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Bitcoin Offshoots: Bitcoin Cash, Bitcoin Gold and Bitcoin Private

As the original cryptocurrency, Bitcoin was the inspiration for hundreds of others, including little brother Litecoin and Ethereum. But some of these blockchains—including Bitcoin Cash, Bitcoin Gold, and Bitcoin Diamond—are direct forks of Bitcoin and share most of their DNA with the leading cryptocurrency. In total, there are over 40 bitcoin offshoots resulting from people

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As the original cryptocurrency, Bitcoin was the inspiration for hundreds of others, including little brother Litecoin and Ethereum.

But some of these blockchains—including Bitcoin Cash, Bitcoin Gold, and Bitcoin Diamond—are direct forks of Bitcoin and share most of their DNA with the leading cryptocurrency.

In total, there are over 40 bitcoin offshoots resulting from people deciding to fork the Bitcoin blockchain to create their own cryptocurrency. Here are three of the most popular:

Bitcoin Cash

Fork date: 1st August 2017

Bitcoin Cash—also known as Bcash—is the most famous fork of Bitcoin.

This cryptocurrency born in August 2017 was the result of ideological differences between those who thought of bitcoin as more of a store of value, like digital gold, and those who maintained that it should be thought of as a peer-to-peer currency.

This led to disagreement over how the network should most effectively be scaled. Bitcoin Cash supporters thought that increasing the block size was the answer to accommodating more transactions, and the rest of the community thought that SegWit provided a better solution.

Bitcoin Cash supporters like Roger Ver said the bigger block scaling method would let Bitcoin stay true to Satoshi’s original vision of a peer-to-peer digital currency, but his opponents argued that the big blocks would only provide temporary relief and that the SegWit scaling method was better over the long-term.

This led to heated debate within the space, and eventually, a group of activists and developers pushed for a hard fork that would increase the Bitcoin block size.

Bitcoin Gold

Fork date: 24th October 2017

Just over two months after Bitcoin Cash came another fork, this one proposing to help Bitcoin become more decentralized by using GPU mining rather than ASIC mining.

This change to the mining algorithm meant that Bitcoin Gold could be mined using anyone’s spare computing power without having to invest in specialized mining equipment, just like in the early days of Bitcoin.

The fork was driven by a few enthusiasts who believed that the original Bitcoin mining system had become monopolized by a handful of mining companies, making it too centralized and vulnerable to attack.

Bitcoin Private

Fork date: 3rd March 2018

Bitcoin Private. This cryptocurrency aims to bring together the benefits of bitcoin and the privacy features of Zcash—specifically zk-SNARKS, of which the “zk” stands for “zero-knowledge.”

But instead of being forked directly from bitcoin, as was the case with popular cryptocurrencies like Bitcoin Cash and Bitcoin Gold, Bitcoin Private was created from a copy of a digital currency known as Zclassic which is itself a fork of ZCash, and ZCash itself was a fork of the original bitcoin. 

Complicated? That’s why Bitcoin Private has come to be known as a spork, rather than a fork!

The Forking Process

Each of these cryptocurrencies is the result of a change to the rules governing the Bitcoin network.

As a decentralized network, no single party has control over Bitcoin. Instead, the blockchain is kept ticking over by algorithms based on certain rules. These algorithms facilitate transactions, prevent people from spending the same bitcoin twice and regulate the flow of freshly mined bitcoins into the network. 

If someone wants to change the rules, and the people running Bitcoin nodes maintaining the bitcoin network can agree that the new rules will make bitcoin better, then they can be implemented with no issue through either a soft fork, which happens when the proposed changes are backwards compatible or a hard fork when the proposed changes are not backwards compatible and a new chain and cryptocurrency must be created.

With an agreement that a fork will take place, the people running the nodes agree on a certain block number when a new chain will be created bound by the new rules. 

When this block is mined, another blockchain is created. So we have one chain that follows the old rules, and one that follows the new rules. Both share the same past blockchain, but the new blocks are different in each chain—It has forked.

If you are holding Bitcoin at the time of the fork, then you will also receive the cryptocurrency associated with the new chain. This is why the price of a cryptocurrency will often rise before the date of a hard fork as buyers stock up to make the most of the opportunity to get more funds. 

But just because the numbers of coins you have doubles, the value of those coins is still based on market forces and many forks of Bitcoin have become almost worthless.

Source: https://www.crypto-news.net/bitcoin-offshoots-bitcoin-cash-bitcoin-gold-and-bitcoin-private/

Blockchain

Bitcoin Exchange Outflow Continues as On-Chain Support Settles at $47K

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On-chain analytics provider, Glassnode, has revealed that there is solid support at the $47,000 level for Bitcoin. It came to this conclusion in its latest ‘Week on Chain’ report using analysis from chart guru Willy Woo and data scientist Rafael Schultze-Kraft (@n3ocortex).

It added that Woo noted a significant volume of BTC was transacted on-chain around $45,000, forming an on-chain support level late last week.

Schultze-Kraft highlighted that this support level has actually strengthened to rest above $46.6k, with 1.2 million BTC, or 6.5% of circulating supply, transacting in this zone.

Is BTC Accumulation Increasing?

Glassnode pointed out that the patterns suggest an increase in accumulation interest at these levels:

“When a large volume of coins move on-chain and an on-chain support level holds, it suggests that there is significant accumulation interest and buyers see it as a ‘value’ entry point.”

However, it also noted that should price fall below this support level, it would become a level where overhead supply may form equally strong resistance.

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Using the UTXO Realized Price Distribution metric, which shows which prices the current set of Bitcoin unspent transaction outputs were created, the on-chain support level at $47k is the largest since prices were $11k, it added.

“This range now represents one of the largest on-chain BTC accumulation levels in history, certainly the largest since the last cycle’s $20k ATH was breached.”

The balance of Bitcoin on exchanges also continues to decline which could indicate readying to sell or hodling in cold wallets. The report added that throughout February the rate of miner sales was declining, whereas today, it is almost net neutral meaning that miners could be accumulating also.

Bitcoin Price Update

At the time of press, Bitcoin was changing hands for $54,150 according to Tradingview which has reported a 24 hour gain of almost 7%.

It is the highest the asset has traded since Feb. 22 when it was falling back from the all-time high of $58,250 the previous day. Bitcoin is currently facing resistance here and needs to break above $55,900 to make a move towards a new ATH.

On the downside, support can be found in the $48,000 region however BTC is currently in the process of forming its fifth green candle in a row so the bulls are running the show at the moment.

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Source: https://cryptopotato.com/bitcoin-exchange-outflow-continues-as-on-chain-support-settles-at-47k/

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Coinbase is Valued at $100 Billion Before Direct Listing on the Nasdaq

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Coinbase has yet to go public, and the markets are already on fire in anticipation of the most awaited direct listing in the cryptocurrency world and the what will be the first major listing ever recorded on the Nasdaq.

An independent valuation based on the price of its shares in private markets determined that Coinbase has a potential valuation of between $90 billion and $100 billion before its direct listing.

During its Pre-Listing Days, Coinbase Went Up

According to activity in late February, this price would far exceed a previous valuation of $77 billion. At the time, confidential sources told Coindek that as the “big day” approached, speculators were bidding higher and higher on the stock.

“The third weekly transaction closed on Friday and the clearing price was $303 a share. The first week it was 200 bucks a share, the second week it was $301 a share, and the third week it was $303 a share. So you can kind of see price discovery happening.”

Bloomberg reported that, during the last day of private trading before the direct listing, investors traded Coinbase stocks at a range between $350 to $375, which would raise Coinbase’s valuation by as much as 33% in a matter of weeks, and over 300% higher than what analysts expected for its IPO (priced at just $28 million).

Before going public, credited investors could trade Coinbase shares on the Nasdaq Private Market, a restricted market with low volume and high volatility, where a limited number of participants can speculate on the price of some shares of companies that are not yet publicly traded.

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The numbers, however, do add up to its expected performance. After registering a bad year during the bear period of the crypto markets back in 2018, Coinbase grew to become the colossus it is today.

A Small Step for a Crypto Exchange, a Giant Leap for the Crypto Industry

Due to its characteristics, the private market is not necessarily an accurate indicator to determine what will happen when Coinbase becomes publicly available; however, it is an excellent reference to see what the markets expect to happen… And the future looks promising.

And we’re not just talking about Coinbase, but almost the entire cryptocurrency ecosystem. Coinbase going public is one of the most significant supports for the crypto industry in recent times.

The United States is one of the countries with the highest volume of exchange trading, has one of the world’s largest GDPs, concentrates a significant number of cryptocurrency startups, and yet is known for having strict laws when it comes to digital assets.

A stock exchange listing could provide an additional layer of legitimacy in the eyes of potential new users, stimulating the growth of its customer base. This would simply accelerate a trend that has been growing over time, especially in the aftermath of the COVID-19 market crisis.

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Source: https://cryptopotato.com/coinbase-valuation-100-billion-usd-before-direct-listing-nasdaq/

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Bitcoin price cracks major resistance as analyst eyes $70K ‘destiny’

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Bitcoin (BTC) tackled pivotal $52,000 resistance overnight on March 9 to come within 6% of historical all-time highs.

BTC/USD 1-hour candle chart (Bitstamp). Source: Tradingview

BTC price hits 2-week highs

Data from Cointelegraph Markets and Tradingview showed BTC/USD hitting local highs of $54,500 on Tuesday.

The latest attempt to break out of its sideways trading corridor, the move was still consolidating at the time of writing. Amid heavy volatility, a retracement on the day targeted $53,500 — still above crucial resistance.

As Cointelegraph reported, analysts were eyeing $52,000 as a line in the sand for securing the next stage of the Bitcoin bull run.

While the weekend produced healthy upside, Bitcoin had still to cement even $50,000 as strong support as the week’s trading began.

On the back of 24-hour gains topping 8%, however, the picture on Tuesday was fast improving, after evidence showed that $47,000 had become conspicuously strong support.

“Bitcoin jumps >$54k aided by more signs of institutional interest in the largest cryptocurrency,” markets commentator and contributor to German news daily Die Welt, Holger Zschaepitz, summarized to Twitter followers.

“Institutional interest sets the latest bull run apart from 2017’s retail-driven surge, Goldman says. Much of the institutional demand has been driven by fears around asset devaluation.”

Zschaepitz was referencing findings from Goldman Sachs, which among other things also revealed that 40% of its own clients already have exposure to cryptocurrencies.

Analyst on $70,000 Bitcoin: “Destiny awaits”

The institutional picture became even more bullish on Monday after one of Norway’s richest people launched a Bitcoin-focused spin-off firm using BTC as its sole treasury asset.

“Bit­coin can be ver­i­fied, di­vid­ed, re-as­sem­bled, stored, and trans­port­ed at vir­tu­al­ly no cost. It’s the per­fect scarce digi­tal as­set. By de­sign,” Kjell Inge Røkke wrote in a widely-circulated shareholder letter.

“All that’s re­quired to keep the net­work run­ning, is al­lo­cat­ing the cheap­est elec­tric­i­ty in the world. Elec­tric­i­ty se­cures the net­work. No trust­ed par­ties or peo­ple with guns are need­ed. I call that progress.”

Elsewhere, hodlers were watching a bullish setup unfold in Bitcoin’s daily moving average convergence/ divergence (MACD) indicator, which on Monday was primed to repeat behavior which previously resulted in February’s march to $58,300 record highs.

BTC/USD 1-day candle chart (Bitstamp) with Fibonacci levels. Source: filbfilb

“Destiny awaits,” Cointelegraph Markets analyst filbfilb added in an update to Telegram channel subscribers, highlighting a target area of $70,000 and higher using Fibonacci levels.

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Source: https://cointelegraph.com/news/bitcoin-price-cracks-major-resistance-as-analyst-eyes-70k-destiny

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