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BITCOIN: Ultimate guides and news

Bitcoin bubble burst

Bitcoin Bubble Burst will warn you if the bitcoin is about to crash down.

Subscribe at https://bitcoinbubbleburst.github.io/

Bitcoin: Seven questions you were too embarrassed to ask

    1. What is Bitcoin? The term Bitcoin actually refers to two different things. Capital-B Bitcoin is a payment network—like MasterCard is a payment network. Lower-case bitcoin refers to the currency of the Bitcoin network—much like MasterCard uses dollars in the United States.
    2. If Bitcoins aren’t tied to a conventional currency, how did they get so valuable?
    3. Why would I want to use Bitcoin?
    4. If Bitcoin has few practical applications, how can it be worth $150 billion? Another reason for optimism: Bitcoin is becoming the reserve currency of a broader cryptocurrency economy, much as the dollar is the default currency in global trade. Bitcoin has deeper markets and more sophisticated currency exchange services than other cryptocurrencies. So people wanting to buy any one of the dozens of lesser-known Bitcoin competitors often first trade their dollars in for bitcoins and then swap their bitcoins for dash or litecoins or whatever. As the broader cryptocurrency economy grows, it pushes Bitcoin’s value upward.
    5. OK, I’m sold. How do I get some? Before we answer that question, we want to emphasize that investing in bitcoin is insanely risky. Bitcoin has been known to lose 80 percent of its value in a matter of days. And while bitcoins recovered their value after previous crashes, the price is much higher today. There’s no guarantee that Bitcoin will recover after its next crash. So please don’t invest money you can’t afford to lose.
    6. I just made a killing! How do I cash out? If your cash is still deposited at a Bitcoin exchange, you just execute another trade to convert your bitcoins back to dollars at the new—hopefully higher—price. Then you withdraw the funds to your bank account.
    7. Is it true that Bitcoin wastes a ton of energy? Yes. The Bitcoin network maintains its shared transaction ledger, called the blockchain, using a computationally intensive process called mining. Miners compete with each other for the right to add blocks to the blockchain—each comes with a reward of 12.5 Bitcoins—or around $125,000.

Read more at https://arstechnica.com/tech-policy/2017/12/bitcoin-a-beginners-guide/

How Bitcoin Works in 5 Minutes (Techincal) – YouTube

Winklevoss twins become first bitcoin billionaires

The twin brothers who sued Mark Zuckerberg claiming he stole the idea for Facebook are worth more than $1 billion after capitalising on the astonishing rise in bitcoin.

A $US11 million ($14 million) bet on bitcoin made by Tyler and Cameron Winklevoss more than four years ago has ballooned by almost 10,000 per cent after last week’s price surge. It is believed to be the first billion-dollar return made by a cryptocurrency investor, a landmark moment for the controversial asset.

Source https://www.brisbanetimes.com.au/business/investments/winklevoss-twins-become-first-bitcoin-billionaires-20171203-gzxkm5.html

How Bitcoin Works Under the Hood (22 mins)

The best Bitcoin exchanges 2017

1. Coinbase

This is a US-based exchange which was founded in 2012, and it supports over 32 countries. Coinbase exchanges Bitcoin and the alternative cryptocurrencies of Ethereum and Litecoin, and it’s the largest of the exchanges, claiming $20 billion (£15 billion) in currency exchanged. In 2014 Coinbase created GDAX, the Global Digital Asset Exchange which was developed for professionals with high volumes of trading.

 

2. Gemini Exchange

Gemini Exchange is another US-based outfit founded by the Winklevoss twins – the pair who sued Mark Zuckerberg over social networking, and were awarded $65 million (£48 million), which they put to use as venture capitalists. This exchange is based in New York, and is available in 45 US states, as well as the UK, Singapore, South Korea and Hong Kong.

3. Changelly

Changelly is a cryptocurrency exchange with support for many more virtual currencies than most, including Monero, Dash, Bytecoin, and DigitalNote among others. If you are mining a less popular currency, chances are that Changelly can exchange it for you.

4. Cryptopia

Cryptopia was founded in 2014, aiming to be a comprehensive exchange that focuses on the user experience, with integration of additional services including a marketplace and wallet. It is based in Christchurch, New Zealand. Cryptopia is notable in that the first level of verification happens very quickly, and only requires an email address for initial verification.

Further readings at http://www.techradar.com/news/the-best-bitcoin-exchanges-2017

For Australians there are you options:

  1. CoinTree
  2. Brighton Peak
  3. Coinjar
  4. Independent Reserve
  5. CoinLoft

How to mine Bitcoins on AWS

Coming soon.

Do you know how your Bitcoin will be taxed in Australia?

Transacting with bitcoin

Transacting with bitcoin is akin to a barter arrangement, with similar tax consequences. Our view is that bitcoin is neither money nor a foreign currency, and the supply of bitcoin is not a financial supply for goods and services tax (GST) purposes. Bitcoin is, however, an asset for capital gains tax (CGT) purposes.

You need to keep the following records for bitcoin transactions:

  • the date of the transactions
  • the amount in Australian dollars (which can be taken from a reputable online exchange)
  • what the transaction was for
  • who the other party was (even if it’s just their bitcoin address).

Read more at https://www.ato.gov.au/General/Gen/Tax-treatment-of-crypto-currencies-in-Australia—specifically-bitcoin/

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