Who is Vitalik Buterin?

The Coin Shark collected all the most interesting information about significant figures in the virtual money market. The first, about whom we will tell, is familiar and interesting to the entire cryptocurrency world.

Vitalik Buterin is a Canadian-Russian programmer, co founder of Ethereum decentralized blockchain platform. He was born in the ancient city of Kolomna near Moscow, but his family moved to Canada when he was six years old.

As a child, Vitalik was already very interested in computers and was remarkably drawn to math, programming and economics. In Canada he entered private  Abelard School and studied in a class for gifted kids. It seems that the motto of this school – Sapere aude (don`t be afraid to think, be brave to use your mind) – became the personal motto of the future programmer. He claims that the most important part of education is to learn how to think, reason and, basically, how to learn.

In 2011 Vitalik heard about Bitcoin and got interested in the idea behind virtual currencies. He started writing articles for a reward of 5 BTC (approximately $3 back then) and, having saved up several dozens of Bitcoin, bought a T-shirt. However, the website where he posted his articles had to shut down due to lack of funds. Then the 17-year-old schoolboy received an offer to become a co founder of Bitcoin Magazine, where Vitalik worked up till 2014. He graduated from school in 2012 and entered the University of Waterloo in province Ontario. Among its alumni there is a Dutch-Canadian programmer Rasmus Lerdorf, who created PHP – one of the world`s most popular programming languages.

Unlike his college, Vitalik Buterin didn’t finish the university. He dropped out after the first year and engaged in blockchain. By that time he already had a clear understanding of the distributed ledger technology, its prospective, advantages and weak points of Bitcoin and a possibility to change the world economy with the help of blockchain and digital currencies.

In 2013 Vitalik traveled a lot, met many developers and finally published a white paper of a blockchain platform for the creation of decentralized online services that he called Ethereum. A group of developers gathered around Vitalik hold one of the biggest ICOs to implement the project. Vitalik also received a grant of Thiel Fellowship – 100 thousand dollars from Peter Thiel`s fund. The grant is given to “young people who want to build new things instead of sitting in a classroom”. The organization also helps young entrepreneurs connect with investors, partners and potential clients. In 2014 Vitalik won World Technology Award in IT and software. In 2015 Ethereum platform was launched, having to a large extent inspired the recent crypto-boom.

In 2016 Vitalik came to Russia for the first time since his family emigrated to Canada and met representatives of Russian Central Bank and country’s government. In 2017 Vitalik visited the St. Petersburg International Economic Forum where he met Vladimir Putin.

Ethereum is used as a software environment to create and operate many financial instruments. Their transparency and security is guaranteed by blockchain. However the potential of that platform goes far beyond the financial area – this is a new form of economic, commercial relations and online interaction between users, and 24-year-old guy Vitalik Buterin is one of its leading creators.

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The Price of Ethereum Has Outrun the Price of Bitcoin Cash

The exchange rate of Ethereum has for the first time in the history risen higher than than of the ill-fated Bitcoin Cash. According to the CoinMarketCap the value of Ethereum is almost $86, whereas the cost of BCH dropped to around $82.

The price of Bitcoin Cash has been plummeting down since the infamous hard fork. After the coin split, its exchange rate dropped to around $200 and kept falling. Soon it left the double-digit price range. The hard fork, the hash wars and the overall downward trend of the crypto market has left a large negative impact on this cryptocurrency.

We remind you:

The Future of Ethereum: Will the ETH Rate Recover in the Next Year?

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The True Form of Bitcoin and Forecast for the Future

Now it is hard to find a person who has never heard of Bitcoin’s existence. But the vast majority of people do not fully understand what it is and how it really looks like. In this article we will discuss the true appearance of Bitcoin, and also find out whether BTC can have physical form.

1. What does Bitcoin look like?

We briefly remind that Bitcoin is the very first cryptocurrency in the world, it was launched in January 2009. This is the first decentralized payment system in the world, in which interaction takes place exclusively between users, and does not require regulation by intermediaries. It works with the help of blockchain technology, which guarantees security of transactions.

The Bitcoin network is a chain of blocks, which store information about every coin transfer in the entire history. Each block has timestamps as well as encrypted information about the previous block. This data is stored on every miner`s computer all at the same time, thus it is impossible to change anything in the registry. So, basically, Bitcoin is just a record in blockchain.

2. Is there a Bitcoin in physical form

It is very difficult for the vast majority of people to imagine something that does not exist in the real world. Some enthusiasts have begun issuing physical Bitcoins for this reason. What is it? The actual Bitcoin coins appear in the form of physical wallets. They are intended for safe storage of coins, as well as for offline payments. There is a wallet`s address that can be found on a coin, which is publicly available, as well as a private key, which is hidden by special hologram.

Source: https://www.coindesk.com/

The first physical coins were issued in 2011, produced by Mike Caldwell. The circulation was 3500 pieces, it is worth saying that the author mined those digital assets by himself. These coins were sold out very quickly, so in 2013, Caldwell released the next generation of physical bitcoins, which had new design.

3. What are the prospects for Bitcoin?

The first digital coin in history keeps leading position for almost 10 years and remains a powerhouse for the entire industry. The very first exchange rate of the coin was 1 dollar for 1.309.03 BTC. We remind that the coin’s rate in December last year was above $20,000, and then started falling down. Bitcoin costs about $3,300 now (according to CoinMarketCap).

No doubts, it is the biggest asset value increase in the history of mankind. Many cryptocurrency experts predict a great future for Bitcoin. Coin emission is limited, mining complexity increases every year, and users base is growing. All these factors will certainly have a positive effect on the cost of the asset in the future.

Bitcoin has one big problem that slows down its development – a small bandwidth. The network is able to perform only 7 operations per second. This It means that the more people will use the system, the longer it will take to wait for transactions confirmation takes to wait for. Sometimes it can take hours or even days.

4. Conclusion

Many people wonder: How does 1 Bitcoin looks like?” In general, BTC does not exist in physical form, it is just a set of data stored in the blockchain. But the enthusiasts created physical analogs of coins, mostly for collectors. They are physical wallets, made in the form of coins. Bitcoin`s future is not fully defined yet, but the majority of experts believe that the peak of its popularity is still ahead.

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Money Evolution: From Appearance to Cryptocurrency

The money is the most genius invention of mankind. During its long history, it has repeatedly changed its conceptual design. And each stage was accompanied by a qualitative leap in the development of human civilization. In this article we will talk in detail about money, its history and future prospects.

1. The main functions of money

The Money is fairly universal tool with the help of which you can perform many tasks.

  • Circulation tool. In turnover, money is a mediator. In order to effectively perform this function, money should be easy to deal with, and its transfer from one person to another should be fulfilled as soon as possible.
  • Payment tool. Each product has its own price, money allows to simplify the process of exchange of goods and services significantly.
  • Accumulation tool. Some of the unused funds can be accumulated for the future, but it is very important to diversify risks and not to keep money in one currency, because, in terms of inflation, its purchasing power in future may significantly decrease.

2. The origin of money and its evolution

The money origin is rooted to the times of primitive people. The development of money can be divided into several stages.

  • The first money. The money did not exist as such in human civilization at an early stage of its formation, at that time primitive people had barter. The first elementary monetary funds began to appear at the time of the division of labor. Different tribes used the various goods which were available to them  as the money. For example, cocoa beans in Mexico, animal skins in Siberia, pearls in South America were used as currency, etc. Salt was another valuable resource.
  • Metal money. With the development of civilization, money acquires a metallic form. In the VII century B.C. the first coinage appeared. This format of monetary funds becomes very popular all over the world. The primary materials of which were gold, silver, copper and bronze. This type of money significantly increased the sales turnover between people and brought human civilization to a fundamentally new level. During this period begins the accumulation of large capitals.
  • Paper money. In 910 A.D, in China, the first paper money appeared. The appearance of banks marked the beginning of a new era of market relations. Banks have become major custodians of values. People handed them their money, and received paper certificates in return. This format have become so popular that over the time these certificates began to be considered as money, which we can observe nowadays.
  • Electronic money. A year of 1991 becomes a critical point in history, this is the year when the Internet begins to function. Banks actively pick up this technology and begin to use it after a couple of years. Digital money is much faster and more secure than paper analogues. They are still the most common type of monetary funds.
  • Bank cards. The world’s first plastic card was issued back in 1950, it was  used in order to pay for dinner in certain restaurants. And only in two years after that, the first bank credit card was issued  in the USA.
  • Digital coins. The history of cryptocurrencies begins in the end of 2008, it was the first time when people heard the word Bitcoin. The main feature of cryptocurrency is the lack of a single center that controls emissions and acts as an intermediary in the course of transactions, digital coins also can be mined, i.e., engaged in mining.

3. Prospects of cryptocurrencies

Some experts predict a total collapse of cryptocurrencies, other experts predict the world recognition and almost the transfer of all the wealth of mankind into blockchain. What does really awaits the cryptocurrency industry in the future? In fact, there is not a single person who will be able to predict its further development by 100%. We can only assume certain scenarios based on certain facts.

  • It should be noted that a very technological and a universal technology such as  blockchain lies at the roots of cryptocurrencies. Potentially, it can be used in almost any field of activity.
  • Cryptocurrencies have altered the very essence of the money: no one controls them, they can not be banned or blocked.
  • Even against the background of the deep correction of 2018, large companies, funds and private investors are beginning to be interested in cryptocurrencies.
  • The governments of the largest countries are developing a legal framework for the market. This will allow to promote cryptocurrencies  massively.

Along with that, the mass media is overloaded by bad news which is one of the reasons for the protracted correction. If you look at the cryptocurrency chart in longer term, you can clearly see the liquidity of cryptocurrency assets (20x growth), even taking into account their rollback from peak values by 70-90%.

Source: CoinMarketCap

4. Conclusion

Money is the greatest invention of mankind, they became the catalyst of the progress of human civilization. We are witnessing the formation of a new type of money such as digital coins. Only time will tell whether cryptocurrencies will be able to take a palm of victory and push out paper and electronic money. But it is worth noting that in the long run they have all the chances to do that.

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Vinny Lingham is Clear About Bitcoin: “I don’t think we see $20k for a while”

Significant part of crypto community, still cannot recover from the fall of the cryptocurrency, the rate of which is still in a red zone. According to the CoinMarketCap, Bitcoin, at the moment of writing the article, is set on at $3 747 per coin and still falling.

But some representatives of crypto community have their own view about the situation on the market and predict their own price of Bitcoin.

Vinny Lingham, an Internet entrepreneur, Co-founder and CEO of Civic, has answered to a few question of The Coin Shark, to clarify the situation on the market:

Hello, Vinny. What do you think, will Bitcoin be able to overcome the $20 thousand mark next year?

I took a $20k bet with Ronnie Moas in Vegas, last month. He predicted $28k by EOY 2019. I disagreed. I don’t think we see $20k for a while, at the very least 2020, but possibly even 2021.

In your opinion, what is the problem with cryptocurrency at the moment?

There is too much hype, and not enough substance, as well as too much focus on the technology and not enough focus on the business or consumer value add.

Can Ethereum become the leader in 2019?

It is possible, but unlikely unless they can fix the scaling issues and deal with the lack of consensus within their community.

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Bitcoin`s Overvaluation: Who Can Take Its Place?

Many experts think that Bitcoin is overvalued and that its real value is less, than the market one. Well, in this article let’s talk about the main cryptocurrency, discuss its disadvantages, the current situation, and forecasts for the future. So, first things first.

BTC`s place in rating now (rate, capitalization, market share)

The cryptocurrency industry is not having its finest hour nowadays. Over the past week, the market capitalization has decreased by $70 billion and today this mark is $123 billion. Despite the total prices collapse, Bitcoin retains its leading position – the market share of 54.4%. Now the market is too volatile, so the numbers that will be given in this material may differ from the real ones. For the moment of writing this article 1 BTC costs $3,880, and the capitalization of the coin is around at 67 billion dollars. It is possible, that when you read this article the above values ​​will be different.

Why BTC is considered as overvalued?

At the end of 2017, the BTC rate briefly exceeded $20,000. At that time, this asset was extremely overbought and overvalued. Euphoria reigned in the market, an increasing number of investors wanted to enter the market. But such a growth could not last forever, so a rapid pullback followed after.

Bitcoin has nothing to do with the physical world and by itself can not have real value, in the usual sense. What is BTC? This is just a set of data that is stored on the blockchain. Its value is determined by investors faith, as well as the users base. The problem is that the Bitcoin`s network in its current form is not able to process a large number of transactions quickly. This is one of the limiting factors on the coin`s path to get a universal acceptance.

Who can push Bitcoin from the first place?

Currently more than 2,000 different cryptocurrency projects are released. Is it really possible to find at least one coin from all this long list, that can take the first place in the global rating of cryptocurrencies? This is a rather complicated question, there is no definite answer on it. But speaking about the near future, the most answer will be “no”. The fact is, that now (the end of 2018) BTC holds a 54.4% share of the total cryptocurrency market. This means, that the remaining 2000-plus coins together make up only 45.6%.

But in the longer term, there is a chance, that some kind of token or coin will still be able to take first place. What cryptocurrency projects are capable to do this?

1.Ripple

Lately, it takes the honorable second place in global rating CoinMarketCap.

  • Price: 35 cents;
  • Market capitalization: $14 billion;
  • Issue: 100 billion tokens.

In short, the Ripple technology allows a large number of users to share assets at the same time. The project got its feet on the ground, and what is most important it is used in real life. This technology is used by large banks in order to reduce the cost of transactions (Earthport, Bank of America, HSBC, etc.). Ripple is able to process more than 1,500 transactions per second, with minimal fees (0.00001 XRP). Given the potential value of this project and the huge number of tokens, it can be assumed that Ripple has every chance to win first place in the global cryptocurrency rating.

2. Ethereum

  • Price: 109 dollars;
  • Market capitalization: 11 billion dollars;
  • Issue: unlimited (currently more than 103 million coins have been mined).

Ethereum firmly held the second place for a long time, but the last wave of correction moved it to the 3rd line in this list. We want to remind you, that literally in early November 2018, Vitalik Buterin (Ethereum`s creator) said that the project is waiting for a major update in the near future. If the developers succeed in doing all that, Buterin said, this will have a good affect on the future rate of the coin.

All other coins are too far from the top three in terms of capitalization and popularity among the masses. Potentially, almost any coin from the TOP-100, can get ahead in future, but its probability is extremely small.

Conclusion

For over ten years Bitcoin is the main cryptocurrency in the industry. The overwhelming majority of people when hear the word “cryptocurrency” unconsciously imply Bitcoin. Of course, BTC has its disadvantages, but the development team is working hard to eliminate them. This is a very complex process, the implementation of which requires a lot of time.

So, if we analyze this issue, we can say with confidence that it is unlikely, that any other coin will be able to take Bitcoin`s place in the near future.

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How to Explain to Your Grandparents in 10 Minutes What is Bitcoin?

The older generation often perceive innovations as something supernatural and incredulous refer about them. But, what should you do, if you need to explain to your grandparents what is bitcoin, despite the fact they are afraid of picking up a mobile phone? 🙂
Of course we exaggerate! But since, the cryptocurrency little by little captures the world finance market, bursting into the life of those, who aren’t interested in it – your grandparents should be prepared.

For this The Coin Shark had developed a strategy, which will help you to explain what is Bitcoin in 10 minutes. During the experiment, none of the grandparents didn’t refuse to descend the legacy to their grandchildren 🙂

Stage #1: “Bitcoin – is like a paper money, but not made of paper”

Remember, never try to explain to older generation about the innovations on the developers slang. We recommend you to draw an analogy with the things which are more understandable for them.

It is better to compare Bitcoin with the ordinary money. Explain them, that it has the same value as the paper money, in which they receive the allowance. You can also buy goods and pay for services by using Bitcoin.

Do not forget to specify that the cryptocurrency are not made of paper, but encrypted by computer code. The ordinary money which we receive we can touch but the digital – not. Because they are stored on the computer, while the ordinary money in the wallet.

As far back as you can go that cryptocurrency is based on cryptographic methods, its management is decentralized and it works on the blockchain technology – your grandparents may think that you are possessed by a demon. All this stuff are clear only to our crypto space.

Stage #2: “Miners – are gold miners”

After the first stage is complete, it is logically that your grandparents will ask you – “how to get them?”

The old and proven method of the analogy also works here. We all know that we earn Bitcoin by mining. We associate it with a gold mining. And we clarify that while mining the cryptocurrency hoes,picks are not used, but a computer.

If you see understanding in the eyes of your beloved grandparents, than you can add, that Bitcoin can be bought on the internet. Specify, where and how is not necessary.

Stage #3: “Spend Bitcoin in the specialized store”

Before telling to your grandparents, where they can buy products by bitcoin, they need to know, that it has its own rate as well as the dollar. Except the rate depends on demand. Prepare sedative, because once they know the price for one BTC they will be very surprised. Only we are complaining here, that “Bitcoin is dying” , and it will be shock for them, that only one coin can cost 4 thousand dollars. I guess you realise that you should keep silence about the rate of 20 thousand dollars.

Now you can tell them : “Since Bitcoin – is unusual money, they are spent only in the special stores”.
Good job, the grandparents are ready! Now they can tell to their friends about Bitcoin. And if they are not afraid of computer, and they were interested in your story, than in the “For Beginners” section, they may find more about the cryptocurrency #1.   

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