The process of mining Bitcoin is becoming more energy intensive.
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MrCoin

Weekly Crypto Recap

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"If you don't believe me or don't get it, I don't have time to try to convince you, sorry." - Satoshi Nakamoto, creator of Bitcoin, July 29, 2010.

Market State

BTC: €6,010.71 | +7.51% since last week

ETH: €246.47 | +0.60% since last week

BCH: €473.09 | +2.00% since last week

LTC: €52.56 | +8.57% since last week

The crypto market is slowly recovering. The overall market capitalization dropped on the news of Bitcoin Exchange Traded Funds (ETF) rejection. After U.S. Securities and Exchange Commission (SEC) announced that they will revisit their decision on rejected ETFs the crypto market increased to €195,38 billion which is 7.94% gain since last week. Bitcoin is up by 7.51% to €6,010.71 despite the ETF rejections and Chinese ban on crypto events. China will also block IP addresses of 124 offshore cryptocurrency exchange websites to protect their citizens from crypto related financial risks. Bitcoin dominance is still strong hovering over 50%. During the bear market investors tend to choose Bitcoin as a safe haven over altcoins. Ether experienced dramatic fall during this month and recovered, currently sitting at €246.47.

Quiz of the week

What is Proof of Work?

  1. Confirmed transactions
  2. A data that proves enough energy was spent mining a block and validating the transactions it contains
  3. Amount of energy spent mining coins

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

Top stories of the week

Coinomi

China bans crypto events in Beijing

Last week the government of China banned crypto events in Beijing, over the counter (OTC) trading through Alipay and crypto related WeChat accounts. WeChat, the social media platform has over 1 billion users. The majority of the crypto related accounts on WeChat endorsed scam coins and created crypto trading “hype” according to officials. In September, 2017 China banned fiat to crypto trading exchanges along with Initial Coin Offerings (ICOs). These bans will slow down the cryptocurrency and blockchain adoption in China which is ironic because China has already spent more than $3 billion in funding blockchain projects this year.

Ethereum10

Does Bitcoin need Exchange Traded Fund (ETF)?

The US Securities and Exchange Commission (SEC) has denied nine pending Bitcoin Exchange Traded Fund (ETF). ETFs has been long waited by the crypto community as it will allow investors speculate on Bitcoin without actually owning it. SEC declined Bitcoin ETFs stating that Bitcoin price is vulnerable to manipulation. Later on SEC announced that it will review its decision on the rejected ETFs. Some crypto enthusiasts are against Bitcoin ETFs as the funds will own your private keys. These funds will hold massive amount of Bitcoin which will cause price manipulation and huge influence on the crypto market.

Reddit

Bitcoin's Growing Energy Consumption

The process of mining Bitcoin is becoming more energy intensive. The amount of electricity Bitcoin mining uses is 1% of the world’s energy production. Anything that consumes 1% of our world’s energy must be very important part of the global economy. Concerns around Bitcoin’s energy consumption is not only environmental, but also economic too. Saving energy means saving costs. Bitcoin mining is growing in areas where there is cheap renewable energy. This will incentivize firms to develop renewable energy sources that will allow  increased power consumption without having any negative impact on environment.

Telegram

North Korea hosts its first ever crypto conference

North Korea is planning to host its first-ever cryptocurrency and blockchain conference. The conference will take place in the capital city of Pyongyang on 1st and 2nd of October 2018 and is expected to attract industry experts from around the world. North Korea is one of the most isolated countries in the world and has reputation for its strict regime. The government of North Korea strictly monitors the activities of foreign visitors. Still some of the brave crypto enthusiasts are going to attend the conference.

Bitcoin Mining

Crypto Periodic Table

There are now more than 1800 different cryptocurrencies. It is getting more and more difficult to keep up with ever-evolving cryptocurrencies. Thanks to the crypto periodic table by Jesal Gadhia, we are presented with 118 cryptoassets that are color coded and classified into 9 different categories by their use case. You can check out the crypto table here. The crypto table webpage uses CryptoCompare’s API (Application Programming Interface) to get the live pricing data.

Peer to peer Bitcoin trading can freeze your bank account

Owner of 50cycles, Scott Snaith has experienced financial nightmare when his bank accounts got frozen a few hours after he traded on Localbitcoins, where he sold his 2 Bitcoins for over €10000. The cash was received in his personal bank account. Scott says: “My two personal bank accounts and business account were frozen for using a well known Bitcoin trading site. No unlawful activity has taken place but just because the word ‘Bitcoin’ was mentioned my accounts were locked instantly.”

Tweet of the week

Bitcoin Network

Meme of the week

Bitcoin Network
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Crypto word of the week

Bitcoin ETF stands for Bitcoin Exchange Traded Funds. A Bitcoin ETF is a fund that holds Bitcoin and creates shares that represent the value of Bitcoin the fund is holding. A fund manager holds Bitcoins and investors get a share in the fund. ETFs are traded like a stock during the day when stock exchanges are open. It allows traditional investors to speculate on Bitcoin without actually owning a Bitcoin. This way Bitcoin will become more available to a lot more investors. You don’t have to deal with complex things like holding your private keys as your fund manager holds Bitcoin on behalf of you. This also means investors will lose the rights and responsibilities that a Bitcoin key holder has. For example if there is a chain split you won’t be able to have the newly created coins on the forked chain.

Quiz answer

What is Proof of Work?

The correct answer is : “B”

Proof of Work (PoW) is a piece of data that requires enormous amount of computation to be produced. It proves that enough energy is spent to validate a new block and no one spent the same coin twice. Once the PoW is produced others can easily verify if it has correctly validated all the transactions. Proof of Work is like a solution of a giant sudoku. Everytime the sudoku is solved, it resets itself automatically. A completed sudoku puzzle can be quickly verified. In Bitcoin’s case the giant sudoku resets itself every 10 minutes. Proof of Work is a unique data that cryptographically links the new block to the previous one.

Thank you for reading :) 

Have a great day!

MrCoin

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