Review Category : Bitcoin 201

 
 

Bitcoin 0.8.6 Released, Updates to Block Size Limits, Free Transactions, OSX Bugs

Bitcoin v0.8.6 was released yesterday, offering updates to existing restrictions on the size of free transactions and full blocks, as well as a series of fixes for bugs in certain node transmissions and OSX usage. The update follows the 0.8.5 release in September and precedes the much-anticipated 0.9 release. Free Transaction Limit Changes In an effort to make free transactions more commonly accessible, Bitcoin 0.8.6 lowers the maximum size of free transactions from 10,000 bytes to 1,000 bytes and eliminates the minimum 0.01 XBT output requirement. By lowering the maximum size of a free transaction to 1,000 bytes, there is …

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TGB 3Q Review & 4Q Outlook Now Available

The third quarter of 2013 proved to be one of significant transition for bitcoin. After the remarkable increase in bitcoin’s price and public notoriety earlier this year, the last three months have provided a much-needed regrouping period. New information about issues at existing exchanges became available and dozens more have or will soon come online. Security of the bitcoin network grew dramatically as ASICs increased the network speed exponentially, while a host of new entrepreneurs and investors continue to support the market with ever-increasing infrastructure. The result will be a more structurally sound ecosystem as bitcoin enters its next wave …

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Analyzing Trade Clustering To Predict Price Movement In Bitcoin Trading

Financial markets, like many interactions in the world, are often self-exciting. Said differently, events within a dataset can actually serve as the impetus for more of the same events to a calculable extent. Statistical models to analyze self-excitability are used to understand both the independence and causal dependence of observations in such fields as seismology (study of earthquakes), criminology (study of crime) and more recently by algorithmic traders to understand financial markets. With the bitcoin markets having grown enough to offer ample data, self-excitability and its implication on bitcoin prices can now be observed as well. Excitability in Bitcoin Trading …

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[Op Ed] The Evolution of Financial Privacy and Bitcoin’s Ability To Restore Rights

Today is a somber day in the United States, particularly for New Yorkers. The events of this date 12 years ago are still fresh in many people’s minds, as are the memories of extreme heroism from fellow residents. Knowing that 9/11 was coming up, I recently visited the memorial at Ground Zero for the first time with some friends visiting from out of town. The space was vibrant and reflective of the events that occurred, but it was impossible for one thing not to stand out above all else: the unbelievable security detail at the venue. For those who haven’t …

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California Legislature Passes Bill To Reform Money Transmission Act

Last week, both the California State Senate and Assembly voted unanimously to pass a bill to amend the California Money Transmission Act (MTA). According to Roger Dickinson, Chair of the Assembly’s Committee on Banking and Finance who introduced the bill in February, one of the primary goals of the amendment is to “remove barriers to market entry to start-up payment technology companies.” In addition to federal regulations like those from FinCEN, money transmitters in the US are subject to state regulations as well. California’s Department of Financial Institutions (now the Department of Business Oversight, which oversees execution of the MTA) …

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[Op Ed] Bitcoin Mining’s Inevitable Cloud Future

Considering a bitcoin mining hardware purchase? Make a more informed decision with our Bitcoin Mining Dashboard. In early 2013 bitcoin mining saw the start of the application specific integrated circuit (ASIC) revolution. ASICs are customized components that perform the calculations necessary for bitcoin mining significantly faster than any hardware that came before it. To anyone following the exponential growth that has occurred over the last six months it is clear that this story is nowhere near finished. The Current ASIC Environment There are two factors driving ASIC adoption: ASIC chip design, which is limited by technical expertise, and production capacity, which …

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Litecoin and Bitcoin in the Context of the Gold-Silver Ratio

As the digital currency markets continue to mature and build trade history, we can learn more about market reactions, patterns and influences. Often cited as the digital version of gold – a finite, non-state wealth store – bitcoin may be joined in the world of nouveau analogies by litecoin, which has already become commonly referenced as digital silver. Litecoin (LTC) is nearly identical to bitcoin with a few notable exceptions. Litecoin uses a different proof-of-work algorithm chosen specifically to make mining possible with consumer-grade hardware. Additionally, the LTC protocol targets 2.5 minutes average block times (compared to 10 for BTC) …

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Bitcoin Block Time Halved To Five Minutes Amid Exponential Network Growth

By now, bitcoin enthusiasts and professionals alike are aware of the tremendous growth of the bitcoin network so far this year. As millions of dollars (and bitcoin) are invested in increasingly powerful mining equipment, the cumulative hash rate of the network has continually blown by the periodic difficulty adjustments. Earlier this year we explained the long-term implications of this, but the near term effects are being felt as well. Since that piece was published, the network has continued to grow, as has the growth rate, creating profound near-term effects. In particular, the average time between blocks has fallen to approximately …

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Bitcoin Protocol Implementation of Native Two-Factor Authentication

At a town-hall style discussion in June, Bitcoin Foundation Chief Scientist Gavin Andresen cited wallet security as the most pressing issue in the bitcoin community. Though his solution at the time was hardware wallets, such as Trezor, he recently posted an alternative on GitHub: 2-factor authentication built into the client. The challenge facing users hosting wallets on their own computer is that their PC becomes a single point of failure. Once a security vulnerability occurs, a sophisticated attacker will have little trouble locating a wallet file, transferring it to their own computers and logging keystrokes to determine the password. Hardware …

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2013 Bitcoin Mid-Year Review and Outlook
 

2013 Bitcoin Mid-Year Review and Outlook

The past six months may one day prove to be among the most important in bitcoin’s history. As global events sparked increasing need for frictionless wealth transfers, bitcoin’s popularity ballooned and ignited a conversation that will likely continue to flourish in the years to come. Growth in bitcoin’s value was outpaced only by the incredible interest from entrepreneurs, investors and the press. In this 27-page report we cover the major events from the first half of 2013 and what to look out for in the months ahead. TGB Bitcoin Mid-Year Review and Outlook   …

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