$30B Orphaned On the Blockchain

Any time a Bitcoin user loses their private keys or sends Bitcoin to the wrong address they lose access to it forever. There is no one to call to ask for your Bitcoin to be returned. Once it is sent it is done. So taking into account the Bitcoin that has been lost, orphaned, or misspent there could be over $30,000,000,000 in inaccessible Bitcoin. This is the high end of the estimation of “lost Bitcoin” but it is an interesting figure. Given that as of the time of writing Bitcoin is sporting a $165B market cap that would mean a significant portion of that Bitcoin can never be sold on an exchange or otherwise used.

Where did this Bitcoin come from?

It most likely came from early adopters back in 2011-2012 who mined large quantities of Bitcoin when those Bitcoin were not worth a lot. Now that Bitcoin has increased in value it is likely people will be more careful with storing their private keys. The use of hardware wallets such as the Trezor Wallet and the Ledger Nano S are improving the safety of cryptocurrency private key storage.

Another way cryptocurrency can be lost is through transactions that are dropped from the transaction queue without getting into a block. The rising fees of Bitcoin transactions can cause this problem to become more frequent with “microtransactions”.

Read the full article here.

Bitcoin Price Over $9000 USD

Bitcoin reaches all time high today of OVER $9000!

Bitcoin has passed a series of tumultuous hard-forks with a strong showing. With fears over the Segwit2x hard-fork a thing of the past Bitcoin surged past $9000 over the Thanksgiving day weekend. Bitcoin has reached an all-time high on growing investor confidence after successfully navigating a series of forks. Institutional adoption appears more likely than at any time in the past. If the Lightning Network works out in the coming year this price is not unwarranted in our opinion.

Surging up to $9400 USD as of the time of writing Bitcoin is poised to break $10,000 USD long before the end of the year (assuming a continued bull run). A surge in visibility for Bitcoin driven by it’s appearance on “normie” sources like CNBC and CNNMoney on a daily basis are helping drive awareness and improving trust among savvy traders. Institutional money has also helped drive Bitcoin’s price higher and its listing on the CME has helped boost its image with mainstream investors.

Russia May Issue Crypto-Ruble

Is a Russian government sanctioned crypto-Ruble possible?

According to current rumors circulating in the crypto-sphere Russia under the leadership of Vladimir Putin is set to issue a national cryptocurrency dubbed the “cryptoruble”. While this may sound funny it is a very serious development, if true. The creation of national cryptocurrencies has been a huge area of speculation and interest. National cryptocurrencies may take away some of the decentralized aspects of cryptocurrency and lead to privacy issues. Nevertheless this is a huge development and will be tracked. As of right now Hashrate.org categorizes this as a rumor, not a fact. Fascinating!

Edit: This appears to be more than a rumor. Visit Russia Today’s article for more information: https://www.rt.com/business/406960-russia-issue-blockchain-cryptoruble-putin/

Venezuelan Bitcoin Boom

Venezuelan Flag
Bitcoin is illegal to mine in Venezuela but it has not stopped the mining boom.

In Venezuela Bitcoin and altcoin mining has become very popular despite its illegality there. Due to the policies of Nicolas Maduro’s socialist government hyperinflation is out of control and supplies are scarce. The Venezuelan government is adamantly opposed to Bitcoin mining. Today it is estimated 100,000 Venezuelans are mining cryptocurrencies. The Venezuelan Bolivar has dropped 99.4% in value since 2012. The dramatic decline in value has forced Venezuelans to seek other ways to transact and store value. Supplemental income from cryptocurrency mining is enabling many Venezuelans to survive while their government fails and chaos fills their streets. We, as the cryptocurrency community, should support the good people of Venezuela during this difficult time in their nation.

To read more visit the CNBC article about Venezuelan cryptocurrency mining published here: https://www.cnbc.com/2017/08/30/venezuela-is-one-of-the-worlds-most-dangerous-places-to-mine-bitcoin.html

Bitcoin Cash Versus Bitcoin

Bitcoin Cash is getting a lot of buzz and the good news is if you owned Bitcoin (and controlled the private keys or had a reputable 3rd party holding them) you own Bitcoin Cash equivalent to the quantity of Bitcoin you had on the 1st of August 2017. A lot of FUD is going on regarding Bitcoin and Bitcoin Cash but here is something interesting I’m not seeing discussion on: back in 2015 Bitcoin XT was forked from Bitcoin and was to offer 8MB blocks. It currently has 2MB blocks and has had them for a long time. The plan was to double the block size as needed. Bitcoin Cash also seeks to do this. Will they be more successful than Bitcoin XT?

Wikipedia: Bitcoin XT