The word “Bitcoin” has been created to refer not only to the digital units of stored value but also to the peer to peer network of several computers that transmit and validate the transactions of those digital units
~Takashima, Ikuya. "Bitcoin: The Ultimate Guide to the World of Bitcoin, Bitcoin Mining, Bitcoin Investing, Blockchain Technology, Cryptocurrency"
REFERRED BY: Cat Bonney
As crypto currency and bitcoin has become more common and are being used more and more throughout the world many companies are developing new technologies that can be used with currency networks like Bitcoin. How do Smart Contracts work?
So what exactly are Smart Contracts and how do they work? Think of them like a contract that is verified by computer instead of by a person or organization. A smart contract allows for information like the conditions and outcomes of legally binding agreements to be encoded into a computer program such as Bitcoin.
This allows for programs to get rid of the middleman that is there to ensure that those legal contracts and agreements are being fulfilled as the encoding will do that for the program. The way Smart Contracts work within Bitcoin is that they allow for the transfer of assets with an encoded signature. Many programs especially Bitcoin are finding that this helps to increase the speed and efficiency of their transactions and it also adds another layer of security and trust when it comes to the execution of the contract and agreements.
Smart Contracts that are associated with Bitcoin are contracts that are associated with funds. What makes them different is that they are verified through the network and the program rather than by an authority. When transactions occur that use Smart Contracts the funds are paid as set forth in the agreement.
For example, if you are a Bitcoin user and have a smart contract that says when transactions are made funds will be paid to your account and then distributed as stated in the smart contract. If you have contracts that need to be paid the money from your transaction will be distributed to that payment first and then to others as needed. Smart Contracts allow for users to set forth a contract and have it automatically fulfilled by a reliable system that can keep track of contracts.
The difference is that Smart Contracts takes away the middle man, therefore also the human error.
Smart Contracts distribute and execute contracts through multiple networks, Bitcoin can be classified as one of these networks. Users of Bitcoin can use a single smart contract to interact with other services like PayPal, Google, and EBay which allows for them to use it to efficiently, quickly, and safely make transactions with multiple programs. The reason Bitcoin and Smart Contracts are taking off is that it is allowing for crypto currency to be more efficient and it also provides an efficient legal system throughout the Bitcoin network.
Smart Contracts allow for Bitcoin users to develop contracts for the trading of major assets across the global trading exchange. This allows for contracts to be made quickly and efficiently and they are enforced through the encoding rather than by a third party. This allows for global trading and investments to be conducted quickly and safely.
REFERRED BY: Cat Bonney
Mining VS Buying Cryptocurrency
Angelos Hadjiphilippou (Exevior)
May 1, 2017
Hello everyone, my name is Angelos and many of you might know me from any of the technology endeavours i've pursued over the last decade. Endeavours such as Exevior Technologies, BeepXtra, Clickahost or Trion Solar.
I've been involved in cryptocurrency for some time now, and I've been asked the question about mining cryptocurrency and why should someone buy cloud mining rather than just invest in a cryptocurrency directly. And that is the purpose of this report, to simply answer that once and share it with you all.
If you are asking this same question, we can all assume you are aware of the basics, what is a cryptocurrency, what is bitcoin and ethereum and you propably know their current values as well (Time of writing this BTC is over $1300+ and ETH $80+).
So what are the pros and cons of mining VS buying. Let's say I got $1000 to spare and want to invest them in cryptocurrency. What do I do? Where do I start from?
At first, you need to decide WHICH currency you want to "devote" this investment. There are hundreds of cryptocurrencies out there, and beware as some of them are a scam or a ponzi scheme. The ones I would suggest at this point in time as a relatively safe bet, are Bitcoin, Ethereum, Monero and Zcash. Why these, is another large subject, so let's stick with the phrase "These are the most profitable at present".
I am personally fond of Ethereum and that's where I am currently investing in. I don't buy it. I mine it and allow me to explain why. Going back to "my spare $1000", if I were to buy Ethereum now, it would get me approx 12 something ETH with today's prices(May 2017). The time you buy it is also an important factor, as these popular currencies fluctuate in the market based on demand and supply. With the USA being the biggest stakeholder in their market cap, they reach their top daily value during USA working hours (Peak exchange) and they tend to stabilize on a slightly lower value during late night. The circle repeats. So if you are buying, buy it late night USA time, if you are selling it, look for the peak during the day.
Now let's go back to "the spare $1000" as I would NEVER spend them directly into buying Ethereum. I would invest them in mining as that would supply me with much more ETH in return, than the 12 I would get today. So let's do some simple math. There are 2 routes to follow in mining. You either build mining rigs yourself and run them 24/7 or you commit to a cloud mining package. The difference? Well, setting up mining rigs requires you to be a techy, and I mean an in-depth techy. It ain't the easiest thing to build multi-GPU systems both in hardware assembly and software, not to mention the monitoring they require for a smooth operation, cooling, and of course, the electric bill at the end. A cloud mining package includes all the above, for a small fee of course, but less headache for a slightly smaller piece of the pie. Is it worth it instead of running your own rigs? If you are going to go big on mining directly, then do it, otherwise if you are on a budget, cloud mining is for you.
So what does $1000 get me in cloud mining and how much Ethereum? Afterall, that's all that counts at the end of the day. Mining is calculated in Hashes per second. In other words, how many miles of code can your miner run within a period of time. And when we refer to Ethereum, we are counting MH/s (Megahashes per second). $1000 investment would get you approx 40MH/s. Now let's translate that to actual ETH returns. 40MH would normally generate around 1.54 ETH per month, and mining contracts are usually calculated on a 24Month period. So you pay $1000 today, and you get 40MH/s for 24 months. Before you start jumping up and down, there is 1 additional cost to the equation. 1.54ETH is not all entirely yours. You just bought a fraction of a mining rig. It costs money to run that rig, both in maintenance and electricity cost, so while you don't have to deal with all that, a part of your mined earnings goes towards maintenance and power costs. A typical maintenance fee would be $0.030-$0.040 per MH per Day . In other words, around $1-1.20 per MH per month. We have 40MH in this example so let's say $40 worth of ETH per month, would take away about 0.5 ETH with today's prices.
Even though that might sound like a large percentage, it's all costs of running the mining rigs, while you would pay a bit shy of that if you had run them yourself. Still, you keep over 1ETH per month in clean profits from this deal, and that happens for 24 months. So in 2 years time, you will end up with twice the ETH you could have bought directly today (And probably much more than twice, as it's price rises, your cost per month will be less ETH... the $ cost is always the same per MH).
Does 2 years sound like a long time? Well, let's go back to buying it now for a second. I can buy 12 ETH today. When would that investment give profit to me? Today? Tomorrow? Of course not. An investment after all should always be mid-to-long term in order to provide good profits, and 2 years ain't that long. Your aim is to buy low, and when it goes higher, sell it for profit. So what if you were buying 1 ETH per month, for 24 months? How much would that cost you? Nobody knows, and it all depends on where it's price will go. Last year it was under $20, while last month around $50. Today it's over $80 and it's rising steadily. I call Ethereum, "Bitcoin 2.0" as I strongly believe it will rise as high as Bitcoin or even higher.
Bottom line is, if we consider it's current rate of rising in price, it would cost you hundreds of thousands of dollars to buy 1ETH per month for 24 months. Of course you would still have 24 ETH at the end and it will be worth XXXXX amount, but how much would it cost you to get it? Well, that's the beauty of cloud mining. You will get a steady stream of 1 ETH per month for the next 2 years, regardless of it's price fluctuations, whether it costs $80 or $500 a piece, your Ethereum will still come in steadily, and it cost you just $1000 today.
So, I will leave it to you to decide. ~ Angelos Hadjiphilippou (Exevior) Public May 1, 2017
REFERRED BY: Cat Bonney