Slush - Crypto Mining Blog

11-16 19:02 - 'Mining has always been centralized since the advent of pools. Incidentally, we have Slush to thank for that. (Not that I blame him.) / If ASICs were the source of centralization, then we would see altcoins with GPU-based PoW be...' by /u/jtoomim removed from /r/Bitcoin within 5-10min

Mining has always been centralized since the advent of pools. Incidentally, we have Slush to thank for that. (Not that I blame him.)
If ASICs were the source of centralization, then we would see altcoins with GPU-based PoW be decentralized. But that's not the case. With ethereum, the top three pools comprise *[62%]1 * of the network hashrate, and the top pool is 23.4%. With zcash, the top pool alone is *[39%]2 * of the *[total]3 * network hashrate.
The problem is that miners prefer to use big pools, because those are the pools with the best UIs and with the lowest variance. The bigger a pool gets, the more people want to use it.
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Author: jtoomim
1: e*h**chai**org/st*tistics**iners 2: z*ash*f*yp** 3: *ww.coi*warz.*om*network-h*s*rate-**ar*s/zca*h-ne*wo*k-*a*hra*e*ch*rt
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03-25 03:22 - 'Slush Pool Mines the First ASIC Boost Block Sparking More Debate' ( by /u/ElvisBitcoinLover removed from /r/Bitcoin within 70-80min

Slush Pool Mines the First ASIC Boost Block Sparking More Debate
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Author: ElvisBitcoinLover
submitted by removalbot to removalbot [link] [comments]

Bitmain competitor announcement: introducing the DragonMint, the most efficient Bitcoin miner in the world.

Bitmain competitor announcement: introducing the DragonMint, the most efficient Bitcoin miner in the world. submitted by CP70 to Bitcoin [link] [comments]

Recovered my 4 year old wallet

I am super stoked about this. A long time ago (2011-2015), on an old machine (an iMac), I used Armory. I was selling that old machine, so I swept my keys into an electrum wallet, and I replaced the hard drive that was in it knowing one day I would come back to it.
Well, a couple years after that, I had issues because I couldn't access the files from that hard drive without another mac (trust me, I tried. I password protected that hard drive so only booting it from a legit mac would grant me access to it). And, I lost my paper backup... Luckily, my friend had an old mac mini he let me borrow, and I sat on it for about another 2 years.
Today, I finally pulled my wallet off, and could not remember the password I put on the wallet. Thank god for the btcrecover tool, because that cracked my password in under a second (I remembered what it could of been, but not exactly. I would have not guessed what it actually was).
It's not a huge amount of bitcoin. But it was more than I remembered keeping (more than 1). Still face-palming though at some of my transactions. I had my armory wallet going back to 2012. Sooooo many bitcoins went through that wallet, mining on slush with my petty mac GPU. I had one of the first OG ASIC butterfly 60GH/s miners too. If only I had kept more, I could quit my day job now. Oh well.
But, I thought I'd share an antitheses to the old "I lost my old wallet. please help!!!" posts. Probably going to continue sitting on it for a few more years. And now that I've regained interest, I'm going to start running a full node again. To the moon!
submitted by timeddilation to Bitcoin [link] [comments]

I am totally new, and can't get guiminer to work with slushpool

If someone could help me out here, like a diagram or something, that would be awesome. Some of my bigger questions are, what is a miner username, why is there a worker with a red triangle on slushpool, and how do payouts work?
submitted by BruceGamez to BitcoinBeginners [link] [comments]

Samson Mow on Twitter: "#DragonMint miners are just the start. Another manufacturer with miners more efficient than Bitmain’s is coming soon. Expect more news in the next few days. It’s time to decentralize mining."

Samson Mow on Twitter: submitted by TheGreatMuffin to Bitcoin [link] [comments]

We need more miners @ Slush pool

Get ready to fight against 2x. Put all Your hashing power to Slush pool or convince Your pool to support Bitcoin core. Stick this post to the top.
submitted by expiorer to Bitcoin [link] [comments]

Fired up my computer to mine bitcoin to help out.

I am set to lose some dollars this month in power because I'm using my gtx1070 instead of an ASIC. I don't care. I just want to help and do what I can. No stale shares on the network so far.
submitted by NosillaWilla to Bitcoin [link] [comments]

Slush: Now it is clear how they can get that "free" hashrate to attack #bitcoin with empty blocks after @BitcoinUnlimit fork. #ASICBOOST

Slush: Now it is clear how they can get that submitted by slacker-77 to Bitcoin [link] [comments]

r/Bitcoin recap - March 2018

Hi Bitcoiners!
I’m back with the fifteenth monthly Bitcoin news recap.
For those unfamiliar, each day I pick out the most popularelevant/interesting stories in Bitcoin and save them. At the end of the month I release them in one batch, to give you a quick (but not necessarily the best) overview of what happened in bitcoin over the past month.
And a lot has happened. It's easy to forget with so much focus on the price. Take a moment and scroll through the list below. You'll find an incredibly eventful month.
You can see recaps of the previous months on
A recap of Bitcoin in March 2018
submitted by SamWouters to Bitcoin [link] [comments]

An extensive guide for cashing out bitcoin and cryptocurrencies into private banks

Hey guys.
Merry Xmas !
I am coming back to you with a follow up post, as I have helped many people cash out this year and I have streamlined the process. After my original post, I received many requests to be more specific and provide more details. I thought that after the amazing rally we have been attending over the last few months, and the volatility of the last few days, it would be interesting to revisit more extensively.
The attitude of banks around crypto is changing slowly, but it is still a tough stance. For the first partial cash out I operated around a year ago for a client, it took me months to find a bank. They wouldn’t want to even consider the case and we had to knock at each and every door. Despite all my contacts it was very difficult back in the days. This has changed now, and banks have started to open their doors, but there is a process, a set of best practices and codes one has to follow.
I often get requests from crypto guys who are very privacy-oriented, and it takes me months to have them understand that I am bound by Swiss law on banking secrecy, and I am their ally in this onboarding process. It’s funny how I have to convince people that banks are legit, while on the other side, banks ask me to show that crypto millionaires are legit. I have a solid background in both banking and in crypto so I manage to make the bridge, but yeah sometimes it is tough to reconcile the two worlds. I am a crypto enthusiast myself and I can say that after years of work in the banking industry I have grown disillusioned towards banks as well, like many of you. Still an account in a Private bank is convenient and powerful. So let’s get started.
There are two different aspects to your onboarding in a Swiss Private bank, compliance-wise.
*The origin of your crypto wealth
*Your background (residence, citizenship and probity)
These two aspects must be documented in-depth.
How to document your crypto wealth. Each new crypto millionaire has a different story. I may detail a few fun stories later in this post, but at the end of the day, most of crypto rich I have met can be categorized within the following profiles: the miner, the early adopter, the trader, the corporate entity, the black market, the libertarian/OTC buyer. The real question is how you prove your wealth is legit.
1. Context around the original amount/investment Generally speaking, your first crypto purchase may not be documented. But the context around this acquisition can be. I have had many cases where the original amount was bought through Mtgox, and no proof of purchase could be provided, nor could be documented any Mtgox claim. That’s perfectly fine. At some point Mtgox amounted 70% of the bitcoin transactions globally, and people who bought there and managed to withdraw and keep hold of their bitcoins do not have any Mtgox claim. This is absolutely fine. However, if you can show me the record of a wire from your bank to Tisbane (Mtgox's parent company) it's a great way to start.
Otherwise, what I am trying to document here is the following: I need context. If you made your first purchase by saving from summer jobs, show me a payroll. Even if it was USD 2k. If you acquired your first bitcoins from mining, show me the bills of your mining equipment from 2012 or if it was through a pool mine, give me your slushpool account ref for instance. If you were given bitcoin against a service you charged, show me an invoice.
2. Tracking your wealth until today and making sense of it. What I have been doing over the last few months was basically educating compliance officers. Thanks God, the blockchain is a global digital ledger! I have been telling my auditors and compliance officers they have the best tool at their disposal to lead a proper investigation. Whether you like it or not, your wealth can be tracked, from address to address. You may have thought all along this was a bad feature, but I am telling you, if you want to cash out, in the context of Private Banking onboarding, tracking your wealth through the block explorer is a boon. We can see the inflows, outflows. We can see the age behind an address. An early adopter who bought 1000 BTC in 2010, and let his bitcoin behind one address and held thus far is legit, whether or not he has a proof of purchase to show. That’s just common sense. My job is to explain that to the banks in a language they understand.
Let’s have a look at a few examples and how to document the few profiles I mentioned earlier.
The trader. I love traders. These are easy cases. I have a ton of respect for them. Being a trader myself in investment banks for a decade earlier in my career has taught me that controlling one’s emotions and having the discipline to impose oneself some proper risk management system is really really hard. Further, being able to avoid the exchange bankruptcy and hacks throughout crypto history is outstanding. It shows real survival instinct, or just plain blissed ignorance. In any cases traders at exchange are easy cases to corroborate since their whole track record is potentially available. Some traders I have met have automated their trading and have shown me more than 500k trades done over the span of 4 years. Obviously in this kind of scenario I don’t show everything to the bank to avoid information overload, and prefer to do some snacking here and there. My strategy is to show the early trades, the most profitable ones, explain the trading strategy and (partially expose) the situation as of now with id pages of the exchanges and current balance. Many traders have become insensitive to the risk of parking their crypto at exchange as they want to be able to trade or to grasp an occasion any minute, so they generally do not secure a substantial portion on the blockchain which tends to make me very nervous.
The early adopter. Provided that he has not mixed his coin, the early adopter or “hodler” is not a difficult case either. Who cares how you bought your first 10k btc if you bought them below 3$ ? Even if you do not have a purchase proof, I would generally manage to find ways. We just have to corroborate the original 30’000 USD investment in this case. I mainly focus on three things here:
*proof of early adoption I have managed to educate some banks on a few evidences specifically related to crypto markets. For instance with me, an old bitcointalk account can serve as a proof of early adoption. Even an old reddit post from a few years ago where you say how much you despise this Ripple premined scam can prove to be a treasure readily available to show you were early.
*story telling Compliance officers like to know when, why and how. They are human being looking for simple answers to simple questions and they don’t want like to be played fool. Telling the truth, even without a proof can do wonders, and even though bluffing might still work because banks don’t fully understand bitcoin yet, it is a risky strategy that is less and less likely to pay off as they are getting more sophisticated by the day.
*micro transaction from an old address you control This is the killer feature. Send a $20 worth transaction from an old address to my company wallet and to one of my partner bank’s wallet and you are all set ! This is gold and considered a very solid piece of evidence. You can also do a microtransaction to your own wallet, but banks generally prefer transfer to their own wallet. Patience with them please. they are still learning.
*signature message Why do a micro transaction when you can sign a message and avoid potentially tainting your coins ?
*ICO millionaire Some clients made their wealth participating in ETH crowdsale or IOTA ICO. They were very easy to deal with obviously and the account opening was very smooth since we could evidence the GENESIS TxHash flow.
The miner Not so easy to proof the wealth is legit in that case. Most early miners never took screenshot of the blocks on bitcoin core, nor did they note down the block number of each block they mined. Until the the Slashdot article from August 2010 anyone could mine on his laptop, let his computer run overnight and wake up to a freshly minted block containing 50 bitcoins back in the days. Not many people were structured enough to store and secure these coins, avoid malwares while syncing the blockchain continuously, let alone document the mined blocks in the process. What was 50 BTC worth really for the early miners ? dust of dollars, games and magic cards… Even miners post 2010 are generally difficult to deal with in terms of compliance onboarding. Many pool mining are long dead. Deepbit is down for instance and the founders are MIA. So my strategy to proof mining activity is as follow:
*Focusing on IT background whenever possible. An IT background does help a lot to bring some substance to the fact you had the technical ability to operate a mining rig.
*Showing mining equipment receipts. If you mined on your own you must have bought the hardware to do so. For instance mining equipment receipts from butterfly lab from 2012-2013 could help document your case. Similarly, high electricity bill from your household on a consistent basis back in the day could help. I have already unlocked a tricky case in the past with such documents when the bank was doubtful.
*Wallet.dat files with block mining transactions from 2011 thereafter This obviously is a fantastic piece of evidence for both you and me if you have an old wallet and if you control an address that received original mined blocks, (even if the wallet is now empty). I will make sure compliance officers understand what it means, and as for the early adopter, you can prove your control over these wallet through a microtransaction. With these kind of addresses, I can show on the block explorer the mined block rewards hitting at regular time interval, and I can even spot when difficulty level increased or when halvening process happened.
*Poolmining account. Here again I have educated my partner bank to understand that a slush account opened in 2013 or an OnionTip presence was enough to corroborate mining activity. The block explorer then helps me to do the bridge with your current wallet.
*Describing your set up and putting it in context In the history of mining we had CPU, GPU, FPG and ASICs mining. I will describe your technical set up and explain why and how your set up was competitive at that time.
The corporate entity Remember 2012 when we were all convinced bitcoin would take over the world, and soon everyone would pay his coffee in bitcoin? How naïve we were to think transaction fees would remain low forever. I don’t blame bitcoin cash supporters; I once shared this dream as well. Remember when we thought global adoption was right around the corner and some brick and mortar would soon accept bitcoin transaction as a common mean of payment? Well, some shop actually did accept payment and held. I had a few cases as such of shops holders, who made it to the multi million mark holding and had invoices or receipts to proof the transactions. If you are organized enough to keep a record for these trades and are willing to cooperate for the documentation, you are making your life easy. The digital advertising business is also a big market for the bitcoin industry, and affiliates partner compensated in btc are common. It is good to show an invoice, it is better to show a contract. If you do not have a contract (which is common since all advertising deals are about ticking a check box on the website to accept terms and conditions), there are ways around that. If you are in that case, pm me.
The black market Sorry guys, I can’t do much for you officially. Not that I am judging you. I am a libertarian myself. It’s just already very difficult to onboard legit btc adopters, so the black market is a market I cannot afford to consider. My company is regulated so KYC and compliance are key for me if I want to stay in business. Behind each case I push forward I am risking the credibility and reputation I have built over the years. So I am sorry guys I am not risking it to make an extra buck. Your best hope is that crypto will eventually take over the world and you won’t need to cash out anyway. Or go find a Lithuanian bank that is light on compliance and cooperative.
The OTC buyer and the libertarian. Generally a very difficult case. If you bought your stack during your journey in Japan 5 years ago to a guy you never met again; or if you accumulated on and kept no record or lost your account, it is going to be difficult. Not impossible but difficult. We will try to build a case with everything else we have, and I may be able to onboard you. However I am risking a lot here so I need to be 100% confident you are legit, before I defend you. Come & see me in Geneva, and we will talk. I will run forensic services like elliptic, chainalysis, or scorechain on an extract of your wallet. If this scan does not raise too many red flags, then maybe we can work together ! If you mixed your coins all along your crypto history, and shredded your seeds because you were paranoid, or if you made your wealth mining professionally monero over the last 3 years but never opened an account at an exchange. ¯_(ツ)_/¯ I am not a magician and don’t get me wrong, I love monero, it’s not the point.
Cashing out ICOs Private companies or foundations who have ran an ICO generally have a very hard time opening a bank account. The few banks that accept such projects would generally look at 4 criteria:
*Seriousness of the project Extensive study of the whitepaper to limit the reputation risk
*AML of the onboarding process ICOs 1.0 have no chance basically if a background check of the investors has not been conducted
*Structure of the moral entity List of signatories, certificate of incumbency, work contract, premises...
*Fiscal conformity Did the company informed the authorities and seek a fiscal ruling.
For the record, I am not into the tax avoidance business, so people come to me with a set up and I see if I can make it work within the legal framework imposed to me.
First, stop thinking Switzerland is a “offshore heaven” Swiss banks have made deals with many governments for the exchange of fiscal information. If you are a French citizen, resident in France and want to open an account in a Private Bank in Switzerland to cash out your bitcoins, you will get slaughtered (>60%). There are ways around that, and I could refer you to good tax specialists for fiscal optimization, but I cannot organize it myself. It would be illegal for me. Swiss private banks makes it easy for you to keep a good your relation with your retail bank and continue paying your bills without headaches. They are integrated to SEPA, provide ebanking and credit cards.
For information, these are the kind of set up some of my clients came up with. It’s all legal; obviously I do not onboard clients that are not tax compliant. Further disclaimer: I did not contribute myself to these set up. Do not ask me to organize it for you. I won’t.
EU tricks
Swiss lump sum taxation Foreign nationals resident in Switzerland can be taxed on a lump-sum basis if they are not gainfully employed in our country. Under the lump-sum tax regime, foreign nationals taking residence in Switzerland may choose to pay an expense-based tax instead of ordinary income and wealth tax. Attractive cantons for the lump sum taxation are Zug, Vaud, Valais, Grisons, Lucerne and Berne. To make it short, you will be paying somewhere between 200 and 400k a year and all expenses will be deductible.
Switzerland has adopted a very friendly attitude towards crypto currency in general. There is a whole crypto valley in Zug now. 30% of ICOs are operated in Switzerland. The reason is that Switzerland has thrived for centuries on banking secrecy, and today with FATCA and exchange of fiscal info with EU, banking secrecy is dead. Regulators in Switzerland have understood that digital ledger technologies were a way to roll over this competitive advantage for the generations to come. Switzerland does not tax capital gains on crypto profits. The Finma has a very pragmatic approach. They have issued guidance- updated guidelines here. They let the business get organized and operate their analysis on a case per case basis. Only after getting a deep understanding of the market will they issue a global fintech license in 2019. This approach is much more realistic than legislations which try to regulate everything beforehand.
Italy new tax exemption. It’s a brand new fiscal exemption. Go to Aoste, get residency and you could be taxed a 100k/year for 10years. Yes, really.
Portugal What’s crazy in Europe is the lack of fiscal harmonization. Even if no one in Brussels dares admit it, every other country is doing fiscal dumping. Portugal is such a country and has proved very friendly fiscally speaking. I personally have a hard time trusting Europe. I have witnessed what happened in Greece over the last few years. Some of our ultra high net worth clients got stuck with capital controls. I mean no way you got out of crypto to have your funds confiscated at the next financial crisis! Anyway. FYI
Malta Generally speaking, if you get a residence somewhere you have to live there for a certain period of time. Being stuck in Italy is no big deal with Schengen Agreement, but in Malta it is a different story. In Malta, the ordinary residence scheme is more attractive than the HNWI residence scheme. Being an individual, you can hold a residence permit under this scheme and pay zero income tax in Malta in a completely legal way.
Monaco Not suitable for French citizens, but for other Ultra High Net worth individual, Monaco is worth considering. You need an account at a local bank as a proof of fortune, and this account generally has to be seeded with at least EUR500k. You also need a proof of residence. I do mean UHNI because if you don’t cash out minimum 30m it’s not interesting. Everything is expensive in Monaco. Real Estate is EUR 50k per square meter. A breakfast at Monte Carlo Bay hotel is 70 EUR. Monaco is sunny but sometimes it feels like a golden jail. Do you really want that for your kids?
  1. Set up a company in Dubaï, get your resident card.
  2. Spend one day every 6 month there
  3. ???
  4. Be tax free
US tricks Some Private banks in Geneva do have the license to manage the assets of US persons and U.S citizens. However, do not think it is a way to avoid paying taxes in the US. Opening an account at an authorized Swiss Private banks is literally the same tax-wise as opening an account at Fidelity or at Bank of America in the US. The only difference is that you will avoid all the horror stories. Horror stories are all real by the way. In Switzerland, if you build a decent case and answer all the questions and corroborate your case in depth, you will manage to convince compliance officers beforehand. When the money eventually hits your account, it is actually available and not frozen.
The IRS and FATCA require to file FBAR if an offshore account is open. However FBAR is a reporting requirement and does not have taxes related to holding an account outside the US. The taxes would be the same if the account was in the US. However penalties for non compliance with FBAR are very large. The tax liability management is actually performed through the management of the assets ( for exemple by maximizing long term capital gains and minimizing short term gains).
The case for Porto Rico. Full disclaimer here. I am not encouraging this. Have not collaborated on such tax avoidance schemes. if you are interested I strongly encourage you to seek a tax advisor and get a legal opinion. I am not responsible for anything written below. I am not going to say much because I am so afraid of uncle Sam that I prefer to humbly pass the hot potato to pwc From here all it takes is a good advisor and some creativity to be tax free on your crypto wealth if you are a US person apparently. Please, please please don’t ask me more. And read the disclaimer again.
Trust tricks Generally speaking I do not accept fringe fiscal situation because it puts me in a difficult situation to the banks I work with, and it is already difficult enough to defend a legit crypto case. Trust might be a way to optimize your fiscal situation. Belize. Bahamas. Seychelles. Panama, You name it. At the end of the day, what matters for Swiss Banks are the beneficial owner and the settlor. Get a legal opinion, get it done, and when you eventually knock at a private bank’s door, don’t say it was for fiscal avoidance you stupid ! You will get the door smashed upon you. Be smarter. It will work. My advice is just to have it done by a great tax specialist lawyer, even if it costs you some money, as the entity itself needs to be structured in a professional way. Remember that with trust you are dispossessing yourself off your wealth. Not something to be taken lightly.
“Anonymous” cash out. Right. I think I am not going into this topic, neither expose the ways to get it done. Pm me for details. I already feel a bit uncomfortable with all the info I have provided. I am just going to mention many people fear that crypto exchange might become reporting entities soon, and rightly so. This might happen anyday. You have been warned. FYI, this only works for non-US and large cash out.
The difference between traders an investors. Danmark, Holland and Germany all make a huge difference if you are a passive investor or if you are a trader. ICO is considered investing for instance and is not taxed, while trading might be considered as income and charged aggressively. I would try my best to protect you and put a focus on your investor profile whenever possible, so you don't have to pay 52% tax if you do not have to :D
Full cash out or partial cash out? People who have been sitting on crypto for long have grown an emotional and irrational link with their coins. They come to me and say, look, I have 50m in crypto but I would like to cash out 500k only. So first let me tell you that as a wealth manager my advice to you is to take some off the table. Doing a partial cash out is absolutely fine. The market is bullish. We are witnessing a redistribution of wealth at a global scale. Bitcoin is the real #occupywallstreet, and every one will discuss crypto at Xmas eve which will make the market even more supportive beginning 2018, especially with all hedge funds entering the scene. If you want to stay exposed to bitcoin and altcoins, and believe these techs will change the world, it’s just natural you want to keep some coins. In the meantime, if you have lived off pizzas over the last years, and have the means to now buy yourself an nice house and have an account at a private bank, then f***ing do it mate ! Buy physical gold with this account, buy real estate, have some cash at hands. Even though US dollar is worthless to your eyes, it’s good and convenient to have some. Also remember your wife deserves it ! And if you have no wife yet and you are socially awkward like the rest of us, then maybe cashing out partially will help your situation ;)
What the Private Banks expect. Joke aside, it is important you understand something. If you come around in Zurich to open a bank account and partially cash out, just don’t expect Private Banks will make an exception for you if you are small. You can’t ask them to facilitate your cash out, buy a 1m apartment with the proceeds of the sale, and not leave anything on your current account. It won’t work. Sadly, under 5m you are considered small in private banking. The bank is ok to let you open an account, provided that your kyc and compliance file are validated, but they will also want you to become a client and leave some money there to invest. This might me despicable, but I am just explaining you their rules. If you want to cash out, you should sell enough to be comfortable and have some left. Also expect the account opening to last at least 3-4 week if everything goes well. You can't just open an account overnight.
The cash out logistics. Cashing out 1m USD a day in bitcoin or more is not so hard.
Let me just tell you this: Even if you get a Tier 4 account with Kraken and ask Alejandro there to raise your limit over $100k per day, Even if you have a bitfinex account and you are willing to expose your wealth there, Even if you have managed to pass all the crazy due diligence at Bitstamp,
The amount should be fractioned to avoid risking your full wealth on exchange and getting slaughtered on the price by trading big quantities. Cashing out involves significant risks at all time. There is a security risk of compromising your keys, a counterparty risk, a fat finger risk. Let it be done by professionals. It is worth every single penny.
Most importantly, there is a major difference between trading on an exchange and trading OTC. Even though it’s not publicly disclosed some exchange like Kraken do have OTC desks. Trading on an exchange for a large amount will weight on the prices. Bitcoin is a thin market. In my opinion over 30% of the coins are lost in translation forever. Selling $10m on an exchange in a day can weight on the prices more than you’d think. And if you trade on a exchange, everything is shown on record, and you might wipe out the prices because on exchanges like bitstamp or kraken ultimately your counterparties are retail investors and the market depth is not huge. It is a bit better on Bitfinex. It is way better to trade OTC. Accessing the institutional OTC market is not easy, and that is also the reason why you should ask a regulated financial intermediary if we are talking about huge amounts.
Last point, always chose EUR as opposed to USD. EU correspondent banks won’t generally block institutional amounts. However we had the cases of USD funds frozen or delayed by weeks.
Most well-known OTC desks are Cumberlandmining (ask for Lucas), Genesis (ask for Martin), Bitcoin Suisse AG (ask for Niklas), circletrade, B2C2, or Altcoinomy (ask for Olivier)
Very very large whales can also set up escrow accounts for massive block trades. This world, where blocks over 30k BTC are exchanged between 2 parties would deserve a reddit thread of its own. Crazyness all around.
Your options: DIY or going through a regulated financial intermediary.
Execution trading is a job in itself. You have to be patient, be careful not to wipe out the order book and place limit orders, monitor the market intraday for spikes or opportunities. At big levels, for a large cash out that may take weeks, these kind of details will save you hundred thousands of dollars. I understand crypto holders are suspicious and may prefer to do it by themselves, but there are regulated entities who now offer the services. Besides, being a crypto millionaire is not a guarantee you will get institutional daily withdrawal limits at exchange. You might, but it will take you another round of KYC with them, and surprisingly this round might be even more aggressive that the ones at Private banks since exchange have gone under intense scrutiny by regulators lately.
The fees for cashing out through a regulated financial intermediary to help you with your cash out should be around 1-2% flat on the nominal, not more. And for this price you should get the full package: execution/monitoring of the trades AND onboarding in a private bank. If you are asked more, you are being abused.
Of course, you also have the option to do it yourself. It is a way more tedious and risky process. Compliance with the exchange, compliance with the private bank, trading BTC/fiat, monitoring the transfers…You will save some money but it will take you some time and stress. Further, if you approach a private bank directly, it will trigger a series of red flag to the banks. As I said in my previous post, they call a direct approach a “walk-in”. They will be more suspicious than if you were introduced by someone and won’t hesitate to show you high fees and load your portfolio with in-house products that earn more money to the banks than to you. Remember also most banks still do not understand crypto so you will have a lot of explanations to provide and you will have to start form scratch with them!
The paradox of crypto millionaires Most of my clients who made their wealth through crypto all took massive amount of risks to end up where they are. However, most of them want their bank account to be managed with a low volatility fixed income capital preservation risk profile. This is a paradox I have a hard time to explain and I think it is mainly due to the fact that most are distrustful towards banks and financial markets in general. Many clients who have sold their crypto also have a cash-out blues in the first few months. This is a classic situation. The emotions involved in hodling for so long, the relief that everything has eventually gone well, the life-changing dynamics, the difficulties to find a new motivation in life…All these elements may trigger a post cash-out depression. It is another paradox of the crypto rich who has every card in his hand to be happy, but often feel a bit sad and lonely. Sometimes, even though it’s not my job, I had to do some psychological support. A lot of clients have also become my friends, because we have the same age and went through the same “ordeal”. First world problem I know… Remember, cashing out is not the end. It’s actually the beginning. Don’t look back, don’t regret. Cash out partially, because it does not make sense to cash out in full, regret it and want back in. relax.
The race to cash out crypto billionaire and the concept of late exiter. The Winklevoss brothers are obviously the first of a series. There will be crypto billionaires. Many of them. At a certain level you can have a whole family office working for you to manage your assets and take care of your needs . However, let me tell you it’s is not because you made it so big that you should think you are a genius and know everything better than anyone. You should hire professionals to help you. Managing assets require some education around the investment vehicles and risk management strategies. Sorry guys but with all the respect I have for wallstreebet, AMD and YOLO stock picking, some discipline is necessary. The investors who have made money through crypto are generally early adopters. However I have started to see another profile popping up. They are not early adopters. They are late exiters. It is another way but just as efficient. Last week I met the first crypto millionaire I know who first bough bitcoin over 1000$. 55k invested at the beginning of this year. Late adopter & late exiter is a route that can lead to the million.
Last remarks. I know banks, bankers, and FIAT currencies are so last century. I know some of you despise them and would like to have them burn to the ground. With compliance officers taking over the business, I would like to start the fire myself sometimes. I hope this extensive guide has helped some of you. I am around if you need more details. I love my job despite all my frustration towards the banking industry because it makes me meet interesting people on a daily basis. I am a crypto enthusiast myself, and I do think this tech is here to stay and will change the world. Banks will have to adapt big time. Things have started to change already; they understand the threat is real. I can feel the generational gap in Geneva, with all these old bankers who don’t get what’s going on. They glaze at the bitcoin chart on CNBC in disbelief and they start to get it. This bitcoin thing is not a joke. Deep inside, as an early adopter who also intends to be a late exiter, as a libertarian myself, it makes me smile with satisfaction.
Cheers. @swisspb on telegram
submitted by Swissprivatebanker to Bitcoin [link] [comments]

AsicBoost and the strange case of CVE-2017-9230

About CVEs

In the public interest of tracking and remedying cybersecurity vulnerabilities quickly, a public database was created in 2000: the CVE List [1].
CVE stands for Common Vulnerabilities and Exposures. Its database records, known as CVEs, track and record publicly known cybersecurity vulnerabilities. Each recorded vulnerability has a unique ID and lifecycle where it follows certain states.

The AsicBoost controversy

In April 2017, Greg Maxwell published an email [2] on the bitcoin-dev mailing list which described AsicBoost - a patented optimization to the algorithm used in Bitcoin mining - as an attack on the Bitcoin protocol.
There was much contention [3] about whether AsicBoost constituted some kind of harmful exploit, or whether it was merely a technological innovation which enabled more efficient mining hardware (ASICs).
There were allegations, widely reported in media, that the patent served the interest of Bitmain [4]. The purported benefits of exploiting this patent as alleged by Core developers were contemporaneously disputed by other miners [5].

CVE-2017-9230 raised against AsicBoost

On 18 May 2017, Cameron Garnham posted to the bitcoin-dev list [6], urging for getting a CVE assigned to the perceived vulnerability.
On 24 May 2017, this CVE was created as CVE-2017-9230 [7]. It was simultaneously published under Bugtraq ID 'BID 98657' at [8].
The justification in the CVE stated that the AsicBoost method
'violates the security assumptions of (1) the choice of input, outside of the dedicated nonce area, fed into the Proof-of-Work function should not change its difficulty to evaluate and (2) every Proof-of-Work function execution should be independent.'
It seemed a plausible enough reasoning for the CVE to be assigned. It was entered in the list of Bitcoin-related CVE's at [9]. Detailed information on this particular CVE is still missing/incomplete on the wiki page, a year after the CVE was raised.

What happened since the CVE was raised

If you've followed along, you've learned that the CVE was raised to counter the exploitation of the AsicBoost method by miners.
Since then, however, a Core developer, BtcDrak, has been involved in the founding of a mining company, Halong Mining. Several online sources state his (part?) ownership of this company.
BtcDrak has put forward a proposal [10] which would enable the use of AsicBoost within the Bitcoin Core software (the dominant client software on the BTC network).
This proposal appears to directly contradict the CVE claims of how AsicBoost violates "security assumptions" of Bitcoin, and indeed does not address how it mitigates them, nor is CVE-2017-9230 referenced in any of its related documentation.
While the proposal's specification [11] and implementation [12] have not yet been formally accepted, the situation is that Halong has shipped mining equipment which is now actively employing AsicBoost [13,14] on the Bitcoin (BTC) network. There is even a website showing the blocks where AsicBoost was used [15].

Conflict of interest

There a clear conflict of interest in the actions of the Core developer BtcDrak. His actions as a Core developer appear to be furthering his company's interests and competitive advantage in the mining industry by exploiting a vulnerability of which he must have been keenly aware, having participated on the same bitcoin-dev mailing list where it was discussed.
The CVE was vociferously used to paint Bitmain as culpable for delaying Segwit (Bitmain was accused of using AsicBoost and blocking Segwit activation for their own profit motive - claims that Bitmain has publicly denied strongly and which were never substantiated).
One might have expected a similar outcry against Halong's proven and announced use of AsicBoost, but the parties that had previously condemned Bitmain remained mostly silent. Only an anonymous non-developer, Cobra-Bitcoin, co-owner of the domain, spoke out on the Github pull request in [11], and Core developer Luke-jr spoke out against the use of the proposal on the Bitcoin network while consensus had not been reached on it [16].
Subsequent discussion on the bitcoin-dev list on this topic since March has been minimal and only concerned with technicalities of stratum protocol changes.

The bigger elephant in the room

It seems logical that either AsicBoost constitutes an exploitable weakness, and thus merits a CVE and measures taken to prevent its use on the Bitcoin network entirely.
Or it is not a problem and the CVE should be invalidated.
The Bitcoin Core project should use its consensus processes to arrive at a coherent decision.

Other problems raised by the use of overt AsicBoost

The Halong implementation uses version rolling of the nversion bits of the header. It reserves a subset of those bits for overt AsicBoost.
These bits are no longer available to BIP9, but there was no update of BIP9 proposed to address this impact.
This is a question of sensible procedures being followed (or not). The author did not find any review comment mentioning the lack of BIP9 specification update, which suggest a lack of thorough review on a proposal which dates back several months.
A minor issue is that the Core implementation warns when a certain proportion of unrecognized version bits are detected. This behavior can be triggered by the AsicBoost method used on the network.
  1. make dates unambiguous, make it clear that [5] disputes the benefits alleged by Core developers
submitted by btcfork to btc [link] [comments]

r/bitcoin recap - November 2017

Hi Bitcoiners!
I’m back with the eleventh monthly Bitcoin news recap.
For those unfamiliar, each day I pick out the most popularelevant/interesting stories in bitcoin and save them. At the end of the month I release them in one batch, to give you a quick (but not necessarily the best), memeless overview of what happened in bitcoin over the past month.
You can find recaps of the previous months on
A recap of Bitcoin in November 2017
submitted by SamWouters to Bitcoin [link] [comments]

r/Bitcoin recap - September 2018

Hi Bitcoiners!
I’m back with the 21st monthly Bitcoin news recap.
For those unfamiliar, each day I pick out the most popularelevant/interesting stories in Bitcoin and save them. At the end of the month I release them in one batch, to give you a quick (but not necessarily the best) overview of what happened in bitcoin over the past month.
You can see recaps of the previous months on
A recap of Bitcoin in September 2018
submitted by SamWouters to Bitcoin [link] [comments]

Asicpower AP9-SHA256 Review

Asicpower AP9-SHA256 Review

Bitmain is regarded as one of the most influential companies in the ASIC mining industry. It is estimated that they have manufactured approximately 53% of all mining equipment.Without including their mining profits, that’s around $140 million dollars in sales. These figures are staggering, but Bitmain’s monopoly of the Bitcoin ASIC market may come to an end, following the release of PowerAsic’s asicpower AP9-SHA256.

About the asicpower AP9-SHA256

Designed with brand new technology and boasting 94 TH/s per miner, the AP(-SHA256 is the most powerful and efficient Bitcoin miner to date.PowerAsic claims they spent $12 million dollars on research, development, and prototypes.PowerAsic also noted that their miners take advantage of ASICBOOST, an exploit of Bitcoin’s algorithm which improves mining efficiency by 20%.An unusual approach separate Powerasic’s miner to the other manufactures is the implementation of copper heat-sink claimed to have a superior thermal conductivity 69% better than aluminium. Don’t take their words for it but confirm the facts are correct on widely well known and published science documents as this one.The first batch of miners were announced and made available for order in August of 2019, with start scheduled for shipment in September, 2019.
Powerasic claims that the machines are around 40 percent more productive than the most proficient ASIC on the market, Bitmain’s Antminer S17.According to PowerAsic, they started a mining project with the aim to bring much needed competition to the market…We want to ‘make SHA256 great again.Sitting at the hefty price of $2,795.00, the powerasic AP9-SHA256 is far from affordable for the average person. Fortunately, due to the newly born rivalry between Bitmain and Powerasic, the price will probably lower with time and competition.The power supply for this unit is included and integrated in the top-box also including the controler card as a one unit. You will also get standard power cable, network cable, manual and software in the packet. In comparison to the price of the Antminer S17 , the Powerasic AP9-Sha256 is a better value.

Power Supply

The integrated PSU 3300W has a inputVoltage 220V 50Hz 30A. There are 2 fan 40mm., 1 fan 60mm to keep it cool and the power cable 3 legs following CEE 7 standard.Professional mining hardware runs optimally at 220-240V, hence why mining farms step down their own electricity supply to 220-240V. Note that 220V current is only found outside of the US – American outlets are 110V by default. Unless you want to hire an electrician, this could cause some people trouble adapt to the eficient and recomended 220V power needed, still 110V will get the job done, but they are not ideal for optimum mining performance.

Power Consumption

Thanks to the powerasic AP9-HA256’s new 7nm generation of ASIC chips, the AP9-SHA256 has become the most electrically-efficient miner on the market.Consuming merely 30.J/TB, or 2860W from the wall, the 16T is 30% more electrically-efficient than the Antminer S17.


Powerasic ’s new ASIC technology is impressive. When compared to its closest competitor, the Antminer S17, the powerasic AP9-HA256 is the clear winner. It hashes at 94 TH/s, as opposed to the S17’s 56 TH/s. Moreover, the the AP9-HA256 consumes 30J/GH, whereas the S17 consumes 39-45J/TB.The difference in power consumption is miniscule, but when it comes to large-scale mining, the the AP9-HA256’s edge will drastically increase the profitability of a mining operation. This ASIC is profitable not only for mining on a large scale, but for the individual miner as well.Take a look at the projected mining profitability of a single miner:Note that is appears profitable even with high electricity costs ($0.1 per KW/h). With $0.05 / KW/h it’s even more profitable:📷Each powerasic AP9-HA256 will generate about $6,009 per year (calculated with 1 BTC=$10,141.5). Mining profitability may vary. You can usethis free profitability calculator to determine your projected earnings.

Is powerasic AP9-HA256 a Scam?

There is been a lot of talk on Twitter that powerasic AP9-HA256 is a scam. It appears it is not, as many users are already claiming to have received their miners.Slush, the creator ot Slush Mining Pool and the TREZOR hardware wallet, claims on Twitter that he has seen units and knows people who have had their miners delivered:

Verdict: Is The Antminer S17 Outdated?

When the first batch of Bitmain’s Antminer S17 ASICs reached the eager hands of miners, they were all the rage. The S17 was renowned as the most efficient ASIC miner on the market. Many used the S17 as the industry’s golden standard.Up until the launch of the powerasic AP9-HA256, it was the golden standard.But, now?Things have changed.Not only is the powerasic AP9-HA256 more powerful than its predecessor from Bitmain, but also more efficient, and therefore, more profitable.Ever since the announcement of the new ASIC, there was widespread speculation of its legitimacy – and rightly so.The Bitcoin community has been plagued with small, phony companies manipulating images of preexisting antminers as a ploy to hype up their fake products. Nevertheless, powerasic AP9-HA256 is taking things seriously, and their first batch of miners have lived up to expectations.The fact of the matter is, Bitmain’s most powerful and efficient antminer has been dethroned by the new reigning king of ASICs: The powerasic AP9-HA256.


Bitmain has dominated the ASIC market since its inception in 2013.There are a few other companies producing ASICs. However, before the creation of PowerAsics AP9-SHA256., Bitmain was the only company with a proven track record that sold efficient miners directly to the public.Powerasic AP9-HA256 has the potential to bring Bitmain’s monopoly to an end. Powerasic AP9-HA256 has a bright future ahead of them. Now that Bitmain has noteworthy competition, it will be interesting to see how it affects the market. The powerasic AP9-HA256 is the best option (for now) for anyone getting started with mining. Powerasic’s innovation should force other ASIC producers to innovate and force other companies to release new miners with better efficiency. So whether you’re buying a miner now or soon, you’re likely to benefit from the development of this new miner. For more, Visit Us:
submitted by farwa786 to u/farwa786 [link] [comments]

The BCN pump and ZEC

A couple weeks back I decided to look into investment opportunities on coins still using the original cryptonight algo. The thought being, all those X3s are mining something other than monero - so what?
My criteria were, cryptonight algo and traded on polo. The list was short, exactly one coin - Bytecoin. The diff had risen 8x over the past month and the price had not risen proportionally, this made the decision easy. Bought a not- insignificant quantity of them around 60 sats and expected to hold for a while until the expected price increase to move more inline with the diff.
Today, you probably heard what happened on binance with a 32x rise in price. This was "made possible" by no blocks being mined for at least two hours. This jogged my memory on something that happened a couple years back that I'd forgotten all about. This also caused me to reasses my stance on the Z3 and whether it is good or bad for ZCash.
Leading up to the latest bitcoin halving , I was researching SHA256 coins to speculate on. At the time, I figured a lot of the SHA ASICs would move off of bitcoin and into alts after the halving took place. At the time I was trading on both polo and trex, so I wanted coins on both platforms. There were about three coins I settled on as I remember - DGB, Myriad, and CURE. Bought some of each on both exchanges.
A similar scenario unfolded with CURE as happened with BCN today There was a massive, MASSIVE, pump of CURE on Polo but price was mostly unchanged on trex. Sold my CURE on polo and initiated a transfer from trex to polo to sell the remainder. After some time, there were zero confirmations showing on trex. WTF? Searched out a block explorer for CURE and low and behold the chain was not moving. After some time, the pump was over and the chain began moving again.
There was certainly a nefarious actor on the mining side that had stalled the chain. I'm no expert on the technicals of how, but winning shares were being withheld by someone with a significant portion of that network's hashrate. Maybe someone else can chime in with the details on how this type of attack is perpetrated. Incidentally, CURE was delisted from polo a very short time later. Whether this was due to polo calling BS, or being complicit and tipping off somebody prior to the delisting announcement to get one last hoorah, the world will never know.
I also remember some talk around that time of excessive orphans happening on slushpool. It apparently ended up being an unintentional issue wherein one of the larger farms pointed at slush was withholding winning shares. This sounded very similar to what happened with CURE, but with so much more hashrate on the BTC network, others were finding winning shares to keep the chain moving.
So, how is this relevant to ZEC?
I believe the BCN attack was made possible by, and initiated with, Antminer X3s. Somebody has a lot of them and pulled this off.
I believe the CURE attack was perpetrated by a major holder of SHA256 ASICs. The CURE nethash was a drop in the bucket compared to bitcoin so it was probably a simple matter of pulling off BTC for a couple hours, attacking CURE, then returning to BTC (or whatever else they were moving at the time).
Not going to speculate on who waged these attacks, it's irrelevant. The important, common, factor is ASIC miners. I fear that the ZEC network will be vulnerable to this type of attack should action not be taken to resist ASICs. All it would take is two hours to completely trash it's reputation and the effort invested in getting it to where it is today.
Before you call me a GPU shill or ASIC fudder, consider that these things have actually happened and do your own research to refute the points being made. In either case, thank you for taking the time to read what I've written and I look forward to your feedback.
submitted by dunnmines to zec [link] [comments]

Earning more with Nicehash vs Slushpool???

Is it just me, or do you actually seem to earn more Bitcoin when mining with NiceHash versus Slushpool?
I mined on NiceHash for about 14 days and on Slushpool for about 7 days. According to Slushpool, my 7 day average of mining Bitcoin on Slush was 0.00069 BTC ($5.59 at time of print). Yesterday for example, I made 0.00085 BTC on Slush. One particular day with NiceHash, I actually earned 0.002 BTC (About $16.20 at time of print).
One thing I have noticed about Nice though is that the estimated earnings fluctuate dramatically throughout the day.
This seems wildly opposite of what I was expecting. Obviously, with numbers like that, I'm sticking with NiceHash.
I'm mining with an Antiminer S9 BTW.
What drove me to switch in the first place was that I was having this issue where my hash rate on Nicehash would frequently go to 0.00 TH/s, even though the worker was active. On Slush I never had that issue. I started having to reset my ASIC every hour and it became a chore.
Anyone else have a similar experience? Perhaps I am doing something wrong? As I understand Slush was generally better with an ASIC miner than NiceHash.
submitted by Timsierramist to BitcoinBeginners [link] [comments]

Dogecoin dev / co-founder here. Litecoin is the reason I stayed interested in cryptocurrency (warning: long and rambly)

Hi folks --
(TL;DR I like altcoins, I would have been disinterested in crypto without Litecoin, and hope Dogecoin is overall good for Litecoin and the rest of the altcoin scene even though right now everything seems crazypants)
I made a post here before, but I wanted to make a longer one after seeing a few Dogecoin related posts here (Then no more dogecoin topics, I swear! heh)
So, I got into cryptocurrency late July of this year, after reading a bit about it and about block size halving, and saying to myself "Alright, I think I'm missing out on something potentially huge, I'm going to learn how to mine." After fussing around and joining Slush's pool and mining for 5 days with my graphics card, I finally got 0.01 bitcoin -- the amount needed for the pool to finally pay out and get something in my wallet, and I proudly proclaimed on my facebook "Huzzah, I'm rich. I mined $1 worth of bitcoin. And it only cost $3 of power." I would have stopped, except that I found altcoins like Litecoin that I could actually mine and find whole numbers of, and thus I continued.
I get really irritated when people say things like "Bitcoin is being undermined by all these altcoins" and "Altcoins take away from Bitcoin's value" because to me, it's precisely the opposite. The regular person without a $5000 ASIC has nothing to mine without altcoins. There would be way less people into cryptocurrency if it wasn't for altcoins. Altcoins are paramount to bitcoin's success, and bitcoin is paramount to altcoin success. And, although I wasn't there for all of the history and growing pains -- when I got into it, it seemed pretty accepted and stable -- but I could tell that Litecoin essentially paved the way for all of that.
Anyway the reason I say these things is I sincerely hope that my happy accident Dogecoin turns out to be overall good for crypto. Yes, the alternate cryptocurrency forum looks a bit uh...Disastrous...right now, and some of the new people come from places where being obnoxious is more accepted. But, overall I think the dogecoin community has been very generous and well behaved, and from what I hear, similar to how the bitcoin community used to be before the coin value raised so immensely.
I have no idea how long Dogecoin will remain at the popularity level or if it'll go up or down (or both many times), but what I hope is that it isn't seen as a threat to any altcoin, and can be seen as what I see it for - something that is bridging the gap between the complex, underground nature of cryptocurrency and something tangible that more regular people can play with and learn from. I think it is ushering a new lot of folks into the larger cryptocurrency scene (for which I feel the need to warn them of the potential perils at this point...). We all know how fascinating and exciting cryptocurrency is...I think it is great that more people can experience that, whether it be with Dogecoin or Litecoin. Or even Quark.
(ps. jk about quark, screw quark)
submitted by BillyM2k to litecoin [link] [comments]

There are only two realistic scenarios for the BCH Flippening to occur, and one of them started today and was mentioned yesterday...

This sub likes to think about Bitcoincash becoming the premier cryptocoin at some future point, but there are only two ways it can really occur.
First: The most realistic way is a gradual flip of miners and users coming over to BCH because they want to do something that is impossible or prohibitively expensive on BTC, like micropayments or 3rd world remittance. But there is an important factor that will drive this, and that is relative price gain of BCH compared with BTC. The price of BCH should rise faster than BTC does.
For miners to come to BCH, it should be more profitable to mine BCH than to mine BTC. But for relative movement of miners to occur over time, BCH should grow faster in price than BTC does as there is correlation between the price of the cryptocoin and the amount of mining that can be done. Higher prices support more mining, and we are far behind right now, but not so far behind that Core doesn't feel some heat.
Yesterday we saw BCH gain 30% in value (edit: 37% and rising now!), while BTC dropped 6%. We need things like this to keep happening and to happen regularly, because every time it does happen, miners are incentivized to move over to BCH and mine more profitably than on bitcoin.
Also, look at our transaction volume--BCH is rapidly catching BTC's volume, if BCH surpasses bitcoin's volume today, is that headline news? It is for us:
The second factor is something that Blockstream is probably planning, but knows that it needs to pick the right time to reveal it and do it, and that is a Proof-of-Work change.
We know they want to do it, they've mentioned it casually here and there; the miners are the only remaining large challenge to Blockstream's total domination of BTCore. They rightly view B2x as miner displeasure with them, and though they have averted it this time, a proof-of-work change would be a nuclear bomb against miners and avert any future challenges to Core's monopoly on BTCore.
Just mentioning it would begin to chase miners off. And guess what, Core figures have been mentioning it. Just yesterday, Luke-jr said that a PoW change was overdue and that miners have had plenty of notice:
Now Luke says a lot of interesting things, but he isn't lying about his intent here:
Richard Jenkins‏ @rjenkins_atl: "So you think that if a POW change happened, it would happen overnight with no warning to community, exchanges, users, miners, ASIC makers, etc?"
Lukedashjr: "Definitely false, considering they've had YEARS of warning now. PoW change conditions were met a long time ago, and are now overdue... Building new ASICs takes time, and we can just change again if they re-centralise."
Blockstream is growing confident in their use of public-news outlets to control the direction of btc, and likely view their success against B2x as indicative of their power now gelling into something they can wield, perhaps enough to push through a proof-of-work change, but more likely they will wait until an opportune moment to do anything.
Core has already demonized many miners as enemies and led public campaigns against them and anyone who displeased them. If they begin openly grumbling about a PoW change, miners will begin to realize the actual intent of Blockstream and that they could be cut-off at any moment, and that they had better shift their business model over to BCH if they want to survive.
But because of the dramatic price difference, if this were to happen immediately, large numbers of miners would get slaughtered, bankrupted, which Blockstream would probably like to see happen, so we may see a PoW announcement sooner rather than later if Blockstream is bold or desperate, especially if Blockstream has spent the last year or two actually developing their own mining hardware.
If true, this would allow them to change the PoW and hand out mining equipment in advance to miners they are allied with, people like Slush, making them immune to the slaughter and cementing their control over friendly miners.
Their chosen miners would fall under the sway of Blockstream in this way, while all other miners would be left to fend for themselves, creating large problems for the community in general, but would likely be defended as the fault of the miners for 'centralizing'.
Blockstream/Core probably want to avoid that level of disruption however, and it is perhaps more likely to see them try to choke out miners over time. I'm not sure how they could do this. It seems there is a sword of damocles hanging over the heads of all btc miners, and its name is Blockstream.
What is the end goal? Rent-seeking.
Blockstream wants to, somehow, shift the transaction payments currently being granted to miners to itself, through sidechains and 2nd layer solutions. But imagine if it made a new PoW and made it secret, then leased miners tuned to that PoW to its own allied miners. It could effectively keep anyone it didn't like from mining, and could also have enormous power over them by recalling its leased miners at will.
What could it do with power like that? How about demand that a large portion of newly-mined bitcoin be transferred to itself, rather than given to the miners.
It would simply use its propaganda powers to spin this as somehow positive for bitcoin, tossing the usual buzzwords, but the effect would remain the same: miners (and users) are screwed and Blockstream gets rich.
One thing is sure, interesting times ahead lads and ladettes.
submitted by Anenome5 to btc [link] [comments]

r/Bitcoin recap - September 2018 - V2

Hi Bitcoiners!
This is a reworked repost of the 21st monthly Bitcoin news recap. I'm testing out a new format where I list items by topic instead of date so they are easier to digest for the reader. I would love to hear your feedback! (on the categories, the new format vs. the old,...)
For those unfamiliar with these recaps, each day I pick out the most popularelevant/interesting stories in Bitcoin and save them. At the end of the month I release them in one batch, to give you a quick (but not necessarily the best) overview of what happened in Bitcoin over the past month.
You can see recaps of the previous months on
A recap of Bitcoin in September 2018
Adoption * The Lightning Network surpasses 100 bitcoin in network capacity * Someone paying with bitcoin in Rovereto, Italy at a 20% discount * Someone pays for a car wash in Brisbane with bitcoin * The biggest block yet is mined at 2.26MB * Someone gets a speaker fee in bitcoin after speaking for developers at a bank * A Butcher shop in Venezuela accepting bitcoin * Someone’s story of travelling across 18 countries using 1 btc * Swissquote advertises Cryptocurrency trading on some office windows * People discuss how expensive bitcoin ATMs are
Development * Someone working on a 3D cryptocurrency trading interface * Someone set up their Bitcoin full node + Lightning Network node following a Github tutorial * A new Lightning desktop app by Lightning Labs * The release of the lnd v0.5-beta and C-lightning v0.6.1 * The future of Lightning by Elizabeth Stark * Someone created their own Lightning Network-powered Cola machine
Security * A Chrome extension got hacked and tried to steal private keys to cryptocurrency wallets * Someone tried to attack Slush’s Lightning Network node with a 12 bitcoin capacity * Google Play takes down misleading bitcoin wallets * Japanese exchange Zaif gets hacked for $37M worth of bitcoin * An important bug is discovered and gets patched in Bitcoin Core 0.16.3
Mining * A look into an illegal bitcoin mining operation in an abandoned power plant in Russia * Slush Pool introduces an open-source operating system for some of Bitmain’s mining machines * Samsung is planning to build 10nm Asic mining chips
Business * The Goldman Sachs CFO on speculation about the bank’s bitcoin trading activities * Coinbase is exploring a bitcoin ETF * Bitmain is now planning an IPO at 16% of their original size * Canada approves a bitcoin trust fund * Morgan Stanley offers bitcoin derivates to its clients * The Robinhood investing app is making millions by selling user data to HFT firms * Google ends its cryptocurrency advertising ban * Bakkt on its first Bitcoin futures contracts
Research * An analysis of $1B Bitcoins on the move * As the Lightning Network grows it will become more difficult to track its growth * A $193M bitcoin transaction for a $0.19 fee * A collection of articles and research on PoW’s efficiency * Bitcoin’s energy consumption in comparison to gold mining, paper money printing, the banking system and governments * Europol research shows that bitcoin has not been used to fund any terrorist attacks
Education * A Bitcoin explainer someone spent a year on * An infographic on merkle trees * A discussion on why it is unwise to use bitcoin for crime
Regulation & Politics * The legal status of Bitcoin globally * How Roman coins took hundreds of years to lose their value * US regulators approve Winklevoss Twins’ fiat-backed stablecoin * Hayek on taking money out of the hands of the government in 1984 * Some cryptocurrency businesses in the US have asked US congress to hurry up with regulation * The Prime Minister of Malta on blockchains and cryptocurrencies
Financial incumbents * The US and EU cut Iran off the SWIFT system through threatening SWIFT executives with criminal charges * Visa and Mastercard forced to pay $6.2B for over-charging on credit cards * The Danske Bank CEO quits over a $234B money laundering scandal
Price & Trading * The bitcoin price is at an all-time high in Iran * People discuss the bitcoin price
Fun & Other * A reminder that bitcoin can’t be eaten by the family pet * There is a Bitcoin ‘glyph’ in iOS 12 * Bitcoin posters in Brighton * Bitcoin from a teenager’s point of view * Bitcoin on who wants to be a milllionaire * Scrabble adds Bitcoin to its dictionary
submitted by SamWouters to Bitcoin [link] [comments]

I did it! Mined 1 full btc

Hey just wanted to say WOOOOO! After about a year and a half of contributing to slush's pool and the ant pool I finally mined 1 full bitcoin! I am so stoked about this, mostly because it's unlikely I'll ever make it to 2 at the rate the difficulty has climbed and the electricity costs and so on. But whatever I mined 1 full bitcoin and feel like it's some sort of achievement worth sharing. [Edit] Several people ask so I'll put it in the body of my post: my main hardware now is an antminer s3 and a cx750 psu. For a while it was just a gtx 660 in my desktop and I played around with a raspberry pi setup for a month or so before going asic. Its still just mining away at home.
submitted by funkemax to Bitcoin [link] [comments]

A bribe attack is ongoing

First of all, I should note it's not a big deal and there are no reasons to panic or anything, but it's just remarkable that the thing we knew is theoretically possible is happening now.
To provide background on this kind of attack I need to start from fundamentals. Here's the security assumption from the Bitcoin paper:
The system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes.
Originally mining was done by users themselves, it was a part of node/wallet software. However, later it became more specialized.
Hashing, running nodes and using Bitcoin are completely separate things nowadays when pooled mining is commonplace. That is, somebody can "mine" bitcoins using his hashing hardware without running a node. (And, perhaps, without even being a Bitcoin user, as a "miner" can auto-convert his revenue to dollars.)
Calling this "mining" isn't quite accurate. More precisely it can be described as renting (that is, mining pools rent hashing hardware of so-called "miners") or paying for a service (mining pools pays a "miner" for the efforts he's performed).
Some "miners" believe that they receive bitcoins they created, but it's not true in a general case. One thing is that more often then not, individual miners fail to solve the block, but are still compensated for their efforts (not for results). Also pools generally have reserves which they use to smooth out reward payments, thus rewards miners receive do not necessarily come from freshly mined bitcoins.
Now let's recall that hashpower is intimately linked to the security of the network. Attacker who controls a significant portion of total hashpower might be able to perform double-spend attacks (e.g. see Meni Rosenfeld's Analysis of Hashrate-Based Double Spending) or denial-of-service attacks (he might mine empty blocks).
It is usually understood that these attacks are practically unfeasible, as overpowering the honest network would require enormous amounts of hardware, energy, etc. However, there are several different attack model.
The most primitive one was relevant back when mining was done on CPUs: an attacker could rent CPU power from a cloud provider such as Amazon and try to do a double-spend reorganization or a 51% attack. It's fairly easy to do calculations within this model as the cost of an attack is known (for a certain difficulty) and one just needs to compare it to potential profits attacker might get.
But CPU mining is irrelevant now, attacker would need specialized hardware to have a chance. This makes attack much more complex, as attacker needs to buy hardware, deploy it, start mining... And once attack is complete, he needs to do something with that hardware. It's generally understood that parties who own hashing hardware will be reluctant to perform attack because a successful attack can drastically decrease the value of the hardware they own. Thus it can be said that ASICs made Bitcoin much more secure due to this stickiness.
But wait... what if an attacker rents hardware instead of buying it? It's much simpler than buying hardware: no complex logistics, little overhead, no concerns about how an attack would affect hardware price. Attacker would need to pay slightly above the market price to make sure he gets more than a half of total hashpower to make sure that it's statistically certain his attack can succeed.
This can be describe as a sort of a bribe. Normally miners get block rewards (subsidy + fees). Attacker adds a bribe to it, making it subsidy + fees + bribe. This is attractive to miners as it pays more. Once attack is successful, attacker receives subsidy + fees + attack profit. Thus his cost is
(subsidy + fees + attack profit) - (subsidy + fees + bribe) = attack profit - bribe 
Note that bribe can be arbitrarily small, it should be just enough to get miners interested. It can be 1% of a subsidy, for example. E.g. suppose attacker wants to earn 1000 BTC by double-spending, he gives a 10 BTC bribe to miners to orphan some of the recent blocks and pockets 990 BTC.
The cost of this attack can be arbitrarily small, but it requires a lot of a capital and is also quite risky. And also it's not possible right now because miners do not just rent their hashpower to the highest bidder, they use mining pools they trust. Thus there's no way for the attacker go get more than 50% of total hashpower to be successful with this attack.
There are, however, pools which allow people to rent hashpower. For example, NiceHash. It currently has 16 PH/s of SHA256 hashpower (according to the stats they publish), thus controlling around 1% of total hashpower. NiceHash allocates hashpower to highest bidder, and thus it can be potentially used for attacks I described above. But currently it's too small to have any effect.
So this is just something to keep in mind. Pools like NiceHash are evil, they can potentially destabilize Bitcoin if more than a half of total Bitcoin's hashpower will be rented out on pools like this. It is important for miners to choose legitimate pools.
So until now I thought that a bribe attack is just a curiosity in context of Bitcoin (it might be more relevant for alt-coins with much weaker hashpower), but today I was surprised with the fact that somebody tries to pull it off right now.
There's a post on /btc: Someone just donated 16 BTC towards Classic Hashpower. We are now at 2 Petahash/sec on Slush pool. Thank you, donator. The fund is at 30 BTC and recycling the mining rewards over and over..
This is exactly the bribe attack, but they aren't using for double-spending or DoS, but on an attempt to hard-fork Bitcoin. Basically it's an attempt to artificially prop up Classic hashpower a little, and is good only for PR. But still it's something we should be aware of, I think.
NodeCounter site the link points to is absolutely hilarious, BTW, totally recommend:
Bitcoin development has been bought out by a private company called "Blockstream". Blockstream has directed the crippling of Bitcoin in order to provide the solution, for their own future, financial gain.
(I hope moderators won't remove my post. /btc is currently being advertised in the sidebar of this subreddit, so every visitor is already one click away from learning information about "Classic Hashpower". I see absolutely no point in censoring this information.)
On topic of brigading: when I posted it initially the post was 100% upvoted, that is regular /bitcoin subscribers found it good and relevant. However a bit later upvote rate dropped to 65% and at the same time several comments defending Classic and /btc appeared. Brigading much? I don't really care what you do with hashpower (attack is just a technical term FYI, it's not necessarily morally wrong), but brigading is despicable.
submitted by killerstorm to Bitcoin [link] [comments]

Setup of BFL miner on Slush Pool using CGMiner Slush Pool Mines the First ASIC Boost Block Sparking More Debate - Bitcoin News how to mining BITCOIN FAST on SLUSHPOOL !!! How to start CPU and GPU Bitcoin mining Fast bitcoin mining Bitcoin Miner Tutorial - SlushPool Dashboard - YouTube

Slush Pool is the 1st mining pool with more than 1.2M BTC mined since 2010. Explore features such as advanced payouts, monitoring and more. Nowadays Bitcoin is only mined by those who have managed to secure some sort of ASIC mining hardware, because it is pointless to mine BTC with GPU let alone with CPU miners. That is the reason why there are not that many Bitcoin mining pools left and there are a few larger ones that most people are mining in. Below you can see a list of the top Bitcoin mining pools with a short info about each ... Slush Pool war der erste Bitcoin Mining Pool. Dieser wurde im Jahr 2010 unter dem Namen „Bitcoin Pooled Mining Server“ eröffnet. Slush Pool wird von Satoshi Labs, dem tschechischen Technologieunternehmen, betrieben. Der Pool steht für seine einzigartige Score-basierte Methodik. Diese vermeidet das Risiko, von anderen Minern betrogen zu werden, wenn sie innerhalb einer Runde einen Pool ... In addition to a Bitcoin mining ASIC, you’ll need some other Bitcoin mining equipment: ... Slush, the creator ot Slush Mining Pool and the TREZOR hardware wallet, claims on Twitter that he has seen units and knows people who have had their miners delivered: As I stated earlier in this thread, we have units, chips and full specs, so we know it is real. We also know about other people who ... Start mining Bitcoin Cash or Bitcoin today! Supercharge your mining potential. Mine Bitcoin easily on the cloud without having to buy hardware, or plug your own hardware into the world’s highest paying mining pool. Sign up now Log in. Mine Bitcoin. We offer BTC and BCH mining. You can also choose to automatically mine the most profitable coin. Cloud Mining. Start mining immediately with our ...

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Setup of BFL miner on Slush Pool using CGMiner

Thanks to Skillshare for sponsoring this video! Get your first 3 months of Skillshare for $0.99 at This offer is valid until Feb 15th!... how to mining BITCOIN FAST on SLUSHPOOL... CARA MINING CEPAT BITCOIN di slushpool. Let your computer earn you money with Bitcoin Miner on slushpool. This slushpool mining pool tutorial will demonstrate how to setup your bitcoin miner. #Bitc... SUBSCRIBE FOR MORE HOW MUCH - GekkoScience NewPac USB Miner - GekkoScience 8 Port USB Hub - asic bitcoin miner gpu miner asic hardware #bitcoinmining #cpugpumining #mining #technicalcare #Earnfreebitcoin. Category Education; Show more Show less. Loading... Autoplay When autoplay is ...