“As the adage of the entire internet once went, ‘I just replaced your entire industry with 100 lines of Python code.’ that’s exactly what we’re doing with bitcoin.” ~ Andreas M. Antonopoulos, author of “The Internet of Money”

Market State

BTC: €6,835.84 | +19.49% since last week

ETH: €402.58 | -0.49% since last week

BCH: €715.85 | +5.36% since last week

LTC: €73.91 | +3.82% since last week

Over the last week the cryptomarket rebounded sharply. The overall market cap rose by 8,1% to €250,74 billion. Bitcoin is up by almost 20% to €6,835.84 while ether started to rise during early last week then fell back to €402.58. Bitcoin is finally rising while altcoins are still falling. As a result bitcoin dominance index rose over 46% for the first time in 2018.

The bitcoin dominance index shows the overall market direction. The higher the dominance index the more funds are flowing into Bitcoin and less funds are in altcoins. The increase in Bitcoin might be due to Bitcoin ETF to be approved on August 10, 2018 which will allow Bitcoin based financial instruments to be launched on public stock market.

Quiz of the week

What purpose do miners serve?

1. They create new coins
2. They control how many bitcoins are issued every 10 minutes
3. They provide security for the network by collectively synchronizing on a single history of transactions

Scroll down to see the answer at the end of the newsletter.

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Cloud mining allows you to mine a cryptocurrency without having to buy a physical mining hardware. Cloud mining is useful for those who don’t want to invest in expensive mining rig or who don’t have technical knowledge to install and maintain mining devices. It has become increasingly difficult to mine a coin on your own unless you have low electricity costs. With cloud mining users can rent computing power of a mining equipment and get paid according to how much hash power you own. However there is always risk involved in cloud mining services. Since users don’t own the mining equipments there is no guarantee whether the cloud mining service is actually mining cryptocurrency. Keep in mind that cloud mining services can go out of service or end up as a scam.

Quiz answer

What purpose do miners serve?

The correct answer is : “C”

Miners collectively decide which transactions are getting included in the next blockchain. Based on the previous block miners vote for the chain to be continued. When miners disagree on the latest mined blocks there can be a network split.  As a reward for their work miners get newly mined bitcoins and also transaction fees paid by the users. The purpose of miners isn’t to create new bitcoins though this is what incentivizes them to mine blocks. In 2140 when Bitcoin reaches 21 million supply limit, miners will stop receiving new bitcoins and will only get transaction fees to make money.

Thank you for reading :) 

Have a great day!

MrCoin