Category Archives: News

HODL On: In Defense of Bitcoin’s Best Strategy

In 1987’s Black Monday stock market crash, Sam Walton, the world’s richest man, lost more than half a billion dollars in a few hours.

When reached for comment, Walton said, “It’s paper anyway. As far as I’m concerned we’re focusing totally on the company doing well and taking care of our customers.”

He didn’t care about dollars; he cared about his asset Wal-Mart, and he still owned that.

History of the #HODL

In bitcoin’s volatile and roller coaster past, “HODL” was the meme that bound the cryptocurrency community together. It stood for the proposition that we all believe in the future of bitcoin. It’s both funny and insightful.

Bitcoin Cryptocurrency (Image: MaxPixel)
Bitcoin Cryptocurrency (Image: MaxPixel)

Here is the original post by GameKyuubi on a Bitcoin Talk forum (spelling errors and profanity included):

I AM HODLING

I type d that tyitle twice because I knew it was wrong the first time. Still wrong. w/e. GF’s out at a lesbian bar, BTC crashing WHY AM I HOLDING? I’LL TELL YOU WHY. It’s because I’m a bad trader and I KNOW I’M A BAD TRADER. Yeah you good traders can spot the highs and the lows pit pat piffy wing wong wang just like that and make a millino bucks sure no problem bro. Likewise the weak hands are like OH NO IT’S GOING DOWN I’M GONNA SELL he he he and then they’re like OH GOD MY ASSHOLE when the SMART traders who KNOW WHAT THE FUCK THEY’RE DOING buy back in but you know what? I’m not part of that group. When the traders buy back in I’m already part of the market capital so GUESS WHO YOU’RE CHEATING day traders NOT ME~! Those taunt threads saying “OHH YOU SHOULD HAVE SOLD” YEAH NO SHIT. NO SHIT I SHOULD HAVE SOLD. I SHOULD HAVE SOLD MOMENTS BEFORE EVERY SELL AND BOUGHT MOMENTS BEFORE EVERY BUY BUT YOU KNOW WHAT NOT EVERYBODY IS AS COOL AS YOU. You only sell in a bear market if you are a good day trader or an illusioned noob. The people inbetween hold. In a zero-sum game such as this, traders can only take your money if you sell.

so i’ve had some whiskey

actually on the bottle it’s spelled whisky

w/e

sue me

(But only if it’s payable in BTC)

It was not about bitcoin versus bitcoin cash or 1,000 other cryptocurrencies. It was bitcoin vs. the world and we ALL embraced it.

It only took 11 minutes for this post to become a meme that became the rallying cry for the entire crypto world. We were all on the same rollercoaster ride and GameKyuubi, in the depths of his frustration, had (sort of) elegantly articulated both what it feels like and the best trading strategy for an asset this volatile.

Buy and HODL.

Read more: CoinDesk

Bitcoin Will Be the ‘One Online Equivalent to Gold’

Peter Thiel has once again endorsed bitcoin, which he recently argued is tantamount to digital gold.

And much like gold, the billionaire co-founder of PayPal conjectures that the cryptocurrency is destined to be a store of value rather than a means of payment.

Bitcoin (Image: MichaelWuensch/Pixabay)
Bitcoin (Image: MichaelWuensch/Pixabay)

“It’s like bars of gold in a vault that never move,” he told a CNBC reporter during a conversation at the Economic Club of New York last week, adding

“It’s sort of hedge of sorts against the whole world falling apart.”

He also struck a bullish tone on bitcoin in particular – versus other cryptocurrencies – suggesting that the largest cryptocurrency by market capitalization will maintain its position.

“There will be one online equivalent to gold,” he reportedly claimed, “and the one you’d bet on would be the biggest.”

Read more: CoinDesk

Google To Ban All Crypto-Related Ads Starting June 2018

Google will ban all cryptocurrency-related advertising of all types in June 2018, according to a recent update to their Financial Services policy.

The news of a crypto ad ban comes just days after crypto advertisers using Google Adwords noticed a drastic drop in the number of views of their advertisements, according to posts on the Adwords support pages. However, Google Adwords had at that time denied any change in their Financial Services regulations that would block cryptocurrency or Initial Coin Offering (ICO) related advertisements.

Cryptocurrency Art Gallery: Litecoin, Ether, Ripple, Bitcoin and Namecoin (Image: Namecoin/Flickr)
Cryptocurrency Art Gallery: Litecoin, Ether, Ripple, Bitcoin and Namecoin (Image: Namecoin/Flickr)

Under Google’s newly updated financial products policy, no advertisements for “cryptocurrencies and related content (including but not limited to initial coin offerings, cryptocurrency exchanges, cryptocurrency wallets, and cryptocurrency trading advice),” will be accepted.

Read more: CoinTelegraph

Florida State Employee Arrested for Allegedly Mining Crypto at Work

A state employee at Florida’s Department of Citrus (FDoC) has been arrested for allegedly using official computers to mine cryptocurrencies.

According to the Tampa Bay Times, the Florida Department of Law Enforcement (FDLE) has jailed Matthew McDermott, IT manager for the state government agency that oversees Florida’s citrus industry. He is reportedly being held pending trial, with bail set at $5,000.

Cryptocurrency Mining Farm (Image: M. Krohn/Wikimedia)
Cryptocurrency Mining Farm (Image: M. Krohn/Wikimedia)

The FDLE alleges that McDermott used computers in the department to mine cryptocurrencies including bitcoin and litecoin, and has charged him with grand theft and official misconduct, according to the report.

An investigation further indicated that the utility bill of the department had surged by over 40 percent from October 2017 to January 2018, as cryptocurrency mining requires significant amounts of electricity due to its high processing demands.

Read more: CoinDesk

Cryptocurrency Mining at Home Heats Up With Eco-Friendly Miner

Proof of Work (PoW) mining operations, like Bitcoin and Ethereum, use a tremendous amount of energy and generate a tremendous amount of waste heat.

Qarnot is one of a number of growing companies that has found a way to turn that waste heat into controlled heating for the home or office.

The new Qarnot QC-1 “crypto heater” takes advantage of an obvious synergy: It makes use of the waste heat generated by mining crypto in the guise of an attractive space heater.

Qarnot Crypto Mining Heater (Image: Qarnot)
Qarnot Crypto Mining Heater (Image: Qarnot)

Spec wise, the QC-1 contains two GPUs: NITRO+ RADEON RX 580 8G 60 MH/s at 650W. Local electrical costs and climate are key determining factors with regard to recouping costs and making a profit; for example, if you are in a cold northern environment with cheap electricity like Quebec, then your costs to run it should be low enough (about $0.03 KWh USD) that the mining revenue should pay for the device in a few years.

The device mines Ethereum by default but can be configured to mine various other PoW-based cryptocurrencies such as Litecoin. A mobile app is available to monitor your account and configure the unit. The lack of fans or hard drives leads Qarnot to claim the system is “perfectly noiseless.”

Read more: BitcoinMagazine

Australian IT Employees At Bureau Of Meteorology Suspected Of Illicit Crypto Mining

The Australian Federal Police (AFP) are investigating two employees at the Bureau of Meteorology for allegedly using the bureau’s computers to mine cryptocurrencies, the Australian Broadcasting Corporation (ABC) reports today, March 8.

Bitcoin mining (Image: Pixabay)
Bitcoin mining (Image: Pixabay)

The AFP appeared at the Bureau of Meteorology last week, Feb. 28, with a search warrant and questioned two IT employees, one of whom has since gone on leave. ABC reports that no charges have yet been filed, and both the AFP and the Bureau of Meteorology have declined to comment pending the ongoing investigation.

Read more: CoinTelegraph

Bitcoin Drops Below $10,000 In Hours As Volatile Cycle Continues

Bitcoin prices fell below $10,000 Thursday as a bear market reversed growth which saw BTC/USD achieve weekly highs of $11,675 March 5.

Price data from Coinmarketcap shows Bitcoin losing around $400 in three hours to hit $9658, recovering slightly to trade around $9900 at press time.

Bitcoin price chart (Image: geralt/Pixabay)
Bitcoin price chart (Image: geralt/Pixabay)

The behavior continues what has become a pattern for BTC/USD over the past month, with upticks towards $12,000 encountering resistance before diving below $10,000, then repeating the cycle.

As Cointelegraph reported previously, several analysts have warned that closing above $12,400 will be a decisive event for traders, but this will be difficult to achieve.

Read more: CoinTelegraph

Bank Of America: Our ‘Inability To Adapt’ Could See A Failure To Compete With Crypto

Bank of America (BoA) has admitted to US regulators it may be “unable” to compete with the growing use of cryptocurrency.

In its annual report to the Securities and Exchange Commission (SEC) this week, filed Feb. 22, the major US bank for the first time highlights cryptocurrency as an area that may cause it “substantial expenditure” as it tries to remain competitive.

“Our inability to adapt our products and services to evolving industry standards and consumer preferences could harm our business,” BoA states in the filing.

As banks worldwide eye the cryptocurrency phenomenon, direct interaction remains low. The lack of uptake formed a central reason why the European Central Bank confirmed it had opted for a hands-off approach to legislating the area earlier this month.

Open bank vault (Image: ahobbit/Pixabay)
Open bank vault (Image: ahobbit/Pixabay)

While BoA has sought to innovate in the sphere, receiving a patent for its proposed cryptocurrency exchange system in December 2017, it has come in for criticism more recently after blocking its clients from credit card purchases of cryptocurrency.

Read more: CoinTelegraph

Bitcoin companies form first UK trade body as regulators circle

Seven of the largest crypto companies are forming a UK cryptocurrency trade body, bringing in the first self-regulation for the wild west sector worth £290 billion.

CryptoUK, whose members include the popular Coinbase exchange and trading platforms eToro and CryptoCompare, said it had produced the first code of conduct for the industry to abide by.

The companies said they hoped the regulations would form the first part of broader UK rules around volatile cryptocurrency trading.

Cryptocurrency Art Gallery: Litecoin, Ether, Ripple, Bitcoin and Namecoin (Image: Namecoin/Flickr)
Cryptocurrency Art Gallery: Litecoin, Ether, Ripple, Bitcoin and Namecoin (Image: Namecoin/Flickr)

Bitcoin’s rise last year has made it a popular phenomenon, with its value increasing to as much as $20,000 (£14,400) in December, before falling below $7,000 last week. While Bitcoin has made made some millionaires it has left many amateur investors out of pocket, while others have fallen victim of cryptocurrency scams.

CryptoUK chair Iqbal Gandham said there was a risk of “rogue operators”, but the new body had been established “to promote best practice and to work with government and regulators”.

Read more: Telegraph

Bitcoin Mining Costs More Electricity Than Houses, But it’s a Non-Issue

Analysts are concerned that Bitcoin and cryptocurrency mining centers are spending too much electricity, and that the process of verifying cryptocurrency transactions could worsen the global environment.

Justification of mining in Bitcoin and cryptocurrencies

In December 2017, several analysts criticized the electricity consumption of Bitcoin and cryptocurrency mining centers, calling the mining process an “environmental disaster.” Earlier Cointelegraph reported that cryptocurrency mining will likely exceed electricity consumption of households in 2018.

Cryptocurrency Mining Farm (Image: M. Krohn/Wikimedia)
Cryptocurrency Mining Farm (Image: M. Krohn/Wikimedia)

Smari McCarthy of Iceland’s Pirate Party stated that excessive consumption for Bitcoin mining is not practical because the main use case of Bitcoin is for “financial speculation.”

“We are spending tens or maybe hundreds of megawatts on producing something that has no tangible existence and no real use for humans outside the realm of financial speculation. That can’t be good.”

If environmentalists and analysts perceive the main use case of Bitcoin and other cryptocurrencies to be financial speculation, the consumption of a massive amount of electricity could be considered impractical. However, the main application of Bitcoin is not financial speculation. In countries wherein the underbanked struggle to gain access to financial services, Bitcoin operates as an efficient currency.

In Venezuela, for instance, local residents are using Bitcoin to order food, basic goods and medicine from outside of the country because the Venezuelan bolivar, the country’s national currency, has lost almost all of its value, and has become virtually worthless.

Read more: CoinTelegraph