“THE FIAT STANDARD”




I am happy to share with you this chapter from my forthcoming book, The Fiat Standard, which will be out in November in hardcover, audio, and ebook formats.

Chapter 1: Introduction

On August 6, 1915, His Majesty’s Government issued this appeal:

“In view of the importance of strengthening the gold reserves of the country for exchange purposes, the Treasury has instructed the Post Office and all public departments charged with the duty of making cash payments to use notes instead of gold coins whenever possible.

The public generally are earnestly requested, in the national interest, to cooperate with the Treasury in this policy by

(1) paying in gold to the Post Office and to the Banks;

(2) asking for payment of cheques in notes rather than in gold;

(3) using notes rather than gold for payment of wages and cash disbursements generally”.

August 6th, 1915 – His Majesty’s Government

With this obscure and largely forgotten announcement, the Bank of England effectively began the global monetary system’s move away from a gold standard, in which all government and bank obligations were redeemable in physical gold.

At the time, gold coins and bars were still widely used worldwide, but they were of limited use for international trade, which necessitated resorting to the clearance mechanisms of international banks. 

Chief among all banks at the time, the Bank of England’s network spanned the globe, and its pound sterling had, for centuries, acquired the reputation of being as good as gold. 

Instead of the predictable and reliable stability naturally provided by gold, the new global monetary standard was built around government rules, hence its name. The Latin word fiat means ‘let it be done’ and, in English, has been adopted to mean a formal decree, authorization, or rule.

It is an apt term for the current monetary standard, as what distinguishes it most is that it substitutes government dictates for the judgment of the market.

Value on fiat’s base layer is not based on a freely traded physical commodity, but is instead dictated by authority, which can control its issuance, supply, clearance, and settlement, and even confiscate it at any time it sees fit.

With the move to fiat, peaceful exchange on the market no longer determined the value and choice of money. Instead, it was the victors of world wars and the gyrations of international geopolitics that would dictate the choice and value of the medium that constitutes one half of every market transaction.

While the 1915 Bank of England announcement, and others like it at the time, were assumed to be temporary emergency measures necessary to fight the Great War, today, more than a century later, the Bank of England is yet to resume the promised redemption of its notes in gold.

Temporary arrangements restricting note convertibility into gold have turned into the permanent financial infrastructure of the fiat system that took off over the next century.

Never again would the world’s predominant monetary systems be based on currencies fully redeemable in gold.

The above decree might be considered the equivalent of Satoshi Nakamoto’s email to the cryptography mailing list announcing Bitcoin, but unlike Nakamoto, His Majesty’s Government provided no software, white paper, nor any kind of technical specification as to how such a monetary system could be made practical and workable. Unlike the cold precision of Satoshi’s impersonal and dispassionate tone, His Majesty’s Government relied on appeal to authority, and emotional manipulation of its subjects’ sense of patriotism.

Whereas Satoshi was able to launch the Bitcoin network in operational form a few months after its initial announcement, it took two world wars, dozens of monetary conferences, multiple financial crises, and three generations of governments, bankers, and economists struggling to ultimately bring about a fully operable implementation of the fiat standard in 1971.

Fifty years after taking its final form, and one century after its genesis, an assessment of the fiat system is now both possible and necessary. Its longevity makes it unreasonable to keep dismissing the fiat system as an irredeemable fraud on the brink of collapse, as many of its detractors have done for decades. Many people at the end of their life today have never used anything but fiat money, and neither did their long-deceased parents. This cannot be written off as an unexplained fluke, and economists should be able to explain how this system functions and survives, despite its many obvious flaws.

There are, after all, plenty of markets around the world that are massively distorted by government interventions, but they nonetheless continue to survive. It is no endorsement of these interventions to attempt to explain how they persist.

It is also not appropriate to judge fiat systems based on the marketing material of their promoters and beneficiaries in government-financed academia and the popular press.

While the global fiat system so far avoided the complete collapse its detractors would predict, that cannot vindicate its promoters’ advertising of it as a free-lunch-maker with no opportunity cost or consequence. More than fifty episodes of hyperinflation have taken place around the world using fiat monetary systems in the past century. Moreover, the global fiat system avoiding catastrophic collapse is hardly enough to make the case for it as a positive technological, economic, and social development. 

Between the relentless propaganda of its enthusiasts and the rabid venom of its detractors, this book attempts to offer something new: an exploration of the fiat monetary system as a technology, from an engineering and functional perspective, outlining its purposes and common failure modes, and deriving the wider economic, political, and social implications of its use. I believe that adopting this approach to writing

The Bitcoin Standard contributed to making it the best-selling book on bitcoin to date, helping hundreds of thousands of readers across more than 20 languages understand the significance and implications of bitcoin. Rather than focus on the details of how bitcoin operates, I chose to focus on why it operates the way it does, and what the implications are. 

If you have read the Bitcoin Standard and enjoyed my exploration of bitcoin, I hope you will enjoy this exploration of the operation of fiat.

Perhaps counter-intuitively, I believe that by first understanding the operation of bitcoin, you can then better understand the equivalent operations in fiat.

It is easier to explain an abacus to a computer user than it is to explain a computer to an abacus user.

A more advanced technology performs its functions more productively and efficiently, allowing a clear exposition of the mechanisms of the simpler technology, and exposing its weaknesses.

For the reader who has become familiar with the operation of bitcoin, a good way to understand the operation of fiat is by drawing analogy to the operation of bitcoin using concepts like mining, nodes, balances, and proof of work.

My aim is to explain the operation and engineering structure of the fiat monetary system and how it operates, in reality, away from the naive romanticism of governments and banks who have benefited from this system for a century.

The first seven chapters of The Bitcoin Standard explained the history and function of money, and its importance to the economic order. With that foundation laid, the final three chapters introduced bitcoin, explained its operation, and elaborated on how its operation relates to the economic questions discussed in the earlier chapters.

My motivation as an author was to allow readers to understand how bitcoin operates and its monetary significance without requiring them to have a previous background in economics or digital currencies.

Had Bitcoin not been invented, the first seven chapters of The Bitcoin Standard could have served as an introduction to explaining the operation of the fiat monetary system.

This book picks up where Chapter 7 of “The Bitcoin Standard” left off. The first chapters of this book are modeled on the last three chapters of the Bitcoin Standard, except applied to fiat money. 

How does the fiat system actually function, in an operational sense? The success of bitcoin in operating as a bare-bones and standalone free market monetary system helps elucidate the properties and functions necessary to make a monetary system function.

Bitcoin was designed by a software engineer who boiled a monetary system down to its essentials. These choices were then validated by a free market of millions of people around the world who continue to use this system, and currently entrust it to hold more than $300 billion of their wealth.

The fiat monetary system, by contrast, has never been put on a free market for its users to pass the only judgment that matters on it. The all-too-frequent systemic collapses of the fiat monetary system are arguably the true market judgment emerging after suppression by governments.

With bitcoin showing us how an advanced monetary system can function entirely independently of government control, we can see clearly the properties required for a monetary system to operate on the free market, and in the process, better understand fiat’s modes of operation, and all-too-frequent modes of failure.

While fiat systems have not won acceptance on the free market, and though their failings and limitations are many, there is no denying the fact that many fiat systems have worked for large parts of the last century, and facilitated an unfathomably large number of transactions and trades all around the world. Its continued operation makes understanding it useful, particularly as we still live in a world that runs on fiat. Just because you may be done with fiat does not mean that fiat is done with you!

Understanding how the fiat standard works, and how it frequently fails, is essential knowledge for being able to navigate it.


This is a preview chapter from my forthcoming book, The Fiat Standard, which will be out in November in hardcover, audio, and ebook formats.

To begin, it’s important to understand that the fiat system was not a carefully, consciously, or deliberately designed financial operating system like bitcoin; rather, it evolved through a complex process of compromise between political constraints and expedience.

The next chapter illustrates this by examining newly-released historical documents on just how the fiat standard was born, and how it replaced the gold standard, beginning in England in the early twentieth century, completing the transition in 1971 across the Atlantic.

This is not a history book, however, and it will not attempt a full historical account of the development of the fiat standard over the past century, in the same way the Bitcoin Standard did not delve too deeply into the study of the historical development of the bitcoin software protocol. The focus of the first part of the book will be on the operation and function of the fiat monetary system, by making analogy to the operation of the bitcoin network, in what might be called a comparative study of the economics of different monetary engineering systems. 

Chapter 3 examines the underlying technology behind the fiat standard. Contrary to what the name suggests, modern fiat money is not conjured out of thin air through government fiat.

Government does not just print currency and hand it out to a society that accepts it as money. Modern fiat money is far more sophisticated and convoluted in its operation. The fundamental engineering feature of the fiat system is that it treats future promises of money as if they were as good as present money because the government guarantees these promises.

While such an arrangement would not survive in the free market, the coercion of the government can maintain it for a very long time. Government can meet any present financial obligations by diverting them onto future taxpayers or onto current fiat holders through taxes or inflation; and, further, through legal tender laws, the government can prevent any alternatives to its money from gaining traction.

By leveraging their monopoly on the legal use of violence to meet present financial obligations from potential future income, government fiat makes debt into money, forces its acceptance across society, and prevents it from collapsing.

Chapter 4 examines how the fiat network’s native tokens come into existence, using fiat’s antiquated and haphazard version of mining.

As fiat money is credit, credit creation in a fiat currency results in the creation of new money, which means that lending is the fiat version of mining.

Fiat miners are the financial institutions capable of generating fiat-based debt with guarantees from the government and/or central banks.

Unlike with bitcoin’s difficulty adjustment, fiat has no mechanisms for controlling issuance. Credit money, instead, causes constant cycles of expansion and contraction in the money supply with eventual devastating consequences, as this chapter examines.

Chapter 5 explains the topography of the fiat network, which is centered around its only full node, the US Federal Reserve.

The Fed is the only institution that can validate or refuse any transaction on any layer of the network.

Another 200 or so central bank nodes are spread around the world, and these have geographic monopolies on financial and monetary services, where they regulate and manage tens of thousands of commercial bank nodes worldwide.

Unlike with bitcoin, the incentive for running a fiat node is enormous.

Chapter 6 then analyzes balances on the fiat network, and how fiat has the unique feature where many, if not most, users, have negative account balances.

The enormous incentive to mine fiat by issuing debt means individuals, corporations, and governments all face a strong incentive to get into debt.

The monetization and universalization of debt is also a war on savings, and one which governments have persecuted stealthily and mostly quite successfully against their citizens over the last century.

Based on this analysis, Chapter 7 concludes the first section of the book by discussing the uses of fiat, and the problems it solves.

The two obvious uses of fiat are that it allows for the government to easily finance itself, and that it allows banks to engage in maturity-mismatching and fractional reserve banking while largely protected from the inevitable downside.

But the third use of fiat is the one that has been the most important to its survival: salability across space.

From the outset, I will make a confession to the reader. Attempting to think of the fiat monetary system in engineering terms and trying to understand the problem it solves have resulted in giving me an appreciation of its usefulness, and a less harsh assessment of the motives and circumstances which led to its emergence.

Understanding the problem this fiat system solves makes the move from the gold standard to the fiat standard appear less outlandish and insane than it had appeared to me while writing The Bitcoin Standard, as a hard money believer who could see nothing good or reasonable about the move to an easier money. 

Seeing that the analytical framework of “The Bitcoin Standard” was built around the concept of salability across time, and the ability of money to hold its value into the future, and the implications of that to society, the fiat standard initially appears as a deliberate nefarious conspiracy to destroy human civilization.

But writing this book, and thinking very hard about the operational reality of fiat, has brought into sharper focus the property of salability across space, and in the process, made the rationale for the emergence of the fiat standard clearer, and more comprehensible.

For all its many failings, there is no escaping the conclusion that the fiat standard was indeed a solution to a real and debilitating problem with the gold standard, namely its low spatial salability.

More than any conspiracy, the limited spatial salability of gold as global trade advanced allowed the survival of the fiat standard for so long, making its low temporal salability a tolerable problem, and allowing governments worldwide tremendous leeway to bribe their current citizens at the expense of their future citizens by creating the easy fiat tokens that operate their payment networks.

As we take stock of a whole century of operation for this monetary system, a sober and nuanced assessment can appreciate the significance of this solution for facilitating global trade, while also understanding how it has allowed the inflation that benefited governments at the expense of their future citizens.

Fiat may have been a huge step backward in terms of its salability across time, but it was a substantial leap forward in terms of salability across space.

Having laid out the mechanics for the operation of fiat in the first section, the book’s second section, Fiat Life, examines the economic, societal, and political implications of a society utilizing such a form of money with uncertain and usually poor inter-temporal salability.

This section focuses on analyzing the implications of two economic causal mechanisms of fiat money: the utilization of debt as money; and the ability of the government to grant this debt at essentially no cost.

Fiat increasingly divorces economic reward from economic productivity, and instead bases it on political allegiance. This attempted suspension of the concept of opportunity cost makes fiat a revolt against the natural order of the world, in which humans, and all other animals, have to struggle against scarcity every day of their lives.

Nature provides humans with reward only when their toil is successful, and similarly, markets only reward humans when they are able to produce something that others value subjectively.

After a century of economic value being assigned at the point of a gun, these indisputable realities of life are unknown to, or denied by, huge swathes of the world’s population who look to their government for their salvation and sustenance.

The suspension of the normal workings of scarcity through government dictat has enormous implications on individual time preference and decision-making, with important consequences to many facets of life.

In the second section of the book, we explore the impacts of fiat on family, food, education, science, health, fuels, and security. 

While the title of the book refers to fiat, this really is a book about bitcoin, and the first two sections build up the analytical foundation for the main course that is the third part of the book, examining the all-too-important question with which “The Bitcoin Standard” leaves the reader: what will the relationship between fiat and bitcoin be in the coming years?

Chapter 16 examines the specific properties of bitcoin that make it a potential solution to the problems of fiat.

While “The Bitcoin Standard” focused on bitcoin’s intertemporal salability, The Fiat Standard examines how bitcoin’s salability across space is the mechanism that makes it a more serious threat to fiat than gold and other physical monies with low spatial salability.

Bitcoin’s high salability across space allows us to monetize a hard asset itself, and not credit claims on it, as was the case with the gold standard.

At its most basic, bitcoin increases humanity’s capacity for long-distance international settlement by around 500,000 transactions a day, and completes that settlement in a few hours.

This is an enormous upgrade over gold’s capacity, and makes international settlement a far more open market, much harder to monopolize.

This also helps us understand bitcoin’s value proposition as not just in being harder than gold, but also in traveling much faster.

Bitcoin effectively combines gold’s salability across time with fiat’s salability across space in one apolitical immutable open source package.

By being a hard asset, bitcoin is also debt-free, and its creation does not incentivize the creation of debt. By offering finality of settlement every ten minutes, bitcoin also makes the use of credit money very difficult. At each block interval, the ownership of all bitcoins is confirmed by tens of thousands of nodes all over the world. There can be no authority whose fiat can make good a broken promise to deliver a bitcoin by a certain block time.

Financial institutions that engage in fractional reserve banking in a bitcoin economy will always be under the threat of a bank run as long as no institution exists that can conjure present bitcoin at significantly lower than the market rate, as governments are able to do with their fiat. 

Chapter 17 discusses bitcoin scaling in detail, and argues it will likely happen through second layer solutions which will be optimized for speed, high volume, and low cost, but involve trade-offs in security and liquidity.

Chapter 18 builds on this analysis to discuss what banking would look like under a Bitcoin Standard, while chapter 19 discusses how savings would work under such a system.

Chapter 20 studies bitcoin’s energy consumption, how it is related to bitcoin’s security, and how it can positively impact the market for energy worldwide.

With this foundation, the book can tackle the question: how can bitcoin rise in the world of fiat, and what are the implications for these two monetary standards coexisting?

Chapter 21 analyzes different scenarios in which bitcoin continues to grow and thrive, while Chapter 22 examines scenarios where bitcoin fails.

I hope you enjoyed this preview chapter from my forthcoming book, The Fiat Standard, which will be out in November in hardcover, audio, and ebook formats.



All the Credit goes to Saifedean Ammous


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Staking Vs. Yield Farming Vs. Liquidity Mining

staking-vs-yield-farming-vs-liquidity-mining

Staking Vs. Yield Farming Vs. Liquidity Mining – Key Differences

The DeFi space is growing, and there is no reason to deny it. Enterprises and individuals want to capitalize on the benefits of decentralized finance with the newly emerging solutions. Decentralized finance has not only opened up the possibilities for improved financial inclusion throughout the world but also strengthened the possibilities for using and managing digital assets.

The most notable factor which comes up in discussions about DeFi trading would refer to the staking vs. yield farming vs. liquidity mining differences.

All three of them are popular solutions in the domain of DeFi for obtaining plausible returns on crypto assets.

The three approaches differ in the way participants have to pledge their crypto assets in decentralized protocols or applications. 

In addition, the underlying technologies also provide further indications of differences between staking and the other two approaches.

Understanding Yield Farming

The first thing that you should take into account about yield farming is its definition. Yield generation is a popular approach for obtaining returns on crypto assets.

Basically, it offers a flexible approach for earning passive income through depositing crypto assets in a liquidity pool.

The liquidity pools in the case of yield farming could refer to bank accounts in the conventional sense.

Yield generation is the practice that involves investors locking in their crypto assets in liquidity pools based on smart contracts.

The assets locked in the liquidity pools are available for other users to borrow in the same protocol. 

Yield farming is a crucial aspect of the DeFi ecosystem as it supports the foundation of DeFi protocols for enabling exchange and lending services.

It is also essential for maintaining the liquidity of crypto assets on different decentralized exchanges or DEXs.

Yield farmers could also earn rewards in the form of APY. 

Working of Yield Generation

In order to develop a better impression of yield generation in staking vs. yield farming vs. liquidity mining, it is important to understand how to yield generation works. First of all, it is important to note that Automated Market Makers or AMMs are responsible for yield farming. 

AMMs are just smart contracts that leverage mathematical algorithms for enabling  digital asset trading.

Automated Market Makers play a highly critical role in yield farming for maintaining consistent liquidity as the transactions do not need any counterparties for the transaction.

You could find two distinct components in AMMs such as liquidity pools and liquidity providers. 

Liquidity pools are basically the smart contracts that drive the DeFi ecosystem. The pools include digital assets which can help users in purchasing, selling, borrowing, lending, and swapping tokens.

Liquidity providers are the users or investors who have locked their assets in the liquidity pool.

Yield farming also offers a plausible foundation for easier trading of tokens with low trading volume in the open market. 

Risks in Yield Farming

The understanding of staking vs. yield farming vs. liquidity mining can only get better with an awareness of risks with each.

It is important to note that yield generation offers high risk and high reward ventures for investment.

The notable risks with yield farming include impermanent loss, smart contract risk, composability risk, and liquidation risk.   

Understanding Staking

The second important entry in a debate on staking vs. yield farming vs. liquidity mining would obviously bring another notable and common consensus algorithm. Staking is basically an interesting way of pledging crypto assets as collateral in the case of blockchain networks leveraging the Proof-of-Stake algorithm. Just like miners use computational power for achieving consensus in Proof-of-Work blockchains, users with the highest stakes are selected for validating transactions on the PoS blockchains. 

Working of the Proof of Stake Consensus

You might be wondering about the potential rewards for staking your crypto assets in a PoS blockchain-based DeFi protocol. First of all, you are investing in a highly scalable blockchain consensus algorithm with staking, which also ensures improved energy efficiency. Proof-of-Stake algorithms also create new avenues of opportunities for earning rewards. 

With higher stakes in the protocol, investors could get better rewards from the network. It is important to note that rewards in the case of staking are allocated on-chain. Therefore, new tokens of the cryptocurrency are minted and distributed as staking rewards for the validation of each block. PoS blockchain does not imply the need for expensive computational equipment, thereby providing better usability. 

Risks in Staking

The risks associated with Proof-of-Stake protocols are also another highlight in discussions on staking vs. yield farming vs. liquidity mining.

Interestingly, the aspect of risk is considerably lower in the case of staking when compared to other approaches for passive investment. You should note that the safety of the staked tokens depends directly on the safety of the protocol. 

At the same time, you would still notice some prominent risks in staking cryptocurrencies, such as slashing, volatility risks, validator risks, and server risks. In addition, you might have to encounter issues of loss or theft of funds, waiting periods for rewards, project failure, liquidity risks, minimum holdings, and extended lock-up periods. 

Understanding Liquidity Mining

The final entry in the staking vs. yield farming vs. liquidity mining also deserves adequate attention when it comes to discussions on DeFi. As a matter of fact, liquidity mining serves as the core highlight in any DeFi project. Furthermore, it also focuses on offering improved liquidity in the DeFi protocols

Participants have to offer their crypto assets to liquidity pools in DeFi protocols for the purpose of crypto trading. However, it is important to note that participants do not offer crypto assets into liquidity pools for crypto lending and borrowing in the case of liquidity mining. Investors place their crypto assets in trading pairs such as ETH/USDT, and the protocol offers a Liquidity Provider or LP token to them. 

Working of Liquidity Mining

A deeper understanding of how liquidity mining works can help in anticipating its differences with the other strategies for crypto investment.

The investors would receive rewards from the protocol for the tokens they place in the liquidity pool.

The rewards in liquidity mining are in the form of native governance tokens, which are mined at every block. 

In addition, investors also have the LP token from the first stage of locking their crypto assets into the liquidity pool.

It is important to note that the reward in liquidity mining depends profoundly on the share in total pool liquidity.

Furthermore, the newly minted tokens could also offer access to governance of a project alongside prospects for exchanging to obtain other cryptocurrencies or better rewards. 

Risks in Liquidity Mining

The understanding of staking vs. yield farming vs. liquidity mining would be complete with an impression of their risks.

Just like the other two approaches, liquidity mining also presents some notable risks such as impermanent loss, smart contract risks, and project risks. In addition, liquidity miners are also vulnerable to the rug pull effect in their projects. 

Staking vs. Yield Farming vs. Liquidity Mining – Key Differences

Staking vs Yield Farming vs Liquidity Mining
Staking vs Yield Farming vs Liquidity Mining

The differences between the three players in staking vs. yield farming vs. liquidity mining would refer directly to some key pointers. Here are some of them outlined in brief for your understanding. 

Yield farming is a proven approach for investing your crypto assets in liquidity pools of protocols.

Staking involves locking your crypto assets in the protocol in return for privileges to validate transactions on the protocol.

Liquidity mining involves locking in crypto assets in protocols in return for governance privileges in the protocol.

In terms of objectives, yield farming aims to offer you the highest possible returns on the crypto assets of users. On the other hand, liquidity mining focuses on improving liquidity of a DeFi protocol. Furthermore, staking emphasizes maintaining the security of a blockchain network.

Bottom Line 

On a concluding note, it is quite clear that staking as well as yield generation and liquidity miners provide distinct approaches for investing crypto assets.

The growing attention towards crypto assets is undoubtedly opening up many new opportunities for investors.

However, investors need to understand the strategies they need to follow for the type of returns they are expecting. 

Therefore, a clear impression of staking vs. yield farming vs. liquidity mining  differences could help in making a plausible decision.

Yield generation, liquidity mining, and Proof-of-Stake blockchains also have some setbacks you should look for.

Start discovering more about yield farming and the other two crypto investment strategies now.


*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!

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Bitcoin – Power to the People by BitHouse-Co

Redbubble Shop BitHouse

For the first time in human history there is at the disposal of the masses a tool that eliminates the middlemen and takes trust from the hands of humans and beautifully makes it a mathematics code that cannot be breaken, hacked or tricked…

https://www.redbubble.com/shop/ap/99847715?asc=u

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Smart Contracts Networks

Top upcoming Smart Contract Networks


Comparing the Top Upcoming Smart Contract Networks

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Bitcoin/Crypto Wallet types

Choose the wallet that better suits You

You may choose a wallet based on what best suits your needs. we will explore various
types of wallets and clients:

• Web
• Desktop
• Mobile
• Hardware
• Paper (Not Secure Anymore)

Wallets and clients can be chosen based on a number of criteria:

  • How much bitcoin is being used / stored
  • IT proficiency (beginner vs. expert)
  • Type of device
  • Occasional use vs. everyday use
  • Security and privacy concerns
  • Cryptocurrencies being used
  • Type and complexity of transactions

Find the wallet that’s right for you:


https://bitcoin.org/en/choose-your-wallet

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Why bitcoin matters

Why Bitcoin Matters ?


“A mysterious new technology emerges, seemingly out of nowhere, but actually the result of two decades of intense
research and development by nearly anonymous researchers.

Political idealists project visions of liberation and revolution onto it; establishment elites heap contempt and scorn on it.

On the other hand, technologists – nerds – are transfixed by it.

They see within it enormous potential and spend their nights and weekends tinkering with it.

Eventually mainstream products, companies and industries emerge to commercialize it; its effects become profound; and later, many people

wonder why its powerful promise wasn’t more obvious from the start.

What technology am I talking about?

Personal computers in 1975, the Internet in 1993, and – I believe – Bitcoin in 2014….

The practical consequence of solving this problem is that Bitcoin gives us, for the first time, a way for one Internet user to transfer a unique piece of digital property to another Internet user, such that the transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer.

The consequences of this breakthrough are hard to overstate.

What kinds of digital property might be transferred in this way?

Think about digital signatures, digital contracts, digital keys (to physical locks, or to online lockers), digital ownership of physical assets such as cars and houses, digital stocks and bonds …

and digital money”.

– Marc Andreessen, Founder of Netscape & well-known venture capitalist, 2014

Marc Lowell Andreessen

(/ænˈdriːsən/ann-DREE-sən;

born July 9, 1971) is an American entrepreneurinvestor, and software engineer.

He is the co-author of Mosaic, the first widely used web browser; co-founder of Netscape; and co-founder and general partner of Silicon Valleyventure capital firm Andreessen Horowitz.

He co-founded and later sold the software company Opsware to Hewlett-Packard.

Andreessen is also a co-founder of Ning, a company that provides a platform for social networking websites.

He sits on the board of directors of Meta Platforms.

Andreessen was one of six inductees in the World Wide Web Hall of Fame announced at the First International Conference on the World-Wide Web in 1994.

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Crypto Terminology

Crypto Terminology


Glossary of Terms


Bags

Cryptoassets being held, generally as longer-term plays; sometimes used self-deprecatingly for soft or losing positions one should close, but can’t for whatever reason. “Too bad none of my alt bags saw the moon that I did today. #cryptoeclipse”

Bitcoin Maximalists

The truest believers in bitcoin’s original mission and design, often paired with a disdain for altcoins.

Block

Blocks are found in the Bitcoin block chain. Blocks connect all transactions together.

Transactions are combined into single blocks and are verified every ten minutes through mining.

Each subsequent block strengthens the verification of the previous blocks, making it impossible to double spend bitcoin transactions (see double spend below).

BIP

Bitcoin Improvement Proposal or BIP, is a technical design document providing information to the bitcoin community, or describing a new feature for bitcoin or its processes or environment which affect the Bitcoin protocol.

New features, suggestions, and design changes to the protocol should be submitted as a BIP.

The BIP author is responsible for building consensus within the community and documenting dissenting opinions.

Black Swans

A black swan is an event or occurrence that deviates beyond what is normally expected of a situation and is extremely difficult to predict.

Black swan events are typically random and unexpected.

The term was popularized by Nassim Nicholas Taleb, a finance professor, writer, and former Wall Street trader.

Block Chain

The Bitcoin block chain is a public record of all Bitcoin transactions. You might also hear the term used as a “public ledger”.

The block chain shows every single record of bitcoin transactions in order, dating back to the very first one.

The entire block chain can be downloaded and openly reviewed by anyone, or you can use a block explorer to review the block chain online.

Block Height

The block height is just the number of blocks connected together in the block chain. Height 0 for example refers to the very first block, called the “genesis block”.

Block Reward

When a block is successfully mined on the bitcoin network, there is a block reward that helps incentivize miners to secure the network.

The block reward is part of a “coinbase” transaction which may also include transaction fees.

The block rewards halves roughly every four years; see also “halving”.

BTFD | #BTFD

“Buy the Fucking Dip” Advice to other traders to pick up a coin that’s presumably hit its bottom.

“$GNT Golem making moves. Underpriced @ 7.5K If U are buying GNT under 10K still a good price 3 X LETS GO $ETH #CRYPTO #trading #BTFD”

Change

Let’s say you are spending $9.90 in your local supermarket, and you give the cashier $10.00. You will get back .10 cents in change.

The same logic applies to bitcoin transactions.

Bitcoin transactions are made up of inputs and outputs.

When you send bitcoins, you can only send them in a whole “output”.

The change is then sent back to the sender.

Cold Storage

The term cold storage is a general term for different ways of securing cryptocurrency offline (disconnected from the internet).

This would be the opposite of a hot wallet or hosted wallet, which is connected to the web for day-to-day transactions.

The purpose of using cold storage is to minimize the chances of your bitcoins being stolen from a malicious hacker and is commonly used for larger sums of bitcoins.

Cold Wallet and Hot Wallet

Cold storage is an offline wallet provided for storing cryptocurrency.

With cold storage, the digital wallet is stored on a platform that is not connected to the internet, thereby, protecting the wallet from unauthorized access, cyber hacks, and other vulnerabilities that a system connected to the internet is susceptible to.

Confirmation

A confirmation means that the bitcoin transaction has been verified by the network, through the process known as mining.

Once a transaction is confirmed, it cannot be reversed or double spent.

Transactions are included in blocks.

Cryptocurrency

Cryptocurrency is the broad name for digital currencies that use blockchain technology to work on a peer-to-peer basis.

Cryptocurrencies don’t need a bank to carry out transactions between individuals.

The nature of the blockchain means that individuals can transact with each other, even if they don’t trust each other.

The cryptocurrency network keeps track of all the transactions and ensures that no one tries to renege on a transaction.

Cryptocurrency 2.0

Also known as a decentralized app,(Dapp) a cryptocurrency 2.0 project uses the blockchain for something other than simply creating and sending money.

They typically involve decentralized versions of online services that were previously operated by a trusted third party.

Cryptography

Cryptography is used in multiple places to provide security for the Bitcoin network.

Cryptography, which is essentially mathematical and computer science algorithms used to encrypt and decrypt information, is used in bitcoin addresses, hash functions, and the block chain.

Cypherpunk

1. A person with an interest in encryption and privacy, especially one who uses encrypted email.

2. Cypherpunk, a term that appeared in Eric Hughes’ “A Cypherpunk’s Manifesto” in 1993, combines the ideas of cyberpunk, the spirit of individualism in cyberspace, with the use of strong  encryption ( ciphertext is encrypted text) to preserve privacy.

Cypherpunk advocates believe that the use of strong encryption algorithms will enable individuals to have safely private transactions.

They oppose any kind of government regulation of cryptography.

They admit the likelihood that criminals and terrorists will exploit the use of strong encryption systems, but accept the risk as the price to be paid for the individual’s right to privacy.

Dark Web

The part of the World Wide Web that is only accessible by means of special software, allowing users and website operators to remain anonymous or untraceable.

The Dark Web poses new and formidable challenges for law enforcement agencies around the world.

Decentralized

Having a decentralized bitcoin network is a critical aspect.

The network is “decentralized”, meaning that it’s void of a centralized company or entity that governs the network.

Bitcoin is a peer-to-peer protocol, where all users within the network work and communicate directly with each other, instead of having their funds handled by a middleman, such as a bank or credit card company.

Difficulty

Difficulty is directly related to Bitcoin mining (see mining below), and how hard it is to verify blocks in the Bitcoin network.

Bitcoin adjusts the mining difficulty of verifying blocks every 2016 blocks.

Difficulty is automatically adjusted to keep block verification times at ten minutes.

Dogecoin

Dogecoin is an altcoin that first started as a joke in late 2013. Dogecoin, which features a Japanese fighting dog as its mascot, gained a broad international following and quickly grew to have a multi-million dollar market capitalization.

Double Spend

If someone tries to send a bitcoin transaction to two different recipients at the same time, this is double spending. Once a bitcoin transaction is confirmed, it makes it nearly impossible to double spend it. The more confirmations that a transaction has, the harder it is to double spend the bitcoins.

DYOR | #DYOR

“Do Your Own Research.” The trader’s caveat that advice shouldn’t be taken at face value.

“$BCY has an appealing risk/reward here. Could take a few months to play out, however, and will require patience. #DYOR”

Exit Scam

Traditionally a term for darknet markets and vendors that, after building up a good reputation, accumulate bitcoins and disappear; exit scams are also feared by ICO participants who worry that, once they’ve raised hundreds of millions in hard-to-trace money, the developers will take the money and run.

Fiat

Government-issued money.

Full Node

A full node is when you download the entire block chain using a bitcoin client, and you relay, validate, and secure the data within the block chain.

The data is bitcoin transactions and blocks, which is validated across the entire network of users.

FOMO | #FOMO

“Fear of Missing Out.” When a coin starts to moon, dumb money rushes in. “$LGD on a TEAR right now!!! It has major highs right now! Some major #FOMO going on!!! Sell while it’s high. It WILL drop before fight!!!”

FUD

“Fear, Uncertainty, and Doubt.”

Another non-crypto term that describes attempts to scare weak-handed coin-holders into selling their positions, often with rumors of exit scams or hacks; the cheap, dumped coins are then picked up by the FUD-ers.

Fungibility

Fungibility is a good or asset’s interchangeability with other individual goods or assets of the same type.

Assets possessing this fungibility property simplify the exchange and trade processes, as interchangeability assumes everyone values all goods of that class the same.

HODL

HOLD ON FOR DEAR LIFE!

The intentionally misspelled word hodl has its roots in a December 2013 post on the Bitcoin Talk forum, “I AM HODLING”; when the author, GameKyuubi, couldn’t be bothered to fix his typo, the community instantly turned it into a verb: to hodl.


Along with other terms, hodl is an effective litmus test for sussing out newcomers, carpetbaggers, and tourists.

Halving

Bitcoins have a finite supply, which makes them scarce.

The total amount that will ever be issued is 21 million.

The number of bitcoins generated per block is decreased 50% every 210,000 blocks,roughtly four years.

This is called “halving.”

The final halving will take place in the year 2140.

Hash

A cryptographic hash is a mathematical function that takes a file and produces a relative shortcode that can be used to identify that file.

A hash has a couple of key properties:

• It is unique. 

Only a particular file can produce a particular hash, and two different files will never produce the same hash.

It cannot be reversed.

You can’t work out what a file was by looking at its hash.

Hashing is used to prove that a set of data has not been tampered with.

It is what makes bitcoin mining possible.

Hash Rate

The hash rate is how the Bitcoin mining network processing power is measured.

In order for miners to confirm transactions and secure the block chain, the hardware they use must perform intensive computational operations which is output in hashes per second.

Hash Converter

Use an online hash converter, such as https://hash.online-convert.com and enter the text you want to convert.

Then, try changing just a letter in the input text to see how the resulting hash varies significantly

Hard Fork

A hard fork is when a single cryptocurrency splits in two.

It occurs when a cryptocurrency’s existing code is changed, resulting in both an old and new version.

Meanwhile a soft fork is essentially the same thing, but the idea is that only one blockchain (and thus one coin) will remain valid as users adopt the update.

So both fork types create a split, but a hard fork is meant to create two blockchain/coins and a soft fork is meant to result in one.

Segwit was a soft fork, Bitcoin Cash, Bitcoin Gold, and Segwit2x are all hard forks.

Immutability

In object-oriented and functional programming, an immutable object (unchangeable object) is an object whose state cannot be modified after it is created.

This is in contrast to a mutable object (changeable object), which can be modified after it is created.

Lambo | #Lambo

A running joke among traders, you’re cryptorich when you can buy a Lamborghini; though absurd, it’s not unheard of — when Alexandre Cazes, the suspected founder of a major darknet marketplace, was found hanged in his Bangkok jail cell, Thai media reported that he owned four Lamborghinis.

Mining

Bitcoin mining is the process of using computer hardware to do mathematical calculations for the Bitcoin network in order to confirm transactions.

Miners collect transaction fees for the transactions they confirm and are awarded bitcoins for each block they verify.

Moon | #Moon

A rapid price increase.

Peer-to-Peer

Typically, online applications are provided by a central party that organizes all the transactions.

Your bank runs its own computers, and all the customers log into the bank’s computer to handle their transactions.

If Bob wants to send money to Alice, he asks the bank to do it, and the bank controls everything.

In a peer-to-peer arrangement, technology cuts out the middleman, meaning that people deal directly with each other.

Bob would send the money directly to Alice, and there wouldn’t be any bank involved at all.

Pool

As part of bitcoin mining, mining “pools” are a network of miners that work together to mine a block, then split the block reward among the pool miners.

Mining pools are a good way for miners to combine their resources to increase the probability of mining a block, and also contribute to the overall health and decentralization of the bitcoin network.

Private Key

A private key is a string of data that shows you have access to bitcoins in a specific wallet.

Think of a private key like a password; private keys must never be revealed to anyone but you, as they allow you to spend the bitcoins from your bitcoin wallet through a cryptographic signature.

Proof of Work

Proof of work refers to the hash of a block header (blocks of bitcoin transactions).

A block is considered valid only if its hash is lower than the current target.

Each block refers to a previous block adding to previous proofs of work, which forms a chain of blocks, known as a block chain.

Once a chain is formed, it confirms all previous Bitcoin transactions and secures the network.

Pump

A rapid price increase believed to be the result of market manipulation, a.k.a. pump and dump.

Public Address

A public bitcoin address is cryptographic hash of a public key.

A public address typically starts with the number “1.”

Think of a public address like an email address.

It can be published anywhere and bitcoins can be sent to it, just like an email can be sent to an email address.

Private Key

A private key is a string of data that shows you have access to bitcoins in a specific wallet.

Think of a private key like a password; private keys must never be revealed to anyone but you, as they allow you to spend the bitcoins from your bitcoin wallet through a cryptographic signature.

Rekt | #Rekt

Meaning “wrecked”.

“I never sell because of #FUD, and I never buy because of #FOMO.

That’s the easiest way to get #Rekt

Sats

Satoshis, currently the smallest unit of a single bitcoin, useful for tracking coin prices. “At the rate $XRP’s moving, I wouldn’t be surprised if it hits 10K sats by the end of the day.”

Security Tokens

A security token (sometimes called an authentication token) is a small hardware device that the owner carries to authorize access to a network service.

The device may be in the form of a smart card or may be embedded in a commonly used object such as a key fob.

Shitcoins

Pejorative term for altcoins, especially low-cap coins, often affectionately used by shitcoin hodlers.

SEGWIT

SegWit is the process by which the block size limit on a blockchain is increased by removing signature data from Bitcoin transactions.

When certain parts of a transaction are removed, this frees up space or capacity to add more transactions to the chain.

Transaction

A transaction is when data is sent to and from one bitcoin address to another.

Just like financial transactions where you send money from one person to another, in bitcoin you do the same thing by sending data (bitcoins) to each other.

Bitcoins have value because it’s based on the properties of mathematics, rather than relying on physical properties (like gold and silver) or trust in central authorities, like fiat currencies.

Wallet

Just like with paper dollars you hold in your physical wallet, a bitcoin wallet is a digital wallet where you can store, send, and receive bitcoins securely.

There are many varieties of wallets available, whether you’re looking for a web or mobile solution.

Ideally, a bitcoin wallet will give you access to your public and private keys.

This means that only you have rightful access to spend these bitcoins, whenever you choose to.

Whale

Anyone who owns 5 percent of any given coin, often used as a boogeyman to explain unwanted price movements.

“Nice support $NEO. Clear whale manipulation.”


Blue Pill vs. Red Pill
Choose wisely

When You’re ready …

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BitHouse with 💚


What bitcoin is … NOT

Bitcoin is not Abracadabra…
but Bitcoin can be Avada Kedavra for the current Banking system!

Bitcoin is not Magic…
but it can be for Muggles!

Bitcoin is not an “Investment” …
but educating yourself about bitcoin can be!

Bitcoin is not an “Investment”…
but knowing  the basics and being educated about it, lowers the chances of loosing your hard earned money!

Bitcoin is not an “Investment”…
but staking Sats proved to be a preety good Strategy in the Long Term!

Bitcoin is not digital money…
but it’s ons of it’s first applications!

Bitcoin is not money…
but is Money for the Internet!

Bitcoin is not PRICE !!!

Bitcoin is not PRICE…
but the market is driven mostly by FUD & FOMO people

Fear
Uncertainty
Doubt

bring the market Down


Fear
Of
Missing
Out

bring the market Up

Bitcoin is not a “Get Rich Quick Scheme” and the one’s that got rich were the one’s that were there from the begining…

Bitcoin is not voodoo people, magic people…
but a bunch of smart geeks & nerds that support the bitcoin’s philosophy and what it stands for…

Bitcoin is not under no juridstiction…
but it is a global p2p network of like-minded people that with the power of their equipment sustain, mantain and make the bitcoin network stronger and more decentralized!

Bitcoin is not a Coin…
but an entry in a digital ledger!

Bitcoin is not illegal activity money…
but bitcoin can be used in such activity…
Reports show that FIAT is still the No. #1 choice for “Evil Doers” as it doens’t have an public, open and visible ledger …
Duh…

Bitcoin is not evil…
but bitcoin can be used to do evil!
As does a Pen!
It can be used to do evil!
How, you would ask?
If  I take this ✏ and stick it up your a… who is Evil ?!?
The One who invented the pen?
The Pen?
Me?
Your a.. cause it was in the way 🤣
Perspective is a matter of opinion…

Bitcoin is not News…
but instead read pools, github, exchanges, wallets…
They are the ones that pave the way where bitcoin could, should or would go!

Bitcoin is not DEAD…
It was already declared Dead 441 times!

see :

https://99bitcoins.com/bitcoin-obituaries/

Bitcoin is not …
Yapidi Yapidi Yap people…

If someone says :

1 – Bitcoin consumes too much electricity, they don’t understand POW!

2 – Bitcoin isn’t a government backed currency, you should ask who backs their government…
If the answer is the Army…

3 – Bitcoin isn’t backed by gold like the the US$…
Neither is the $ since ’71

4 – Bitcoin isn’t real because I can’t see it…
80% of world’s money is Digital…

5 – Bitcoin isn’t a store of value as good as Gold is…
Gold had thousands of years to prove that, bitcoin only 13… give it time!
It already proved a lot !!!

6 – Bitcoin’s inventor is annonymous and can’t be trusted…
Who invented money then? How do money come up into existance?

7 – Bitcoin will never be largely accepted because it isn’t issued by a government…
You know what else wasn’t issued by no government ? Cars, Electricity, Steam Engine, Facebook, Uber, Google, Amazon, etc bla bla bla

8 – Bitcoin can’t be a currency cause I can’t buy anything with it…
I think I have shared a list with places that you can buy things with bitcoin…Quite a few!!!

9 – Whales… Beware of yapidi yap of whales cause they say one and do the opposite 🙂 😉 !!!

9 – Bitcoin is not this, bitcoin is not that but they all swarm around the bee’s honeypot as if it were honey 🤣🤣🤣

I forgot…In the meantime, little unsignificant countries like El Salvador, mine bitcoin with 🌋 !!!

And still newspapers, investors that bite their whatever not having invested when it was under $1, and a hole portion of the world are all saying…

Etc bla bla bla Yapidi Yapidi Yap


Never Forget The Golden Rules:

Not Your Keys, Not Your Crypto!!!

Don’t Trust, Verify!!!

Don’t Believe, Do your own Resesearch and due diligence!!!

Save your Wallet’s Mnemonic Phrase in at least 3 places for safe-keeping!!!


WE ARE SATOSHI


When you’re ready…

Timothy C. May

Hal Finney

Poem of the Legacy

From the ashes of the long forgotten past,
A bright mind wrote a code that would for ever last…
A code so powerful and strong,
That would change the world for oh so long…

The code he wrote and set it free,
For the humankind legacy to be…
To change the lives of future generations to come,
He wrote the code and he was gone…

Oh, bright mind your legacy will last,
For generations to come and be thankful about the past…
Nobody knows who you might be,
Some do and say Kudos to You for Ethernity!


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BitHouse with 💚

Btc-Usd Monthly Returns


Btc-Usd Monthly Returns 2011-2021

Asset Class Total Return over last 10 Years

Numbers talk louder and more truthful than words could ever do !!!

Simple plain numbers that have the answer everyone is looking for 🙂😉

That’s what I love about mathematics, it’s an undeniable Truth !!!

Read and pick your own conclusion folks !!!

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Mining Pool Payouts

Mining Pool Payouts explained: PPS vs. FPPS vs. PPLNS vs. PPS+

What is a Mining Pool?

Mining Pools

A Mining pools is a hub where a group of Crypto currency miners share their processing power to the network in order to solve the blocks quicker.

The rewards will be split equally based on the amount of shares that they contributed in finding a block.

Pool mining was introduced during early Bitcoin mining days when solo mining became non-viable.

The more powerful your hardware is, the more shares you’ll submit, the more shares you submit, the more you’ll earn.

In order for the pool to pay its miners each pool uses its own payment scheme. Two of the most popular option is PPS and PPLNS.


Mining Pool payouts explained PPS vs. FPPS vs. PPLNS vs. PPS+
Mining pool payouts explained: Pay-per-share (PPS)
Pay-Per-Share (PPS)
Pay-per-last-n-shares (PPLNS) MineBest
Pay-Per-Last-N-Shares (PPLNS)
Different mining pool payouts explained: PPS vs. FPPS vs. PPLNS vs. PPS+

The first thing a miner has to decide is which pool mining payout is best for their requirements.

PROP (proportional), FPPS (Full Pay Per Share), SMPPS (Shared Maximum Pay Per Share), ESMPPS (Equalized Shared Maximum Pay Per Share), CPPSRB (Capped Pay Per Share with Recent Backpay), PPS (Pay Per Share), PPLNS (Pay Per Last N Share) and lastly PPS+ (Pay Per Share Plus).

Among them PPS and PPLNS are the two types of payment models that are mostly used by mining pools currently. Before we explain both PPS and PPLNS we’ll make a short note on mining pool.

There are numerous payment systems (over 15), but the vast majority of the pools operate on a PPS, FPPS, PPS+ and PPLNS basis.

However, before trying to understand the different settlement models, it is important to come to a consensus on some terms used in crypto mining.

Block Reward: Block reward refers to the new coins issued by the network to miners for each successfully solved block.

Hashing PowerHash rate is the speed at which a computer completes an operation in the cryptocurrency’s code. A higher hashrate increases a miner’s opportunity of finding the next block.

Luck: Luck, in mining, is the probability of success. Imagine that each miner is given a lottery ticket for a certain amount of hashing power they provide. If they are to provide 1 TH/s hashing power when the overall hashing power in the network is 10 TH/s, then they would receive 1 of 10 total lottery tickets. The probability of winning the lottery (in this case finding the block reward) would be 10%.

Transaction Fees: Some networks (like Bitcoin) also have substantial amounts of transaction fees rewarded to miners. These fees are the total fees paid by users of the network to execute transactions.

Pay-Per-Share (PPS)

PPS offers an instant flat payout for each share that is solved. With this payment method, a miner gets a standard payout rate for each share completed. Each share is worth a certain amount of mineable cryptocurrency.

After deducting the mining pool fees, the miners are given a fixed income every day. Therefore, under the PPS mode, the returns are relatively stable. Miners are exposed to risk here. They may not get the transaction fees.

It is ideal for low priced orders for an extended period. This model becomes lucrative during a bearish run of a particular coin.

Pay-Per-Last-N-Shares (PPLNS)

With this payout, profits will be allocated based on the number of shares miners contribute. This kind of allocation method is closely related to the block mined out. If the mining pool excavates multiple blocks in a day, the miners will have a high profit; if the mining pool is not able to mine a block during the whole day, the miner’s profit during the whole day is zero.

Notably, in the short term, the PPLNS model is highly correlated with a pool’s luck. If the luck factor of a particular mining pool decreases in the short term, the miner’s income will also decrease accordingly (the opposite case of the mining pool being lucky in the short term is possible too). However, in the long term, the luck factor tends to average out to the mean.

Hence, this model is ideal for fixing orders on a big pool that has a high chance of finding a block within the order time limit. Or a standard order which will have miners connected for a longer time.

Pay Per Share + (PPS+)

PPS+ is a blend of two modes mentioned above, PPS and PPLNS. The block reward is settled according to the PPS model. And the mining service charge /transaction fee is settled according to the PPLNS mode.

That is to say, in this mode, the miner can additionally obtain the income of part of the transaction fee based on the PPLNS payment method. This was a major drawback in the PPS model.

Full Pay Per Share (FPPS)

With this pool payout, both the block reward and the mining service charge are settled according to the theoretical profit. Calculate a standard transaction fee within a certain period and distribute it to miners according to their hash power contributions in the pool. It increases the miners’ earnings by sharing some of the transaction fees.

With the PPS and FPPS payment methods, you will get paid no matter if the pool finds a block or not. This is the most significant advantage over PPLNS. The risks and rewards are higher with the PPLNS plan.

The decision on which mining plan to choose from needs to be preceded by the decision of choosing the right mining infrastructure.


Difference between PPS vs PPLNS payment models?

PPLNS

PPLNS stands for Pay Per Last (luck) N Shares. This method calculates your payments based on the number of shares you submitted during a shift.

It includes shift system which is time based or by number of shares submitted by the miners on the pool.

Your pool may find blocks consistently or in overtime it may have huge variations in winning a block and that ultimately affects your payments. PPLNS greatly involves luck factor and you’ll notice huge fluctuations in your 24 hour payout.

If you maintain your mining on a single pool then your payouts will remain consistent and it only differs when new miners join or leave the pool.

PPS

Pay Per Share pays you an average of the number of shares that you contributed to the pool in finding blocks.

PPS pays you on solid rate and is more of a direct method which completely eliminates luck factor.

In PPS method regardless of the pools lucky at winning blocks you’re going to get 100% payout at the end of the day. This is because there is a standard payout set for each miners based on their hash power.

It won’t be more than 100% or less than that and with this PPS method you can easily calculate your potential earnings.

On the other hand with PPLNS payment system on average you can either get more than 100% or less than that. It is based on how lucky the pool is at finding blocks.

Should I choose PPS or PPLNS?

This is one of the common questions most miners have initially.

Should I choose Pay Per Share or Pay Per Last N Share pools?

If you are the person who don’t switch pools often then PPLNS is definitely for you as such pools are good at rewarding its loyal miners.

Pay Per Share: No matter what, if you need a fixed payouts at the end of the day to liquidate or for whatsoever reason then your choice would be PPS.

Pay Per Share works well for large mining farms who can calculate and have statistics based on their mining power.

PPS is good for large miners but really bad for pool owners as there is a guaranteed payout for work no matter if the pool hits the block or not.

For this reason and because of pool hoppers (not loyal miners of the pool) most of the mining pools have switched to PPLNS payment model.

Pay Per Last N Shares: If you are the one that is looking to accumulate and hold more coins then PPLNS is recommended.

For each block that your pool finds you’ll get a share based on your hashrate.

Unlike PPS, in PPLNS you’ll get payouts more often and in the long run you’ll be rewarded more with PPLNS than PPS.

However due to huge variance it’s really hard to calculate your mining income.

PPLNS is good for both mid-range miners and pool owners as the payouts is only based on the blocks found.

If your pool is more lucky  then you’ll see payments more often. This is the reason why miners stick to a pool where there is more hash power assuming the pool finds block very often.

You can find more comparison of mining pools payment system here.

How to find out if a pool is PPS or PPLNS?

Cryptocurrency mining can be a lucrative process. However it’s very important that you find out what payment scheme your pool is using before committing your hashing power.

Most of the mining pools has this information listed on FAQ page or at payouts page. If you’re unable to find this information then the only option is to contact the pool support.

Hope the information on this page is helpful for you to decide the right mining pool.


Happy Hashing


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Happy 13th BirthDay bitcoin

bitcoin – People’s Money

Brief history of Bitcoin

On January 3rd, 2009 Satoshi Nakamoto published the Genesis Block with the first 50 Bitcoins on Sourceforge. He also left a message on the blockchain at the time, quoting the headline in the British newspaper Times:

On January 3, 2009, the minister was on the verge of bailing out the banks.

Nakamoto started writing the white paper in 2008 and published it in October of that year.

The concept of a decentralized, anonymous, trusted currency emerged after the 2008 financial crisis, which left responsibility for the banks.

Satoshi neither supports the modern banking system nor does he like partial reserve banks.

A partial reserve bank is a bank that takes deposits and issues loans or investments, but only has to reserve a fraction of its liabilities for deposits. Basically, the bank is using money that it doesn’t own.

Satoshi wants to get rid of banks and seedy middlemen whom he believes are corrupt and unreliable. As such, he created a more community-centric digital currency.

13 years later, Bitcoin is still going strong with a market cap of nearly $ 900 billion. It is currently held by billionaires, banks, celebrities, governments, and corporations. This is evidence of how far BTC has come in its brief existence.

The precarious banking situation and economic uncertainty are also in crisis again.

The price of Bitcoin on its birthday 🎂

13 years: $ 47,310
12 years: $ 33,400
11 years: $ 7,319
10 years: $ 3,783
9 years: $ 14,764
8 years: $ 1,084
7 years: $ 432
6 years: $ 275
5 years: $ 816
4 years: $ 13
3 years: $ 5
2 years: $ 0.29
1 year: $ 0.05


Happpy Birthday bitcoin !!!

Thanks for all the teachings and wealth of Knowledge I do now have thanks to you !!!


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People’s Money

Made with 💚 by Free Spirit

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F*** THEM !!! ENOUGH !!!

https://youtu.be/Ol_gaQzJrNY