We The Crypto’s Home Page

Have you ever wondered what determines the value of cryptocurrencies? Well wonder no more! Here’s a list of some factors that affect their price and why it changes.

1. Supply and demand

Let’s take the most popular crypto as an example: Bitcoin. The supply and demand of Bitcoin plays a big factor in the prices. Currently, there is supposedly a cap of 21 million Bitcoins. When that cap is reached, Bitcoin mining will no longer create new Bitcoin. The supply of Bitcoin has reached 16.8 million in January of 2017, meaning that around 80% of the total amount of Bitcoin have already been mined and made available to the public. As we all know in general economics, the price goes up when the demand cannot keep up with the supply.

There are two types of factors that can affect this: Internal factors and External factors.

Internal Factors

a. Traders – People who actively trade cryptocurrency can greatly affect the rise and fall of the rates. Middle traders depend on the major traders’ choice to buy, sell or hold. Lastly, major traders try to manage the price fluctuations through market tools subject to appropriate market conditions.

b. Crossed Influence Of Different Cryptos – Simply put, when the price of bitcoin goes up, the price of altcoins drops in fiat value, and cheapens further in relation to BTC.
This happens because, with BTC price growth, altcoins’ fund is pushed to bitcoin. In such a case, only altcoins having strong support can maintain its position.

External Factors

a. Global Adaptation – As people, stores and companies slowly start to accept crypto as forms of payment then this could increase its demand. The opposite applies if more people reject it.

b. Updates on the Crypto-software – A good example of this is the Segregated Witness, popularly known as SegWit. When the SegWit activated, Bitcoin doubled in price.

c. Mass Media & Influence – Positive or negative insights by influential figures can affect how people perceive cryptocurrency and can therefore affect its market prices.

d. Trade Market Integration – When popular cryptocurrency platforms such as Paxful starts accepting a new cryptocurrency then that crypto’s legitimacy increases and so does the demand for it. Networks are created through these kinds of marketplaces as the exchanges become more popular. This is because it becomes easier to gain more participants. The price is affected by this as it has a direct effect on the popularity of Bitcoin, as more people buy and sell.

e. Political Events – Big news such as China’s decision to completely ban ICO’s from being staged in the country, as well as the closing down of domestic exchanges can cause prices to tumble down.

2. Competition

Although it is believed that Bitcoin is the most popular cryptocurrency, there are over 1000 forms of cryptocurrencies in circulation. Examples of other cryptocurrencies are Litecoin and Ethereum. The presence of competition keeps the value of an investment in check. For example, the value of the U.S. Dollar would have been different if stronger currencies didn’t exist such as the Euro, the Yen, or the Pound.

3. Its Own Internal Governance

Since Bitcoin is not regulated by singular authority, miners are put on the spot to process transactions and secure the blockchain. If they wanted to tweak or change the software, then it has to be the decision of the consensus. Because of this, members of the Bitcoin community feel that solving fundamental issues can sometimes take too long, particularly the issue of scalability.

At this moment, the Bitcoin software is only able to process around 3 transactions per second, which is incredibly slow for how popular it is. As of now the community is trying to figure out ways to speed up the number of transactions. When these changes are applied, they turn into a whole other cryptocurrency. Examples of this are bitcoin cash and bitcoin gold. Investors then sometimes decide that the new currency isn’t as valuable, thus the new currencies not having enough value as Bitcoin.

4. Utility

As with all goods and services, the utility of a cryptocurrency plays a big role in its price. If a new cryptocurrency is created but offers no new solutions or perks then it will not retain investor interest in the long run. However, if it offers something new and useful then it will rise in demand.

A good example of a new cryptocurrency that offered something different than Bitcoin is Ethereum. Whilst Bitcoin is just a cryptocurrency, Ethereum is actually a ledger technology that people can use to build new programs and its potential applications opens so much opportunity. Its token is what we call Ether. People use Ether to trade. Sometimes it is also used inside Ethereum to run applications and monetize work.

5. The Price of Bitcoin

Bitcoin is the king of all crypto. What happens to it will reflect on all other cryptocurrencies. When Bitcoin prices go up, the crypto market follows and when it goes down, the market dips. And if the top cryptocurrency is doing bad then why would investors even buy other altcoins?

Also, most crypto exchanges require the exchange of bitcoin for other coins, making it like a crpyto reserve currency. All other cryptocurrencies is pegged on Bitcoin so every price is also heavily reliant on bitcoin to an extent.

6. Security

We all know that there is no one authoritative figure in charge of bitcoin, unlike with fiat money where armed guards protect the bank. Cybersecurity could also greatly influence the price of crypto. A well-known hack attack happened back in 2014 in Mt. Gox, where they lost $750,000 worth of bitcoins (back then it amounted to $470 million). The incident caused bitcoin to drop to around 36 percent. But if you think about it, regular banks are also prone to robbery, security hacks and heists. So it is only a matter of educating yourself with ways on how to properly protect your money, regardless if it is online or not.

What other factors do you think can affect the price of Bitcoin? We’d love to hear from you! Let us know in the comment section down below.

 

Discovering Bitcoin in itself is quite overwhelming so imagine finding out that there are other cryptocurrencies as well!

According to coinmarketcap.com there are currently 2086 existing cryptocurrencies (as of January 2019) but why are there so many? Simply put, they are easier to make. Thanks to the underlying blockchain technology, it is easier for programmers to create different cryptocurrencies for different functionalities. No one specifically owns the blockchain network and therefore anyone with proper knowledge about the technology can create their own cryptocurrency.  These are what we refer to as “altcoins” or alternative bitcoins. A couple of popular altcoins are Ether, Bitcoin Cash, Ripple and Litecoin.

Forks

Another reason why there are a lot of cryptocurrencies is because of forks. While most of you may know it as a tool for eating, in the crypto-sphere it generally means that there is a software or protocol update. Forks create an alternate version of the blockchain, leaving two blockchains to run simultaneously on different parts of the network depending if it is a hard fork or a soft fork.

A well-known fork that has been causing a lot of controversy is Bitcoin Cash which was created to increase bitcoin’s block size from 1MB to 8MB to deal with scalability. But other people are against this because that would mean large miners could potentially take over and small miners wouldn’t have a chance to compete.

Initial Coin Offerings

Initial Coin Offerings or ICO’s are another reason why cryptocurrencies are born. It’s a new method of funding for start-ups where new coins or tokens are issued. Almost anyone can create their own ICO. You just need a white paper, where you describe how the system would work and a website to showcase the features of your coin and why it would be useful. Then you raise money to fund your coin.

It’s very much similar to an Initial Public Offering (IPO). The only difference is that investors won’t have an ownership stake of the company.

Mining and Scalability

There have been numerous complaints about bitcoin’s scalability in terms transaction speed and energy efficiency and with those problems come new cryptocurrencies promising to provide a solution. Common consensus algorithms used by cryptocurrencies that you may encounter are Proof of Work (POW), Proof of Stake (POS), and Proof of Importance (POI). You’ll also find Proof of Space-Time and Delegated Proof of Stake.

Bigger isn’t always better

Although the amount of cryptocurrencies is growing, that doesn’t necessarily mean that it’s a good thing. As with any product and with so much competing against one another, a lot are prone to fail. Which is why it’s very important to do your own research before investing in any cryptocurrency. Only a few will stand out and survive the test of time.

Which crypto do you think will stick around? Let us know in the comment section down below!

Conspiracy theories are some of the most interesting things that people can think of. These stories are interesting enough to make you stop for a second and think. Today, we’ll be going over some of the craziest Bitcoin conspiracy theories.

1. The mysterious founder of Bitcoin

Let’s start with the biggest mystery that started it all. The inventor of Bitcoin has always been unknown. Although we have to thank this person for the very first cryptocurrency and blockchain technology, no one really knows Satoshi Nakamoto’s true identity. How can it be possible to hide the identity of someone THIS influential? Most people believe Satoshi Nakamoto to be a pseudonym. Some people even believe in the possibility of him being a female or a group of people.

Some of the crazier theories include Satoshi being neither a male nor a female. There are theories that it could be an it. There were claims that he may have been a bot, where they called it “Robo Satoshi”. 

Another interesting take on this was when a Russian IT entrepreneur named Natalya Karpersky claimed that Satoshi Nakamoto was a code name for a group of US cryptographers. It was unclear how she got to that conclusion, but her claims definitely received some attention. There was also a theory floating around that the Chinese government was responsible for creating Bitcoin, aiming to help China lessen their reliance on the US dollar. China also seemed to really embrace bitcoin in the early years, adding fuel to the conspiracy fire. It ended up not being plausible because the government eventually ended up cracking down on cryptocurrencies.

2. Time travelling Satoshi Nakamoto

If you don’t know what a block hash is, it’s a randomly generated code that documents each new block that’s mined and added to the blockchain ledger. Last June 2018, there was a block hash that lit a spark in the eyes of everyone in the crypto-community.  (00000000000000000021e800c1e8df51b22c1588e5a624bea17e9faa34b2dc4a)

So what’s the relevance of this code? First of, all the zeros at the start of the code mimic the “Genesis Block”, or the first block that was ever mined. Second, according to an article on Medium, the 21e8 that comes after the zeroes signify “an exceptionally simple theory of everything.” According to the article, the 21e8 of the function relates to physics theory called E8 Theory, a theory that attempts to describe all known fundamental interactions in physics.

Basically, a very important identifier was created and that this hash function is extremely rare, making it significant.

The conspiracy theory comes in when people thought about what could possibly create this special code. People think it may have something to do with time travel, as the code is so improbable it would take a lot of time to achieve it. People think that it’s an indication that someone from the future has mined it.

Some people think that it is Satoshi himself since the mathematical coincidences are too strong for it to be anyone else. People also think that it has something to do with Quantum computing and hackers.

3. Fed-coins

In an article written in December 2017, the peak of bitcoin, an author on FXSTREET named Michael Pento talked about how curious it was for him that the US Government and Federal Reserve have becomes so “enamored with cryptocurrencies”. He also mentioned how the authority figures have been reluctant to shut cryptocurrencies down. Back then, the Know Your Customer and Anti-Money Laundering regulations weren’t implemented and the governments were still figuring out what to do. Pento believed that the governments were purposely orchestrating an environment where cryptocurrencies can flourish. He also believed that the governments had ulterior motives to crush private cryptocurrencies altogether, creating the “Fed-coin”. This coin would utilize the blockchain like bitcoin, but with the government having complete control and with it replacing physical currency altogether. In turn, they aimed to create a monetary system that is 100% electronic money, 100% controlled by the government.

What do you guys think about these conspiracy theories? Do you think they’re too crazy to believe? Share your thoughts in the comment section down below!

 

Being a newbie in anything can be a scary thing. Although mistakes are the best way to learn, it might be better to make as little as possible. Today, we’re going to talk about some of the biggest mistakes you can make as a newbie.

1. Not doing your own research

This might be the biggest out of all the possible mistakes you can make. With anything you want to get into whether it be learning how to play the guitar or cryptocurrency trading, it is extremely important to do research. Research is important because when faced with decisions like buying and selling, you have to be able to trust yourself. It’s your money and although it helps to seek for advice, you ultimately have to make your own decisions when it comes to your money. Building a knowledge base with research is essential for making cryptocurrency trading as easy and smooth as possible. Go on and watch videos, read books and articles, and scroll through forums to get started on research.

2. Failing to find a community

One of the coolest things about Bitcoin being the catalyst for cryptocurrencies is that there are already several communities that have been established. With these communities, you have the ability to ask questions and ask for trading advice with a tight-knit group of people who are all on the same ride. These communities are good not only for learning as much as you need to know, but also for you to enjoy the ride with other fellow traders.

3. Lack of patience and security

Everyone who’s into cryptocurrency trading knows how much of a roller-coaster it is, and that it’s easy to lose yourself in your emotions. It might be hard, but you have to be prepared for bitcoin’s volatility and most importantly DON’T PANIC. Once you start panicking, you’ll end up panic-buying and/or panic-selling. Being patient doesn’t only apply to the HODL-ing strategy, but it even applies to short term trading. If you’re doing or going to day trade, you need to have a plan for it and stick patiently to that plan.

4. Selling when it’s “high enough”

Similar to number 3, selling when it’s “high enough” shows a sign of fear or panic. Why would you settle for something good when it has the potential to be great? When it comes to trading with bitcoins, it’s important to have a plan with an achievable end-game. With Bitcoin’s volatility, it may be hard to stick completely to your plan, but that’s what having a plan is for: to set a goal for you to achieve.

5. FOMO

FOMO, or Fear Of Missing Out, plays a role in Bitcoin investments everywhere, especially after the boom in late 2017. There were a lot of people asking themselves “If only I had known…”. This is something that probably most of us have felt in the past. We need to realize that cryptocurrencies, bring us new opportunities every day. We’re better off doing our own research on the next big thing rather than feeling bad and get hung up on the past.

Have you ever gone through these mistakes before? Did we leave any out? Share it with us in the comment section down below.

 

The History of Bitcoin

Bitcoin THIS, Bitcoin THAT! Where did “Bitcoin” even come from? It seems like the popularity of this crypto came out of nowhere! This virtual currency revolutionized payments because it does not require a third party, like a bank, to complete a transaction. However, despite it being really popular a lot of people are still confused about it. And because of this we’re going to dive into the history of Bitcoin, and the timeline of its conception.

Traveling Back In Time

To start it off, we’re going all the way back to 1998. Where there were attempts at creating secure online currencies dating back to 1998 like B-Money and Bit Gold (which were never really fully developed).

Now moving forward 10 years to 2008, a design paper titled “Bitcoin – A Peer to Peer Electronic Cash System” was posted to a mailing list about cryptography. Satoshi Nakamoto is rumored to be the creator of Bitcoin. In fact, “Satoshi” means quick witted or wise, “Naka” means medium or relationship, and “Moto” means origin or foundation.  However people believed that to be a pseudonym, and to this day, no one knows who he really is.

The following year after Satoshi Nakamoto’s paper was released, the Bitcoin software went public. In light of that, the first ever Bitcoin, titled “The Genesis Block” or “Block 0”, was mined. In addition, 2009 was also the year wherein the New Liberty Standard published the first Bitcoin exchange rate set at US$1 = 1,309.03 BTC. They got that exchange rate by computing for the electricity consumption that a computer used to generate Bitcoin.

The Birth of Bitcoin

In 2010, the first Bitcoin transaction was made with Block 170. It was between Satoshi and Hal Finney, a developer and cryptographic activist. That same year, someone decided to sell 10,000 Bitcoins for two pizzas (equal to about $25 at the time). If he had held onto those Bitcoins, they would be worth over $100 million. How crazy is that?

For the most part, Bitcoin has been living up to its volatile reputation by increasing and decreasing in price and taking its investors along a crazy roller coaster ride. What do you think is the next milestone for Bitcoin? Let us know in the comment section down below!