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Binance Makes regulatory Compliance prime Priority because the Crypto Exchange Pivots Into Financial Services Company https://www.btcwires.com/c-buzz/binance-makes-regulatory-compliance-prime-priority-because-the-crypto-exchange-pivots-into-financial-services-company/
https://www.btcwires.com/?p=46244
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<p>Aug 19, 2021 08:36&amp;nbspUTC</p>
<p> | Updated: </p>
<p>Aug 19, 2021 at 08:36&amp;nbspUTC</p>
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<p class=”author”><span>By</span>&amp;nbsp<a href=”https://www.btcwires.com/author/btcadmin/”>Clark</a></p>
<p>Global cryptocurrency exchange Binance has created regulatory compliance as its prime priority. The exchange is on a hiring spree to “significantly” augment its compliance and legal groups. “We are rummaging a pivot from a technology originator into a monetary services company, therefore we want to be absolutely compliant,” aforementioned the business executive of Binance.</p>
<h2><strong>Binance’s regulative Compliance Plans</strong></h2>
<p>Binance is specializing in regulatory compliance because the exchange pivots from a technology startup into a monetary services company, business executive Changpeng Zhao (CZ) explained in an interview with Bloomberg TV weekday.</p>
<p>Commenting on crypto regulative efforts within the U.S, He said: “The U.S. is extremely mature on the crypto regulation part. they’re leading currently. they need a cryptocurrency exchange listed on NASDAQ that is extremely positive.” the manager continued:</p>
<p>“When the new crypto rules are available, several of them are somewhat restrictive. That’s quite expected. However, over time, we have a tendency to suppose that rules can regulate with market demand, and hopefully get better.”</p>
<p>“I believe, right now, all the regulators round the prospective crypto as monetary instruments, a technique or another,” he more opined.</p>
<p>The business executive aforementioned that he spends the majority of his time, that is “probably eightieth or a lot of,” on compliance, noting that he’s “not very concerned within the regular operations of the exchange.”</p>
<p>Zhao explained:</p>
<p>“We are rummaging a pivot from a technology originator into a financial services company, therefore we want to be absolutely compliant.”</p>
<p>He named some priorities Binance is specializing in so as to become compliant. “We need to rent a great deal to a lot of folks,” he began. “We ought to hire folks with regulatory compliance expertise and really senior people who will bring groups in. we want to considerably … increase the scale of our compliance, legal groups.”</p>
<p>Binance proclaimed Wed that it employed Greg Monahan, former U.S. Treasury Criminal Investigator, who joins the organization as a Global Money Laundering Officer(GMLRO).</p>
<p>Earlier this month, former acting comptroller of the Currency, Brian Brooks, stepped down because the business executive of Binance US because of “differences over strategic direction.”</p>
<p>Zhao conjointly explained that Binance has to ditch its localized vision. “We were shooting for the localized structure structure that doesn’t work with regulators … currently, we have a tendency to establish headquarters, correct structures, correct governance, correct audits, etc.”</p>
<p>Furthermore, the business executive said: “We ought to confirm that every one of our products are absolutely compliant … this can be why we’ve been limiting our futures, derivatives products in most of Europe and a few parts of Asia yet.”</p>
<p>Next, the aforementioned Binance wants “to apply for licenses,” emphasizing that it’s “very important” for the corporate “to communicate with the regulators” and “request regular conferences wherever we have a tendency to proactively update them on what we have a tendency to do.”</p>
<p>A number of regulators worldwide recently issued warnings concerning Binance. They embrace regulators within the U.K., Japan, Malaysia, Thailand, Germany, Cayman Islands, Lithuania, and metropolis.</p>
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<h5><a href=”https://www.btcwires.com/author/btcadmin/”>Clark</a></h5>
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Thu, 19 Aug 2021 08:36:21 +0000 Clark
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Devere group CEO says Ethereum’s rise to No.1 crypto ‘seems unstoppable” https://www.btcwires.com/c-buzz/devere-group-ceo-says-ethereums-rise-to-no-1-crypto-seems-unstoppable/
https://www.btcwires.com/?p=46241
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<p>Aug 19, 2021 08:31&amp;nbspUTC</p>
<p> | Updated: </p>
<p>Aug 19, 2021 at 08:31&amp;nbspUTC</p>
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<p class=”author”><span>By</span>&amp;nbsp<a href=”https://www.btcwires.com/author/btcadmin/”>Clark</a></p>
<p>Nigel Green&nbsp; is uber optimistic on ETH stating that its worth can exceed Bitcoin’s among 5 years.</p>
<p>The CEO and founding father of one among the world’s largest freelance monetary consultatory organizations, the deVere Group, has expressed that Ethereum’s worth appreciation ought to still beat Bitcoin’s in 2021.</p>
<p>The deVere Group chief govt Nigel Green conjointly believes that Ethereum’s worth can exceed that of Bitcoin’s among a number of short years.</p>
<p>“Ethereum is outperforming Bitcoin and it will be expected to continue this trend for the remainder of 2021,” he said.</p>
<p>Ethereum has gained quite 300% to date this year whereas the world’s most well liked digital quality is up 55% by comparison. “In fact, it outperformed all alternative benchmark assets within the half of this year,” side inexperienced per town AM.</p>
<p>The revered analyst attributed 2 key factors to Ethereum’s stellar performance in 2021. Ethereum features a higher level of real-use potential and is that the most in-demand development platform for sensible contracts he aforesaid, “thereby highlight that network’s worth not solely as a platform for developers however as a worldwide financial utility,”</p>
<p>Secondly, Green commented that capitalist enthusiasm for the “game-changing” transition to ETH 2.0 represents a serious boost not only for Ethereum, except for blockchain technology itself.</p>
<p>“Ultimately, this will&nbsp; mean that it’s worth will exceed that of Bitcoin — most likely among 5 years,”</p>
<p>The company govt isn’t pessimistic on Bitcoin but and remains assured that Bitcoin can hit, or maybe surpass, its mid-April incomparable high of $65,000 by the end of 2021. but he terminated that:</p>
<p>“Ethereum’s ascent to the highest of the cryptoverse looks unstoppable .”</p>
<p>In early June, deVere launched a fixed-yield bond that tracks futures of Bitcoin and Ethereum on the Chicago Mercantile Exchange.</p>
<p>According to U.K. crypto exchange CoinJar, Ethereum has flipped Bitcoin in nearly every metric that matters. During a journal post on Aug. 18, the exchange expressed that Ethereum is already surpassing Bitcoin during a variety of areas, as well as the amount of transactions, total worth transacted, daily active wallets, dealings fees and mining revenue.</p>
<p>According to Coinbase’s second quarter report, commerce volume for Ethereum flipped that for Bitcoin for the primary time in its nine-year history.</p>
<p>Trading in ETH created 26% of total volumes within the second quarter, up from 21% within the previous 3 months, and better than Bitcoin’s 24% for the amount.</p>
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<h5><a href=”https://www.btcwires.com/author/btcadmin/”>Clark</a></h5>
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Thu, 19 Aug 2021 08:31:27 +0000 Clark
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62% of Robinhood’s Q2 crypto revenue was from Dogecoin commerce https://www.btcwires.com/c-buzz/62-of-robinhoods-q2-crypto-revenue-was-from-dogecoin-commerce/
https://www.btcwires.com/?p=46239
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<p>Aug 19, 2021 08:24&amp;nbspUTC</p>
<p> | Updated: </p>
<p>Aug 19, 2021 at 08:24&amp;nbspUTC</p>
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<p class=”author”><span>By</span>&amp;nbsp<a href=”https://www.btcwires.com/author/btcadmin/”>Clark</a></p>
<p>Around 41% of Robinhood’s quarterly revenues were generated by crypto commerce.</p>
<p>Popular retail commerce app, Robinhood, has unconcealed crypto commerce surged in quality on the platform and currently represents 41% of its revenue.</p>
<p>Its second-quarter money results revealed the report on results Aug. 18, the firm generated $233 million from crypto commerce services for the quarter, up from $5 million for the whole of 2020. More than 60% of funded Robinhood accounts listed digital assets throughout Q2 2021.</p>
<p>With early 2021 witnessing the speculative dog-token commerce fury, a banging 62% of Robinhood’s crypto revenue was derived from Dogecoin trades.</p>
<p>The financial statement is the 1st issued by Robinhood since it became a public company. Vlad Teev, co-founder and corporate executive of Robinhood, stated:</p>
<p>“We’re inspired by the amount of individuals who are assessing the economic system for the primary time through Robinhood.”</p>
<p>Revenue labelled $565 million for the quarter overall, a 131% increase compared to Q2 2020’s $244 million. Monthly active users doubled year-over-year (YoY) from 10.2 million to 21.3 million, whereas funded accounts inflated by 130% over an equivalent amount.</p>
<p>The value of assets custodied by Robinhood additionally tripled YoY to tag $102 billion.</p>
<p>Despite the billowing crypto revenue, Robinhood reported an overall loss of $464 million for Q2. However, the losses are&nbsp; attributed to accounting changes relating to the unsteady warrants and notes controlled by the corporate.</p>
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<h5><a href=”https://www.btcwires.com/author/btcadmin/”>Clark</a></h5>
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Thu, 19 Aug 2021 08:24:57 +0000 Clark
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How can you benefit from paying with Bitcoin? https://www.btcwires.com/c-buzz/how-can-you-benefit-from-paying-with-bitcoin/
https://www.btcwires.com/?p=46233
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<p>Aug 17, 2021 18:46&amp;nbspUTC</p>
<p> | Updated: </p>
<p>Aug 17, 2021 at 18:48&amp;nbspUTC</p>
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<p class=”author”><span>By</span>&amp;nbsp<a href=”https://www.btcwires.com/author/btcadmin/”>Clark</a></p>
<h2><strong>How can you benefit from paying with Bitcoin?</strong></h2>
<p>As virtual currencies came into existence to combat some of the initial drawbacks of fiat currencies, they hold some inherent advantages. It has been a decade since digital currencies are around, but the technology is continually changing. You can’t deny the fact that bitcoin ranks the highest among other cryptocurrencies. The reason being they come with a unique set of advantages that different payment methods cannot offer.</p>
<h2><strong><u>How is Bitcoin better?</u></strong><strong>&nbsp;</strong></h2>
<p>Bitcoin is a decentralized cryptocurrency that works peer-to-peer. This digital unit of exchange came into existence in 2009. No one is sure about who is the person behind this successful cryptocurrency, but he introduced himself by the name Satoshi Nakamoto.</p>
<p>Bitcoin has grown to such importance that it even defines the cryptocurrency space.&nbsp;You can trade bitcoin through&nbsp;<strong><u><a href=”https://bitcoin-code.io/”>bitcoin-code.io</a></u></strong>; following the popularity, there has been the emergence of altcoins, but bitcoin still stands to be the trendsetter. It has given users an alternative to commodity currencies such as gold or silver coins and has the potential to replace official fiat currencies such as the US dollar or euro.</p>
<p>Why was there a need to introduce bitcoin if there were so many traditional means of payment already? Whenever there is a conflict between the public and the banks, people look for decentralized solutions. They wanted something that no central authority would control. Bitcoin specifically delivers it.</p>
<p>Bitcoin runs on blockchain technology. The payments are processed through peer-to-peer nodes. Every transaction is recorded in a “blockchain,” which is a public ledger available to everyone. The records remain transparent. As a distributed ledger, any need for a central authority to maintain the records is eliminated.</p>
<p>The government or central banks do not issue bitcoins. Bitcoins are “mined” by dedicated miners in return for rewards. In simple words, mining is a process of solving complex mathematical algorithms so that transactions can be verified and can be added to the blockchain. Another way is to purchase them with standard money through exchanges. They can be stored in a “bitcoin wallet” for further use.</p>
<h2><strong><u>Advantages of Using Bitcoin</u></strong></h2>
<ol type=”1″>
<li>
<h3><strong><u>User Autonomy</u></strong></h3>
</li>
</ol>
<p>What draws users to Bitcoin is the advantage of controlling their currency. With Bitcoin, people enjoy more autonomy over their own money than what fiat currencies allow. Users are allowed to spend and buy bitcoins without intermediary authorities like banks or the government.</p>
<p>The problem with centralized fiat currencies is that it has a single point of control. Any mal-handling at the top of the classification can severely affect the entire system. There is no single point of Bitcoin, making it nearly impossible to have a system breakdown. The network is spread over different nodes, making it efficient and democratic. This kind of decentralization is possible because of the blockchain technology bitcoin uses. Every user is provided with an opportunity to become a “miner,” processing the network.</p>
<p>No third party is involved in the transactions. No one has the power to tax, freeze, or claim your coins. Government has no right to seize your coins under any circumstances and also, there are very few chances of them getting stolen.</p>
<ul>
<li>
<h3><strong><u>Complete Anonymity</u></strong></h3>
</li>
</ul>
<p>The&nbsp;<a href=”https://www.btcwires.com/round-the-block/blockchain-privacy-issues-explained/”><strong>privacy protection of blockchain</strong></a>&nbsp;is exceptionally intense. The system is designed to store all the records transactions and other relevant data publicly, but it will not reveal any individual or group’s identity. Every bitcoin user has been given a public key or numerical code, which is their identity. They sometimes prefer using pseudonyms, handles or usernames.</p>
<p>Users are also given the benefit of concealing the source and flow of transactions. Any bitcoin user can program their transactions by privately swapping a specific bitcoin unit for another identical company and thereby hiding the owner’s source. This is called mixing services.</p>
<p>Any kind of purchase with bitcoin will not be associated with personal identity, very similar to purchasing with cash. Tracing back to identities is not very easy. Moreover, the anonymous bitcoin address provided to the seller in the purchase process changes with every transaction.</p>
<ul>
<li>
<h3><strong><u>Works peer-to-peer</u></strong></h3>
</li>
</ul>
<p>Bitcoin works on a purely peer-to-peer system. Users have the freedom to send and receive payments from across the world instantly without exchange rates or permission from external authorities.</p>
<p>P2P processes are safer as they allow traders to conduct deals directly. No third party is involved who needs to hold your funds. Hence, there will be no possibility of them stealing or losing your money as the government cannot impose regulations but can privately conduct trades.</p>
<ul>
<li>
<h3><strong><u>Low Transaction Fees</u></strong></h3>
</li>
</ul>
<p>Although it is a standard practice among cryptocurrency exchanges to charge from users “maker” and “taker” fees and deposit, withdrawal fees occasionally, bitcoin users are not burdened with recurring banking fees. There is no compulsion of minimum balance or account maintenance fees. Imagine not having to give overdraft charges and returned deposit fees. It makes maintaining an account and&nbsp;<a href=”https://www.entrepreneur.com/article/226716″><strong>conducting transactions very easy with bitcoin</strong></a>&nbsp;.</p>
<p>Foreign exchange or even wire transfers involve unnecessarily high fees. With bitcoins, you only have one form of currency, i.e. the coins that can be transacted with anyone worldwide—no intermediary institutions or government benefits in keeping the transaction fees very minimal. The transactions take only a few minutes or a maximum of an hour. The inconvenience of authorization requirements for foreign exchanges is sorted out with bitcoins.</p>
<ul>
<li>
<h3><strong><u>Mobile payments</u></strong></h3>
</li>
</ul>
<p>It is not a hefty process; like any other online payment system, bitcoin users can buy and sell coins or buy products with coins from anywhere using their mobile phones. One needs to have access to the internet. Anyone who wants to purchase bitcoin does not have to travel to a bank or store. One can make online payments for a product from anywhere. Moreover, what makes bitcoin better than other online payments is that it doesn’t reveal any personal information.</p>
<ul>
<li>
<h3><strong><u>Accessibility</u></strong></h3>
</li>
</ul>
<p>As bitcoins are accessible to anyone with a Smartphone or computer and internet connection, many users who don’t have access to banking systems can benefit from this payment mode.</p>
<ul>
<li>
<h3><strong><u>No risk of inflation</u></strong></h3>
</li>
</ul>
<p>Inflation occurs when the government decides to issue more money to combat a specific economic problem. But in bitcoin mining, blockchain technology is designed to automatically curb down the number of bitcoins mined every four years so that the number doesn’t cross 21 million. There are no chances of inflation. Hence, an individual can preserve the coins without having to worry.</p>
<h2><strong><u>Opportunities Businesses have with bitcoin</u></strong><strong>.</strong></h2>
<ol type=”1″>
<li>
<h3><strong><u>Smart Contracts</u></strong></h3>
</li>
</ol>
<p>Smart contracts are agreements that are self-programmed and executed so that there is no need for a lawyer. Users use smart contracts to set specific rules on their bitcoins so that a transaction is only possible after completing the deliverables. It helps smooth, trusted transactions between two anonymous parties without any central authority or the legal system.</p>
<ul>
<li>
<h3><strong><u>Asset Distribution</u></strong></h3>
</li>
</ul>
<p>Bitcoin owns credibility as a stable currency. This attracts a lot of investors who expect to earn profit in the long run. Companies can raise money through bitcoin asset distribution in a secure environment without waiting for several processes carried out in banks. People see bitcoins as a form of asset that can back anything its worth.</p>
<ul>
<li>
<h3><strong><u>Building Bitcoin Wallets</u></strong></h3>
</li>
</ul>
<p>With people enjoying the advantages of bitcoin as a new form of payment, there is an increasing necessity for virtual wallets that can keep the bitcoin secure. Wallets allow users to store, pay, and receive bitcoins. Wallets that can protect the entire bitcoin ecosystem is a great business opportunity.</p>
<p>Bitcoin is not termed as the only cryptocurrency that is trying to replace fiat currencies. But the success of it is what the altcoins dream of. The problem with altcoins or alternatives to bitcoin is that they have a lower acceptance level among significant institutions. Not everywhere, but there is only a limited number of outlets where altcoins are adopted.</p>
<p>Bitcoin has witnessed a dramatic surge in price in recent times. Bitcoin is becoming so popular because it is one of the most liquid investment assets. There are so many trading platforms, exchanges, and online brokerages established worldwide that work towards trading bitcoin for cash or other assets at a very considerable fee. Adding to that is its volatility, which makes it an excellent means for a quick profit.</p>
<p>Unlike stock trading, it doesn’t require you to hold a certificate or license. Even if you are a young trader, you can too enjoy the benefits. There is no need to invite a broker to trade shares. You can buy or sell bitcoins through exchange platforms and store them in your wallet.</p>
<p>It will not be surprising to see new opportunities around bitcoin and cryptocurrency trading as they are relatively new compared to traditional coins. The newness gives rise to unpredictable swings in price that may result in massive gains.</p>
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<h5><a href=”https://www.btcwires.com/author/btcadmin/”>Clark</a></h5>
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Tue, 17 Aug 2021 18:46:42 +0000 Clark
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How is Bitcoin better?
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How much can you earn from Bitcoin Mining? https://www.btcwires.com/c-buzz/how-much-can-you-earn-from-bitcoin-mining/
https://www.btcwires.com/?p=46232
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<p>Aug 17, 2021 18:31&amp;nbspUTC</p>
<p> | Updated: </p>
<p>Aug 17, 2021 at 18:31&amp;nbspUTC</p>
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<p class=”author”><span>By</span>&amp;nbsp<a href=”https://www.btcwires.com/author/btcadmin/”>Clark</a></p>
<p>Bitcoin mining requires excellent care, is costly, and occasionally rewarding. Investors are still interested in this process due to the rewards miners get. For every successful mining, a crypto token is rewarded. If you incline technology, mining can be a way to get bitcoin without investing money in it.</p>
<p>The miner who becomes the first to solve a complex hashing puzzle receives a reward with bitcoin. Finding the solution before others depends on the people investing in mining power in the network. The rewards are given when they successfully verify transactions that constitute a “block.” After a complete block is validated, it is added to the blockchain.<a href=”https://the-bitcoinevolution.com/”><strong>&nbsp;Bitcoin evolution platform</strong></a>&nbsp;is a trading platform that is making users rich.</p>
<p>The bitcoin rewards work as incentives for miners to keep them motivated to indulge in the process of mining. As Bitcoin is a decentralized digital currency, mining ensures that the blockchain technology runs smoothly and securely. No central authority controls the functioning of cryptocurrencies, so miners are spread worldwide to confirm each transaction’s validity.</p>
<h2><strong><u>How are Bitcoins Mined</u></strong><strong>?&nbsp;</strong></h2>
<h2><strong>There are two criteria to earn bitcoins</strong>:</h2>
<ol type=”1″>
<li>You verify up to 1MB of transactions.</li>
<li>You must first get the right answer or closest answer to the complex mathematical problem. In the cryptocurrency world, this is also called proof of work.</li>
</ol>
<p>To find the right answer to a numeric problem, no advanced computation is involved. Miners are not required to solve the mathematical problems; they only need to be the first to generate a 64-digit hexadecimal number, called “hash”, which is very close or equal to the target hash. Having an excellent guessing power is an add-on advantage.</p>
<p>As it entirely depends on guesswork, the number of possible guesses is enormous. To win the race, miners require a computing power whose “hash rate” is very high.</p>
<ol type=”1″>
<li>
<h2><strong><u>Set up a bitcoin mining rig</u></strong></h2>
</li>
</ol>
<p>Initially, bitcoin mining could have been approached as a hobby. It only required regular domestic computers. It was later upgraded to needing graphic cards, but now any of these will not be efficient. The mining of bitcoins has been upgraded to a high powered setup. Specially designed hardware for mining needs to be brought into effect. Mining requires ASIC (Application-Specific Integrated Circuit) chips to increase your speed and consume less energy. This is an expensive setup, and the manufacturing process is slow. But this is the only way to become the first one solving hashes and winning bitcoins. The most powerful machine has the capacity of solving 14 terahash in one second. It means that it attempts 1012 times to guess the right answer in one second.</p>
<p>A miner also needs to verify bitcoin transactions that should add up to 1MB. It is important to note that everyone who confirms 1 MB of transactions only becomes eligible to earn bitcoin. Not all of them receive bitcoins.</p>
<ul>
<li>
<h2><strong><u>Get a bitcoin wallet</u></strong><strong>.</strong></h2>
</li>
</ul>
<p>A personal bitcoin wallet is where you will transfer all your bitcoin earnings. Although coins are technically stored in the blockchain, wallets help you manage your bitcoins’ addresses.</p>
<p>Each bitcoin address comprises a public key and a matching private key. The public key is a combination of characters, including alphabets and numbers. You may also relate it to a bank account number. For Bitcoin exchanges, the person sending you coins will require your public key. The addresses are deliberately kept public so that they can trace every transaction you make back to one address.</p>
<p>However, a private key is personal to every bitcoin holder. It is used to send off coins. If the private key is stolen or forgotten; you lose your bitcoin forever, so make sure your private key is safe.</p>
<ul>
<li>
<h2><strong><u>Join a mining pool</u></strong></h2>
</li>
</ul>
<p>With the popularity of bitcoin rising, mining is made complicated to keep the network safe. Sometimes even using the best ASIC miner is not enough to successfully mine a bitcoin. A single machine falls weak while competing with large mining farms spread all across the world. What can make this process profitable is joining hands with other miners and creating a mining pool?</p>
<p>Computing powers from different miners in a group are accumulated to speed up hashing, and reward is distributed among the members. The income is low but guaranteed regularly. However, the operator of the pool charges a certain fee from the members.</p>
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<h2><strong><u>Install Mining Software on your computer</u></strong></h2>
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<p>Mining software gets you introduced to the blockchain and bitcoin network. The software monitors your actions and demands results. It assigns you to work, collects it after completion, and adds the information to the blockchain. It also gives you statistics of your performance like cooling, hash rate, temperature, and average mining speed.</p>
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<h2><strong><u>Start with Mining</u></strong></h2>
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<p>After installing the mining software, fill in the required information regarding your wallet and mining pool. Choose a device and start mining.</p>
<h2><strong><u>Bitcoin Circulation</u></strong></h2>
<p>Mining is not only meant to keep the bitcoin ecosystem secure and reward miners. Mining is the process of how a new bitcoin is released into circulation. It can also say that miners are employed for “minting”&nbsp;<a href=”https://www.google.com/amp/s/www.bloomberg.com/amp/opinion/articles/2020-02-21/bitcoin-s-future-as-real-currency-like-dollar-relies-on-inflation”><strong>digital currency</strong></a>. There are currently 18.5 million bitcoins circulating in the cryptocurrency market. The existence of each bitcoin is the work of miners. The bitcoin network would not wither away without miners, but there will be no new coins added.</p>
<p>As the Bitcoin Protocol has set a limit of 21 million bitcoins to be circulated, bitcoin mining will eventually end. The solution to this has also been designed by the mastermind behind this cryptocurrency, Satoshi Nakamoto. The rate of bitcoins mined is reduced every four years, so a point where no more bitcoin needs to be mined will not arrive until the year 2140.</p>
<p>Even after mining new bitcoins stop, miners will be required to validate transactions and keep the integrity of the network in check.</p>
<h2><strong><u>How much a miner earns</u></strong><strong>?&nbsp;</strong></h2>
<p>The network is designed to reduce the number of bitcoins awarded to the miner to half every four years. The mining process started in 2009, and anyone who successfully mined one block was rewarded 50 bitcoins. In 2012, this was reduced to 25. The last halving was done in November of 2020. The current number of bitcoins earned by miners is 6.25.</p>
<h2><strong><u>Risks of Bitcoin Mining</u></strong></h2>
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<h2><strong><u>Selfish mining</u></strong><strong>&nbsp;</strong></h2>
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<p>As bitcoin uses the proof of work consensus mechanism, there is an underlying threat to that. With mining pools rising to power, they can impact significant mining ratios, giving way to selfish mining.&nbsp;This can also be called block withholding. The members of a pool can contribute their computational power to successfully mine a block but hide it from other miners instead of broadcasting it to the blockchain.</p>
<p>Then move onto a second block while others stay unaware of it. If they successfully find another block, the withholding of two blocks from being broadcasted makes the forked chain the longest. The selfish miners get all the rewards while others stay behind.&nbsp;Selfish mining on a large scale can grow to become a Sybil Attack that can cause considerable harm to the whole process of mining by invalidating transactions on the network.</p>
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<h2><strong><u>51 Percent Attacks</u></strong></h2>
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<p>51 Percent attack is a security breach in the bitcoin network, but it is not easy to carry out. This is a misuse of the gathered computational power of mining pools. They can become powerful to have command over 50% of the mining power. They manipulate transactions by mining ‘invalid’ blocks or indulge in double-spending.</p>
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<h2><strong><u>Double-Spending</u></strong></h2>
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<p>As bitcoins do not physically exist, double-spending is a severe concern. The technology is becoming sturdier to avoid such threats. It is a benefit attackers want from spending the same coin twice.</p>
<p>Let’s say, Mark, purchases some goods from Annie and makes a transaction in bitcoin. At the same time, Mark can execute a similar transaction to another bitcoin address using the same coin. Annie gets notified of receiving the bitcoin and doesn’t bother to confirm. While the other bitcoin address is credited with the currency, Annie suffers an invalidated transaction.</p>
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<h2><strong><u>Security Risks</u></strong></h2>
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<p><a href=”https://www.btcwires.com/round-the-block/how-do-miners-verify-transactions/”><strong>Miners</strong></a>&nbsp;who are desperate to gain from bitcoins often use public Wi-Fi networks. Such an incident happened at a coffee shop in Buenos Aires. Their Wi-Fi connection got infected with malware as other users used it for mining. It showed a delay of 10 seconds while logging. This phenomenon is also called “cryptojacked.”</p>
<p>Mining is a profitable business only if the worth of bitcoins you gain exceeds the costs associated with the process. To solve the problem successfully, expensive equipment is required. The processing needs a massive amount of electrical power to generate numerous nonce’s to get to the solution. In current situations, mining individually is highly unprofitable. Joining a mining pool to distribute the expenses is the only smart way.</p>
<div class=”authorbox”><span class=”avtar”><i> <img alt src=”https://secure.gravatar.com/avatar/f0bf6ee700495b85ef9cea9fe2c396b6?s=82&amp;d=identicon&amp;r=g” srcset=”https://secure.gravatar.com/avatar/f0bf6ee700495b85ef9cea9fe2c396b6?s=164&amp;d=identicon&amp;r=g 2x” class=”avatar avatar-82 photo” height=”82″ width=”82″> </i></span><span class=”auth_text”>
<h5><a href=”https://www.btcwires.com/author/btcadmin/”>Clark</a></h5>
<p>Head of the technology.</p>

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Tue, 17 Aug 2021 18:31:54 +0000 Clark
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