, ponytail, poodle, poop, poor, popcorn, pope, poppy, popular, porch, porcupine, portal, portrait, positive, postcard, poster, pot, pot of gold, potato, potion, pound, powder, prawn, pray, preach, pregnant, present, president, pretzel, price tag, priest, prince, princess, printer, prism, prison, pro, procrastination, professor, programmer, promotion, protest, provoke, prune, pub, pudding, puddle, puffin, puma, pumpkin, punishment, punk, puppet, purity, purse, puzzle, pyramid, quarter, queen, queue, quicksand, quill, quilt, quokka, raccoon, race, racecar, radar, radiation, radio, radish, raft, rail, rain, rainbow, raincoat, raindrop, rainforest, raisin, rake, ram, ramp, rapper, raspberry, rat, ravioli, razor, razorblade, read, reality, reception, receptionist, record, rectangle, recycling, red, red carpet, reeds, referee, reflection, reindeer, relationship, religion, remote, repeat, reptile, rest, restaurant, retail, revolver, rewind, rhinoceros, rib, ribbon, rice, ring, ringtone, risk, river, roadblock, robber, robin, robot, rock, rocket, rockstar, roll, roof, room, rooster, root, rose, royal, rubber, ruby, rug, ruler, run, rune, sad, saddle, safari, safe, sailboat, salad, sale, saliva, salmon, salt, saltwater, sand, sand castle, sandbox, sandstorm, sandwich, satellite, sauce, sauna, sausage, saxophone, scar, scarecrow, scarf, scary, scent, school, science, scientist, scissors, scoop, score, scream, screen, screw, scribble, scuba, sculpture, scythe, sea, sea lion, seafood, seagull, seahorse, seal, search, seashell, seasick, season, seat belt, seaweed, second, security, seed, seesaw, semicircle, sensei, server, sew, sewing machine, shadow, shake, shallow, shampoo, shape, shark, shaving cream, sheep, shelf, shell, shipwreck, shirt, shock, shoe, shoebox, shoelace, shop, shopping, shopping cart, short, shotgun, shoulder, shout, shovel, shower, shrew, shrub, shy, sick, signature, silence, silo, silver, silverware, sing, sink, sit, six pack, skateboard, skateboarder, skates, skeleton, ski, ski jump, skin, skinny, skribbl.io, skull, skunk, sky, skydiving, skyline, skyscraper, slam, sledge, sledgehammer, sleep, sleeve, slide, slime, slingshot, slippery, slope, sloth, slow, slump, smell, smile, smoke, snail, snake, sneeze, sniper, snow, snowball, snowball fight, snowboard, snowflake, snowman, soap, soccer, social media, socket, socks, soda, soil, soldier, sombrero, son, sound, soup, south, space, space suit, spaceship, spade, spaghetti, spark, sparkles, spatula, speaker, spear, spelunker, sphinx, spider, spin, spinach, spine, spiral, spit, spoiler, sponge, spool, spoon, spore, sports, spray paint, spring, sprinkler, spy, square, squid, squirrel, stab, stadium, stage, stamp, stand, stapler, star, starfish, starfruit, statue, steam, step, stereo, sting, stingray, stomach, stone, stoned, stop sign, stork, storm, stove, straw, strawberry, streamer, street, stress, strong, student, studio, study, stylus, submarine, subway, sugar, suitcase, summer, sun, sunburn, sunflower, sunglasses, sunrise, sunshade, supermarket, superpower, surface, surfboard, surgeon, survivor, sushi, swag, swamp, swan, swarm, sweat, sweater, swimming pool, swimsuit, swing, switch, sword, swordfish, symphony, table, table tennis, tablecloth, tablet, tabletop, taco, tadpole, tail, tailor, take off, talent show, tampon, tangerine, tank, tape, tarantula, target, taser, tattoo, taxi, taxi driver, tea, teacher, teapot, tear, teaspoon, teddy bear, telephone, telescope, television, temperature, tennis, tennis racket, tent, tentacle, text, thermometer, thief, thin, think, thirst, throat, throne, thug, thumb, thunder, thunderstorm, ticket, tickle, tie, tiger, time machine, timpani, tiny, tip, tiramisu, tire, tired, tissue, tissue box, toad, toast, toaster, toe, toenail, toilet, tomato, tomb, tombstone, tongue, toolbox, tooth, toothbrush, toothpaste, toothpick, top hat, torch, tornado, torpedo, tortoise, totem, toucan, touch, tourist, tow truck, towel, tower, toy, tractor, traffic, traffic light, trailer, train, translate, trap, trapdoor, trash can, traveler, treadmill, treasure, tree, treehouse, trend, triangle, trick shot, tricycle, trigger, triplets, tripod, trombone, trophy, tropical, truck, truck driver, trumpet, tuba, tug, tumor, tuna, tunnel, turd, turkey, turnip, turtle, tuxedo, twig, type, udder, ukulele, umbrella, uncle, underground, underweight, undo, unibrow, unicorn, unicycle, uniform, universe, upgrade, vacation, vaccine, vacuum, valley, vampire, vanilla, vanish, vault, vegetable, vegetarian, vein, vent, vertical, veterinarian, victim, victory, video, video game, village, villain, vine, vinegar, viola, violence, violin, virtual reality, virus, vise, vision, vitamin, vlogger, vodka, volcano, volleyball, volume, vomit, voodoo, vortex, vote, vulture, vuvuzela, waffle, waist, waiter, wake up, walk, wall, wallpaper, walnut, walrus, warehouse, warm, wart, wasp, watch, water, water cycle, water gun, waterfall, wave, wax, weak, wealth, weapon, weasel, weather, web, website, wedding, welder, well, werewolf, west, western, whale, wheel, wheelbarrow, whisk, whisper, whistle, white, wife, wig, wiggle, willow, wind, windmill, window, windshield, wine, wine glass, wing, wingnut, winner, winter, wire, wireless, witch, witness, wizard, wolf, wonderland, woodpecker, wool, work, workplace, world, worm, wound, wrapping, wreath, wrench, wrestler, wrestling, wrinkle, wrist, writer, x-ray, xylophone, yacht, yardstick, yawn, yearbook, yellow, yeti, yo-yo, yogurt, yolk, young, youtuber, zebra, zeppelin, zigzag, zipline, zipper, zombie, zoo, zoom,
submitted by StaroSVK to skribbl [link] [comments]

Some very important points that most people do not understand about Bitcoin

Point 1)
Most people do not understand that you can't send money over internet, but only information. Bitcoin is the first digital settlement layer.
When I send a picture to someone on Facebook messenger, I don't actually send a picture. I send information about the pictures structure, and the picture gets restructured on the client side (the cellphone) of the user I send it to. Copy of the information is being sent, not the picture itself. So you can't send money over internet, it is not possible, only information.
If I have a bank account at some bank, and I send $50 dollars to another person in the same bank by using the banks website, then a transaction happens between two people within the same infrastructure, which is the banks back-end system and database. So the banks system just subtracts $50 dollars from one person and adds $50 dollars to another person. But no money has moved, only information has been edited. But if I send money to someone that uses another Bank, then this bank has its own infrastructure which is independent of the first. So Bank1 tells Bank2 that they have a user that wants to send money to a user of the other bank. So Bank1 subtracts $50 from User1, and Bank2 adds $50 to User2, but now Bank1 owes Bank2 $50, why? Because you can't send money over internet. So they have to settle the difference between them with some kind of a settlement system, (cash, gold or a third party like a central bank). This difference can be the result of many transactions between many users and can be millions of dollars of worth, the settlement can be done periodically for example every 6 months.
With Bitcoin, because of how the system works, it is almost as if you can send value over internet for the first time, even though you don't really send value, you still send information, but since the infrastructure is global, it is like the first example, it is as if the world has (one large bank infrastructure), that is fully automated and which no one controls.
This alone makes Bitcoin extremely valuable, because it is a trust less digital settlement layer which is extremely secure and not dependent on one particular nation or organisation.
Point 2)
There can never be more than 21 million Bitcoin. This is very hard for people to grasp. Because what do you mean there can never be more than 21 million bitcoin? It sounds like a game, such a scam... People do not understand that Bitcoin is not normal software. In normal software the developers can change the code as they want and publish the code when they want. They do not understand that Bitcoin is a software that is not like a normal software. You can't actually change the number even if the number is programmed in. Which of-course most people will deny, because it makes no sense for most people. They do not understand that even though it is theoretically possible to change it, it is practically almost impossible. It is theoretically possible for me to convince half of Sweden to burn half of their money, but practically impossible. Just because something is theoretically possible, doesn't mean that it will happen within a time frame, or even in your lifetime. In order for the 21 million supply to change, most people in the Bitcoin community needs to agree on it, which is practically impossible. Miners have to change to the new protocol and so on. Not going to happen.
When gold treasures were lost in the past, someone else could find them. Gold practically never completely disappears, it is a chemical element. With Bitcoin, once it is lost it is practically lost forever (put aside quantum computing for now and other theoretical unforeseeable events). 21 million is only the upper theoretical limit. Bitcoin will be more and more scarce as time goes by. Gold is not like this. Gold has an inflation rate of 1,5% every year. The reason it is constant is because even if the stock gets bigger, the flow into the stock also gets bigger because of better mining capabilities, so you can look at it as constant inflation of 1.5% every year. With Bitcoin, not only do the stock to flow ratio go up every halvening, and the flow into bitcoin not only decreases with time, but almost goes into negative because of lost coins every year. This is completely insane and people do not understand this. If you combine this almost deflationary nature of Bitcoin with extreme bullish market sentiment then you will realize that no one knows what is going to happen in the future because wrapping your head around all this and to come to a conclusion about the Bitcoin price will make you sound absolutely delusional to most people.
Point 3)
People think that $100,000 bitcoin is wishful thinking and that there is not enough money in the world for Bitcoin to be worth millions of dollars. Which I can assure you is false. Bitcoin can even be worth $50 million dollars per coin, which would make 2 satoshi 1 dollar. Even if one Bitcoin transaction would cost 10 000 Satoshi. You might say, that's not possible, whats the point if one transaction is so expensive. Again, you don't need to actually do a transfer of money, as in the first example of point 1, virtual transactions on bank level can happen, or on Coinbase. You can send 100 satoshi to someone and pay 1 satoshi in fee "on the bank level", not on chain, banks or exchanges then will settle the difference as they want. At least with Bitcoin you have the option to be you own bank, even if that will cost you more, you still have the option. This is already happening in front of your eyes. Banks like Dutch ING, Deutsche bank, are already working on custody services for cryptocurrencies. And even exchanges want to operate as banks and exchanges like Coinbase are working to get license for this. This is already happening and it is the correct move forwards, a mix between the legacy banking system and cryptocurrencies. You can already spend your Bitcoin with Coinbase Visa Card or similar services. Most people are too lazy and stupid to operate like us with their own wallets, it is a fact well known.
In terms of the price, money inflow is not the same as market cap. Take for instance the following simple scenario. I own 100% of the shares of my own company and I decide to sell 10% of the company for 1 million USD, which will value my whole company at 10 million USD, so 1 million flow into my company leads to 10x market cap of 10 million USD. For Bitcoin to have 21 trillion market cap, Bitcoin does not need 21 trillion of money inflow. Bitcoin price is dependent on market sentiment, if the market sentiment is such that very few people want to sell their coins because the price keeps going up then you might have 100x market cap of the money inflow. So 1 billion USD in money inflow translates to 100 billion USD in market cap. The multiplier can be 10x, 2x or 50x, all depends on market sentiment and time period. So an inflow of 10 trillion USD in 10 years might lead to 100 trillion USD market cap of BTC and 5 million USD per Bitcoin.
Bitcoin value have no roof, the price might actually just keep going up and up and up and up and up. We have never had something that is absolutely scarce, and global, and seen as an alternative form of money, when the rest of the world keeps bubbling up. There is no limit on the BTC price because the whole world works with a bubbly system, and the way Bitcoin is price discovered, is a guaranteed insane BTC price in the future. Even $100 million USD per Bitcoin in 50 years before I am dead is possible.
Point 4)
Fiat does not need to die, and Bitcoin does not need to take over in order for Bitcoin to have "ridiculous price". No financial crisis is needed. Actually what you want is things to just continue as they have done in the last 10 years. No too extreme events. Just "small events" here and there. You can't change human nature, it is inevitable. Bitcoin is so ingrained into our world that there is no way back. There will be people with whole Bitcoin, and people without. Just like people with gold and stock investments and real estate, and people without those things. No insane events, this is all normal.
Point 5)
Bitcoin has won as the financial cryptocurrency. No flippening will happen. The only flippening will be with gold and fiat currencies. If I wanted to, I could have developed a system like PayPal in 1 month time, and it would be able to do 5000 transactions per second because I would use MySQL and SSD, but no one would use my service because they would not trust me because they have no idea who I am and what my service is, and there is no one to send money too, so the network is not there. Bitcoin has won because security and network effect is way more important than transactions per second. Transactions per second will be dealt with on bank level, exchange level, or layer 2 solutions. This is already clear to me. Bitcoin has won.
Point 6)
In order to understand Bitcoin and what will happen in the future, you have to be able to see things that are not in front of you. You can't compare Bitcoin to Tulip mania, or even Gold. Because something like Bitcoin has never existed before and you have to think about it's properties and try to understand it with human nature and with how the world works and how everything keeps increasing, and Bitcoin is the thing that does not increase in supply. You will eventually accept the unnatural thought of Bitcoin never stopping going up in value, which is something that is hard to come to terms with, because it feels unnatural, "and it could not possibly be so".
Point 7)
The Gini coefficient of Bitcoin is not a big deal. I used to think that it was unfair that some people had 1,000 BTC, 10,000 BTC, or even 50,000 BTC. And I was afraid that they might dump their coins into the market and crash it. I have now realised that these people are smart people and they think like me, and they won't just dump their whole BTC holding on the market as that might be a very bad move for them. It is like when a majority holder of a company, like Jeff Bezos and Amazon, understands that he can't sell all of his shares in one go as that would effect Amazon stock value too much and would not be smart. It is best to sell when the price goes up, but then when they sell the BTC will just be eaten up by other people, and they will be at a loss in the longer term. And the other thing is that perhaps there is no other smart place to put that fiat money, Bitcoin might just be the best place to keep those amounts of money. Someone with a very large holding has two options. He can either sell his BTC, in which case the price would go down but the Bitcoin would be spread out between potentially thousands of new users, or he might decide to never sell. If he decides to never sell, it is as if those Bitcoins are lost forever and that is good for the Bitcoin price and Bitcoin in general. If he decides to sell then Bitcoin will be divided more equally among many users which is also a good thing for Bitcoin because that increases the network effect, and after he sells he no longer has the power to drive the price down, but now he sits on a very large fiat holding, he might even buy back at a higher price and drive the price higher. I know that if I had 10,000 BTC, I would sell 1,000 BTC and buy a house and a car and whatever I wanted, and sell another 1,000 BTC to diversify into some other assets. And keep 8,000 BTC because I don't know of anywhere else to put that kind of money into good work. I believe in Bitcoin so as an investor it makes sense to keep it here. I probably would never sell because I would never need anything else after the initial 1,000 BTC sell.
Bitcoin is like a black hole that sucks in the Earths monetary resources over time. Most people that bought really early and were smart enough to hold all the way to these prices will only sell what they need to sell and keep the rest in BTC. Some of them might want to speculate and try to time the ATH, only to buy back in with most of the fiat they sold. Which means that even if money goes out of the market, it only goes out of the market temporarily, only to get back in at hopefully lower prices. And so the market grows, and grows and grows over time.
Point 8)
Bitcoin has intrinsic value. When people like Peter Schiff say that gold has intrinsic value because gold can be used in electronics and aviation and therefore gold has value but Bitcoin has no value because it has no intrinsic value, you have to take a pause and do some critical thinking. Can you imagine 16th century pirates looking to find a gold treasure worth an insane amount because they knew gold had value because of electronics and aviation? This is clearly absurd. Gold has been used as money for thousands of years and electronics and aviation was not even a thing 150 years ago. Gold has value because it is globally scarce. Bitcoin is absolutely verifiable scarce. Bitcoin has intrinsic value because of it's monetary policy and because you can carry millions of dollars of value by remembering only 24 words in your head, and carry that value wherever you want and no one can stop you, that is intrinsic value.
People had a hard time understanding that a website like Facebook could be worth billions of dollars, because it was not physical, it was "just a website". Even a website like Google search is not physical and still it has immense value. It is valuable information and it provides a good service, and that has value, it does not have to be physical and tangible.
submitted by 21btc to Bitcoin [link] [comments]

A Brief History of BitCoin

A Brief History of BitCoin


What is Bitcoin? | How It Work?

A Brief History of BitCoin

The virtual currency was intended to develop peer-to-peer transactions; it doesn’t need a go-between, the exchange of private information, or transaction fees.

What is Bitcoin?

Bitcoin is virtual money or cryptocurrency, that’s measured by a decentralized network of operators and isn’t straight subject to the impulses of central banking decisions or national governments. There are hundreds of cryptocurrencies in lively use today, Bitcoin is through far the most general and widely used – the nearby cryptocurrency equal to traditional, state-minted coins.

How Bitcoin Works

Bitcoin is a cryptocurrency since it’s supported by source code that customs highly composite procedures to prevent illegal duplication or creation of Bitcoin elements. The code’s fundamental principles, known as cryptography, are based on innovative scientific and computer engineering values. It’s practically impossible to stop Bitcoin’s source code and operate the currency’s supply.
Though it was headed by other virtual coins, Bitcoin is identified as the first modern cryptocurrency. That’s since Bitcoin is the initial to blend some key structures shared by most after created cryptocurrencies.

User Anonymity

Intense privacy safeties are seared into Bitcoin’s source code. The method is intended to openly record Bitcoin dealings and other related data without revealing the individuality of the groups involved. As a substitute, Bitcoin users are recognized by public keys or numerical codes that find them to additional users, and occasionally pseudonymous handles or usernames.

Bitcoin Exchanges

Bitcoin exchanges permit users to change Bitcoin parts for authorization currencies, such as the U.S. dollar and euro, at flexible exchange charges. Many Bitcoin relations also exchange Bitcoin components for other cryptocurrencies, with less popular substitutes that can’t straight be replaced for fiat coins. Most Bitcoin exchanges take a cut, naturally less than 1%, of each deal’s value.
Bitcoin exchanges certify that the Bitcoin market leftovers liquid, set their value qualified to traditional money – and allowing pouches to profit from the assumption on variations in that value.

BlockChain

Bitcoin’s blockchain is dynamic to its function. The blockchain is a public, spread record of all prior Bitcoin communications, which are kept in collections known as blocks. Each node of Bitcoin’s network – the server farms and positions, run by individuals or sets known as miners, whose hard work to produce new Bitcoin elements product in the recording and verification of Bitcoin dealings, and the episodic creation of new blocks – holds an identical record of Bitcoin’s blockchain.
Private Keys
Every Bitcoin handler has at smallest one private key, which is an entire number between 1 and 78 numbers in length. Separate users can have many unnamed handles, each with its private key. Private keys approve their owners’ characters and permit them to occupy or receive Bitcoin. Without them, handlers can’t whole transactions – they can’t access their properties until they improve the matching key. When a key is misplaced for good, the matching holdings change into a sort of everlasting limbo and can’t be improved.

Wallets

Real Bitcoin units are kept in “wallets” – secure cloud storing locations with superior information approving their owners (Bitcoin users) as the protectors of the Bitcoin units controlled within. However wallets like Coinbase, in theory, defend against the stealing of Bitcoin elements that aren’t currently being used, they’re exposed to hacking – mainly public wallets used by Bitcoin connections, online marketplaces, and specific websites that occur exclusively to store Bitcoin wallets known as “wallet services.”
Miners
Miners play an important role in the Bitcoin environment. As guards of the blockchain, they save the entire Bitcoin community truthful and indirectly provide the currency’s value. Miners are entities or cooperative governments with access to influential computers, often kept at remote, secretly owned “farms.” They do incredibly complex scientific tasks to new Bitcoin, which they then keep or change for fiat currency.

Modes of Bitcoin

  • Theft Private Keys.
  • Misusing Wallet Vulnerabilities
  • Functioning Fraudulent Exchanges and Savings Funds.
  • Attacking Authentic Exchanges Directly.
  • Aggressive Dark Web Marketplaces.

How to Get Bitcoin

There are three key ways people get Bitcoins.
  • You can purchase Bitcoins using ‘real’ money.
  • You can retail things and let persons pay with Bitcoins.
  • Developed using a computer.

Advantages of Using Bitcoin

  • Better Fluidity Comparative to Other currencies
  • Increasing the payment method
  • Worldwide Transactions Easier Than Even Currencies
  • Usually Lower Transaction Charges
  • Secrecy and Privacy Relative to Old Currencies
  • Individuality from Politically aware Agents and Creators
  • In-built Shortage

Disadvantages of Using Bitcoin

  • Exposure to Bitcoin-specific Tricks and Fraud
  • Black Market Motion May Damage Repute and Usefulness
  • Vulnerable to High Price Instability
  • No Chargebacks or Repayments
  • Possible to Be Replaced by Greater Cryptocurrency
  • Environmental Ills of Bitcoin Mining
submitted by Satawareus to u/Satawareus [link] [comments]

What are the top #10 crypto coins everyone should know?

Top 10 Crypto Coins you might not (yet) have heard about (but are important to know)

Ever heard of Bitcoin, Bitcoin Cash and maybe Ether? That‘s a rather rhetorical question as you have somehow found your way to this article. Knowledge about the existence of crypto currencies, mostly about bitcoin is part of the technology mainstream. About 9 out of 10 Americans have knowledge about bitcoin as latest enquiries show. That raises two interesting questions:

1) How far along the way is the mass adoption of crypto currencies worldwide?

Everybody knowing about something should mean also everybody using it, correct? For bitcoin (and also other crytos) that does not seem to be true. There are around 35 million bitcoin wallets worldwide and around 50 million bitcoin users. That is not even 1% of our global population. Bitcoin and other cryptos are still not part of everyday life for the majority of humanity. If this feels different for you you might be living in a bubble. The adoption however is an important measure when it comes to anticipating a future price increase in the value of bitcoin. Which leads us to the second interesting question:

2) What are the crypto coins that are less well known but still show potential

Besides bitcoin there are other crypto currencies, also called alternative coins or altcoins. Bitcoin is the dominant crypto coin capturing a overall market cap of around 70% – 75%. This means that from all investments done into cryptos around 70% – 75% are placed into bitcoins. Whenever there is a bull rally in the markets, altcoins tend to outperform the market leader bitcoin. Imagine this effect similarly to the S&P 500 Index encompassing the top 500 US companies. When the S&P 500 Index value increases 1% this can mean that one index constituent actually increased by 30% in value pushing the overall index value.
Here a list of interesting altcoins you might want to follow more closely in the future (not connected to any type of investment advice whatsoever):
Waves (WAVES)
Waves is the coin of the Waves platform, a blockchain platform for custom tokens. Custom tokens target a mass market and allow users with limited technical knowledge to build virtually any type of use case based on the token. Waves USP is user friendliness as well that reflects in their lite wallet as well.
Vertcoin (VTC)
Vertcoin calls itself the peoples coin which refers to Vertcoin‘s goal to be so easy that everyday people with desktop computers can mine Vertcoin. Vertcoin, on the market since 2014, aimed to equal out disadvantages of bitcoin by for example applying a proof-of-work mechanism with Lyra2REv3 as underlying hash function.
PotCoin (POT)
PotCoin aims to become the number one currency for the constantly growing cannabis industry. The initial idea was to have a payment method in place that would facilitate transactions in the legal marijuana industry – a industry still underserved by the classical banking sector. In 2015 PotCoin moved to a proof-of-stake mechanism.
Monero (XMR)
Monero‘s focus is anonymity. Unlike for example bitcoin, money in- and outflows are not publicly visible on Monero‘s blockchain. Transaction mining is also not possible as Monero is mixing transaction in such a manner that is basically impossible to reverse engineer useful information out of the data.
Komodo (KMD)
Komodo, in its core based on bitcoins blockchain, was launched to equal out the many disadvantages of Bitcoin. The ambition of Komodo reflects in the vast amount of features and coming features this coin is equipped with. Komodo started by allowing for real anonymity in transactions.
Dogecoin (DOGE)
Dogecoin started as a joke, as a parody to Bitcoin and its skyrocking success. In its core Dogecoin is similar to bitcoin or litecoin respectively. The biggest difference however is that (unlikes bitcoins 21 million coins limit) there is no limit for mining Dogecoins.
DigiByte (DGB)
If you feel that bitcoin is slow, insecure and bulky then DigiByte should be your coin of choice. It was created having mainly cybersecurity in mind. DigiByte is several times faster compared to Bitcoin and the coins have very favorable security features build in making it safer to use and creating use-cases in the IoT space for example.
Decred (DCR)
Decred is bringing grasroot democracy to the crypto world. With Bitcoin the complete power over the blockchain is in the hand of the miners. With Decred this power is split within the stakeholders (developers, miners and investors) by a transparent reward system. In addition to that Decred has many innovative features build in.
Dash (DASH)
Dash coin was designed with keeping an eye on user privacy. Transactions are not publicly accessible and mixed in a manner that it‘s impossible to reverse engineer. Dash became famous when they offered easy accessibility to their network for the inhabitants of Venezuela during their economic crisis.
BlackCoin (BLK)
BlackCoin was build with the focus to be fully working on the Proof-of-Stake principle, making it very fast in validating transactions. That not only makes it fun to use but is actually creating use-cases such as in e-commerce where a fast payment confirmation is critical.
Litecoin (LTC)
Litecoin was build as a competitor to Bitcoin and is one of the best known altcoins. Litecoin is fast in creating blocks (2,5 minutes) making validating transactions faster as well. Mining is distributed among the miners much better than bitcoin making centralisation much harder.
The featured coins here are subject to many risk factors including full or partial loss of value. The feature is not intended to serve as investment advice.

Are you among the winning early adopters?

All mentioned coins can be used to purchase anonymous domains and related anonymous webservices on our website BitDomain.BIZ. The reason for that is that early adoption has proven to be a winning strategy in the crypto space. That is why at BitDomain.BIZ we are constantly accepting new and promising crypto coins to purchase our anonymous digital publishing services.
submitted by FrankBitDomain to u/FrankBitDomain [link] [comments]

What are the top #10 crypto coins everyone should know?

Top 10 Crypto Coins you might not (yet) have heard about (but are important to know)

Ever heard of Bitcoin, Bitcoin Cash and maybe Ether? That‘s a rather rhetorical question as you have somehow found your way to this article. Knowledge about the existence of crypto currencies, mostly about bitcoin is part of the technology mainstream. About 9 out of 10 Americans have knowledge about bitcoin as latest enquiries show. That raises two interesting questions:

1) How far along the way is the mass adoption of crypto currencies worldwide?

Everybody knowing about something should mean also everybody using it, correct? For bitcoin (and also other crytos) that does not seem to be true. There are around 35 million bitcoin wallets worldwide and around 50 million bitcoin users. That is not even 1% of our global population. Bitcoin and other cryptos are still not part of everyday life for the majority of humanity. If this feels different for you you might be living in a bubble. The adoption however is an important measure when it comes to anticipating a future price increase in the value of bitcoin. Which leads us to the second interesting question:

2) What are the crypto coins that are less well known but still show potential

Besides bitcoin there are other crypto currencies, also called alternative coins or altcoins. Bitcoin is the dominant crypto coin capturing a overall market cap of around 70% – 75%. This means that from all investments done into cryptos around 70% – 75% are placed into bitcoins. Whenever there is a bull rally in the markets, altcoins tend to outperform the market leader bitcoin. Imagine this effect similarly to the S&P 500 Index encompassing the top 500 US companies. When the S&P 500 Index value increases 1% this can mean that one index constituent actually increased by 30% in value pushing the overall index value.
Here a list of interesting altcoins you might want to follow more closely in the future (not connected to any type of investment advice whatsoever):
Waves (WAVES)
Waves is the coin of the Waves platform, a blockchain platform for custom tokens. Custom tokens target a mass market and allow users with limited technical knowledge to build virtually any type of use case based on the token. Waves USP is user friendliness as well that reflects in their lite wallet as well.
Vertcoin (VTC)
Vertcoin calls itself the peoples coin which refers to Vertcoin‘s goal to be so easy that everyday people with desktop computers can mine Vertcoin. Vertcoin, on the market since 2014, aimed to equal out disadvantages of bitcoin by for example applying a proof-of-work mechanism with Lyra2REv3 as underlying hash function.
PotCoin (POT)
PotCoin aims to become the number one currency for the constantly growing cannabis industry. The initial idea was to have a payment method in place that would facilitate transactions in the legal marijuana industry – a industry still underserved by the classical banking sector. In 2015 PotCoin moved to a proof-of-stake mechanism.
Monero (XMR)
Monero‘s focus is anonymity. Unlike for example bitcoin, money in- and outflows are not publicly visible on Monero‘s blockchain. Transaction mining is also not possible as Monero is mixing transaction in such a manner that is basically impossible to reverse engineer useful information out of the data.
Komodo (KMD)
Komodo, in its core based on bitcoins blockchain, was launched to equal out the many disadvantages of Bitcoin. The ambition of Komodo reflects in the vast amount of features and coming features this coin is equipped with. Komodo started by allowing for real anonymity in transactions.
Dogecoin (DOGE)
Dogecoin started as a joke, as a parody to Bitcoin and its skyrocking success. In its core Dogecoin is similar to bitcoin or litecoin respectively. The biggest difference however is that (unlikes bitcoins 21 million coins limit) there is no limit for mining Dogecoins.
DigiByte (DGB)
If you feel that bitcoin is slow, insecure and bulky then DigiByte should be your coin of choice. It was created having mainly cybersecurity in mind. DigiByte is several times faster compared to Bitcoin and the coins have very favorable security features build in making it safer to use and creating use-cases in the IoT space for example.
Decred (DCR)
Decred is bringing grasroot democracy to the crypto world. With Bitcoin the complete power over the blockchain is in the hand of the miners. With Decred this power is split within the stakeholders (developers, miners and investors) by a transparent reward system. In addition to that Decred has many innovative features build in.
Dash (DASH)
Dash coin was designed with keeping an eye on user privacy. Transactions are not publicly accessible and mixed in a manner that it‘s impossible to reverse engineer. Dash became famous when they offered easy accessibility to their network for the inhabitants of Venezuela during their economic crisis.
BlackCoin (BLK)
BlackCoin was build with the focus to be fully working on the Proof-of-Stake principle, making it very fast in validating transactions. That not only makes it fun to use but is actually creating use-cases such as in e-commerce where a fast payment confirmation is critical.
Litecoin (LTC)
Litecoin was build as a competitor to Bitcoin and is one of the best known altcoins. Litecoin is fast in creating blocks (2,5 minutes) making validating transactions faster as well. Mining is distributed among the miners much better than bitcoin making centralisation much harder.
The featured coins here are subject to many risk factors including full or partial loss of value. The feature is not intended to serve as investment advice.

Are you among the winning early adopters?

All mentioned coins can be used to purchase anonymous domains and related anonymous webservices on our website BitDomain.BIZ. The reason for that is that early adoption has proven to be a winning strategy in the crypto space. That is why at BitDomain.BIZ we are constantly accepting new and promising crypto coins to purchase our anonymous digital publishing services.
submitted by FrankBitDomain to u/FrankBitDomain [link] [comments]

Bitcoin Halving & the Step to Maturation

Bitcoin Halving & the Step to Maturation
It’s about a week to the long-expected Bitcoin halving.
You can easily find a counting down page by visiting the website of any exchange, online magazine or data aggregator. Yes — everybody is waiting for it.

Source: Bitcoin Block Half
It’s an event that brings both predictability and uncertainty.

What is Predictable?

Bitcoin was designed as a deflationary currency with a 21 million fixed supply, like gold. Over time, the issuance of bitcoins will decrease and thus become scarcer.
When it was first created, 50 Bitcoins per block were given as a reward to the miners. After every 210,000 blocks are mined (approximately every 4 years), the block reward halves and will keep on halving until the block reward per block becomes 0 (approximately by year 2140).
At about 06:18 UTC on May 12, 2020 (as of writing), the block rewards of Bitcoin will drop from 12.5 BTC to 6.25 BTC.

What is Uncertain?


Source: https://www.bitcoinblockhalf.com/
As is shown in this chart, we can note a significant price jump after each halving.
But will this time turn out to be a different story when both the stock market and the crypto market are much more volatile than usual due to the global COVID-19 pandemic?
The past few months saw a big shakeout in the crypto market due to the coronavirus pandemic and its aftermath. On March 12, the Bitcoin price dumped 40% touching $3,800 within the day, marking a Black Thursday of the year.
The stock market went through a severe crash too. The US stock market triggered the “circuit breaker” four times within 10 days.
Just recently, the Bitcoin price soared above $9,000 and has now retraced to $8,864 at the time of writing, according to the statistics on CoinMarketCap.
Nobody knows for sure how things will be when the halving happens. Will the Bitcoin price be even more volatile or will it stabilize?

2020 Bitcoin Maturity Test

According to the Bloomberg Crypto Outlook (April 2020 Edition), the increasing futures open interest, declining volatility and relative outperformance despite the stock-market shakeout this year indicates Bitcoin is maturing from a speculative crypto asset toward a digital version of gold.

Increasing futures open interest


Source: skew
The number of Bitcoin futures contracts outstanding listed on the Chicago Mercantile Exchange (CME) has recovered significantly from the March lows, indicating a resurgence in institutions that want to buy the cryptocurrency. The high volume also represents taming of the highly speculative bull market.

Declining Volatility


Source: Bloomberg
This graphic shows that the correlation between Bitcoin and gold has jumped to the highest since 2010, twice that of equities, suggesting that Bitcoin is now divorcing equities and joining gold.

Bitcoin Outperformed Stock Market

Apart from that, Bitcoin is becoming less of a risk-on asset. In the first quarter of 2020, Bitcoin remained up about 9% when the S&P 500 showed a correction of 20%.

To Sum Up

2020 marks a key test for Bitcoin’s transition from speculative asset to the crypto market’s version of gold. We believe that the first-born crypto will pass the test to move towards a mature gold-like asset.
At Leverj, we are working actively on the decentralized derivatives market including Bitcoin perpetuals which is expected to be launched in a couple of months.
Visit live.leverj.io to enjoy our zero-fee trading for a limited period of time as of now. Follow us on Twitter or join our Telegram group to stay tuned for our updates.
Please keep in mind
US Persons are not allowed to trade on Leverj. Users from sanctioned countries or Specially Designated National (SDN) as per OFAC are also not allowed to use the system.
Before you trade, please make sure you are legally permitted to trade cryptocurrencies, derivatives, and any other instruments offered on this platform from your home jurisdiction.
Nothing in this article constitutes an offer, solicitation, or investment advise.
submitted by L_Xiaoqing to Leverj [link] [comments]

Stellar has rallied: what should you do with the lumens in your XLMwallet?

Stellar has rallied: what should you do with the lumens in your XLMwallet?
We kept telling you in our previous posts that Stellar was in for large gains. If you followed our advice and stocked up on some lumens, you're probably very pleased now, because XLM gained 190% in just one month. The question is, what should you do now, less than 2 weeks before the Bitcoin halving?
Stellar spent months lagging behind the other top-10 coins – even in the second half of March, when BTC, ETH and others rallied after the 'black Thursday' on March 13. But, if you've been following our updates, we were very bullish on Stellar all this time. It's a coin with a great potential and a strong real-world use case, so sooner or later XLM had to break out.
And around April 4, the rally began – with some local corrections, of course. As you can see from the chart, it's been very impressive, with the price rising from $0.04 to $0.073.
https://xlmwallet.co/
Stellar also appreciated against BTC, so if you have converted some of your satoshis into XLM a while ago (as we did), you're happily in green right now.
At the same time, Stellar remains on its no.11 spot in the top-20 by market cap. We are certain that it will break into the top-10 soon, though.
Now the question is, what should you do with the appreciated Stellar coins lying in your XLMwallet?
Should you sell?
What should you expect after such an intense rally? Is there more potential for growth? Or will the XLM price go down now?
Right now the crypto community is waiting for the Bitcoin halving, which will probably happen on May 13. In the first days after the halving the BTC price will most probably go up, so it's a good speculative opportunity. Traders understand that, and in the coming days they will probably increase their Bitcoin holdings by selling other assets – including Stellar. So we can expect a temporary pullback, perhaps by more than 10%.
But this will only be a short-term decrease, not a true bearish trend. The Bitcoin price rally after the halving won't last long, because many will start selling their BTC. By the way, many miners have been holding on to their Bitcoins since January, waiting for this moment. Once a big BTC sell-off begins, other crypto can start growing – a sort of a delayed rally. At this point the price of Stellar will recover and grow even higher.
So, if your objective is short-term speculative gain, you can indeed sell at least some of your XLM. But if you're after maximizing your profits, we suggest that you hodl your lumens at least until July, better even September. That's also when the global economy will begin to recover from the coronavirus, and the crypto market will probably react positively, too.
Time to adjust your portfolio
By the way, do you know that you can store not only Stellar in the XLMwallet? Our fast and light wallet supports any assets created on the Stellar blockchain. Stellar is a great platform for building crypto projects, and it's becoming more popular thanks to its near-zero deployment costs. So perhaps now is a good moment to research some recent projects that launched on Stellar and add some new tokens to your portfolio. In XLMwallet, you'll see all your assets displayed on the same page, with the latest price quotes from CoinMarketCap to make portfolio management even easier.
The next time we meet will probably be very near to the Bitcoin halving – a key date in the crypto calendar for 2020. We are feeling positive about its results, but it will take some months to see the full results. Meanwhile, store your lumens in XLMwallet – the fastest, easiest to use, and most secure Stellar wallet out there! And don't forget to follow us on Twitter.
Website — https://xlmwallet.co/
Medium — https://medium.com/@XLMwalletCo
Teletype — https://teletype.in/@XLMwalletCo
Twitter — https://twitter.com/XLMwalletCo
Reddit — https://www.reddit.com/XLM_wallet/
submitted by Stellar__wallet to XLM_wallet [link] [comments]

An extensive guide for cashing out bitcoin and cryptocurrencies into private banks

Hey guys.
Merry Xmas !
I am coming back to you with a follow up post, as I have helped many people cash out this year and I have streamlined the process. After my original post, I received many requests to be more specific and provide more details. I thought that after the amazing rally we have been attending over the last few months, and the volatility of the last few days, it would be interesting to revisit more extensively.
The attitude of banks around crypto is changing slowly, but it is still a tough stance. For the first partial cash out I operated around a year ago for a client, it took me months to find a bank. They wouldn’t want to even consider the case and we had to knock at each and every door. Despite all my contacts it was very difficult back in the days. This has changed now, and banks have started to open their doors, but there is a process, a set of best practices and codes one has to follow.
I often get requests from crypto guys who are very privacy-oriented, and it takes me months to have them understand that I am bound by Swiss law on banking secrecy, and I am their ally in this onboarding process. It’s funny how I have to convince people that banks are legit, while on the other side, banks ask me to show that crypto millionaires are legit. I have a solid background in both banking and in crypto so I manage to make the bridge, but yeah sometimes it is tough to reconcile the two worlds. I am a crypto enthusiast myself and I can say that after years of work in the banking industry I have grown disillusioned towards banks as well, like many of you. Still an account in a Private bank is convenient and powerful. So let’s get started.
There are two different aspects to your onboarding in a Swiss Private bank, compliance-wise.
*The origin of your crypto wealth
*Your background (residence, citizenship and probity)
These two aspects must be documented in-depth.
How to document your crypto wealth. Each new crypto millionaire has a different story. I may detail a few fun stories later in this post, but at the end of the day, most of crypto rich I have met can be categorized within the following profiles: the miner, the early adopter, the trader, the corporate entity, the black market, the libertarian/OTC buyer. The real question is how you prove your wealth is legit.
1. Context around the original amount/investment Generally speaking, your first crypto purchase may not be documented. But the context around this acquisition can be. I have had many cases where the original amount was bought through Mtgox, and no proof of purchase could be provided, nor could be documented any Mtgox claim. That’s perfectly fine. At some point Mtgox amounted 70% of the bitcoin transactions globally, and people who bought there and managed to withdraw and keep hold of their bitcoins do not have any Mtgox claim. This is absolutely fine. However, if you can show me the record of a wire from your bank to Tisbane (Mtgox's parent company) it's a great way to start.
Otherwise, what I am trying to document here is the following: I need context. If you made your first purchase by saving from summer jobs, show me a payroll. Even if it was USD 2k. If you acquired your first bitcoins from mining, show me the bills of your mining equipment from 2012 or if it was through a pool mine, give me your slushpool account ref for instance. If you were given bitcoin against a service you charged, show me an invoice.
2. Tracking your wealth until today and making sense of it. What I have been doing over the last few months was basically educating compliance officers. Thanks God, the blockchain is a global digital ledger! I have been telling my auditors and compliance officers they have the best tool at their disposal to lead a proper investigation. Whether you like it or not, your wealth can be tracked, from address to address. You may have thought all along this was a bad feature, but I am telling you, if you want to cash out, in the context of Private Banking onboarding, tracking your wealth through the block explorer is a boon. We can see the inflows, outflows. We can see the age behind an address. An early adopter who bought 1000 BTC in 2010, and let his bitcoin behind one address and held thus far is legit, whether or not he has a proof of purchase to show. That’s just common sense. My job is to explain that to the banks in a language they understand.
Let’s have a look at a few examples and how to document the few profiles I mentioned earlier.
The trader. I love traders. These are easy cases. I have a ton of respect for them. Being a trader myself in investment banks for a decade earlier in my career has taught me that controlling one’s emotions and having the discipline to impose oneself some proper risk management system is really really hard. Further, being able to avoid the exchange bankruptcy and hacks throughout crypto history is outstanding. It shows real survival instinct, or just plain blissed ignorance. In any cases traders at exchange are easy cases to corroborate since their whole track record is potentially available. Some traders I have met have automated their trading and have shown me more than 500k trades done over the span of 4 years. Obviously in this kind of scenario I don’t show everything to the bank to avoid information overload, and prefer to do some snacking here and there. My strategy is to show the early trades, the most profitable ones, explain the trading strategy and (partially expose) the situation as of now with id pages of the exchanges and current balance. Many traders have become insensitive to the risk of parking their crypto at exchange as they want to be able to trade or to grasp an occasion any minute, so they generally do not secure a substantial portion on the blockchain which tends to make me very nervous.
The early adopter. Provided that he has not mixed his coin, the early adopter or “hodler” is not a difficult case either. Who cares how you bought your first 10k btc if you bought them below 3$ ? Even if you do not have a purchase proof, I would generally manage to find ways. We just have to corroborate the original 30’000 USD investment in this case. I mainly focus on three things here:
*proof of early adoption I have managed to educate some banks on a few evidences specifically related to crypto markets. For instance with me, an old bitcointalk account can serve as a proof of early adoption. Even an old reddit post from a few years ago where you say how much you despise this Ripple premined scam can prove to be a treasure readily available to show you were early.
*story telling Compliance officers like to know when, why and how. They are human being looking for simple answers to simple questions and they don’t want like to be played fool. Telling the truth, even without a proof can do wonders, and even though bluffing might still work because banks don’t fully understand bitcoin yet, it is a risky strategy that is less and less likely to pay off as they are getting more sophisticated by the day.
*micro transaction from an old address you control This is the killer feature. Send a $20 worth transaction from an old address to my company wallet and to one of my partner bank’s wallet and you are all set ! This is gold and considered a very solid piece of evidence. You can also do a microtransaction to your own wallet, but banks generally prefer transfer to their own wallet. Patience with them please. they are still learning.
*signature message Why do a micro transaction when you can sign a message and avoid potentially tainting your coins ?
*ICO millionaire Some clients made their wealth participating in ETH crowdsale or IOTA ICO. They were very easy to deal with obviously and the account opening was very smooth since we could evidence the GENESIS TxHash flow.
The miner Not so easy to proof the wealth is legit in that case. Most early miners never took screenshot of the blocks on bitcoin core, nor did they note down the block number of each block they mined. Until the the Slashdot article from August 2010 anyone could mine on his laptop, let his computer run overnight and wake up to a freshly minted block containing 50 bitcoins back in the days. Not many people were structured enough to store and secure these coins, avoid malwares while syncing the blockchain continuously, let alone document the mined blocks in the process. What was 50 BTC worth really for the early miners ? dust of dollars, games and magic cards… Even miners post 2010 are generally difficult to deal with in terms of compliance onboarding. Many pool mining are long dead. Deepbit is down for instance and the founders are MIA. So my strategy to proof mining activity is as follow:
*Focusing on IT background whenever possible. An IT background does help a lot to bring some substance to the fact you had the technical ability to operate a mining rig.
*Showing mining equipment receipts. If you mined on your own you must have bought the hardware to do so. For instance mining equipment receipts from butterfly lab from 2012-2013 could help document your case. Similarly, high electricity bill from your household on a consistent basis back in the day could help. I have already unlocked a tricky case in the past with such documents when the bank was doubtful.
*Wallet.dat files with block mining transactions from 2011 thereafter This obviously is a fantastic piece of evidence for both you and me if you have an old wallet and if you control an address that received original mined blocks, (even if the wallet is now empty). I will make sure compliance officers understand what it means, and as for the early adopter, you can prove your control over these wallet through a microtransaction. With these kind of addresses, I can show on the block explorer the mined block rewards hitting at regular time interval, and I can even spot when difficulty level increased or when halvening process happened.
*Poolmining account. Here again I have educated my partner bank to understand that a slush account opened in 2013 or an OnionTip presence was enough to corroborate mining activity. The block explorer then helps me to do the bridge with your current wallet.
*Describing your set up and putting it in context In the history of mining we had CPU, GPU, FPG and ASICs mining. I will describe your technical set up and explain why and how your set up was competitive at that time.
The corporate entity Remember 2012 when we were all convinced bitcoin would take over the world, and soon everyone would pay his coffee in bitcoin? How naïve we were to think transaction fees would remain low forever. I don’t blame bitcoin cash supporters; I once shared this dream as well. Remember when we thought global adoption was right around the corner and some brick and mortar would soon accept bitcoin transaction as a common mean of payment? Well, some shop actually did accept payment and held. I had a few cases as such of shops holders, who made it to the multi million mark holding and had invoices or receipts to proof the transactions. If you are organized enough to keep a record for these trades and are willing to cooperate for the documentation, you are making your life easy. The digital advertising business is also a big market for the bitcoin industry, and affiliates partner compensated in btc are common. It is good to show an invoice, it is better to show a contract. If you do not have a contract (which is common since all advertising deals are about ticking a check box on the website to accept terms and conditions), there are ways around that. If you are in that case, pm me.
The black market Sorry guys, I can’t do much for you officially. Not that I am judging you. I am a libertarian myself. It’s just already very difficult to onboard legit btc adopters, so the black market is a market I cannot afford to consider. My company is regulated so KYC and compliance are key for me if I want to stay in business. Behind each case I push forward I am risking the credibility and reputation I have built over the years. So I am sorry guys I am not risking it to make an extra buck. Your best hope is that crypto will eventually take over the world and you won’t need to cash out anyway. Or go find a Lithuanian bank that is light on compliance and cooperative.
The OTC buyer and the libertarian. Generally a very difficult case. If you bought your stack during your journey in Japan 5 years ago to a guy you never met again; or if you accumulated on https://localbitcoins.com/ and kept no record or lost your account, it is going to be difficult. Not impossible but difficult. We will try to build a case with everything else we have, and I may be able to onboard you. However I am risking a lot here so I need to be 100% confident you are legit, before I defend you. Come & see me in Geneva, and we will talk. I will run forensic services like elliptic, chainalysis, or scorechain on an extract of your wallet. If this scan does not raise too many red flags, then maybe we can work together ! If you mixed your coins all along your crypto history, and shredded your seeds because you were paranoid, or if you made your wealth mining professionally monero over the last 3 years but never opened an account at an exchange. ¯_(ツ)_/¯ I am not a magician and don’t get me wrong, I love monero, it’s not the point.
Cashing out ICOs Private companies or foundations who have ran an ICO generally have a very hard time opening a bank account. The few banks that accept such projects would generally look at 4 criteria:
*Seriousness of the project Extensive study of the whitepaper to limit the reputation risk
*AML of the onboarding process ICOs 1.0 have no chance basically if a background check of the investors has not been conducted
*Structure of the moral entity List of signatories, certificate of incumbency, work contract, premises...
*Fiscal conformity Did the company informed the authorities and seek a fiscal ruling.
For the record, I am not into the tax avoidance business, so people come to me with a set up and I see if I can make it work within the legal framework imposed to me.
First, stop thinking Switzerland is a “offshore heaven” Swiss banks have made deals with many governments for the exchange of fiscal information. If you are a French citizen, resident in France and want to open an account in a Private Bank in Switzerland to cash out your bitcoins, you will get slaughtered (>60%). There are ways around that, and I could refer you to good tax specialists for fiscal optimization, but I cannot organize it myself. It would be illegal for me. Swiss private banks makes it easy for you to keep a good your relation with your retail bank and continue paying your bills without headaches. They are integrated to SEPA, provide ebanking and credit cards.
For information, these are the kind of set up some of my clients came up with. It’s all legal; obviously I do not onboard clients that are not tax compliant. Further disclaimer: I did not contribute myself to these set up. Do not ask me to organize it for you. I won’t.
EU tricks
Swiss lump sum taxation Foreign nationals resident in Switzerland can be taxed on a lump-sum basis if they are not gainfully employed in our country. Under the lump-sum tax regime, foreign nationals taking residence in Switzerland may choose to pay an expense-based tax instead of ordinary income and wealth tax. Attractive cantons for the lump sum taxation are Zug, Vaud, Valais, Grisons, Lucerne and Berne. To make it short, you will be paying somewhere between 200 and 400k a year and all expenses will be deductible.
Switzerland has adopted a very friendly attitude towards crypto currency in general. There is a whole crypto valley in Zug now. 30% of ICOs are operated in Switzerland. The reason is that Switzerland has thrived for centuries on banking secrecy, and today with FATCA and exchange of fiscal info with EU, banking secrecy is dead. Regulators in Switzerland have understood that digital ledger technologies were a way to roll over this competitive advantage for the generations to come. Switzerland does not tax capital gains on crypto profits. The Finma has a very pragmatic approach. They have issued guidance- updated guidelines here. They let the business get organized and operate their analysis on a case per case basis. Only after getting a deep understanding of the market will they issue a global fintech license in 2019. This approach is much more realistic than legislations which try to regulate everything beforehand.
Italy new tax exemption. It’s a brand new fiscal exemption. Go to Aoste, get residency and you could be taxed a 100k/year for 10years. Yes, really.
Portugal What’s crazy in Europe is the lack of fiscal harmonization. Even if no one in Brussels dares admit it, every other country is doing fiscal dumping. Portugal is such a country and has proved very friendly fiscally speaking. I personally have a hard time trusting Europe. I have witnessed what happened in Greece over the last few years. Some of our ultra high net worth clients got stuck with capital controls. I mean no way you got out of crypto to have your funds confiscated at the next financial crisis! Anyway. FYI
Malta Generally speaking, if you get a residence somewhere you have to live there for a certain period of time. Being stuck in Italy is no big deal with Schengen Agreement, but in Malta it is a different story. In Malta, the ordinary residence scheme is more attractive than the HNWI residence scheme. Being an individual, you can hold a residence permit under this scheme and pay zero income tax in Malta in a completely legal way.
Monaco Not suitable for French citizens, but for other Ultra High Net worth individual, Monaco is worth considering. You need an account at a local bank as a proof of fortune, and this account generally has to be seeded with at least EUR500k. You also need a proof of residence. I do mean UHNI because if you don’t cash out minimum 30m it’s not interesting. Everything is expensive in Monaco. Real Estate is EUR 50k per square meter. A breakfast at Monte Carlo Bay hotel is 70 EUR. Monaco is sunny but sometimes it feels like a golden jail. Do you really want that for your kids?
Dubaï
  1. Set up a company in Dubaï, get your resident card.
  2. Spend one day every 6 month there
  3. ???
  4. Be tax free
US tricks Some Private banks in Geneva do have the license to manage the assets of US persons and U.S citizens. However, do not think it is a way to avoid paying taxes in the US. Opening an account at an authorized Swiss Private banks is literally the same tax-wise as opening an account at Fidelity or at Bank of America in the US. The only difference is that you will avoid all the horror stories. Horror stories are all real by the way. In Switzerland, if you build a decent case and answer all the questions and corroborate your case in depth, you will manage to convince compliance officers beforehand. When the money eventually hits your account, it is actually available and not frozen.
The IRS and FATCA require to file FBAR if an offshore account is open. However FBAR is a reporting requirement and does not have taxes related to holding an account outside the US. The taxes would be the same if the account was in the US. However penalties for non compliance with FBAR are very large. The tax liability management is actually performed through the management of the assets ( for exemple by maximizing long term capital gains and minimizing short term gains).
The case for Porto Rico. Full disclaimer here. I am not encouraging this. Have not collaborated on such tax avoidance schemes. if you are interested I strongly encourage you to seek a tax advisor and get a legal opinion. I am not responsible for anything written below. I am not going to say much because I am so afraid of uncle Sam that I prefer to humbly pass the hot potato to pwc From here all it takes is a good advisor and some creativity to be tax free on your crypto wealth if you are a US person apparently. Please, please please don’t ask me more. And read the disclaimer again.
Trust tricks Generally speaking I do not accept fringe fiscal situation because it puts me in a difficult situation to the banks I work with, and it is already difficult enough to defend a legit crypto case. Trust might be a way to optimize your fiscal situation. Belize. Bahamas. Seychelles. Panama, You name it. At the end of the day, what matters for Swiss Banks are the beneficial owner and the settlor. Get a legal opinion, get it done, and when you eventually knock at a private bank’s door, don’t say it was for fiscal avoidance you stupid ! You will get the door smashed upon you. Be smarter. It will work. My advice is just to have it done by a great tax specialist lawyer, even if it costs you some money, as the entity itself needs to be structured in a professional way. Remember that with trust you are dispossessing yourself off your wealth. Not something to be taken lightly.
“Anonymous” cash out. Right. I think I am not going into this topic, neither expose the ways to get it done. Pm me for details. I already feel a bit uncomfortable with all the info I have provided. I am just going to mention many people fear that crypto exchange might become reporting entities soon, and rightly so. This might happen anyday. You have been warned. FYI, this only works for non-US and large cash out.
The difference between traders an investors. Danmark, Holland and Germany all make a huge difference if you are a passive investor or if you are a trader. ICO is considered investing for instance and is not taxed, while trading might be considered as income and charged aggressively. I would try my best to protect you and put a focus on your investor profile whenever possible, so you don't have to pay 52% tax if you do not have to :D
Full cash out or partial cash out? People who have been sitting on crypto for long have grown an emotional and irrational link with their coins. They come to me and say, look, I have 50m in crypto but I would like to cash out 500k only. So first let me tell you that as a wealth manager my advice to you is to take some off the table. Doing a partial cash out is absolutely fine. The market is bullish. We are witnessing a redistribution of wealth at a global scale. Bitcoin is the real #occupywallstreet, and every one will discuss crypto at Xmas eve which will make the market even more supportive beginning 2018, especially with all hedge funds entering the scene. If you want to stay exposed to bitcoin and altcoins, and believe these techs will change the world, it’s just natural you want to keep some coins. In the meantime, if you have lived off pizzas over the last years, and have the means to now buy yourself an nice house and have an account at a private bank, then f***ing do it mate ! Buy physical gold with this account, buy real estate, have some cash at hands. Even though US dollar is worthless to your eyes, it’s good and convenient to have some. Also remember your wife deserves it ! And if you have no wife yet and you are socially awkward like the rest of us, then maybe cashing out partially will help your situation ;)
What the Private Banks expect. Joke aside, it is important you understand something. If you come around in Zurich to open a bank account and partially cash out, just don’t expect Private Banks will make an exception for you if you are small. You can’t ask them to facilitate your cash out, buy a 1m apartment with the proceeds of the sale, and not leave anything on your current account. It won’t work. Sadly, under 5m you are considered small in private banking. The bank is ok to let you open an account, provided that your kyc and compliance file are validated, but they will also want you to become a client and leave some money there to invest. This might me despicable, but I am just explaining you their rules. If you want to cash out, you should sell enough to be comfortable and have some left. Also expect the account opening to last at least 3-4 week if everything goes well. You can't just open an account overnight.
The cash out logistics. Cashing out 1m USD a day in bitcoin or more is not so hard.
Let me just tell you this: Even if you get a Tier 4 account with Kraken and ask Alejandro there to raise your limit over $100k per day, Even if you have a bitfinex account and you are willing to expose your wealth there, Even if you have managed to pass all the crazy due diligence at Bitstamp,
The amount should be fractioned to avoid risking your full wealth on exchange and getting slaughtered on the price by trading big quantities. Cashing out involves significant risks at all time. There is a security risk of compromising your keys, a counterparty risk, a fat finger risk. Let it be done by professionals. It is worth every single penny.
Most importantly, there is a major difference between trading on an exchange and trading OTC. Even though it’s not publicly disclosed some exchange like Kraken do have OTC desks. Trading on an exchange for a large amount will weight on the prices. Bitcoin is a thin market. In my opinion over 30% of the coins are lost in translation forever. Selling $10m on an exchange in a day can weight on the prices more than you’d think. And if you trade on a exchange, everything is shown on record, and you might wipe out the prices because on exchanges like bitstamp or kraken ultimately your counterparties are retail investors and the market depth is not huge. It is a bit better on Bitfinex. It is way better to trade OTC. Accessing the institutional OTC market is not easy, and that is also the reason why you should ask a regulated financial intermediary if we are talking about huge amounts.
Last point, always chose EUR as opposed to USD. EU correspondent banks won’t generally block institutional amounts. However we had the cases of USD funds frozen or delayed by weeks.
Most well-known OTC desks are Cumberlandmining (ask for Lucas), Genesis (ask for Martin), Bitcoin Suisse AG (ask for Niklas), circletrade, B2C2, or Altcoinomy (ask for Olivier)
Very very large whales can also set up escrow accounts for massive block trades. This world, where blocks over 30k BTC are exchanged between 2 parties would deserve a reddit thread of its own. Crazyness all around.
Your options: DIY or going through a regulated financial intermediary.
Execution trading is a job in itself. You have to be patient, be careful not to wipe out the order book and place limit orders, monitor the market intraday for spikes or opportunities. At big levels, for a large cash out that may take weeks, these kind of details will save you hundred thousands of dollars. I understand crypto holders are suspicious and may prefer to do it by themselves, but there are regulated entities who now offer the services. Besides, being a crypto millionaire is not a guarantee you will get institutional daily withdrawal limits at exchange. You might, but it will take you another round of KYC with them, and surprisingly this round might be even more aggressive that the ones at Private banks since exchange have gone under intense scrutiny by regulators lately.
The fees for cashing out through a regulated financial intermediary to help you with your cash out should be around 1-2% flat on the nominal, not more. And for this price you should get the full package: execution/monitoring of the trades AND onboarding in a private bank. If you are asked more, you are being abused.
Of course, you also have the option to do it yourself. It is a way more tedious and risky process. Compliance with the exchange, compliance with the private bank, trading BTC/fiat, monitoring the transfers…You will save some money but it will take you some time and stress. Further, if you approach a private bank directly, it will trigger a series of red flag to the banks. As I said in my previous post, they call a direct approach a “walk-in”. They will be more suspicious than if you were introduced by someone and won’t hesitate to show you high fees and load your portfolio with in-house products that earn more money to the banks than to you. Remember also most banks still do not understand crypto so you will have a lot of explanations to provide and you will have to start form scratch with them!
The paradox of crypto millionaires Most of my clients who made their wealth through crypto all took massive amount of risks to end up where they are. However, most of them want their bank account to be managed with a low volatility fixed income capital preservation risk profile. This is a paradox I have a hard time to explain and I think it is mainly due to the fact that most are distrustful towards banks and financial markets in general. Many clients who have sold their crypto also have a cash-out blues in the first few months. This is a classic situation. The emotions involved in hodling for so long, the relief that everything has eventually gone well, the life-changing dynamics, the difficulties to find a new motivation in life…All these elements may trigger a post cash-out depression. It is another paradox of the crypto rich who has every card in his hand to be happy, but often feel a bit sad and lonely. Sometimes, even though it’s not my job, I had to do some psychological support. A lot of clients have also become my friends, because we have the same age and went through the same “ordeal”. First world problem I know… Remember, cashing out is not the end. It’s actually the beginning. Don’t look back, don’t regret. Cash out partially, because it does not make sense to cash out in full, regret it and want back in. relax.
The race to cash out crypto billionaire and the concept of late exiter. The Winklevoss brothers are obviously the first of a series. There will be crypto billionaires. Many of them. At a certain level you can have a whole family office working for you to manage your assets and take care of your needs . However, let me tell you it’s is not because you made it so big that you should think you are a genius and know everything better than anyone. You should hire professionals to help you. Managing assets require some education around the investment vehicles and risk management strategies. Sorry guys but with all the respect I have for wallstreebet, AMD and YOLO stock picking, some discipline is necessary. The investors who have made money through crypto are generally early adopters. However I have started to see another profile popping up. They are not early adopters. They are late exiters. It is another way but just as efficient. Last week I met the first crypto millionaire I know who first bough bitcoin over 1000$. 55k invested at the beginning of this year. Late adopter & late exiter is a route that can lead to the million.
Last remarks. I know banks, bankers, and FIAT currencies are so last century. I know some of you despise them and would like to have them burn to the ground. With compliance officers taking over the business, I would like to start the fire myself sometimes. I hope this extensive guide has helped some of you. I am around if you need more details. I love my job despite all my frustration towards the banking industry because it makes me meet interesting people on a daily basis. I am a crypto enthusiast myself, and I do think this tech is here to stay and will change the world. Banks will have to adapt big time. Things have started to change already; they understand the threat is real. I can feel the generational gap in Geneva, with all these old bankers who don’t get what’s going on. They glaze at the bitcoin chart on CNBC in disbelief and they start to get it. This bitcoin thing is not a joke. Deep inside, as an early adopter who also intends to be a late exiter, as a libertarian myself, it makes me smile with satisfaction.
Cheers. @swisspb on telegram
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Searching for the Unicorn Cryptocurrency

Searching for the Unicorn Cryptocurrency
For someone first starting out as a cryptocurrency investor, finding a trustworthy manual for screening a cryptocurrency’s merits is nonexistent as we are still in the early, Wild West days of the cryptocurrency market. One would need to become deeply familiar with the inner workings of blockchain to be able to perform the bare minimum due diligence.
One might believe, over time, that finding the perfect cryptocurrency may be nothing short of futile. If a cryptocurrency purports infinite scalability, then it is probably either lightweight with limited features or it is highly centralized among a limited number of nodes that perform consensus services especially Proof of Stake or Delegated Proof of Stake. Similarly, a cryptocurrency that purports comprehensive privacy may have technical obstacles to overcome if it aims to expand its applications such as in smart contracts. The bottom line is that it is extremely difficult for a cryptocurrency to have all important features jam-packed into itself.
The cryptocurrency space is stuck in the era of the “dial-up internet” in a manner of speaking. Currently blockchain can’t scale – not without certain tradeoffs – and it hasn’t fully resolved certain intractable issues such as user-unfriendly long addresses and how the blockchain size is forever increasing to name two.
In other words, we haven’t found the ultimate cryptocurrency. That is, we haven’t found the mystical unicorn cryptocurrency that ushers the era of decentralization while eschewing all the limitations of traditional blockchain systems.
“But wait – what about Ethereum once it implements sharding?”
“Wouldn’t IOTA be able to scale infinitely with smart contracts through its Qubic offering?”
“Isn’t Dash capable of having privacy, smart contracts, and instantaneous transactions?”
Those thoughts and comments may come from cryptocurrency investors who have done their research. It is natural for the informed investors to invest in projects that are believed to bring cutting edge technological transformation to blockchain. Sooner or later, the sinking realization will hit that any variation of the current blockchain technology will always likely have certain limitations.
Let us pretend that there indeed exists a unicorn cryptocurrency somewhere that may or may not be here yet. What would it look like, exactly? Let us set the 5 criteria of the unicorn cryptocurrency:
Unicorn Criteria
(1) Perfectly solves the blockchain trilemma:
o Infinite scalability
o Full security
o Full decentralization
(2) Zero or minimal transaction fee
(3) Full privacy
(4) Full smart contract capabilities
(5) Fair distribution and fair governance
For each of the above 5 criteria, there would not be any middle ground. For example, a cryptocurrency with just an in-protocol mixer would not be considered as having full privacy. As another example, an Initial Coin Offering (ICO) may possibly violate criterion (5) since with an ICO the distribution and governance are often heavily favored towards an oligarchy – this in turn would defy the spirit of decentralization that Bitcoin was found on.
There is no cryptocurrency currently that fits the above profile of the unicorn cryptocurrency. Let us examine an arbitrary list of highly hyped cryptocurrencies that meet the above list at least partially. The following list is by no means comprehensive but may be a sufficient sampling of various blockchain implementations:
Bitcoin (BTC)
Bitcoin is the very first and the best known cryptocurrency that started it all. While Bitcoin is generally considered extremely secure, it suffers from mining centralization to a degree. Bitcoin is not anonymous, lacks smart contracts, and most worrisomely, can only do about 7 transactions per seconds (TPS). Bitcoin is not the unicorn notwithstanding all the Bitcoin maximalists.
Ethereum (ETH)
Ethereum is widely considered the gold standard of smart contracts aside from its scalability problem. Sharding as part of Casper’s release is generally considered to be the solution to Ethereum’s scalability problem.
The goal of sharding is to split up validating responsibilities among various groups or shards. Ethereum’s sharding comes down to duplicating the existing blockchain architecture and sharing a token. This does not solve the core issue and simply kicks the can further down the road. After all, full nodes still need to exist one way or another.
Ethereum’s blockchain size problem is also an issue as will be explained more later in this article.
As a result, Ethereum is not the unicorn due to its incomplete approach to scalability and, to a degree, security.
Dash
Dash’s masternodes are widely considered to be centralized due to their high funding requirements, and there are accounts of a pre-mine in the beginning. Dash is not the unicorn due to its questionable decentralization.
Nano
Nano boasts rightfully for its instant, free transactions. But it lacks smart contracts and privacy, and it may be exposed to well orchestrated DDOS attacks. Therefore, it goes without saying that Nano is not the unicorn.
EOS
While EOS claims to execute millions of transactions per seconds, a quick glance reveals centralized parameters with 21 nodes and a questionable governance system. Therefore, EOS fails to achieve the unicorn status.
Monero (XMR)
One of the best known and respected privacy coins, Monero lacks smart contracts and may fall short of infinite scalability due to CryptoNote’s design. The unicorn rank is out of Monero’s reach.
IOTA
IOTA’s scalability is based on the number of transactions the network processes, and so its supposedly infinite scalability would fluctuate and is subject to the whims of the underlying transactions. While IOTA’s scalability approach is innovative and may work in the long term, it should be reminded that the unicorn cryptocurrency has no middle ground. The unicorn cryptocurrency would be expected to scale infinitely on a consistent basis from the beginning.
In addition, IOTA’s Masked Authenticated Messaging (MAM) feature does not bring privacy to the masses in a highly convenient manner. Consequently, the unicorn is not found with IOTA.

PascalCoin as a Candidate for the Unicorn Cryptocurrency
Please allow me to present a candidate for the cryptocurrency unicorn: PascalCoin.
According to the website, PascalCoin claims the following:
“PascalCoin is an instant, zero-fee, infinitely scalable, and decentralized cryptocurrency with advanced privacy and smart contract capabilities. Enabled by the SafeBox technology to become the world’s first blockchain independent of historical operations, PascalCoin possesses unlimited potential.”
The above summary is a mouthful to be sure, but let’s take a deep dive on how PascalCoin innovates with the SafeBox and more. Before we do this, I encourage you to first become acquainted with PascalCoin by watching the following video introduction:
https://www.youtube.com/watch?time_continue=4&v=F25UU-0W9Dk
The rest of this section will be split into 10 parts in order to illustrate most of the notable features of PascalCoin. Naturally, let’s start off with the SafeBox.
Part #1: The SafeBox
Unlike traditional UTXO-based cryptocurrencies in which the blockchain records the specifics of each transaction (address, sender address, amount of funds transferred, etc.), the blockchain in PascalCoin is only used to mutate the SafeBox. The SafeBox is a separate but equivalent cryptographic data structure that snapshots account balances. PascalCoin’s blockchain is comparable to a machine that feeds the most important data – namely, the state of an account – into the SafeBox. Any node can still independently compute and verify the cumulative Proof-of-Work required to construct the SafeBox.
The PascalCoin whitepaper elegantly highlights the unique historical independence that the SafeBox possesses:
“While there are approaches that cryptocurrencies could use such as pruning, warp-sync, "finality checkpoints", UTXO-snapshotting, etc, there is a fundamental difference with PascalCoin. Their new nodes can only prove they are on most-work-chain using the infinite history whereas in PascalCoin, new nodes can prove they are on the most-work chain without the infinite history.”
Some cryptocurrency old-timers might instinctively balk at the idea of full nodes eschewing the entire history for security, but such a reaction would showcase a lack of understanding on what the SafeBox really does.
A concrete example would go a long way to best illustrate what the SafeBox does. Let’s say I input the following operations in my calculator:
5 * 5 – 10 / 2 + 5
It does not take a genius to calculate the answer, 25. Now, the expression “5 \ 5 – 10 / 2 + 5”* would be forever imbued on a traditional blockchain’s history. But the SafeBox begs to differ. It says that the expression “5 \ 5 – 10 / 2 + 5”* should instead be simply “25” so as preserve simplicity, time, and space. In other words, the SafeBox simply preserves the account balance.
But some might still be unsatisfied and claim that if one cannot trace the series of operations (transactions) that lead to the final number (balance) of 25, the blockchain is inherently insecure.
Here are four important security aspects of the SafeBox that some people fail to realize:
(1) SafeBox Follows the Longest Chain of Proof-of-Work
The SafeBox mutates itself per 100 blocks. Each new SafeBox mutation must reference both to the previous SafeBox mutation and the preceding 100 blocks in order to be valid, and the resultant hash of the new mutated SafeBox must then be referenced by each of the new subsequent blocks, and the process repeats itself forever.
The fact that each new SafeBox mutation must reference to the previous SafeBox mutation is comparable to relying on the entire history. This is because the previous SafeBox mutation encapsulates the result of cumulative entire history except for the 100 blocks which is why each new SafeBox mutation requires both the previous SafeBox mutation and the preceding 100 blocks.
So in a sense, there is a single interconnected chain of inflows and outflows, supported by Byzantine Proof-of-Work consensus, instead of the entire history of transactions.
More concretely, the SafeBox follows the path of the longest chain of Proof-of-Work simply by design, and is thus cryptographically equivalent to the entire history even without tracing specific operations in the past. If the chain is rolled back with a 51% attack, only the attacker’s own account(s) in the SafeBox can be manipulated as is explained in the next part.
(2) A 51% Attack on PascalCoin Functions the Same as Others
A 51% attack on PascalCoin would work in a similar way as with other Proof-of-Work cryptocurrencies. An attacker cannot modify a transaction in the past without affecting the current SafeBox hash which is accepted by all honest nodes.
Someone might claim that if you roll back all the current blocks plus the 100 blocks prior to the SafeBox’s mutation, one could create a forged SafeBox with different balances for all accounts. This would be incorrect as one would be able to manipulate only his or her own account(s) in the SafeBox with a 51% attack – just as is the case with other UTXO cryptocurrencies. The SafeBox stores the balances of all accounts which are in turn irreversibly linked only to their respective owners’ private keys.
(3) One Could Preserve the Entire History of the PascalCoin Blockchain
No blockchain data in PascalCoin is ever deleted even in the presence of the SafeBox. Since the SafeBox is cryptographically equivalent to a full node with the entire history as explained above, PascalCoin full nodes are not expected to contain infinite history. But for whatever reason(s) one may have, one could still keep all the PascalCoin blockchain history as well along with the SafeBox as an option even though it would be redundant.
Without storing the entire history of the PascalCoin blockchain, you can still trace the specific operations of the 100 blocks prior to when the SafeBox absorbs and reflects the net result (a single balance for each account) from those 100 blocks. But if you’re interested in tracing operations over a longer period in the past – as redundant as that may be – you’d have the option to do so by storing the entire history of the PascalCoin blockchain.
(4) The SafeBox is Equivalent to the Entire Blockchain History
Some skeptics may ask this question: “What if the SafeBox is forever lost? How would you be able to verify your accounts?” Asking this question is tantamount to asking to what would happen to Bitcoin if all of its entire history was erased. The result would be chaos, of course, but the SafeBox is still in line with the general security model of a traditional blockchain with respect to black swans.
Now that we know the security of the SafeBox is not compromised, what are the implications of this new blockchain paradigm? A colorful illustration as follows still wouldn’t do justice to the subtle revolution that the SafeBox ushers. The automobiles we see on the street are the cookie-and-butter representation of traditional blockchain systems. The SafeBox, on the other hand, supercharges those traditional cars to become the Transformers from Michael Bay’s films.
The SafeBox is an entirely different blockchain architecture that is impressive in its simplicity and ingenuity. The SafeBox’s design is only the opening act for PascalCoin’s vast nuclear arsenal. If the above was all that PascalCoin offers, it still wouldn’t come close to achieving the unicorn status but luckily, we have just scratched the surface. Please keep on reading on if you want to learn how PascalCoin is going to shatter the cryptocurrency industry into pieces. Buckle down as this is going to be a long read as we explore further about the SafeBox’s implications.
Part #2: 0-Confirmation Transactions
To begin, 0-confirmation transactions are secure in PascalCoin thanks to the SafeBox.
The following paraphrases an explanation of PascalCoin’s 0-confirmations from the whitepaper:
“Since PascalCoin is not a UTXO-based currency but rather a State-based currency thanks to the SafeBox, the security guarantee of 0-confirmation transactions are much stronger than in UTXO-based currencies. For example, in Bitcoin if a merchant accepts a 0-confirmation transaction for a coffee, the buyer can simply roll that transaction back after receiving the coffee but before the transaction is confirmed in a block. The way the buyer does this is by re-spending those UTXOs to himself in a new transaction (with a higher fee) thus invalidating them for the merchant. In PascalCoin, this is virtually impossible since the buyer's transaction to the merchant is simply a delta-operation to debit/credit a quantity from/to accounts respectively. The buyer is unable to erase or pre-empt this two-sided, debit/credit-based transaction from the network’s pending pool until it either enters a block for confirmation or is discarded with respect to both sender and receiver ends. If the buyer tries to double-spend the coffee funds after receiving the coffee but before they clear, the double-spend transaction will not propagate the network since nodes cannot propagate a double-spending transaction thanks to the debit/credit nature of the transaction. A UTXO-based transaction is initially one-sided before confirmation and therefore is more exposed to one-sided malicious schemes of double spending.”
Phew, that explanation was technical but it had to be done. In summary, PascalCoin possesses the only secure 0-confirmation transactions in the cryptocurrency industry, and it goes without saying that this means PascalCoin is extremely fast. In fact, PascalCoin is capable of 72,000 TPS even prior to any additional extensive optimizations down the road. In other words, PascalCoin is as instant as it gets and gives Nano a run for its money.
Part #3: Zero Fee
Let’s circle back to our discussion of PascalCoin’s 0-confirmation capability. Here’s a little fun magical twist to PascalCoin’s 0-confirmation magic: 0-confirmation transactions are zero-fee. As in you don’t pay a single cent in fee for each 0-confirmation! There is just a tiny downside: if you create a second transaction in a 5-minute block window then you’d need to pay a minimal fee. Imagine using Nano but with a significantly stronger anti-DDOS protection for spam! But there shouldn’t be any complaint as this fee would amount to 0.0001 Pascal or $0.00002 based on the current price of a Pascal at the time of this writing.
So, how come the fee for blazingly fast transactions is nonexistent? This is where the magic of the SafeBox arises in three ways:
(1) PascalCoin possesses the secure 0-confirmation feature as discussed above that enables this speed.
(2) There is no fee bidding competition of transaction priority typical in UTXO cryptocurrencies since, once again, PascalCoin operates on secure 0-confirmations.
(3) There is no fee incentive needed to run full nodes on behalf of the network’s security beyond the consensus rewards.
Part #4: Blockchain Size
Let’s expand more on the third point above, using Ethereum as an example. Since Ethereum’s launch in 2015, its full blockchain size is currently around 2 TB, give or take, but let’s just say its blockchain size is 100 GB for now to avoid offending the Ethereum elitists who insist there are different types of full nodes that are lighter. Whoever runs Ethereum’s full nodes would expect storage fees on top of the typical consensus fees as it takes significant resources to shoulder Ethereum’s full blockchain size and in turn secure the network. What if I told you that PascalCoin’s full blockchain size will never exceed few GBs after thousands of years? That is just what the SafeBox enables PascalCoin to do so. It is estimated that by 2072, PascalCoin’s full nodes will only be 6 GB which is low enough not to warrant any fee incentives for hosting full nodes. Remember, the SafeBox is an ultra-light cryptographic data structure that is cryptographically equivalent to a blockchain with the entire transaction history. In other words, the SafeBox is a compact spreadsheet of all account balances that functions as PascalCoin’s full node!
Not only does the SafeBox’s infinitesimal memory size helps to reduce transaction fees by phasing out any storage fees, but it also paves the way for true decentralization. It would be trivial for every PascalCoin user to opt a full node in the form of a wallet. This is extreme decentralization at its finest since the majority of users of other cryptocurrencies ditch full nodes due to their burdensome sizes. It is naïve to believe that storage costs would reduce enough to the point where hosting full nodes are trivial. Take a look at the following chart outlining the trend of storage cost.

* https://www.backblaze.com/blog/hard-drive-cost-per-gigabyte/
As we can see, storage costs continue to decrease but the descent is slowing down as is the norm with technological improvements. In the meantime, blockchain sizes of other cryptocurrencies are increasing linearly or, in the case of smart contract engines like Ethereum, parabolically. Imagine a cryptocurrency smart contract engine like Ethereum garnering worldwide adoption; how do you think Ethereum’s size would look like in the far future based on the following chart?


https://i.redd.it/k57nimdjmo621.png

Ethereum’s future blockchain size is not looking pretty in terms of sustainable security. Sharding is not a fix for this issue since there still needs to be full nodes but that is a different topic for another time.
It is astonishing that the cryptocurrency community as a whole has passively accepted this forever-expanding-blockchain-size problem as an inescapable fate.
PascalCoin is the only cryptocurrency that has fully escaped the death vortex of forever expanding blockchain size. Its blockchain size wouldn’t exceed 10 GB even after many hundreds of years of worldwide adoption. Ethereum’s blockchain size after hundreds of years of worldwide adoption would make fine comedy.
Part #5: Simple, Short, and Ordinal Addresses
Remember how the SafeBox works by snapshotting all account balances? As it turns out, the account address system is almost as cool as the SafeBox itself.
Imagine yourself in this situation: on a very hot and sunny day, you’re wandering down the street across from your house and ran into a lemonade stand – the old-fashioned kind without any QR code or credit card terminal. The kid across you is selling a lemonade cup for 1 Pascal with a poster outlining the payment address as 5471-55. You flip out your phone and click “Send” with 1 Pascal to the address 5471-55; viola, exactly one second later you’re drinking your lemonade without paying a cent for the transaction fee!
The last thing one wants to do is to figure out how to copy/paste to, say, the following address 1BoatSLRHtKNngkdXEeobR76b53LETtpyT on the spot wouldn’t it? Gone are the obnoxiously long addresses that plague all cryptocurrencies. The days of those unreadable addresses will be long gone – it has to be if blockchain is to innovate itself for the general public. EOS has a similar feature for readable addresses but in a very limited manner in comparison, and nicknames attached to addresses in GUIs don’t count since blockchain-wide compatibility wouldn’t hold.
Not only does PascalCoin has the neat feature of having addresses (called PASAs) that amount to up to 6 or 7 digits, but PascalCoin can also incorporate in-protocol address naming as opposed to GUI address nicknames. Suppose I want to order something from Amazon using Pascal; I simply search the word “Amazon” then the corresponding account number shows up. Pretty neat, right?
The astute reader may gather that PascalCoin’s address system makes it necessary to commoditize addresses, and he/she would be correct. Some view this as a weakness; part #10 later in this segment addresses this incorrect perception.
Part #6: Privacy
As if the above wasn’t enough, here’s another secret that PascalCoin has: it is a full-blown privacy coin. It uses two separate foundations to achieve comprehensive anonymity: in-protocol mixer for transfer amounts and zn-SNARKs for private balances. The former has been implemented and the latter is on the roadmap. Both the 0-confirmation transaction and the negligible transaction fee would make PascalCoin the most scalable privacy coin of any other cryptocurrencies pending the zk-SNARKs implementation.
Part #7: Smart Contracts
Next, PascalCoin will take smart contracts to the next level with a layer-2 overlay consensus system that pioneers sidechains and other smart contract implementations.
In formal terms, this layer-2 architecture will facilitate the transfer of data between PASAs which in turn allows clean enveloping of layer-2 protocols inside layer-1 much in the same way that HTTP lives inside TCP.
To summarize:
· The layer-2 consensus method is separate from the layer-1 Proof-of-Work. This layer-2 consensus method is independent and flexible. A sidechain – based on a single encompassing PASA – could apply Proof-of-Stake (POS), Delegated Proof-of-Stake (DPOS), or Directed Acyclic Graph (DAG) as the consensus system of its choice.
· Such a layer-2 smart contract platform can be written in any languages.
· Layer-2 sidechains will also provide very strong anonymity since funds are all pooled and keys are not used to unlock them.
· This layer-2 architecture is ingenious in which the computation is separate from layer-2 consensus, in effect removing any bottleneck.
· Horizontal scaling exists in this paradigm as there is no interdependence between smart contracts and states are not managed by slow sidechains.
· Speed and scalability are fully independent of PascalCoin.
One would be able to run the entire global financial system on PascalCoin’s infinitely scalable smart contract platform and it would still scale infinitely. In fact, this layer-2 architecture would be exponentially faster than Ethereum even after its sharding is implemented.
All this is the main focus of PascalCoin’s upcoming version 5 in 2019. A whitepaper add-on for this major upgrade will be released in early 2019.
Part #8: RandomHash Algorithm
Surely there must be some tradeoffs to PascalCoin’s impressive capabilities, you might be asking yourself. One might bring up the fact that PascalCoin’s layer-1 is based on Proof-of-Work and is thus susceptible to mining centralization. This would be a fallacy as PascalCoin has pioneered the very first true ASIC, GPU, and dual-mining resistant algorithm known as RandomHash that obliterates anything that is not CPU based and gives all the power back to solo miners.
Here is the official description of RandomHash:
“RandomHash is a high-level cryptographic hash algorithm that combines other well-known hash primitives in a highly serial manner. The distinguishing feature is that calculations for a nonce are dependent on partial calculations of other nonces, selected at random. This allows a serial hasher (CPU) to re-use these partial calculations in subsequent mining saving 50% or more of the work-load. Parallel hashers (GPU) cannot benefit from this optimization since the optimal nonce-set cannot be pre-calculated as it is determined on-the-fly. As a result, parallel hashers (GPU) are required to perform the full workload for every nonce. Also, the algorithm results in 10x memory bloat for a parallel implementation. In addition to its serial nature, it is branch-heavy and recursive making in optimal for CPU-only mining.”
One might be understandably skeptical of any Proof-of-Work algorithm that solves ASIC and GPU centralization once for all because there have been countless proposals being thrown around for various algorithms since the dawn of Bitcoin. Is RandomHash truly the ASIC & GPU killer that it claims to be?
Herman Schoenfeld, the inventor behind RandomHash, described his algorithm in the following:
“RandomHash offers endless ASIC-design breaking surface due to its use of recursion, hash algo selection, memory hardness and random number generation.
For example, changing how round hash selection is made and/or random number generator algo and/or checksum algo and/or their sequencing will totally break an ASIC design. Conceptually if you can significantly change the structure of the output assembly whilst keeping the high-level algorithm as invariant as possible, the ASIC design will necessarily require proportional restructuring. This results from the fact that ASIC designs mirror the ASM of the algorithm rather than the algorithm itself.”
Polyminer1 (pseudonym), one of the members of the PascalCoin core team who developed RHMiner (official software for mining RandomHash), claimed as follows:
“The design of RandomHash is, to my experience, a genuine innovation. I’ve been 30 years in the field. I’ve rarely been surprised by anything. RandomHash was one of my rare surprises. It’s elegant, simple, and achieves resistance in all fronts.”
PascalCoin may have been the first party to achieve the race of what could possibly be described as the “God algorithm” for Proof-of-Work cryptocurrencies. Look no further than one of Monero’s core developers since 2015, Howard Chu. In September 2018, Howard declared that he has found a solution, called RandomJS, to permanently keep ASICs off the network without repetitive algorithm changes. This solution actually closely mirrors RandomHash’s algorithm. Discussing about his algorithm, Howard asserted that “RandomJS is coming at the problem from a direction that nobody else is.”
Link to Howard Chu’s article on RandomJS:
https://www.coindesk.com/one-musicians-creative-solution-to-drive-asics-off-monero
Yet when Herman was asked about Howard’s approach, he responded:
“Yes, looks like it may work although using Javascript was a bit much. They should’ve just used an assembly subset and generated random ASM programs. In a way, RandomHash does this with its repeated use of random mem-transforms during expansion phase.”
In the end, PascalCoin may have successfully implemented the most revolutionary Proof-of-Work algorithm, one that eclipses Howard’s burgeoning vision, to date that almost nobody knows about. To learn more about RandomHash, refer to the following resources:
RandomHash whitepaper:
https://www.pascalcoin.org/storage/whitepapers/RandomHash_Whitepaper.pdf
Technical proposal for RandomHash:
https://github.com/PascalCoin/PascalCoin/blob/mastePIP/PIP-0009.md
Someone might claim that PascalCoin still suffers from mining centralization after RandomHash, and this is somewhat misleading as will be explained in part #10.
Part #9: Fair Distribution and Governance
Not only does PascalCoin rest on superior technology, but it also has its roots in the correct philosophy of decentralized distribution and governance. There was no ICO or pre-mine, and the developer fund exists as a percentage of mining rewards as voted by the community. This developer fund is 100% governed by a decentralized autonomous organization – currently facilitated by the PascalCoin Foundation – that will eventually be transformed into an autonomous smart contract platform. Not only is the developer fund voted upon by the community, but PascalCoin’s development roadmap is also voted upon the community via the Protocol Improvement Proposals (PIPs).
This decentralized governance also serves an important benefit as a powerful deterrent to unseemly fork wars that befall many cryptocurrencies.
Part #10: Common Misconceptions of PascalCoin
“The branding is terrible”
PascalCoin is currently working very hard on its image and is preparing for several branding and marketing initiatives in the short term. For example, two of the core developers of the PascalCoin recently interviewed with the Fox Business Network. A YouTube replay of this interview will be heavily promoted.
Some people object to the name PascalCoin. First, it’s worth noting that PascalCoin is the name of the project while Pascal is the name of the underlying currency. Secondly, Google and YouTube received excessive criticisms back then in the beginning with their name choices. Look at where those companies are nowadays – surely a somewhat similar situation faces PascalCoin until the name’s familiarity percolates into the public.
“The wallet GUI is terrible”
As the team is run by a small yet extremely dedicated developers, multiple priorities can be challenging to juggle. The lack of funding through an ICO or a pre-mine also makes it challenging to accelerate development. The top priority of the core developers is to continue developing full-time on the groundbreaking technology that PascalCoin offers. In the meantime, an updated and user-friendly wallet GUI has been worked upon for some time and will be released in due time. Rome wasn’t built in one day.
“One would need to purchase a PASA in the first place”
This is a complicated topic since PASAs need to be commoditized by the SafeBox’s design, meaning that PASAs cannot be obtained at no charge to prevent systematic abuse. This raises two seemingly valid concerns:
· As a chicken and egg problem, how would one purchase a PASA using Pascal in the first place if one cannot obtain Pascal without a PASA?
· How would the price of PASAs stay low and affordable in the face of significant demand?
With regards to the chicken and egg problem, there are many ways – some finished and some unfinished – to obtain your first PASA as explained on the “Get Started” page on the PascalCoin website:
https://www.pascalcoin.org/get_started
More importantly, however, is the fact that there are few methods that can get your first PASA for free. The team will also release another method soon in which you could obtain your first PASA for free via a single SMS message. This would probably become by far the simplest and the easiest way to obtain your first PASA for free. There will be more new ways to easily obtain your first PASA for free down the road.
What about ensuring the PASA market at large remains inexpensive and affordable following your first (and probably free) PASA acquisition? This would be achieved in two ways:
· Decentralized governance of the PASA economics per the explanation in the FAQ section on the bottom of the PascalCoin website (https://www.pascalcoin.org/)
· Unlimited and free pseudo-PASAs based on layer-2 in the next version release.
“PascalCoin is still centralized after the release of RandomHash”
Did the implementation of RandomHash from version 4 live up to its promise?
The official goals of RandomHash were as follow:
(1) Implement a GPU & ASIC resistant hash algorithm
(2) Eliminate dual mining
The two goals above were achieved by every possible measure.
Yet a mining pool, Nanopool, was able to regain its hash majority after a significant but a temporary dip.
The official conclusion is that, from a probabilistic viewpoint, solo miners are more profitable than pool miners. However, pool mining is enticing for solo miners who 1) have limited hardware as it ensures a steady income instead of highly profitable but probabilistic income via solo mining, and 2) who prefer convenient software and/or GUI.
What is the next step, then? While the barrier of entry for solo miners has successfully been put down, additional work needs to be done. The PascalCoin team and the community are earnestly investigating additional steps to improve mining decentralization with respect to pool mining specifically to add on top of RandomHash’s successful elimination of GPU, ASIC, and dual-mining dominance.
It is likely that the PascalCoin community will promote the following two initiatives in the near future:
(1) Establish a community-driven, nonprofit mining pool with attractive incentives.
(2) Optimize RHMiner, PascalCoin’s official solo mining software, for performance upgrades.
A single pool dominance is likely short lived once more options emerge for individual CPU miners who want to avoid solo mining for whatever reason(s).
Let us use Bitcoin as an example. Bitcoin mining is dominated by ASICs and mining pools but no single pool is – at the time of this writing – even close on obtaining the hash majority. With CPU solo mining being a feasible option in conjunction with ASIC and GPU mining eradication with RandomHash, the future hash rate distribution of PascalCoin would be far more promising than Bitcoin’s hash rate distribution.
PascalCoin is the Unicorn Cryptocurrency
If you’ve read this far, let’s cut straight to the point: PascalCoin IS the unicorn cryptocurrency.
It is worth noting that PascalCoin is still a young cryptocurrency as it was launched at the end of 2016. This means that many features are still work in progress such as zn-SNARKs, smart contracts, and pool decentralization to name few. However, it appears that all of the unicorn criteria are within PascalCoin’s reach once PascalCoin’s technical roadmap is mostly completed.
Based on this expository on PascalCoin’s technology, there is every reason to believe that PascalCoin is the unicorn cryptocurrency. PascalCoin also solves two fundamental blockchain problems beyond the unicorn criteria that were previously considered unsolvable: blockchain size and simple address system. The SafeBox pushes PascalCoin to the forefront of cryptocurrency zeitgeist since it is a superior solution compared to UTXO, Directed Acyclic Graph (DAG), Block Lattice, Tangle, and any other blockchain innovations.


THE UNICORN

Author: Tyler Swob
submitted by Kosass to CryptoCurrency [link] [comments]

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