The Five Most Confusing Things About Bitcoin That Hold Back Its Adoption

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Bitcoin has been around now for eight years and is maturing with a sizeable market capitalization, with more than 25 mln wallets in circulation. Adoption has benefited from post-Brexit activities, the U.S. elections and in the past week has been further boosted by events in China with currency exit and with India’s new currency reforms. Things are hotting up for Bitcoin. But is terminology holding it back? Misleading language The language used by the Bitcoin and Blockchain communities is misleading and conjures up all kinds of thoughts and images in people’s mind, often creating the wrong impression. One of the big challenges for any new technology, apart from it being mocked by the incumbents, is that people try to compare it to what they know, their reference point. The obvious is fiat currencies – the current banking system and the process of how bank accounts work. So here are the five most confusing things about Bitcoin and the answers that decode this technology and clear up the misconceptions to make it clear for all Bitcoin enthusiasts. 1. Gold coins is what it looks like Many mistakenly believe Bitcoin is a physical currency, Gold Coins with a letter B and two vertical …

Wedbush Report Projects $400 Bitcoin Price By 2016

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The price of bitcoin can be expected to rise to $400 over the next 12 months, according to a new report by Wedbush Securities. Authored by Gil Luria and Aaron Turner, the report begins with the goal of forecasting the future value of shares in the Bitcoin Investment Trust (GBTC), the first publicly traded bitcoin fund launched in March, ultimately concluding it will outperform its current $30.60 price to rise to $40 next year. In its calculations, however, Wedbush expands on its approach to valuing bitcoin based on its expected penetration of large target markets. The bitcoin payments network, it suggests, could end up powering 10% of online payments and 20% of global remittances by 2025 The report reads: “By aggregating the utilization of the various applications, we arrive at our $400 BTC price target, which translates to $40 per share of GBTC. This implies [roughly] $6bn market capitalization, which we would also describe an option on bitcoin supplanting some payment volumes from Visa, MasterCard, PayPal and Western Union, who combine for [less than] $300bn in market cap.” Wedbush indicated it sees bitcoin demand stemming from its increasing use in e-commerce payments, remittances and micropayments due to its ability to reduce costs …

BitFury to Release Light Bulbs that Mine Bitcoin in 2015

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Following the revelation last week that BitFury had developed a prototype light bulb capable of mining bitcoin, the company has announced it plans to take steps to bring the devices to market in 2015. Though much about the market strategy remains in early stages, the news follows increasing reports that industry companies are attempting to find use cases for bitcoin in line with the broader trend toward connecting everyday devices to the Internet. BitFury said it intends to invite the community to become a part of its rollout plans, and that it would solicit ideas on how the light bulbs should be marketed to a wider audience as part of a collaborative release. In statements, CEO Valery Vavilov suggested that the goal of the project would be to galvanize interest in bitcoin as a technology, and that making any money on the initiative would be secondary to promoting discovery. Vavilov said: “We believe that the project’s focus should not be on making money from bitcoin mining, but on creating innovative solutions with main purpose to use this product for educational purposes and fun.” The light bulb garnered significant attention on Reddit last week when pictures of the devices first began appearing from attendees at …

Think Tank Reignites Debate Over Bitcoin Mining’s Environmental Effects

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Debate about the environmental effects of bitcoin mining has resurfaced following claims by an Australia-based sustainability think tank that bitcoin could eventually consume 60% of annual global electricity production. According to the Long Future Foundation’s website, its calculations are based on the assumption that 1 BTC is valued at £1m, the cost of mining this resource is $500,000 and 3,600 bitcoins are produced every day. “Bitcoin miners can get power cheaply for $0.05 per kilowatt hour (kWh) which means that they get 20 kWh per dollar spent,” notes the website. By multiplying these numbers (500,000 x 20 x 3,600 x 365) on its Bitcurrent calculator – an interactive spreadsheet – the foundation arrives at the conclusion that bitcoin mines would consume 13,140,000,000,000 kWh – or 13,140 terawatt hours (TWh) – per annum, or the amount of energy required to power 1.5bn homes. Guy Lane, an environmental scientist and spokesperson for the foundation, said: “While bitcoin is a virtual currency, it has very real economic, social and environmental effects […] Bitcoin has the potential to have an enormous impact on our global resources and energy use if not managed properly.” Lane explained that the foundation’s bitcoin energy model assumes that miners will spend half the value …

How Can I Buy Bitcoins?

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Last updated: 23rd December 2014 Now you’ve realized bitcoin is the money of the future, the next step is to get some bitcoins. But how? This guide will tell you what you need to know. You can buy bitcoins from either exchanges, or directly from other people selling them. You can pay for them in a variety of ways, ranging from hard cash to credit/debit cards to wire transfers, or even with other cryptocurrencies, depending on who you are buying them from and where you live. Surprisingly, it’s still not easy to buy bitcoins with your credit card or PayPal. This is because such transactions can easily be reversed with a phone call to the card company (ie: ‘chargebacks’, one of the problems bitcoin is here to solve). Since it’s hard to prove any goods changed hands in a transfer of bitcoins, exchanges avoid this payment method and so do most private sellers. However, the options have recently grown for consumers in some countries. In the US, Coinbase, Circle, Trucoin and coin.mx all now offer purchases with cards. Bittylicious and CoinCorner also offer this service in the UK, accepting 3D Secure-enabled cards on the Visa and MasterCard networks. For small amounts of bitcoin, you can use a card to buy $20-worth at …