Bitcoin Blockchain | All about the Blockchain

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Bitcoin uses a public and distributed “accounting system” or “general ledger” known as a block chain. Blockchain technology is perhaps the greatest innovation Bitcoin has to offer. Countless companies and service providers, especially from the financial sector, are showing interest in the technology and are even toying with the idea of using it for themselves.

A blockchain is a decentralized, unchangeable and continuously growing database.

A major strength of Blockchain technology is its ability to securely distribute information. The information is distributed to several nodes or computers, which is why the blockchain technology is often called “distributed ledger technology”.

The database is not stored and controlled in one place as with central providers, but by several thousands of computers simultaneously. If you want to change the database, you would have to change every single copy on every computer.

In addition, the Bitcoin network checks the accuracy of all data at certain intervals.

Blockchain and Blocks on Bitcoin Code

The data sets that are added to a blockchain become “blocks”. Since these blocks https://www.onlinebetrug.net/en/bitcoin-code/ are cryptographically concatenated, it becomes difficult to manipulate these data sets and is almost impossible. It would require enormous computing power to manipulate the blocks.

With Bitcoin, one block is created every ten minutes and chained to the previous block. The processing of these data records is called mining. And this stringing together creates a chain of blocks, a block chain.

Which data does a Bitcoin Trader contain?

The bitcoin blockchain usually contains transaction data from various transfers, a timestamp and a hash of the previous block.

What problem does Bitcoin and Blockchain technology solve?
In the real world, it’s easy to prove whether you own something or not. Things get more difficult when they’re digital. An example:

I have a digital dog and I would like to give it to you as a present. So I send onlinebetrug present Bitcoin Trader the digital dog to you. But how can you be sure that the digital dog is yours alone? And can you be sure that I didn’t send the digital dog as an e-mail attachment to Anna before? Maybe I copied the digital dog several times or put it online. With digital things, it gets harder to prove that something belongs to me or to you.

That’s why you need an accounting system. So I buy a book that is now the general ledger for digital transactions and write in this general ledger that I will give you a digital dog on 8 February 18. But now someone would have to administer this general ledger. If you’d leave this book to me, I could change the book at any time. If I gave you the book, you could change it. We need to trust each other that both sides are honest forever. Also, someone could steal our ledger and register as the owner of the digital dog.

That is why we need a general ledger that requires no trust, is decentralised, secure and protected against forgery and manipulation. And this is exactly what Bitcoin has achieved, whereby the blockchain as a decentralized general ledger records all digital transactions forgery-proof.

European Market Authority reduces leverage in bitcoin trading

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The European Securities and Market Authority (ESMA) has reduced the maximum leverage that can be used in bitcoin trading, according to the South China Morning Post.

The new rules have reduced the maximum allowable leverage from 15x to 2x, significantly reducing traders’ potential profits (and losses). The amendment only applies to certain types of derivatives acquired through brokers, so-called CFDs. It does not apply to margin trading on crypto currency exchanges.

What is leverage?

Leverage* means borrowing money to increase the volume of your trades and thus increase potential gains and losses. The use of leverage to trade is called margin trading, and traders can either take a short position (bet that the price of the investment will fall) or a long position (bet that the price will rise).

Leverage makes Bitcoin Profit possible

Leverage makes it possible to earn much more money, but also to suffer higher losses with Bitcoin Profit. For example, with $100,000 and 15x leverage, a trader could open a $1.6 million position. If he opened a long position and the price of his investment had only risen by 1%, he would have made a profit of $16,000. Suddenly he has achieved a return of 16 percent on his capital, although the asset has only increased by 1 percent. But also vice versa: If the investment only decreases by 1 percent, he has lost 16 percent of his equity. He only has $84,000 left now.

As soon as the trader’s position falls below his minimum margin, the exchange will inevitably close his position, this process is called liquidation. A trader therefore does not have the opportunity to wait and see if the price moves in its direction again; his position is closed and his equity is lost.

Massive leverage – Amounts are regularly used in markets such as the Forex market (FOREX), where traders bet on the value of other currencies that rise or fall. Since the value of national currencies generally only increases or decreases by very small percentages, a massive leverage effect is required to make profits on the market. What really scares regulators like ESMA is the volatility of Bitcoin. Such volatility as in crypto currencies can cause immense economic damage for traders if they bet on high leverage.

Effects on the Bitcoin price

Someone who buys at 15x leverage generates much more demand and drives the price higher than someone who buys at 2x leverage. It is believed that such changes could dampen Bitcoin’s price growth during uptrending markets as margin buyers suddenly buy much less than they would otherwise.

Ripple CEO: Blockchain does not destroy banks and China controls Bitcoin

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Brad Garlinghouse, CEO of Ripple, attended the Stifel Cross Sector Insight Conference 2018 to share his thoughts on the long-term impact of Ripple’s technology and the future of crypto currencies.

Ripple CEO: “Blockchain will not destroy banks”
Tech analyst Lee Simpson interviewed Garlinghouse at the 2018 Stifel Cross Sector Insight Conference on the current crypto situation. Garlinghouse responded to misunderstandings in the context of industrial applications and worldwide distribution. He explained that decentralised technology would complement rather than disrupt the current banking systems:

“Blockchain will not destroy the banks… it will play an important role in the functioning of our system. It is a short-sighted view….”

Ripple, as a blockchain-based payment transfer network and settlement system, aims to change the way banks and people transfer money worldwide. Garlinghouse highlighted the long-term goals of the Ripple platform:

“When I think of transformation, it fundamentally changes the way millions participate in banking. “We can fundamentally change the way this works to take an entire population one step higher.”

Garlinghouse: “China controls Bitcoin”

Garlinghouse criticized Bitcoin as the future global currency and made it clear that Ripple aims to outperform Bitcoin through faster transaction speeds and applicability in the banking market:

“Bitcoin needs 45 minutes today to complete a transaction… Some celebrities, even Steve Wozniak, have said that he sees a world where Bitcoin is the major currency. I find that absurd. I don’t think a big economy will allow that. By the way, that doesn’t make any sense.”

Unfortunately, Garlinhouse has not yet addressed future scaling solutions such as the Bitcoin Lightning Network in any way. The Ripple CEO also believes that Bitcoin is centralized. Why he emphasizes this is unclear, but could be connected with the constant accusations that Ripple is of a purely central nature.

“I’ll tell you another story that’s under-reported but worthy of attention.” Bitcoin is truly controlled by China. There are four miners in China that control over 50 percent of bitcoin….. How do we know that China will not intervene? How many countries want to use a currency controlled by China?”

According to blockchain.info, the Chinese chip manufacturer Bitmain and its subsidiaries BTC.com and AntPool control more than 40 percent of the global bitcoin hash performance.