Bitcoin is now harder to mine than ever - Decrypt

17.09.2017 #Bitcoin estimated next difficulty +20,61 in next 20h. Bitcoin is dying ?

17.09.2017 #Bitcoin estimated next difficulty +20,61 in next 20h. Bitcoin is dying ? submitted by djkarmi to Bitcoin [link] [comments]

Bitcoin's hashrate at over 1,000,000,000 GH/s, next difficulty jump estimate: +19%

submitted by Barbatos_ to Bitcoin [link] [comments]

Estimated next difficulty adjustment for Bitcoin Cash: 1 day, 18 hours. +330.16% Miners Profit vs -5.14% in BTC adjustment in 2 days, 5 hours

http://fork.lol/pow/retarget
submitted by dd32x to btc [link] [comments]

Next difficulty estimate: which source is correct? /r/Bitcoin

Next difficulty estimate: which source is correct? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Live-updating view of the current Bitcoin difficulty epoch and estimated next difficulty retargeting.

Live-updating view of the current Bitcoin difficulty epoch and estimated next difficulty retargeting. submitted by archaeal to dataisbeautiful [link] [comments]

Bitcoin Wisdom's difficulty estimator is broken, right? It says BTC difficulty will drop by -15.38% (approximately) at the end of this next round... but it said that the last time too and it jumped 18.11%!

submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Estimated next difficulty adjustment for Bitcoin Cash: 1 day, 18 hours. +330.16% Miners Profit vs -5.14% in BTC adjustment in 2 days, 5 hours /r/btc

Estimated next difficulty adjustment for Bitcoin Cash: 1 day, 18 hours. +330.16% Miners Profit vs -5.14% in BTC adjustment in 2 days, 5 hours /btc submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Bitcoin network: Next difficulty (estimate): 15,217,495 - Bitcoin Forum - The Unofficial Bitcoin Forum

submitted by bitcoinforum to Bitcoinforum [link] [comments]

Gridcoin 5.0.0.0-Mandatory "Fern" Release

https://github.com/gridcoin-community/Gridcoin-Research/releases/tag/5.0.0.0
Finally! After over ten months of development and testing, "Fern" has arrived! This is a whopper. 240 pull requests merged. Essentially a complete rewrite that was started with the scraper (the "neural net" rewrite) in "Denise" has now been completed. Practically the ENTIRE Gridcoin specific codebase resting on top of the vanilla Bitcoin/Peercoin/Blackcoin vanilla PoS code has been rewritten. This removes the team requirement at last (see below), although there are many other important improvements besides that.
Fern was a monumental undertaking. We had to encode all of the old rules active for the v10 block protocol in new code and ensure that the new code was 100% compatible. This had to be done in such a way as to clear out all of the old spaghetti and ring-fence it with tightly controlled class implementations. We then wrote an entirely new, simplified ruleset for research rewards and reengineered contracts (which includes beacon management, polls, and voting) using properly classed code. The fundamentals of Gridcoin with this release are now on a very sound and maintainable footing, and the developers believe the codebase as updated here will serve as the fundamental basis for Gridcoin's future roadmap.
We have been testing this for MONTHS on testnet in various stages. The v10 (legacy) compatibility code has been running on testnet continuously as it was developed to ensure compatibility with existing nodes. During the last few months, we have done two private testnet forks and then the full public testnet testing for v11 code (the new protocol which is what Fern implements). The developers have also been running non-staking "sentinel" nodes on mainnet with this code to verify that the consensus rules are problem-free for the legacy compatibility code on the broader mainnet. We believe this amount of testing is going to result in a smooth rollout.
Given the amount of changes in Fern, I am presenting TWO changelogs below. One is high level, which summarizes the most significant changes in the protocol. The second changelog is the detailed one in the usual format, and gives you an inkling of the size of this release.

Highlights

Protocol

Note that the protocol changes will not become active until we cross the hard-fork transition height to v11, which has been set at 2053000. Given current average block spacing, this should happen around October 4, about one month from now.
Note that to get all of the beacons in the network on the new protocol, we are requiring ALL beacons to be validated. A two week (14 day) grace period is provided by the code, starting at the time of the transition height, for people currently holding a beacon to validate the beacon and prevent it from expiring. That means that EVERY CRUNCHER must advertise and validate their beacon AFTER the v11 transition (around Oct 4th) and BEFORE October 18th (or more precisely, 14 days from the actual date of the v11 transition). If you do not advertise and validate your beacon by this time, your beacon will expire and you will stop earning research rewards until you advertise and validate a new beacon. This process has been made much easier by a brand new beacon "wizard" that helps manage beacon advertisements and renewals. Once a beacon has been validated and is a v11 protocol beacon, the normal 180 day expiration rules apply. Note, however, that the 180 day expiration on research rewards has been removed with the Fern update. This means that while your beacon might expire after 180 days, your earned research rewards will be retained and can be claimed by advertising a beacon with the same CPID and going through the validation process again. In other words, you do not lose any earned research rewards if you do not stake a block within 180 days and keep your beacon up-to-date.
The transition height is also when the team requirement will be relaxed for the network.

GUI

Besides the beacon wizard, there are a number of improvements to the GUI, including new UI transaction types (and icons) for staking the superblock, sidestake sends, beacon advertisement, voting, poll creation, and transactions with a message. The main screen has been revamped with a better summary section, and better status icons. Several changes under the hood have improved GUI performance. And finally, the diagnostics have been revamped.

Blockchain

The wallet sync speed has been DRASTICALLY improved. A decent machine with a good network connection should be able to sync the entire mainnet blockchain in less than 4 hours. A fast machine with a really fast network connection and a good SSD can do it in about 2.5 hours. One of our goals was to reduce or eliminate the reliance on snapshots for mainnet, and I think we have accomplished that goal with the new sync speed. We have also streamlined the in-memory structures for the blockchain which shaves some memory use.
There are so many goodies here it is hard to summarize them all.
I would like to thank all of the contributors to this release, but especially thank @cyrossignol, whose incredible contributions formed the backbone of this release. I would also like to pay special thanks to @barton2526, @caraka, and @Quezacoatl1, who tirelessly helped during the testing and polishing phase on testnet with testing and repeated builds for all architectures.
The developers are proud to present this release to the community and we believe this represents the starting point for a true renaissance for Gridcoin!

Summary Changelog

Accrual

Changed

Most significantly, nodes calculate research rewards directly from the magnitudes in EACH superblock between stakes instead of using a two- or three- point average based on a CPID's current magnitude and the magnitude for the CPID when it last staked. For those long-timers in the community, this has been referred to as "Superblock Windows," and was first done in proof-of-concept form by @denravonska.

Removed

Beacons

Added

Changed

Removed

Unaltered

As a reminder:

Superblocks

Added

Changed

Removed

Voting

Added

Changed

Removed

Detailed Changelog

[5.0.0.0] 2020-09-03, mandatory, "Fern"

Added

Changed

Removed

Fixed

submitted by jamescowens to gridcoin [link] [comments]

Testing the Tide | Monthly FIRE Portfolio Update - June 2020

We would rather be ruined than changed.
-W H Auden, The Age of Anxiety
This is my forty-third portfolio update. I complete this update monthly to check my progress against my goal.
Portfolio goal
My objective is to reach a portfolio of $2 180 000 by 1 July 2021. This would produce a real annual income of about $87 000 (in 2020 dollars).
This portfolio objective is based on an expected average real return of 3.99 per cent, or a nominal return of 6.49 per cent.
Portfolio summary
Vanguard Lifestrategy High Growth Fund – $726 306
Vanguard Lifestrategy Growth Fund – $42 118
Vanguard Lifestrategy Balanced Fund – $78 730
Vanguard Diversified Bonds Fund – $111 691
Vanguard Australian Shares ETF (VAS) – $201 745
Vanguard International Shares ETF (VGS) – $39 357
Betashares Australia 200 ETF (A200) – $231 269
Telstra shares (TLS) – $1 668
Insurance Australia Group shares (IAG) – $7 310
NIB Holdings shares (NHF) – $5 532
Gold ETF (GOLD.ASX) – $117 757
Secured physical gold – $18 913
Ratesetter (P2P lending) – $10 479
Bitcoin – $148 990
Raiz app (Aggressive portfolio) – $16 841
Spaceship Voyager app (Index portfolio) – $2 553
BrickX (P2P rental real estate) – $4 484
Total portfolio value: $1 765 743 (+$8 485 or 0.5%)
Asset allocation
Australian shares – 42.2% (2.8% under)
Global shares – 22.0%
Emerging markets shares – 2.3%
International small companies – 3.0%
Total international shares – 27.3% (2.7% under)
Total shares – 69.5% (5.5% under)
Total property securities – 0.3% (0.3% over)
Australian bonds – 4.7%
International bonds – 9.4%
Total bonds – 14.0% (1.0% under)
Gold – 7.7%
Bitcoin – 8.4%
Gold and alternatives – 16.2% (6.2% over)
Presented visually, below is a high-level view of the current asset allocation of the portfolio.
[Chart]
Comments
The overall portfolio increased slightly over the month. This has continued to move the portfolio beyond the lows seen in late March.
The modest portfolio growth of $8 000, or 0.5 per cent, maintains its value at around that achieved at the beginning of the year.
[Chart]
The limited growth this month largely reflects an increase in the value of my current equity holdings, in VAS and A200 and the Vanguard retail funds. This has outweighed a small decline in the value of Bitcoin and global shares. The value of the bond holdings also increased modestly, pushing them to their highest value since around early 2017.
[Chart]
There still appears to be an air of unreality around recent asset price increases and the broader economic context. Britain's Bank of England has on some indicators shown that the aftermath of the pandemic and lockdown represent the most challenging financial crisis in around 300 years. What is clear is that investor perceptions and fear around the coronavirus pandemic are a substantial ongoing force driving volatility in equity markets (pdf).
A somewhat optimistic view is provided here that the recovery could look more like the recovery from a natural disaster, rather than a traditional recession. Yet there are few certainties on offer. Negative oil prices, and effective offers by US equity investors to bail out Hertz creditors at no cost appear to be signs of a financial system under significant strains.
As this Reserve Bank article highlights, while some Australian households are well-placed to weather the storm ahead, the timing and severity of what lays ahead is an important unknown that will itself feed into changes in household wealth from here.
Investments this month have been exclusively in the Australian shares exchange-traded fund (VAS) using Selfwealth.* This has been to bring my actual asset allocation more closely in line with the target split between Australian and global shares.
A moving azimuth: falling spending continues
Monthly expenses on the credit card have continued their downward trajectory across the past month.
[Chart]
The rolling average of monthly credit card spending is now at its lowest point over the period of the journey. This is despite the end of lockdown, and a slow resumption of some more normal aspects of spending.
This has continued the brief period since April of the achievement of a notional and contingent kind of financial independence.
The below chart illustrates this temporary state, setting out the degree to which portfolio distributions cover estimated total expenses, measured month to month.
[Chart]
There are two sources of volatility underlying its movement. The first is the level of expenses, which can vary, and the second is the fact that it is based on financial year distributions, which are themselves volatile.
Importantly, the distributions over the last twelve months of this chart is only an estimate - and hence the next few weeks will affect the precision of this analysis across its last 12 observations.
Estimating 2019-20 financial year portfolio distributions
Since the beginning of the journey, this time of year usually has sense of waiting for events to unfold - in particular, finding out the level of half-year distributions to June.
These represent the bulk of distributions, usually averaging 60-65 per cent of total distributions received. They are an important and tangible signpost of progress on the financial independence journey.
This is no simple task, as distributions have varied in size considerably.
A part of this variation has been the important role of sometimes large and lumpy capital distributions - which have made up between 30 to 48 per cent of total distributions in recent years, and an average of around 15 per cent across the last two decades.
I have experimented with many different approaches, most of which have relied on averaging over multi-year periods to even out the 'peaks and troughs' of how market movements may have affected distributions. The main approaches have been:
Each of these have their particular simplifications, advantages and drawbacks.
Developing new navigation tools
Over the past month I have also developed more fully an alternate 'model' for estimating returns.
This simply derives a median value across a set of historical 'cents per unit' distribution data for June and December payouts for the Vanguard funds and exchange traded funds. These make up over 96 per cent of income producing portfolio assets.
In other words, this model essentially assumes that each Vanguard fund and ETF owned pays out the 'average' level of distributions this half-year, with the average being based on distribution records that typically go back between 5 to 10 years.
Mapping the distribution estimates
The chart below sets out the estimate produced by each approach for the June distributions that are to come.
[Chart]
Some observations on these findings can be made.
The lowest estimate is the 'adjusted GFC income' observation, which essentially assumes that the income for this period is as low as experienced by the equity and bond portfolio during the Global Financial Crisis. Just due to timing differences of the period observed, this seems to be a 'worst case' lower bound estimate, which I do not currently place significant weight on.
Similarly, at the highest end, the 'average distribution rate' approach simply assumes June distributions deliver a distribution equal to the median that the entire portfolio has delivered since 1999. With higher interest rates, and larger fixed income holdings across much of that time, this seems an objectively unlikely outcome.
Similarly, the delivery of exactly the income suggested by long-term averages measured across decades and even centuries would be a matter of chance, rather than the basis for rational expectations.
Central estimates of the line of position
This leaves the estimates towards the centre of the chart - estimates of between around $28 000 to $43 000 as representing the more likely range.
I attach less weight to the historical three-year average due to the high contribution of distributed capital gains over that period of growth, where at least across equities some capital losses are likely to be in greater presence.
My preferred central estimate is the model estimate (green) , as it is based in historical data directly from the investment vehicles rather than my own evolving portfolio. The data it is based on in some cases goes back to the Global Financial Crisis. This estimate is also quite close to the raw average of all the alternative approaches (red). It sits a little above the 'adjusted income' measure.
None of these estimates, it should be noted, contain any explicit adjustment for the earnings and dividend reductions or delays arising from COVID-19. They may, therefore represent a modest over-estimate for likely June distributions, to the extent that these effects are more negative than those experienced on average across the period of the underlying data.
These are difficult to estimate, but dividend reductions could easily be in the order of 20-30 per cent, plausibly lowering distributions to the $23 000 to $27 000 range. The recently announced forecast dividend for the Vanguard Australian Shares ETF (VAS) is, for example, the lowest in four years.
As seen from chart above, there is a wide band of estimates, which grow wider still should capital gains be unexpectedly distributed from the Vanguard retail funds. These have represented a source of considerable volatility. Given this, it may seem fruitless to seek to estimate these forthcoming distributions, compared to just waiting for them to arrive.
Yet this exercise helps by setting out reasoning and positions, before hindsight bias urgently arrives to inform me that I knew the right answer all along. It also potentially helps clearly 'reject' some models over time, if the predictions they make prove to be systematically incorrect.
Progress
Progress against the objective, and the additional measures I have reached is set out below.
Measure Portfolio All Assets
Portfolio objective – $2 180 000 (or $87 000 pa) 81.0% 109.4%
Credit card purchases – $71 000 pa 98.8% 133.5%
Total expenses – $89 000 pa 79.2% 106.9%
Summary
The current coronavirus conditions are affecting all aspects of the journey to financial independence - changing spending habits, leading to volatility in equity markets and sequencing risks, and perhaps dramatically altering the expected pattern of portfolio distributions.
Although history can provide some guidance, there is simply no definitive way to know whether any or all of these changes will be fundamental and permanent alterations, or simply data points on a post-natural disaster path to a different post-pandemic set of conditions. There is the temptation to fit past crises imperfectly into the modern picture, as this Of Dollars and Data post illustrates well.
Taking a longer 100 year view, this piece 'The Allegory of the Hawk and Serpent' is a reminder that our entire set of received truths about constructing a portfolio to survive for the long-term can be a product of a sample size of one - actual past history - and subject to recency bias.
This month has felt like one of quiet routines, muted events compared to the past few months, and waiting to understand more fully the shape of the new. Nonetheless, with each new investment, or week of lower expenditure than implied in my FI target, the nature of the journey is incrementally changing - beneath the surface.
Small milestones are being passed - such as over 40 per cent of my equity holdings being outside of the the Vanguard retail funds. Or these these retail funds - which once formed over 95 per cent of the portfolio - now making up less than half.
With a significant part of the financial independence journey being about repeated small actions producing outsized results with time, the issue of maintaining good routines while exploring beneficial changes is real.
Adding to the complexity is that embarking on the financial journey itself is likely to change who one is. This idea, of the difficulty or impossibility of knowing the preferences of a future self, is explored in a fascinating way in this Econtalk podcast episode with a philosophical thought experiment about vampires. It poses the question: perhaps we can never know ourselves at the destination? And yet, who would rationally choose ruin over any change?
The post, links and full charts can be seen here.
submitted by thefiexpl to fiaustralia [link] [comments]

Warning: Blockchain difficulty adjustment affecting price movements

Below are notable difficulty adjustments when hash rate fell and block times become slower for Bitcoin.
  1. 26 Mar 2020 [difficulty adjustment -15.95%, avg block time 11min 54secs]. On the 28th price crashed from $6674 to $6138 ( -8%).
  2. 8 Nov 2019 [difficulty adjustment -7.1%, avg block time 10min 46secs]. On the same day price crashed from $9234 to $8783 ( -4.88%).
  3. The next big adjustment was around Nov to Dec 2018 and there were 3 big adjustments with high block times.

Current situation:
We are 1 day 10 hours from the next difficulty adjustment. Projected difficulty adjustment is -5.61% (https://fork.lol/pow/retarget), which could indicate a small dip. However, take note that the date of last adjustment was the 5th and the 3rd halving was on the 11th, between the 5th to the 11th there was increased hashrate from miners trying to mine the final week of 12.5btc that offset the really slow block times after the halving. Therefore it will be the next difficulty adjustment after the one on the 20th that will completely reflect the slower block times after the halving. Currently the median block time taken on the 17th was around 14min (-28.5% difficulty adjustment).
For people who do not understand blockchain, basically with the Bitcoin 3rd halving, mining profitability fell for a lot of miners and they probably turned off their miners therefore the blockchain mining time became considerably slower which is reflected with slow transaction speed and higher fees as seen currently. Bitcoin sellers moving their BTC from wallet to an exchange are faced with slow transaction speed and therefore the sell pressure of BTC fell considerably which will attribute to the current price increase. There is a correlation between sell pressure and blockchain congestion (the size of the correlation is undetermined).
There is going to be a race. A race between BTC price hiking high enough to attract more miners to reduce avg block times versus the closing window of roughly 2 weeks before the next difficulty adjustment. If the price does not jump high enough, the next difficulty adjustment in the first week of June could signal a huge dip.
I am not an expert. I just did some research on the above and wanted to share with fellow Bitcoin compatriots so that we can tread with caution and not lose our shirts. I do not plan to short BTC but I will exit my BTC positions if I expect double digit negative difficulty adjustment in early June.
Please visit the original post here https://www.reddit.com/Bitcoin/comments/gm23pe/warning_blockchain_difficulty_adjustment/
There are pictures in the original post as well as 2nd halving evidence with pics. I could not post pics here. If possible please upvote the original post, a lot of people downvote it. Not sure why people downvote it, maybe veterans attempting to hide information from newcomers to fleece them of their shirt.

Update 1:>! As of writing, I have opened a small short position on Bitcoin. Stop loss around 10k, estimated take profit around 8500. The reason is because the difficulty adjustment in the next 20 hours, even though is just -5% roughly is still significant. I direct you to look into all the difficulty adjustments in the last 2 years and you will know how rare it is. The ones I caught were all listed at the very top of the post. Since it is my first time shorting BTC, I take this as a learning opportunity so that I will have some experience to face the bigger difficulty adjustment in the first week of June. Analysis into execution, even in failure I am happy.!<
Update 2: The difficulty adjustment (DA) happened roughly 6 hours ago and the sell pressure from -6% DA did not seem to be affecting the market much. However, please take a look now at the estimation for the next DA.
On https://bitcoin.clarkmoody.com/dashboard/ it is estimated to be -25%.
On https://fork.lol/pow/retarget estimated to be -18%.
On https://www.blockchain.com/charts/median-confirmation-time the median block time for the last day was 16.8min.
My original proposition that the true DA of the halving can only be realized in the next DA stands and that it will be considerable. The increased sell pressure from that DA will be highly significant. That is why there is a race by current miners to get the BTC price up high enough to attract more miners to not have the DA drop too much.
Update 3: Current BTC price at $9100 ( ~39 hours after DA). Then again BTC could have dropped from all sorts of reason. However the coincidence with the DA and with all the past DA is just too high to simply shrug off as irrelevant. Anyways past result cannot predict future ones, stay safe with the trading. Will no longer check on this post.
References:
Difficulty adjustment dates taken from https://btc.com/stats/diff
Bitcoin graph history for price movement taken from coinmarketcap.
Median confirmation time (block time) taken from https://www.blockchain.com/charts/median-confirmation-time

Credits to people who assisted the analysis:
kairepaire for pointing out faster block times between 5th-11th.
babies_eater for https://fork.lol/pow/retarget
moes_tavern_wifi for https://bitcoin.clarkmoody.com/dashboard/
Pantamis for https://diff.cryptothis.com/
submitted by theforwardbrain to BitcoinMarkets [link] [comments]

What is Delegated Harvesting and how does it work?

What is Delegated Harvesting and how does it work?

https://preview.redd.it/030pghigzkg51.png?width=1024&format=png&auto=webp&s=ee51e1f5bb87938ab610ee07951ad4daed798a20

Delegated harvesting lets you passively earn block rewards on-chain

Symbol has a noteworthy economic system that allows you to passively earn coin rewards just as if you were mining. This is better than staking rewards given by exchanges since you don’t need to put your coins on an exchange and you are earning actual block rewards.
On most other blockchains you have to operate a node in order to earn block rewards. That can be expensive and difficult for casual users. With our delegated harvesting system, your rights to earn rewards are based on how many XYM coins you are holding, but Symbol lets you delegate those rights to someone else’s node so they will earn rewards on your behalf. You’ll earn on-chain block rewards even when your computer is turned off, and the rewards are sent to you instantly, the moment they are earned. It requires a minimum balance of 10,000 XYM, and you can do it easily through a dashboard. Here’s how it all works.

Let’s chain some blocks

A quick block reward review: the process of adding transactions and other data to a blockchain is called creating blocks, and it’s what every computer in the network is trying to do. Blockchains pay a coin reward to the first account to create a new accepted block. The reward is called a block reward. If new coins are created to pay the block reward, it’s called mining. Symbol doesn’t create new coins for block rewards so it uses the term harvesting instead, but it’s nearly the same as mining.

We want proof

What’s the point of all this mining and harvesting? The problem is that anyone can join the network anonymously, so we would expect cheaters sending false data so they can spend the same coins twice or make other fake transactions. If we don’t know who is trustworthy, how do we choose who gets “write access” to account balances?
Bitcoin and many early protocols use a Proof of Work (POW) system. In POW every computer in the network is processing calculations as fast as possible until someone gets the right number. Whoever gets it first creates the next block. POW is effective at discouraging cheaters because it’s expensive to buy and power all the machines needed to mine profitably. Anyone who could make such a mining investment won’t want to risk being rejected.

Not that proof, different proof

The biggest drawback of POW is its insatiable consumption of electricity. It’s estimated that bitcoin alone consumes a quarter percent of global energy production. Unfortunately, that’s not a side effect, it’s the point; the more expensive it is to create blocks, the harder it is for bad actors to take over. In the early days users could mine POW coins on a laptop, but today it’s so expensive that only large industrial operators are competitive.
The most popular alternative system is Proof of Stake. POS is well-tested and has proven secure at large scale, and best of all, it requires no special energy usage. In a POS system, the protocol chooses an account at random to be the next block creator. However, an account’s chance of being chosen depends on the number of coins it holds. So users with the highest account balances have the highest chances of creating new blocks. This is a good way to ensure security, but one downside is that it encourages hoarding.

Proof of stake plus

Symbol uses a Proof of Stake Plus (POS+) system, which adds a few weighting factors on top of Proof of Stake to incentivize a healthier economic system. For example, POS+ gives an advantage to accounts that have many recent transactions in order to encourage network usage. So if you need to pay a lot of transaction fees, that expense can be offset somewhat by higher block rewards.
This addresses the hoarding problem, but not the expense and difficulty of running a node. We want everyone to participate in harvesting whether or not they are paying to run a node. Owning a minimum of 10,000 XYM automatically gives you the right to harvest, so the idea is to use your earning rights on someone else’s node. This is where delegating your stake comes in.

Keep your keys in your pocket

The tricky part is that if you gave a node operator direct access to your stake, they would be able to see your private key and possibly take your funds. Symbol solves this problem by creating a proxy account with a different private key that’s used only for delegated harvesting. This allows you to delegate your harvesting rights to any available node without allowing them access to your account.

https://preview.redd.it/lhv350glzkg51.png?width=1583&format=png&auto=webp&s=f2d9af8185d027221bf7d0531a667f6ada6731d4
There’s no minimum holding time or obligations for your coins, and you can spend them just as easily as non-delegated accounts as long as your balance is 10,000 or above. If your account drops below 10,000 it will simply stop harvesting with no side effects. If the node you are working with is going down a lot or otherwise annoying you, just use the dashboard to stop delegating or switch your delegation to another node any time you like.

What’s in a block reward?

There’s one more detail: any node that you have delegated to will keep 25% of the rewards earned by your delegated stake. This is their incentive to keep their node running. If you don’t like giving them a cut, you need to run your own node. Now the good part: every block reward on the Symbol public chain will contain new tokens added for inflation, incentives for early adopters, and will also contain all transaction fees paid. 100% of transaction fees are returned to harvesters in block rewards. The system is estimated to provide about 3% to 4% returns for delegated harvesters, although rewards could be lower or higher if there are a lot of transaction fees paid.

A quick hypothetical example

Let’s say there are 1 billion XYM tokens staked on the Symbol public chain. Your account balance is 20,000. This gives you about a 1 in 50,000 chance to be the harvester of any given block. Blocks are created every 15 seconds, which adds up to 5,760 blocks per day. Your account would be expected to harvest a block reward about once every 8.7 days.

Configuration of delegated harvesting

The Symbol public chain has a requirement of 10,000 XYM minimum balance for delegated harvesting, but if you are running your own Symbol blockchain you can change it to any token and any amount you want. You can also change the inflation rate, transaction fees, and other economy settings. In a corporate private network there is usually little need for decentralization and incentives since everyone on the network will be known and trusted. In this type of private chain you can even remove transaction fees. However, since Symbol is open-source, it’s also simple to run your own public version configured with any requirements you need.

On-chain staking rewards

Staking rewards are becoming more common on exchanges, and many users are coming to expect it. That’s good because staking rewards provide more opportunity for users to earn coins and encourage new users to enter the industry. Unfortunately these custodial exchanges and wallets require users to give up their keys. It’s nearly always more secure to hold tokens off exchanges, especially if holding long term. Symbol and its original version NEM are unique in their method of allowing users to delegate their stakes and earn rewards without giving up custody and without any risk of sharing their private keys. Delegated harvesting on Symbol is likely to be the best way in the blockchain industry for users to earn on-chain staking rewards without the chore and expense of running a node.
Source
submitted by charlesgwynne to CryptoCurrencyTrading [link] [comments]

What is Delegated Harvesting and how does it work?

What is Delegated Harvesting and how does it work?

https://preview.redd.it/h0y8o02yykg51.png?width=1024&format=png&auto=webp&s=0b476a069605414fa5f970f3e7d1aebd52d4cf31

Delegated harvesting lets you passively earn block rewards on-chain

Symbol has a noteworthy economic system that allows you to passively earn coin rewards just as if you were mining. This is better than staking rewards given by exchanges since you don’t need to put your coins on an exchange and you are earning actual block rewards.
On most other blockchains you have to operate a node in order to earn block rewards. That can be expensive and difficult for casual users. With our delegated harvesting system, your rights to earn rewards are based on how many XYM coins you are holding, but Symbol lets you delegate those rights to someone else’s node so they will earn rewards on your behalf. You’ll earn on-chain block rewards even when your computer is turned off, and the rewards are sent to you instantly, the moment they are earned. It requires a minimum balance of 10,000 XYM, and you can do it easily through a dashboard. Here’s how it all works.

Let’s chain some blocks

A quick block reward review: the process of adding transactions and other data to a blockchain is called creating blocks, and it’s what every computer in the network is trying to do. Blockchains pay a coin reward to the first account to create a new accepted block. The reward is called a block reward. If new coins are created to pay the block reward, it’s called mining. Symbol doesn’t create new coins for block rewards so it uses the term harvesting instead, but it’s nearly the same as mining.

We want proof

What’s the point of all this mining and harvesting? The problem is that anyone can join the network anonymously, so we would expect cheaters sending false data so they can spend the same coins twice or make other fake transactions. If we don’t know who is trustworthy, how do we choose who gets “write access” to account balances?
Bitcoin and many early protocols use a Proof of Work (POW) system. In POW every computer in the network is processing calculations as fast as possible until someone gets the right number. Whoever gets it first creates the next block. POW is effective at discouraging cheaters because it’s expensive to buy and power all the machines needed to mine profitably. Anyone who could make such a mining investment won’t want to risk being rejected.

Not that proof, different proof

The biggest drawback of POW is its insatiable consumption of electricity. It’s estimated that bitcoin alone consumes a quarter percent of global energy production. Unfortunately, that’s not a side effect, it’s the point; the more expensive it is to create blocks, the harder it is for bad actors to take over. In the early days users could mine POW coins on a laptop, but today it’s so expensive that only large industrial operators are competitive.
The most popular alternative system is Proof of Stake. POS is well-tested and has proven secure at large scale, and best of all, it requires no special energy usage. In a POS system, the protocol chooses an account at random to be the next block creator. However, an account’s chance of being chosen depends on the number of coins it holds. So users with the highest account balances have the highest chances of creating new blocks. This is a good way to ensure security, but one downside is that it encourages hoarding.

Proof of stake plus

Symbol uses a Proof of Stake Plus (POS+) system, which adds a few weighting factors on top of Proof of Stake to incentivize a healthier economic system. For example, POS+ gives an advantage to accounts that have many recent transactions in order to encourage network usage. So if you need to pay a lot of transaction fees, that expense can be offset somewhat by higher block rewards.
This addresses the hoarding problem, but not the expense and difficulty of running a node. We want everyone to participate in harvesting whether or not they are paying to run a node. Owning a minimum of 10,000 XYM automatically gives you the right to harvest, so the idea is to use your earning rights on someone else’s node. This is where delegating your stake comes in.

Keep your keys in your pocket

The tricky part is that if you gave a node operator direct access to your stake, they would be able to see your private key and possibly take your funds. Symbol solves this problem by creating a proxy account with a different private key that’s used only for delegated harvesting. This allows you to delegate your harvesting rights to any available node without allowing them access to your account.

https://preview.redd.it/tejgkdv1zkg51.png?width=1583&format=png&auto=webp&s=c41b9f431ce63a196dcbc0297a898233b530a297
There’s no minimum holding time or obligations for your coins, and you can spend them just as easily as non-delegated accounts as long as your balance is 10,000 or above. If your account drops below 10,000 it will simply stop harvesting with no side effects. If the node you are working with is going down a lot or otherwise annoying you, just use the dashboard to stop delegating or switch your delegation to another node any time you like.

What’s in a block reward?

There’s one more detail: any node that you have delegated to will keep 25% of the rewards earned by your delegated stake. This is their incentive to keep their node running. If you don’t like giving them a cut, you need to run your own node. Now the good part: every block reward on the Symbol public chain will contain new tokens added for inflation, incentives for early adopters, and will also contain all transaction fees paid. 100% of transaction fees are returned to harvesters in block rewards. The system is estimated to provide about 3% to 4% returns for delegated harvesters, although rewards could be lower or higher if there are a lot of transaction fees paid.

A quick hypothetical example

Let’s say there are 1 billion XYM tokens staked on the Symbol public chain. Your account balance is 20,000. This gives you about a 1 in 50,000 chance to be the harvester of any given block. Blocks are created every 15 seconds, which adds up to 5,760 blocks per day. Your account would be expected to harvest a block reward about once every 8.7 days.

Configuration of delegated harvesting

The Symbol public chain has a requirement of 10,000 XYM minimum balance for delegated harvesting, but if you are running your own Symbol blockchain you can change it to any token and any amount you want. You can also change the inflation rate, transaction fees, and other economy settings. In a corporate private network there is usually little need for decentralization and incentives since everyone on the network will be known and trusted. In this type of private chain you can even remove transaction fees. However, since Symbol is open-source, it’s also simple to run your own public version configured with any requirements you need.

On-chain staking rewards

Staking rewards are becoming more common on exchanges, and many users are coming to expect it. That’s good because staking rewards provide more opportunity for users to earn coins and encourage new users to enter the industry. Unfortunately these custodial exchanges and wallets require users to give up their keys. It’s nearly always more secure to hold tokens off exchanges, especially if holding long term. Symbol and its original version NEM are unique in their method of allowing users to delegate their stakes and earn rewards without giving up custody and without any risk of sharing their private keys. Delegated harvesting on Symbol is likely to be the best way in the blockchain industry for users to earn on-chain staking rewards without the chore and expense of running a node.

Source
submitted by charlesgwynne to CryptoCurrencyTrading [link] [comments]

You can have a market for blockspace without full blocks

In a recent comment, an bitcoin mod claimed that you need full blocks for a fee market.
That is simply not true. Over a year ago I estimated the marginal cost of Bitcoin BCH/BSV transactions. I got a number of about 2 cents/kB: a number greater than 0, mostly dominated by bandwidth costs.
What the Core developers are doing with their "fee market" is gaming the metric. By artificially restricting the supply of blockspace, they made the supply of blockspace inelastic. Goods with inelastic supply tend to have very volatile prices in response to small changes in demand. Wildly varying fees are not a quality you want in a payments system.
But it is even worse than that. Note in my analysis that I list POW as a fixed cost. The reason is that due to the nature of hashing, each block header can represent an arbitrary number of transactions for almost no additional work. The asymptotic growth rate of POW with more transactions is O(1). That makes the overhead of processing transactions rounding error for miners.
BTC on the other hand, makes POW a marginal cost of transactions. The POW becomes O(n): increasing with the number of transactions processed. The way the BTC "fee market" works: users can bribe miners to spin up more hash-power by spending at least $50/kB (at current prices) to get their transaction in the next block.
However, even such a bribe still only provides temporary relief. If too many people do it: the difficulty adjustment algorithm will kick in and re-reduce the supply of blockspace after 2 weeks.
Note: this comment was originally a PM to the mod in question. I removed identifying information and link to the other sub.
submitted by phillipsjk to btc [link] [comments]

Interview With Eddie Jiang: How CoinEx Is Adapting To The Exchange Space And Growing

Interview With Eddie Jiang: How CoinEx Is Adapting To The Exchange Space And Growing
Written by chaintalk.tv
https://preview.redd.it/v238540taz751.jpg?width=1280&format=pjpg&auto=webp&s=2a852e171a74e49da802d7c12fadba452cf4cf43
We recently had the opportunity to interview the VP of ViaBTC Group, Eddie Jiang. ViaBTC Group owns popular crypto exchange CoinEx and ViaBTC Pool. In this interview Eddie discusses being the first exchange to use BCH as the base currency, ViaBTC Pool and integrating with CoinEx, new features and ambassador program, and competing with other exchanges like Binance and Huobi. Please enjoy the interview below.
How come you decided to open up CoinEx to other cryptos other than just BCH?
Eddie Jiang: CoinEx is the world’s first exchange to implement Bitcoin Cash as a base currency. At that time, it was evident that there was a demand for BCH trading markets, and we are the first to explore this opportunity. It also shows our determination to support the BCH’s development.
As CoinEx is developing, our goal becomes bigger and we are aiming at the global market. We need to constantly improve our product diversification to meet the different needs of more users, so we open up to other cryptos. In the past six months, we have listed more than 50 new tokens. Up to now, we have listed 129 cryptos and 313 markets. Besides, in addition to spot trading, CoinEx also supports perpetual contract and other derivatives trading.
How does CoinEx integrate with the ViaBTC Pool?
Eddie Jiang: ViaBTC Group announced a strategic upgrade, which included a new organizational structure, product innovations and service improvements, on 30 May.
As part of the change, the Group has established three dedicated business units (BU): the financial services BU, consisting of ViaBTC mining pool and CoinEx exchange; the infrastructure services BU, including ViaWallet and Blockchain Explorer; and the ecological development BU, focusing on the research and development of public chain technology and the construction of the ecology.
After halving, the combination of mining and finance will become closer and closer. Investing in mining machines is like buying a Bitcoin option. Miners need more flexible financial products to maintain and increase the value of assets, or hedging services. Based on this judgment, the operations of ViaBTC mining pool and CoinEx exchange will be integrated in the future to realize the financial empowerment of the mining pool to meet the diverse financial needs of miners.
Features of this integrated product upgrade can be summarized as: “ The mining pool is the wallet, and the wallet is the transaction.” ViaBTC is the world first mining pool that has a wallet embedded in the mining pool account. Users do not need to transfer the mined coins, and can realize the function of coin exchange within the wallet. For example, they can directly convert the mined coins into USDT to pay electricity bill. What’s more, users can store, deposit and withdraw their revenue, and transfer assets to CoinEx at any time without charge, as well as complete other operations on the exchange, such as purchasing wealth management products for asset preservation and appreciation. In addition, we also provide hedging services. All of the above functions can be completed in one stop in the mining pool, without the need to transfer assets between different platforms.
The exchange empowers the mining pool, and the mining pool will further bring more traffic and resources to the exchange. The two complement each other and development coordinately.
CoinEx has recently added many new features. Can you talk about what new updates were made to the platform and why you made them?
Eddie Jiang: We have always attached great importance to the development of overseas markets since our establishment, and one of our major goals this year is to cover at least 10 different languages speaking markets.
To realize this and to meet the needs of more users worldwide, CoinEx has been continuously optimizing and upgrading its operating strategies, products and services. Our product diversifications are constantly improving. As I said before, we have launched leverage trading, perpetual contract trading, and wealth management products in addition to just spot trading. However, we don’t ignore the importance of spot trading. More mainstream, popular, and high-quality tokens have been listed, and up to now, there are 129 tokens and 313 trading pairs on CoinEx.
During the epidemic, we have never slowed down our development. Lacking of the OTC service has always been a shortage for CoinEx. In March, we partner with Simplex to integrate the first fiat onramp to our platform. People now can buy crypto with their credit cards, which lowers the threshold for more people to enter the crypto world. Moreover, we announced global strategic partnership with Matrixport to provide people with large amount of fiat to crypto needs the OTC service. These newly launched services also help to attract more users.
At the same time, CoinEx has been launched in Arabic, Italian, English, Japanese, Russian, Korean and other 16 languages. Earlier we also carried out product upgrades, making the UI and function sections clearer.
In terms of operations, we launched an upgraded CoinEx Ambassador program in March. To best utilize each ambassador’s personal strengths, there are four categories of CoinEx Ambassador with different responsibilities, namely Referral Ambassador, Marketing Ambassador, Operation Ambassador, and Business Ambassador, which will expand our brand’s exposure and help CoinEx grow into a more international exchange platform.
From March until now CoinEx has seen a 100% increase in user registrations. Why is that and are you able to see where they are coming from?
Eddie Jiang: Because of the efforts mentioned above, in 2020, we’ve seen an exponential increase in activity in just the past few months alone. In this year alone, CoinEx’s daily registered users increased by 100%. These new users mainly come from markets such as the Middle East, Asia Pacific, and more.
Interestingly, we saw an uptick in traffic from the Middle East in March. User growth in Southeast Asia also picked up significantly, newly registered users increased by 133.6% in April.
With Binance, BitMex, Huobi, Bybit, and Deribit, controlling most of the crypto futures and options markets, where do you see CoinEx fitting in? How do you plan to capture market share from these large exchanges?
Eddie Jiang: We won’t compete with others. We focus on ourselves to improve products and our goal is to be better than yesterday.
Our pace is solid and steady, instead of focusing on temporary heat and flow. We have always attached great importance of spot trading, and we are committed to be responsible for users’ investment. We have set up CoinEx Institution, which is dedicated on project research. A listing committee consist of core team members review and vote on projects recommended by the CoinEx Institution. In this way, fraud projects are avoided as much as possible.
Besides, we will focus on niche areas with great potential. For example, Southeast Asia and the Middle East. CoinEx can serve users in those countries well by providing a platform with rich cryptos to trade, and will pay more efforts on refined operations in different countries.
Moreover, CoinEx has a very complete ecosystem. Financial services, infrastructure, and ecological development, the three business units complement each other. The infrastructure BU is our cornerstone and is positioned as a defensive product; the financial service BU is a cash cow and is positioned as an aggressive product; the ecological development BU focuses on the public chain ecology and is the future infrastructure.
What is the geographical breakdown of the CoinEx userbase?
Eddie Jiang: The current proportion of CoinEx’s overseas users has reached 80% of the total registered users, and mainly in Australia, Southeast Asia, North America, Middle East and South Korea.
Do you have plans to focus on any certain jurisdictions? How will you do that?
Eddie Jiang: When we evaluate regions, two things matter: policy and potential.
Whether an exchange’s business expansion in a region is smooth or not largely depends on the region’s policies. If the region is not very friendly towards cryptocurrency or has repeated attitudes, there will be more difficulties and the cost will be much higher.
For a region’s development potential, we need to think about the demand and market development status. South Korea, Southeast Asia, the Middle East and other regions are all areas with good potential for cryptocurrency development. Compared with Europe and America, policy risks in these countries are lower, and the supervision mechanism is relatively complete. The public has a high degree of awareness of cryptocurrencies. Besides, some regions or countries have inflation problems due to political and economic reasons.
CoinEx will continue to focus on the Middle East and South Asia, which are relatively niche. India has just lifted ban on cryptocurrency trading this year, and there are many cryptocurrency investors in Indian. CoinEx can serve them well by providing a platform with rich cryptos to trade. More people in the Middle East are interested cryptos, especially in countries that are subject to economic sanctions or high inflation. For those people, cryptocurrencies are one of the best choices for asset preservation.
Since the CoinEx Ambassador program launched in March, it has been almost three months. We are conducting the second round of ambassador recruitment. This time, we will use the power of ambassadors to expand our recruitment coverage and strive to attract more crypto enthusiasts from all over the world to grow together with CoinEx. Moreover, we will launch the National Expansion plan and leverage on the CoinEx and ViaBTC mining pool resources, to further explore the Russian market. At the market level, we will make more PR efforts in local markets, and start refined operations.
What is CoinEx Chain and CoinEx DEX?
Eddie Jiang: CoinEx Chain is a public chain built on the Tendermint consensus protocol and the Cosmos SDK. It consists of three dedicated public chains parallel to each other. Among these three chains, CoinEx DEX meets the most basic needs of DeFi for token issuance, transfer, and transactions. The Smart Chain is designed to meet the needs of complex financial scenarios and delivers programmable cash. The Privacy Chain facilitates privacy and security.
On November 11, 2019, we took the lead in launching the Mainnet of CoinEx DEX. CoinEx DEX is the world’s first public chain dedicated to decentralized transactions. Users can easily manage their digital assets on it.
CoinEx DEX can fully satisfy the following conditions: users have private keys at their own disposal; transfers and transactions are all completed on-chain, which is 200% transparent and checkable; the issuance, transfer, and transaction of tokens do not require review or permission; the community governance and operation is decentralized, similar to EOS, and validators are introduced to the community ecosystem construction and governance. There are currently 41 validators.
It also has extreme performance. TPS reaches as high as 10,000 and transactions are confirmed within seconds. The transaction fee, 0.0001 US dollars for each transaction, is negligible.
Third, it’s simple and easy to use. The new operation interface design helps beginners get started quickly; with the one-click token issuing module, users only need to fill in a few items to issue tokens; the built-in automated market-making module guarantees liquidity.
How will CoinEx DEX improve the decentralized exchange space that has been unable to gain much adoption?
Eddie Jiang: There are many challenges and difficulties facing centralized exchanges. The first difficulty is security. Security is a huge concern for CEXs. Over the last 10 years, hackers have stolen more than $1.5 billion from centralized exchanges. In fact, research groups estimate that hackers stole somewhere between $950 Million and $1 Billion from centralized exchanges in 2018 alone. There were also incidents of coin thefts in other exchanges in 2019. Many exchanges, such as Mt. Gox, Youbit, were forced to file for bankruptcy and shut down as a result of hacks.
The second is high management costs. Centralized exchanges need to list a large number of cryptocurrencies and each of them have different trading pairs. That entails huge efforts in development and maintenance and, thus, high management costs.
The last is global policies. Cryptocurrency is faced with different regulatory policies in different countries. Every time a centralized exchange enters a country, it needs to adapt itself to local regulatory policies for compliance. This is a holdback for the exchange’s rapid market expansion globally. Such adaptation will also bring a huge learning cost for the exchange team.
Obviously, these problems can be well solved by DEX. CoinEx DEX is a true DEX with full open source and full community governance, as well as without depending on official nodes, websites, wallets, etc. On DEX, users are able to in charge of their own private keys and assets all by themselves. Their assets are more safe and secure. Transfers and transactions are all completed on-chain, which is 200% transparent and checkable; and the issuance, transfer, and transaction of tokens do not require review or permission. What’s more, CoinEx DEX provides a great and convenient user experience.
How will CoinEx Chain and DEX help the crypto industry as a whole?
Eddie Jiang: The public chain is the cornerstone of the blockchain industry. CoinEx Chain has the parallelism of multiple dedicated public chains, each of which performs its own functions, by cross-chaining for both high performance and flexibility.
CoinEx Chain is committed to building the next generation of blockchain financial infrastructure. It is a more complete ecosystem built around the DEX public chain. The DEX public chain is a dedicated public chain developed specifically for token issuance and trading and the biggest improvement on trading speed, so it only supports the necessary functions, not smart contracts.
But smart contracts are the foundation for building more complex financial applications. Outside the DEX public chain, CoinEx Chain also includes a Smart Chain that supports smart contracts.
Moreover, as privacy issues on the current blockchain have been criticized, it is one of the core tasks of CoinEx Chain to safeguard users’ privacy. Similar to the Smart Chain, the Privacy Chain specifically supports transaction privacy protection. With cross-chain circulation, it can improve the privacy characteristic of the entire CoinEx Chain ecosystem.
Nowadays, 1.7 million people in the world have no bank accounts; however, among them, two thirds are smartphone users with huge demands for financial services. The public chain will empower DeFi applications’ development and popularization, not only help more companies to seize the huge market opportunity, but also to bring lasting transformations and improvements in people’s lives.
With so many crypto exchanges, what is the future outlook of CoinEx when it comes to the crypto exchange space?
Eddie Jiang: It has been nearly 3 years since CoinEx has been launched, but it’s quite young for an entrepreneurial team. We have seen too many projects’ failures due to governance issues. CoinEx has a very elite team with high technical and management capabilities. In terms of business, CoinEx has gradually developed with diversified business and a complete ecosystem. It’s clear that the market will still grow very fast in the future, and the market size is still very large. We will continue to improve our products, put more efforts in marketing and operations, as well as look for more high-quality projects, to increase the number of users and transactions on the platform. Lay a solid foundation, and I’m sure the time will come for us to shine.
What updates is the CoinEx team most excited for?
Eddie Jiang: We are very excited about the National Expansion Plan which will be launched later this year. It is an important part in CoinEx’s globalization strategy. We will actively explore some new markets while consolidate the original ones. CoinEx will set aside 10 million US dollars to set up a “Pioneer Fund” to support this plan. This fund will be used to support local cryptocurrency projects and promote the development of the local cryptocurrency communities through investment or cooperation. Our goal this year is to invest in projects and communities that are conducive to expanding the CoinEx ecosystem in countries with high development potential.
Original article
Click HERE to register on CoinEx
submitted by CoinExcom to btc [link] [comments]

TkeyNet: switching to a new Protocol, testing, main theses

TkeyNet: switching to a new Protocol, testing, main theses

https://preview.redd.it/tmi7bp02h2f51.png?width=700&format=png&auto=webp&s=ac7124d584269772286a7bcfd2bb493efcf81ae9
In a series of publications: Coming TkeyNet and listing on exchanges and TkeyNet: release date, a brief analysis of the system, plans-revealed the General characteristics of the new TkeyNet system, which we will all switch to soon.
Given the volume of material, it was possible to miss the main theses or interpret them in their way, while the question ”why now“ was ignored.
Today we will review the main questions and tell you about the testing process of TkeyNet.

Why will the switching to TkeyNet take place this year, and not later, as planned?

Let’s look at the project history. The TKEY concept dates back to October 2017, and it was in the fourth quarter of 2017 that the distributed infrastructure concept was approved. In early 2018, the formation of the TkeyNet architecture began.
To make the whole course of events clear, we highlighted the main points and commented on them:
The projected development period for TkeyNet is 2.5–3 years.
This forecast was made in 2018 when the development of TkeyNet began.

The course of events that was part of our strategy

Core 1.0 launch and exchange
The company planned to launch a Protocol based on Core 1.0 and conduct a subsequent listing of the asset on the exchange in late 2018-in the first half of 2019. Depending on the completion of work on Core 1.0.
Why launch Core 1.0? There is a fixed practice in the market when a project starts on a ready-made blockchain, and then switches to its own, for example, EOS. This project was launched based on the Ethereum blockchain, and later the transition to its Protocol was made.
Our main task was to launch a Protocol with non-standard technical solutions for the market and enter the auction to expand the project audience and obtain liquidity for the asset.
With an increase in the asset price, the company would be able to increase its financial resources and reinvest them in the development of the project. Thus, the launch of a blockchain-based on Core 1.0 fully met these tasks.
In Core 1.0, new transaction models introduced and multi-blockchain support implemented. The first version of the Protocol supported the inclusion of 10 separate chains. The mechanics allowed you to change the number of parallel chains in the blockchain. To increase throughput, the team implemented PostgreSQL support, instead of the typical key-value database that is present in most cryptocurrencies.
Switching to Core 2.0 during trading and then switching to TkeyNet
Next, the plan was to upgrade the network to Core 2.0 and continuously modify it. The modification means the gradual implementation of functionality and standards from TkeyNet so that it is easy to make the transition from Core 2.0 to the new TkeyNet Protocol during trading on the exchange.
https://preview.redd.it/zcf5vnsgg2f51.png?width=1191&format=png&auto=webp&s=d5d5e41551ccc95f8a8a401f8fd2d081f1068939
In 2019, a Core 1.0 — based system launched. The year was simultaneously busy: the first presentation of TkeyNet at APA-2019, presence at IFC-2019, work on draft laws, and at the same time, the year was quite difficult for our company, which affected the timing shifts for products and all project plans in General. The listing did not take place.
Reasons for switching to TkeyNet
There is a silver lining. In the period from April to May, there was positive news from developers: work on TkeyNet will be completed much earlier than planned.
By the end of June, we were preparing to launch a test network based on TkeyNet, to start the final testing of all functions.
On June 22, 2020, the core 1.0 network suspended. For more information, see the link.
Shortly, we will be able to switch to TkeyNet and list the TKEY asset to crypto exchange.
Upon completion of the launch of TkeyNet, the official date of listing of TKEY on the trading platform will publish at the link: tkeycoin.com/start/;

What is TkeyNet?

We have already talked about TkeyNet in the previous article: TkeyNet-release date, a brief analysis of the system, further plans, gave examples of how the use of technology, told what products can be created based on TkeyNet, all this covered in General terms.
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In this publication, we share some theses so that you will gradually develop an objective picture of the new TkeyNet system and its capabilities, which many of you will be able to apply in the future in business or everyday life.
From the very beginning of development, — TkeyNet was intended to improve the existing financial system, not to replace it.
From a technical point of view, the system and its functionality entirely based on blockchain technology. However, this is not a classic variation, as, for example, with bitcoin, but the new implementation of It — more secure, more suitable for global use, more perfect. In simple words, our developers took the best from Bitcoin, Ethereum, Litecoin, and other market leaders, combined their pros, eliminated their cons, and modified existing solutions on the market, resulting in new technology with new features.
For the user, TkeyNet is a fast payment network that allows you to store, use, and move various assets in the payment network, such as currencies, shares, real estate, and precious metals, etc. Businesses will be able to legally conduct international transfers in seconds and significantly save on transactions.
For developers and startups, this means best practices, infrastructure, liquidity, and access to ready-made solutions that can complete in their products.
Among competitors, TkeyNet is much faster than its predecessors, more profitable, and cheaper in terms of transactions.
For businesses and financial institutions, it is an infrastructure that will significantly improve existing financial processes, from payment routing to multi-level exchange and clearing operations.
If we compare the giants of the financial industry-banks, and the new paradigm — distributed payment systems, we will notice a significant difference. The total market capitalization of cryptocurrencies estimated at ≈340 billion US dollars and the capitalization of 10 world banks is 2 trillion dollars. A significant difference, don’t you agree?
http://www.outsourcingportal.eu/en/bitcoin-would-rank-as-8th-largest-bank-globally-with-169-billion-in-market-capitalization
You can’t argue with the numbers, and we must understand that banks remain vital objects of the financial system. Banks help us send funds within the country and abroad, and provide a lot of services, such as loans, deposits, and a lot of other services.
Anyway, using cryptocurrency, users actively exchange it for Fiat currencies to pay for any formed needs. Therefore, TkeyNet will serve as a bridge between fiat and digital currencies, providing its users with best practices and tools through which we will all have access to various digital and cash at any time and anywhere in the world.
The Asian Parliamentary Assembly actively raised the issue of trust and the development of financial products in underdeveloped countries. The problem in such countries is total state control of property registers. Citizens prefer to dispose of their funds in informal settings because they do not consider state systems reliable.
The representatives of the senior management of the TKEY group of companies — Pavel Yakimov (the Director of Information Technologies) and Maxim Yakimov attended these discussions. Both of them recommended several approaches to develop a digital framework that can combat money laundering, and also illustrated open investment platforms, security, and data exchange systems that are based on TKEY distributed solutions. © — businessinsider.com
According to the World Bank alone, about 1.7–1.8 billion people do not have accounts in any financial institution, and about 47% of them located in developing countries. The problem of interaction between a person and a financial institution consists of three main reasons: poverty, trust issues, and geographical difficulties. With systems such as TkeyNet, it is possible to connect people and financial institutions with a single source of trust. With the use of such systems, a person does not need anything other than access to the Internet.
https://www.statista.com/chart/18497/countries-with-the-highest-share-of-adults-without-a-bank-account-in-2017/

The investments that bring us all together

On the other hand, the audience of the TKEY project is quite diverse: our investors represent a variety of professions, a variety of cities, and a variety of age groups. However, one thing, nevertheless, unites us all — this thing is an investment. And therefore, some of the users may not be interested in technical details or the difference between 1.0, 2.0, or TkeyNet. But at least the thesis, the main message, must be understood by absolutely everyone.
The more popular the company’s products are on the market, the stronger it is and the development. Due to the reliability of the company, the prices of its assets grow.
Whether you are interested in technology or not, the company’s development will directly affect the reliability of its assets. Each of us knows that any cooperation, any news is a reason to move on the stock exchange. TkeyNet opens up these opportunities to us, provides several strategically profitable, and importantly — stable partnerships with financial institutions. The number of users in the digital payments segment expected to reach 4,636,34 million by 2024.

https://www.statista.com/outlook/295/100/fintech/worldwide#market-revenue
https://www.statista.com/statistics/647231/worldwide-blockchain-technology-market-size/

Testing the TkeyNet system

From 22 to 24 July, the test network TkeyNet was successfully launched.
Our team is currently actively testing the entire network and conducting a security audit. Developers are testing the network with different scenarios: security, reliability of the full system, as well as individual modules and functions.
Given the different number of similar-looking formulations, but at the same time completely different from each other, some users wondered what is the difference between such concepts: Mainnet, Testnet, and TkeyNet.
Testnet should consider as a demonstration network for testing, testing concepts, new features, experiments, and debugging without the risk of losing any data. Testnet is a polygon for the development team that used to improve the system and introduce new features.
Mainnet (Main Network) this is a complete product, ready to use.
TkeyNet is the name of the infrastructure, the entire system that we are developing, and Testnet and Mainnet are technical concepts within this system.
After testing the system is complete, TkeyNet will launch. We will issue instructions on how to upgrade to the new Protocol and new software, respectively.
Testing takes place without any excesses, and the launch of TkeyNet is just around the corner.
Thank you for being with us! Follow the project news to stay up to date. If you missed the latest news, you read the notification on the site: https://tkeycoin.com/en/news/.
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Warning: Blockchain difficulty adjustment affecting price movement

Warning: Blockchain difficulty adjustment affecting price movement
Below are notable difficulty adjustments when hash rate fell and block times become slower for Bitcoin.
  1. 26 Mar 2020 [difficulty adjustment -15.95%, avg block time 11min 54secs]. On the 28th price crashed from $6674 to $6138 ( -8%).
  2. 8 Nov 2019 [difficulty adjustment -7.1%, avg block time 10min 46secs]. On the same day price crashed from $9234 to $8783 ( -4.88%).
  3. The next big adjustment was around Nov to Dec 2018 and there were 3 big adjustments with high block times.
  • 19 Dec 2018 [-9.56%, avg block time 11min 3secs]
  • 3 Dec 2018 [-15.13%, avg block time 11min 47secs]
  • 17 Nov 2018 [-7.39%, avg block time 10min 48secs]
  • There was huge drop off starting on 14th Nov all the way to a bottom on 14-15th Dec ($6351 to $3288 around -48%).

Current situation:
We are 1 day 10 hours from the next difficulty adjustment. Projected difficulty adjustment is -5.61% (https://fork.lol/pow/retarget), which could indicate a small dip. However, take note that the date of last adjustment was the 5th and the 3rd halving was on the 11th, between the 5th to the 11th there was increased hashrate from miners trying to mine the final week of 12.5btc that offset the really slow block times after the halving. Therefore it will be the next difficulty adjustment after the one on the 20th that will completely reflect the slower block times after the halving. Currently the median block time taken on the 17th was around 14min (-28.5% difficulty adjustment).

https://preview.redd.it/ysnv85wh0lz41.jpg?width=597&format=pjpg&auto=webp&s=e130b077f9dc2fc9d02666ef89e6f9249a05f535
For people who do not understand blockchain, basically with the Bitcoin 3rd halving, mining profitability fell for a lot of miners and they probably turned off their miners therefore the blockchain mining time became considerably slower which is reflected with slow transaction speed and higher fees as seen currently. Bitcoin sellers moving their BTC from wallet to an exchange are faced with slow transaction speed and therefore the sell pressure of BTC fell considerably which will attribute to the current price increase. There is a correlation between sell pressure and blockchain congestion (the size of the correlation is undetermined).
There is going to be a race. A race between BTC price hiking high enough to attract more miners to reduce avg block times versus the closing window of roughly 2 weeks before the next difficulty adjustment. If the price does not jump high enough, the next difficulty adjustment in the first week of June could signal a huge dip.
I am not an expert. I just did some research on the above and wanted to share with fellow Bitcoin compatriots so that we can tread with caution and not lose our shirts. I do not plan to short BTC but I will exit my BTC positions if I expect double digit negative difficulty adjustment in early June.

Bitcoin 2nd halving evidence:

2nd halving falls between the 5th and the 19th adjustment so it is only reflected on the 3rd of Aug difficulty adjustment ( -5.43%).

See the dip on the 3rd of August. Price fell from $600 to $533 about 11% drop.
Update 1:>! As of writing, I have opened a small short position on Bitcoin. Stop loss around 10k, estimated take profit around 8500. The reason is because the difficulty adjustment in the next 20 hours, even though is just -5% roughly is still significant. I direct you to look into all the difficulty adjustments in the last 2 years and you will know how rare it is. The ones I caught were all listed at the very top of the post. Since it is my first time shorting BTC, I take this as a learning opportunity so that I will have some experience to face the bigger difficulty adjustment in the first week of June. Analysis into execution, even in failure I am happy.!<
Update 2: The difficulty adjustment (DA) happened roughly 6 hours ago and the sell pressure from -6% DA did not seem to be affecting the market much. However, please take a look now at the estimation for the next DA.
On https://bitcoin.clarkmoody.com/dashboard/ it is estimated to be -25%.
On https://fork.lol/pow/retarget estimated to be -18%.
On https://www.blockchain.com/charts/median-confirmation-time the median block time for the last day was 16.8min.
My original proposition that the true DA of the halving can only be realized in the next DA stands and that it will be considerable. The increased sell pressure from that DA will be highly significant. That is why there is a race by current miners to get the BTC price up high enough to attract more miners to not have the DA drop too much.
References:
Difficulty adjustment dates taken from https://btc.com/stats/diff
Bitcoin graph history for price movement taken from coinmarketcap.
Median confirmation time (block time) taken from https://www.blockchain.com/charts/median-confirmation-time

Credits to people who assisted the analysis:
kairepaire for pointing out faster block times between 5th-11th.
babies_eater for https://fork.lol/pow/retarget
moes_tavern_wifi for https://bitcoin.clarkmoody.com/dashboard/
Pantamis for https://diff.cryptothis.com/
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Staking in Ethereum 2.0: when will it appear and how much can you earn on it?

Staking in Ethereum 2.0: when will it appear and how much can you earn on it?

Staking in Ethereum 2.0: when will it appear and how much can you earn on it?

Why coin staking will be added in Ethereum 2.0

A brief educational program for those who do not follow the update of the project of Vitalik Buterin. Ethereum has long been in need of updating, and the main problem of the network is scalability: the blockchain is overloaded, transactions are slowing down, and the cost of “gas” (transaction fees) is growing. If you do not update the consensus algorithm, then the network will someday cease to be operational. To avoid this, developers have been working for several years on moving the network from the PoW algorithm to state 2.0, running on PoS. This should make the network more scalable, faster and cheaper. In December last year, the first upgrade phase, Istanbul, was implemented in the network, and in April of this year, the Topaz test network with the possibility of staking was launched - the first users already earned 1%. In the PoS algorithm that Ethereum switches to, there is no mining, and validation occurs due to the delegation of user network coins to the masternodes. For the duration of the delegation, these coins are frozen, and for providing their funds for block validation, users receive a portion of the reward. This is staking - such a crypto-analogue of a bank deposit. There are several types of staking: with income from dividends or masternodes, but not the device’s power, as in PoW algorithms, but the number of miner coins is important in all of them. The more coins, the higher the income. For crypto investors, staking is an opportunity to receive passive income from blocked coins. It is assumed that the launch of staking:
  • Will make ETH mining more affordable, but less resource intensive;
  • Will make the network more secure and secure - attacks will become too expensive;
  • Will create an entirely new sector of steak infrastructure around the platform;
  • Provides increased scalability, which will create the opportunity for wider implementation of DeFi protocols;
  • And, most importantly, it will show that Ethereum is a developing project.

The first payments to stakeholders will be one to two years after the launch of the update

The minimum validator steak will be 32 ETN (≈$6092 for today). This is the minimum number of coins that an ETH holder must freeze in order to qualify for payments. Another prerequisite is not to disconnect your wallet from the network. If the user disconnects and goes into automatic mode, he loses his daily income. If at some point the steak drops below 16 ETH, the user will be deprived of the right to be a validator. The Ethereum network has to go through many more important stages before coin holders can make money on its storage. Collin Myers, the leader of the product strategy at the startup of the Ethereum developer ConsenSys, said that the genesis block of the new network will not be mined until the total amount of frozen funds reaches 524,000 ETN ($99.76 million at the time of publication). So many coins should be kept by 16,375 validators with a minimum deposit of 32 ETN. Until this moment, none of them will receive a percentage profit. Myers noted that this event is not tied to a clear time and depends on the activity of the community. All validators will have to freeze a rather significant amount for an indefinite period in the new network without confidence in the growth of the coin rate. It’s hard to say how many people there are. The developers believe that it will take 12−18 or even 24 months. According to the latest ConsenSys Codefi report, more than 65% of the 300 ETH owners surveyed plan to use the staking opportunity. This sample, of course, is not representative, but it can be assumed that most major coin holders will still be willing to take a chance.

How much can you earn on Ethereum staking

Developers have been arguing for a long time about what profitability should be among the validators of the Ethereum 2.0 network. The economic model of the network maintains an inflation rate below 1% and dynamically adjusts the reward scale for validators. The difficulty is not to overpay, but not to pay too little. Profitability will be variable, as it depends on the number and size of steaks, as well as other parameters. The fewer frozen coins and validators, the higher the yield, and vice versa. This is an easy way to motivate users to freeze ETN. According to the October calculations of Collin Myers, after the launch of Ethereum 2.0, validators will be able to receive from 4.6% to 10.3% per annum as a reward for their steak. At the summit, he clarified that the first time after the launch of the Genesis block, it can even reach 20.3%. But as the number of steaks grows, profitability will decline. So, with five million steaks, it drops to about 6.6%. The above numbers are not net returns. They do not include equipment and electricity costs. According to Myers, after the Genesis block, the costs of maintaining the validator node will be about 4.75% of the remuneration. They will continue to increase as the number of blocked coins increases, and with a five millionth steak, they will grow to about 14.7%. Myers emphasized that profitability will be higher for those who will work on their own equipment, rather than relying on cloud services. The latter, according to his calculations, at current prices can bring a loss of up to minus 15% per year. This, he believes, promotes true decentralization. At the end of April, Vitalik Buterin said that validators will be able to earn 5% per annum with a minimum stake of 32 ETH - 1.6 ETH per year, or $ 304 at the time of publication. However, given the cost of freezing funds, the real return will be at 0.8%.

How to calculate profitability from ETN staking

The easiest way to calculate the estimated return for Ethereum staking is to use a special calculator. For example, from the online services EthereumPrice or Stakingrewards. The service takes into account the latest indicators of network profitability, as well as additional characteristics: the time of operation of a node in the network, the price of a coin, the share of blocked ETNs and so on. Depending on these values, the profit of the validator can vary greatly. For example, you block 32 ETNs at today's coin price - $190, 1% of the coins are blocked, and the node works 99% of the time. According to the EthereumPrice calculator, in this case your yield will be 14.25% per annum, or 4.56 ETH.
Validator earnings from the example above for 10 years according to EthereumPrice.
If to change the data, you have the same steak, but the proportion of blocked coins is 10%. Now your annual yield is only 4.51%, or 1.44 ETH.
Validator earnings from the second example over 10 years according to EthereumPrice.
It is important that this is profitability excluding expenses. Real returns will be significantly lower and in the second case may be negative. In addition, you must consider the fluctuation of the course. Even with a yield of 14% per annum in ETN, dollar-denominated returns may be negative in a bear market.

When will the transition to Ethereum 2.0 start

Ben Edgington from Teku, the operator of Ethereum 2.0, at the last summit said that the transition to PoS could be launched in July this year. These deadlines, if there are no new delays, were also mentioned by experts of the BitMEX crypto exchange in their recent report on the transition of the Ethereum ecosystem to stage 2.0. However, on May 12, Vitalik Buterin denied the possibility of launching Ethereum 2.0 in July. The network is not yet ready and is unlikely to be launched before the end of the year. July 30 marks the 5th anniversary of the launch of Ethereum. Unfortunately, it seems that it will not be possible to start the update for the anniversary again. Full deployment of updates will consist of several stages. Phase 0. Beacon chain. The "zero" phase, which can be launched in July this year. In fact, it will only be a network test and PoS testing without economic activity, but it will use new ETN coins and the possibility of staking will appear. The "zero" phase will test the first layer of Ethereum 2.0 architecture - Lighthouse. This is the Ethereum 2.0 client in Rust, developed back in 2018. Phase 1. Sharding - rejection of full nodes in favor of load balancing between all network nodes (shards). This should increase network bandwidth and solve the scalability problem. This is the first full phase of Ethereum 2.0. It will initially be deployed with 64 shards. It is because of sharding that the transition of a network to a new state is so complicated - existing smart contracts cannot be transferred to a new network. Therefore, at first, perhaps several years, both networks will exist simultaneously. Phase 2. State execution. In this phase, various applications will work, and it will be possible to conclude smart contracts. This is a full-fledged working Ethereum 2.0 network. After the second phase, two networks will work in parallel - Ethereum and Ethereum 2.0. Coin holders will be able to transfer ETN from the first to the second without the ability to transfer them back. To stimulate network support, coin emissions in both networks will increase until they merge. Read more about the phases of transition to state 2.0 in the aforementioned BitMEX report.

How the upgrade to Ethereum 2.0 will affect the staking market and coin price

The transition of the second largest coin to PoS will dramatically increase the stake in the market. The deposit in 32 ETH is too large for most users. Therefore, we should expect an increase in offers for staking from the exchanges. So, the launch of such a service in November was announced by the largest Swiss crypto exchange Bitcoin Suisse. She will not have a minimum deposit, and the commission will be 15%. According to October estimates by Binance Research analysts, the transition of Ethereum to stage 2.0 can double the price of a coin and the stake of staking in the market, and it will also make ETH the most popular currency on the PoS algorithm. Adam Cochran, partner at MetaCartel Ventures DAO and developer of DuckDuckGo, argued in his blog that Ethereum's transition to state 2.0 would be the “biggest event” of the cryptocurrency market. He believes that a 3–5% return will attract the capital of large investors, and fear of lost profit (FOMO) among retail investors will push them to actively buy coins. The planned coin burning mechanism for each transaction will reduce the potential oversupply. However, BitMEX experts in the report mentioned above believe that updating the network will not be as important an event as it seems to many, and will not have a significant impact on the coin rate and the staking market. Initially, this will be more likely to test the PoS system, rather than a full-fledged network. There will be no economic activity and smart contracts, and interest for a steak will not be paid immediately. Therefore, most of the economic activity will continue to be concluded in the original Ethereum network, which will work in parallel with the new one. Analysts of the exchange emphasized that due to the addition of staking, the first time (short, in their opinion) a large number of ETNs will be blocked on the network. Most likely, this will limit the supply of coins and lead to higher prices. However, this can also release some of the ETNs blocked in smart contracts, and then the price will not rise. Moreover, the authors of the document are not sure that the demand for coins will be long-term and stable. For this to happen, PoS and sharding must prove that they work stably and provide the benefits for which the update was started. But, if this happens, the network is waiting for a wave of coins from the developers of smart contracts and DeFi protocols. In any case, quick changes should not be expected. A full transition to Ethereum 2.0 will take years and won’t be smooth - network failures are inevitable. We also believe that we should not rely on Ethereum staking as another panacea for all the problems of the coin and the market. Most likely, the transition of the network to PoS will not have a significant impact on the staking market, but may positively affect the price of the coin. However, relying on the ETN rally in anticipation of this is too optimistic.
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Crypto-Currency: A Guide to Common Tax Situations

STATUS: Majority of questions have been answered. If yours got missed, please feel free to post it again.
Introduction
All,
Based on the rapid increase in popularity and price of bitcoin and other crypto currencies (particularly over the past year), I expect that lots of people have questions about how crypto currency will impact their taxes. This thread attempts to address several common issues. I'm posting similar versions of it here, in several major crypto subs, and eventually in the weekly "tax help" threads personalfinance runs.
I'd like to thank the /personalfinance mod team and the /tax community for their help with this thread and especially for reading earlier versions and offering several valuable suggestions/corrections.
This thread is NOT an endorsement of crypto currency as an investing strategy. There is a time and a place to debate the appropriateness of crypto as part of a diversified portfolio - but that time is not now and that place is not here. If you are interested in the general consensus of this sub on investing, I would urge you to consult the wiki while keeping in mind the general flowchart outlining basic steps to get your finances in order.
Finally, please note that this thread attempts to provide information about your tax obligations as defined by United States law (and interpreted by the IRS under the direction of the Treasury Department). I understand that a certain portion of the crypto community tends to view crypto as "tax free" due to the (actual and perceived) difficulty for the IRS to "know" about the transactions involved. I will not discuss unlawfully concealing crypto gains here nor will I suggest illegal tax avoidance activities.
The Basics
This section is best for people that don't understand much about taxes. It covers some very basic tax principles. It also assumes that all you did during the year was buy/sell a single crypto currency.
Fundamentally, the IRS treats crypto not as money, but as an asset (investment). While there are a few specific "twists" when it comes to crypto, when in doubt replace the word "crypto" with the word "stock" and you will get a pretty good idea how you should report and pay tax on crypto.
The first thing you should know is that the majority of this discussion applies to the taxes you are currently working on (2017 taxes). The tax bill that just passed applies to 2018 taxes (with a few very tiny exceptions), which most people will file in early 2019.
In general, you don't have to report or pay taxes on crypto currency holdings until you "cash out" all or part of your holdings. For now, I'm going to assume that you cash out by selling them for USD; however, other forms of cashing out will be covered later.
When you sell crypto, you report the difference between your basis (purchase price) and proceeds (sale price) on Schedule D. Your purchase price is commonly referred to as your basis; while the two terms don't mean exactly the same thing, they are pretty close to one another (in particular, there are three two ways to calculate your basis - your average cost, a first-in, first-out method, and a "specific identification" method. See more about these here and here). EDIT - you may not use average cost method with crypto - see here. If you sell at a gain, this gain increases your tax liability; if you sell at a loss, this loss decreases your tax liability (in most cases). If you sell multiple times during the year, you report each transaction separately (bad news if you trade often) but get to lump all your gains/losses together when determining how the trades impact your income.
One important thing to remember is that there are two different types of gains/losses from investments - short term gains (if you held an asset for one year or less) and long term gains (over one year; i.e. one year and one day). Short term gains are taxed at your marginal income rate (basically, just like if you had earned that money at a job) while long term gains are taxed at lower rates.
For most people, long term capital gains are taxed at 15%. However, if you are in the 10% or 15% tax bracket, congrats - your gains (up to the maximum amount of "unused space" in your bracket) are tax free! If you are in the 25%, 28%, 33%, or 35% bracket, long term gains are taxed at 15%. If you are in the 39.6% bracket, long term gains are taxed at 20%. Additionally, there is an "extra" 3.8% tax that applies to gains for those above $200,000/$250,000 (single/married). The exact computation of this tax is a little complicated, but if you are close to the $200,000 level, just know that it exists.
Finally, you should know that I'm assuming that you should treat your crypto gains/losses as investment gains/losses. I'm sure some people will try and argue that they are really "day traders" of crypto and trade as a full time job. While this is possible, the vast majority of people don't qualify for this status and you should really think several times before deciding you want to try that approach on the IRS.
"Cashing Out" - Trading Crypto for Goods/Services
I realize that not everyone that "cashes out" of crypto does so by selling it for USD. In fact, I understand that some in the crypto community view the necessity of cashing out itself as a type of myth. In this section, I discuss what happens if you trade your crypto for basically anything that isn't cash (minor sidenote - see next section for a special discussion on trading crypto for crypto; i.e. buying altcoins with crypto).
The IRS views trading crypto for something of value as a type of bartering that must be included in income. From the IRS's perspective, it doesn't matter if you sold crypto for cash and bought a car with that cash or if you just traded crypto directly for the car - in both cases, the IRS views you as having sold your crypto. This approach isn't unique to crypto - it works the same way if you trade stock for something.
This means that if you do trade your crypto for "stuff", you have to report every exchange as a sale of your crypto and calculate the gain/loss on that sale, just as if you had sold the crypto for cash.
Finally, there is one important exception to this rule. If you give your crypto away to charity (one recognized by the IRS; like a 501(c)(3) organization), the IRS doesn't make you report/pay any capital gains on the transaction. Additionally, you still get to deduct the value of your donation on the date it was made. Now, from a "selfish" point of view, you will always end up with more money if you sell the crypto, pay the tax, and keep the rest. But, if you are going to make a donation anyway, especially a large one, giving crypto where you have a big unrealized/untaxed gain is a very efficient way of doing so.
"Alt Coins" - Buying Crypto with Crypto
The previous section discusses what happens when you trade crypto for stuff. However, one thing that surprises many people is that trading crypto for crypto is also a taxable event, just like trading crypto for a car. Whether you agree with this position or not, it makes a lot of sense once you realize that the IRS doesn't view crypto as money, but instead as an asset. So to the IRS, trading bitcoin for ripple isn't like trading dollars for euros, but it is instead like trading shares of Apple stock for shares of Tesla stock.
Practically, what this means is that if you trade one crypto for another crypto (say BTC for XRP just to illustrate the point), the IRS views you as doing the following:
  • Selling for cash the amount of BTC you actually traded for XRP.
  • Owing capital gains/losses on the BTC based on its selling price (the fair market value at the moment of the exchange) and your purchase price (basis).
  • Buying a new investment (XRP) with a cost basis equal to the amount the BTC was worth when you exchanged them.
This means that if you "time" your trade wrong and the value of XRP goes down after you make the exchange, you still owe tax on your BTC gain even though you subsequently lost money. The one good piece of news in this is that when/if you sell your XRP (or change it back to BTC), you will get a capital loss for the value that XRP dropped.
There is one final point worth discussing in this section - the so called "like kind exchange" rules (aka section 1031 exchange). At a high level, these rules say that you can "swap" property with someone else without having to pay taxes on the exchange as long as you get property in return that is "like kind". Typically, these rules are used in real estate transactions. However, they can also apply to other types of transactions as well.
While the idea is simple (and makes it sound like crypto for crypto should qualify), the exact rules/details of this exception are very fact specific. Most experts (including myself, but certainly not calling myself an expert) believe that a crypto for crypto swap is not a like kind exchange. The recently passed tax bill also explicitly clarifies this issue - starting in 2018, only real estate qualifies for like kind exchange treatment. So, basically, the vast majority of evidence suggests that you can't use this "loophole" for 2017; however, there is a small minority view/some small amount of belief that this treatment would work for 2017 taxes and it is worth noting that I'm unaware of any court cases directly testing this approach.
Dealing with "Forks"
Perhaps another unpleasant surprise for crypto holders is that "forks" to create a new crypto also very likely generate a taxable event. The IRS has long (since at least the 1960s) held that "found" money is a taxable event. This approach has been litigated in court and courts have consistently upheld this position; it even has its own cool nerdy tax name - the "treasure trove" doctrine.
Practically, what this means is that if you owned BTC and it "forked" to create BCH, then the fair market value of the BCH you received is considered a "treasure trove" that must be reported as income (ordinary income - no capital gain rates). This is true whether or not you sold your BCH; if you got BCH from a fork, that is a taxable event (note - I'll continue using BTC forking to BCH in this section as an example, but the logic applies to all forks).
While everything I've discussed up to this point is pretty clearly established tax law, forks are really where things get messy with taxes. Thus, the remainder of this section contains more speculation than elsewhere in this post - the truth is that while the idea is simple (fork = free money = taxable), the details are messy and other kinds of tax treatment might apply to forks.
One basic practical problem with forks is that the new currency doesn't necessarily start trading immediately. Thus, you may have received BCH before there was a clear price or market for it. Basically, you owe tax on the value of BCH when you received it, but it isn't completely clear what that value was. There are several ways you can handle this; I'll list them in order from most accurate to least accurate (but note that this is just my personal view and there is ongoing disagreement on this issue with little/no authoritative guidance).
  • Use a futures market to determine the value of the BCH - if reliable sources published realistic estimates of what BCH will trade for in the future once trading begins, use this estimate as the value of your BCH. Pros/cons - futures markets are, in theory, pretty accurate. However, if they are volatile/subject to manipulation, they may provide an incorrect estimate of the true value of BCH. It would suck to use the first futures value published only to have that value plummet shortly thereafter, leaving you to pay ordinary income tax but only have an unrealized capital loss.
  • Wait until an exchange starts trading BCH; use the actual ("spot" price) as the value. Pros/cons - spot prices certainly reflect what you could have sold BCH for; however, it is possible that the true value of the coin was highelower when you received it as compared to when it started trading on the exchange. Thus this method seems less accurate to me than a futures based approach, but it is still certainly fairly reasonable.
  • Assume that the value is $0. This is my least preferred option, but there is still a case to be made for it. If you receive something that you didn't want, can't access, can't sell, and might fail, does it have any value? I believe the answer is yes (maybe not value it perfectly, but value it somewhat accurately), but if you honestly think the answer is no, then the correct tax answer would be to report $0 in income from the fork. The IRS would be most likely to disagree with this approach, especially since it results in the least amount of income reported for the current year (and the most favorable rates going forward). Accordingly, if you go this route, make extra sure you understand what it entails.
Note, once you've decided what to report as taxable income, this amount also becomes your cost basis in the new crypto (BCH). Thus, when you ultimately sell your BCH (or trade it for something else as described above), you calculate your gain/loss based on what you included in taxable income from the fork.
Finally, there is one more approach to dealing with forks worth mentioning. A fork "feels" a lot like a dividend - because you held BTC, you get BCH. In a stock world, if I get a cash dividend because I own the stock, that money is not treated as a "treasure trove" and subject to ordinary income rates - in most cases, it is a qualified dividend and subject to capital gain rates; in some cases, some types of stock dividends are completely non taxable. This article discusses this idea in slightly more detail and generally concludes that forks should not be treated as a dividend. Still, I would note that I'm unaware of any court cases directly testing this theory.
Ultimately, this post is supposed to be practical, so let me make sure to leave you with two key thoughts about the taxation of forks. First, I believe that the majority of evidence suggests that forks should be treated as a "treasure trove" and reported as ordinary income based on their value at creation and that this is certainly the "safest" option. Second, out of everything discussed in this post, I also believe that the correct taxation of forks is the murkiest and most "up for debate" area. If you are interested in a more detailed discussion of forks, see this thread for a previous version of this post discussing it at even more length and the comments for a discussion of this with the tax community.
Mining Crypto
Successfully mining crypto coins is a taxable event. Depending on the amount of effort you put into mining, it is either considered a hobby or a self-employment (business) activity. The IRS provides the following list of questions to help decide the correct classification:
  • The manner in which the taxpayer carries on the activity.
  • The expertise of the taxpayer or his advisors.
  • The time and effort expended by the taxpayer in carrying on the activity.
  • Expectation that assets used in activity may appreciate in value.
  • The success of the taxpayer in carrying on other similar or dissimilar activities.
  • The taxpayer’s history of income or losses with respect to the activity.
  • The amount of occasional profits, if any, which are earned.
If this still sounds complicated, that's because the distinction is subject to some amount of interpretation. As a rule of thumb, randomly mining crypto on an old computer is probably a hobby; mining full time on a custom rig is probably a business.
In either event, you must include in income the fair market value of any coins you successfully mine. These are ordinary income and your basis in these coins is their fair market value on the date they were mined. If your mining is a hobby, they go on line 21 (other income) and any expenses directly associated with mining go on schedule A (miscellaneous subject to 2% of AGI limitation). If your mining is a business, income and expenses go on schedule C.
Both approaches have pros and cons - hobby income isn't subject to the 15.3% self-employment tax, only normal income tax, but you get fewer deductions against your income and the deductions you get are less valuable. Business income has more deductions available, but you have to pay payroll (self-employment) tax of about 15.3% in addition to normal income tax.
What if I didn't keep good records? Do I really have to report every transaction?
One nice thing about the IRS treating crypto as an asset is that we can look at how the IRS treats people that "day trade" stock and often don't keep great records/have lots of transactions. While you need to be as accurate as possible, it is ok to estimate a little bit if you don't have exact records (especially concerning your cost basis). You need to put in some effort (research historical prices, etc...) and be reasonable, but the IRS would much rather you do a little bit of reasonable estimation as opposed to just not reporting anything. Sure, they might decide to audit you/disagree with some specifics, but you earn yourself a lot of credit if you can show that you honestly did the best you reasonably could and are making efforts to improve going forward.
However, concerning reporting every transaction - yes, sorry, it is clear that you have to do this, even if you made hundreds or thousands of them. Stock traders have had to go through this for many decades, and there is absolutely no reason to believe that the IRS would accept anything less from the crypto community. If you have the records or have any reasonable way of obtaining records/estimating them, you must report every transaction.
What if I don't trust you?
Well, first let me say that I can't believe you made it all the way down here to this section. Thanks for giving me an honest hearing. I would strongly encourage you to go read other well-written, honest guides. I'll link to some I like (both more technical IRS type guides and more crypto community driven guides). While a certain portion of the crypto community seems to view one of the benefits of crypto as avoiding all government regulation (including taxes), I've been pleasantly surprised to find that many crypto forums contain well reasoned, accurate tax guides. While I may not agree with 100% of their conclusions, that likely reflects true uncertainty around tax law that is fundamentally complex rather than an attempt on either end to help individuals unlawfully avoid taxes.
IRS guides
Non-IRS guides
submitted by Mrme487 to personalfinance [link] [comments]

Litecoin Customer Support Number +1 855 300-8358 [email protected]#$%^&

Litecoin Customer Support Number +1 855 300-8358 Is litecoin a good investment? High trading volume: Litecoin has been trading since 2011 and is an established top 10 coin. Meaning that it is a popular choice for investors. If a cryptocurrency has a high trading volume, it means you will have no problems finding buyers to sell to. Litecoin Customer Support Number +1 855 300-8358
What will litecoin be worth in 2020? According to the WalletInvestor source, Litecoin coin price may drop by 20% to $59.9. In the nearest future, Litecoin won't surpass Bitcoin. In 2020, LTC price can reach $169.8. In 2025, this price will increase 10 times, the coin will worth $1693.7.
Litecoin Customer Support Number +1 855 300-8358
Litecoin Customer Support Number +1 855 300-8358
Is litecoin better than Bitcoin? Litecoin isn't as popular as Bitcoin but its technology might make it a better currency for spending. The Litecoin transaction time is four times faster than Bitcoin's. ... Litecoin fans often say that the Litecoin transaction time makes it a better currency because it's fast.
Litecoin Customer Support Number +1 855 300-8358
Litecoin Customer Support Number +1 855 300-8358
How many Litecoins are left? As of press time, there are 62,983,450 Litecoins in circulation, representing 74.93% of all Litecoins that will ever be mined. This leaves roughly 21 million coins left to be mined up until 2142. Litecoin Customer Support Number +1 855 300-8358
Will litecoin ever recover? However, it is expected to recover by fall and end next year at $36.8. In five years, Wallet Investor estimates the coin to drop as low as $0.77 by the end of 2024. Litecoin Customer Support Number +1 855 300-8358
Litecoin Customer Support Number +1 855 300-8358
What will litecoin be worth in 2030? By 2030, Litecoin would have gone through its 4th halving process, and it is expected to grow manifold. It might grow upwards and become one of the top 3 cryptocurrencies if it keeps on with the technological trends. By 2030, Litecoin might reach a whole new level and the value might soar high above $1500.
Is now a good time to buy litecoin? If you are planning to invest in litecoin and buy litecoin at best price, then 2019 is the best time to invest in Litecoin as the Litecoin value is increasing since start of 2019 and it is expected that litecoin value will continue rising and will soon cross the bitcoin value and ether value.
Is it safe to invest in litecoin? Litecoin is a safe and secure cryptocurrency to invest in with minimal risk, as at the beginning of the year, Litecoin price has been on a steady price increase, it's market price has been able to surge over $125 over a year.Litecoin Customer Support Number +1 855 300-8358
What will happen after litecoin halving?
The Effects of Halving on Hashrate If a big percentage does that, then blocks will slow down for some time. For litecoin, it's three and a half days before the next change, so possibly like seven days of slower blocks, and then after that, the difficulty will readjust and everything will be fine.”Litecoin Customer Support Number+1 855 300-8358.
Will litecoin halving increase price? Price analysis There was a minor surge on the day of the halving, with the price rising approximately 10% to just over the $100 mark before returning back to prehalving prices within 24 hours. The expected sell-off, did not seem to affect the price as much as some within the community speculated.Litecoin Customer Support Number +1 855 300-8358.
submitted by OneImplement2 to u/OneImplement2 [link] [comments]

Litecoin Customer Support Number +1 855 300-8358 %$#$__+

Litecoin Customer Support Number +1 855 300-8358
Is litecoin a good investment?
High trading volume: Litecoin has been trading since 2011 and is an established top 10 coin. Meaning that it is a popular choice for investors. If a cryptocurrency has a high trading volume, it means you will have no problems finding buyers to sell to.
Litecoin Customer Support Number +1 855 300-8358
What will litecoin be worth in 2020?
According to the WalletInvestor source, Litecoin coin price may drop by 20% to $59.9. In the nearest future, Litecoin won't surpass Bitcoin. In 2020, LTC price can reach $169.8. In 2025, this price will increase 10 times, the coin will worth $1693.7.
Litecoin Customer Support Number +1 855 300-8358
Litecoin Customer Support Number +1 855 300-8358
Is litecoin better than Bitcoin?
Litecoin isn't as popular as Bitcoin but its technology might make it a better currency for spending. The Litecoin transaction time is four times faster than Bitcoin's. ... Litecoin fans often say that the Litecoin transaction time makes it a better currency because it's fast.
Litecoin Customer Support Number +1 855 300-8358
Litecoin Customer Support Number +1 855 300-8358
How many Litecoins are left?
As of press time, there are 62,983,450 Litecoins in circulation, representing 74.93% of all Litecoins that will ever be mined. This leaves roughly 21 million coins left to be mined up until 2142.
Litecoin Customer Support Number +1 855 300-8358
Will litecoin ever recover?
However, it is expected to recover by fall and end next year at $36.8. In five years, Wallet Investor estimates the coin to drop as low as $0.77 by the end of 2024.
Litecoin Customer Support Number +1 855 300-8358
Litecoin Customer Support Number +1 855 300-8358
What will litecoin be worth in 2030?
By 2030, Litecoin would have gone through its 4th halving process, and it is expected to grow manifold. It might grow upwards and become one of the top 3 cryptocurrencies if it keeps on with the technological trends. By 2030, Litecoin might reach a whole new level and the value might soar high above $1500.
Is now a good time to buy litecoin?
If you are planning to invest in litecoin and buy litecoin at best price, then 2019 is the best time to invest in Litecoin as the Litecoin value is increasing since start of 2019 and it is expected that litecoin value will continue rising and will soon cross the bitcoin value and ether value.
Is it safe to invest in litecoin?
Litecoin is a safe and secure cryptocurrency to invest in with minimal risk, as at the beginning of the year, Litecoin price has been on a steady price increase, it's market price has been able to surge over $125 over a year.Litecoin Customer Support Number +1 855 300-8358
What will happen after litecoin halving?
The Effects of Halving on Hashrate If a big percentage does that, then blocks will slow down for some time. For litecoin, it's three and a half days before the next change, so possibly like seven days of slower blocks, and then after that, the difficulty will readjust and everything will be fine.”Litecoin Customer Support Number+1 855 300-8358.
Will litecoin halving increase price?
Price analysis There was a minor surge on the day of the halving, with the price rising approximately 10% to just over the $100 mark before returning back to prehalving prices within 24 hours. The expected sell-off, did not seem to affect the price as much as some within the community speculated.Litecoin Customer Support Number +1 855 300-8358
submitted by Connect-Road to u/Connect-Road [link] [comments]

Explaining Bitcoin Mining & Difficulty It's Never Been So Difficult to Mine Bitcoin; Miners Offload More BTC The Difficulty of Mining Bitcoin BITCOIN MINING DIFFICULTY EXPLAINED IN 10 MINUTES! BITCOIN BEARS STILL in CONTROL!! 〽️What Next? Analyst Calls for BULL Run THIS WEEK!!?

Estimated next difficulty adjustment for Bitcoin Cash: 1 day, 18 hours. +330.16% Miners Profit vs -5.14% in BTC adjustment in 2 days, 5 hours The Bitcoin difficulty chart provides the current Bitcoin difficulty (BTC diff) target as well as a historical data graph visualizing Bitcoin mining difficulty chart values with BTC difficulty adjustments (both increases and decreases) defaulted to today with timeline options of 1 day, 1 week, 1 month, 3 months, 6 months, 1 year, 3 years, and all time estimate - show the estimate of the next difficulty, based on data since last change, and for last three days. genprob - show the probability of getting at least one block at given hashrate, in a given time period, at given difficulty. uses current difficulty by default. Compute a history and real time estimate of next Bitcoin difficulty - tamasblummer/bitcoin-difftest Bitcoin Difficulty Estimator ... the time spent mining the first block in each difficulty epoch actually has no effect on the next difficulty calculation. Even if this block somehow took an entire year to mine, it would not cause the next difficulty to drop, believe it or not! The calculations on this site take this bug into account to help produce the most accurate difficulty estimate ...

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Explaining Bitcoin Mining & Difficulty

Bitcoin (BTC) mining difficulty just reached a new all-time high, increasing pressure on less efficient miners that have already started selling more BTC. Bitcoin mining difficulty, which is the ... #Bitcoin bears still in control? $BTC analysts says minor difficulty adjustment could kickstart nexxt bull run, four possible long term outcomes for BTC, Ban... The Bitcoin mining difficulty currently adjusts roughly every 2 weeks, while on other chains mining difficulty adjusts much more often. Why? Why does Bitcoin... Live Bitcoin Trading With Crypto Trading Robot DeriBot on Deribit DeriBot Alternative channel 932 watching Live now Crypto Mining Difficulty 101 - Everything You Need to Know - Duration: 18:40. Bitcoin Technical Analysis & Bitcoin News Today: The Bitcoin mining difficulty is at an all-time high, and the hash rate is also climbing higher. Will the BTC price reach 20k soon as a result of ...

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