When to Sell Cryptocurrencies – Finding the Right Exit Strategy

The importance of an exit strategy

In the world of cryptocurrencies, where volatility often dictates sudden market fluctuations, an exit strategy is a key component of successful investing. It is a predefined plan for the sale of assets with the aim of reducing risk or achieving specific financial goals. Investors who enter the market without a clear exit strategy often face making impulsive decisions – such as panic selling during a market downturn or buying driven by fear of missing out on an opportunity (FOMO).

There is no one-size-fits-all approach: the exit strategy depends on the type of cryptocurrency, market conditions, and the personal goals of the investor. Long-term investors, for example, may wait for the price to reach a certain level before selling, while day traders will exit positions based on technical indicators and current market signals.

Source: cointelegraph

Scenarios that can lead to sales

Cryptocurrency sales are often not random, but are based on predefined levels or specific life circumstances. Below are some of the most common scenarios that lead investors to consider exiting the market:

  1. Reaching the target price
    Many investors set clear goals when buying crypto – for example, buying Ether at $2,000 with a plan to sell at $4,000. When that price is reached, it becomes a sell signal. Such an approach allows for disciplined trading and ensures profits before possible market reversals. Price targets can be based on personal financial targets, previous record highs, or technical resistance levels.
  2. Activating a stop-loss order
    A stop-loss is a preset price level at which an asset is automatically sold to limit losses. For example, if Bitcoin is bought at $92,000 and the stop-loss is set at $87,000, the cryptocurrency will be sold as soon as it falls to that price. This strategy is especially useful in volatile market conditions, as it helps to preserve capital.
  3. Oversized market valuation or bubble
    When prices suddenly exceed the actual value of an asset, market bubbles are often formed. Selling at such times can be triggered by recognizing overvaluation, external shocks such as economic crises, changing market sentiment, rising interest rates or regulatory pressures. Ignoring these signs can lead to serious losses if the bubble bursts suddenly.
  4. Personal financial needs
    Sometimes the sale is not conditioned by the market, but by personal goals – debt repayment, a large purchase or unexpected expenses. For example, an investor who has been accumulating ETH for years may decide to sell part of it to raise money to participate in the purchase of real estate.
  5. Changes in the fundamentals of cryptocurrency
    Fundamental changes in a project can significantly affect its long-term value. These include security lapses, regulatory bans, loss of competitive advantage or technological stagnation. In such cases, selling may be the best way to avoid major losses.
  6. Rebalancing the portfolio
    The volatility of cryptos can easily upset the balance of an investment portfolio. If Bitcoin, which initially accounted for 50% of the investment, rises and reaches 70%, the investor may decide to sell some of the BTC to return to the original distribution and reduce the risk.
  7. Long-term downtrends or bear markets
    During periods of long-term price declines, known as bear markets, investors often opt for early sales to preserve capital. Likewise, if the market is entering a recovery phase, more experienced traders can take advantage of shorter rallies to exit strategically.

Source: cointelegraph

3 factors to analyze when thinking about selling cryptocurrencies

Although the crypto market is specific in its dynamics, the basic rules of strategic selling, risk management, and compliance with fundamental market indicators remain universal. Investors such as Cathie Wood and Balaji Srinivasan often emphasize the importance of long-term investment in projects such as Bitcoin, but also the necessity of adapting in line with changes in the market. When considering selling cryptocurrencies, these three factors can help you make a wise decision:

  1. When the S-growth curve flattens out
    Cathie Wood often invests in projects with high growth potential, which are visually depicted as an S-curve – a sudden initial growth and then a slowdown. If key indicators such as user growth or transaction volumes stop growing significantly and remain stable, this may indicate that the cryptocurrency has reached a saturation phase. Such stagnation suggests that the main wave of growth has passed and that further significant price increases are becoming less and less likely – at which point, selling may be a smart move.
  2. Diversion of capital for greater benefit (opportunity cost)
    Investing in crypto is not only a matter of “stay or exit” but also a matter of optimization. If a new project emerges with a better risk-to-potential return ratio, such as faster and cheaper layer-2 solutions compared to existing layer-1 platforms, diverting funds can increase the overall efficiency of the portfolio. Here you are not leaving the crypto world, but only maximizing your potential by shifting funds to where they can bring more value.
  3. Solving the problem of asymmetric information (adverse selection)
    In the world of cryptocurrencies, there is often an imbalance in the availability of information, which can lead to poor decisions. An example of this is the collapse of Terra LUNA and UST in 2022, when many retail investors lost money due to an unreliable algorithmic model that promised high returns. Some large investors, with better access to information, withdrew in time, which raised suspicions of possible manipulation and hiding risks. When there are signs that there is “something not being said” in the project – it can be a clear signal to exit and protect capital.

Source: cointelegraph

Tools and indicators to sell on time

While there is no tool that can guarantee the perfect time to sell, experienced traders and investors rely on a combination of different indicators to make informed decisions. The key is to understand market signals and connect data from multiple sources.

On-chain metrics
On-chain analysis involves studying data directly from the blockchain – such as the number of active addresses, transaction volumes, and the activity of “whales” (large investors). A sharp increase in large transactions from well-known wallets is often a sign that more sales are being prepared, which can cause the price to drop.

Technical Analysis
Using charts, support and resistance levels, and indicators such as the RSI (relative strength index) helps to assess whether the market is “overbought” or “oversold”. For example, if the RSI exceeds 70, it can signal that the price has risen excessively, which many use as a sell signal.

Macroeconomic events
Broader economic factors, such as changes in interest rates, inflation, or geopolitical tensions, can have a strong impact on the crypto market. Historically, US Fed announcements have often caused fluctuations in the price of Bitcoin due to its association with macroeconomic trends.

Market sentiment
Analyzing market sentiment through social media, news, and sentiment indices (such as the Fear & Greed Index) can reveal the collective attitude of investors. Extreme optimism often precedes price peaks, while mass fear can be a sign that a reversal is approaching.

Tokenomics and upcoming events
Elements such as the total token supply, unlocking large amounts, and protocol upgrades can have a strong impact on the price. For example, the announcement of Ethereum’s transition to proof-of-stake in 2022 caused increased market activity and volatility.

Source: cointelegraph

Risks of Selling Too Early or Too Late

One of the biggest challenges in the world of cryptocurrencies is determining when is the right time to sell. The market is extremely volatile, and the wrong timing can mean either missed profits – or significant losses.

Selling too early can result in a loss of potential profits, especially if the cryptocurrency continues to rise after breaking previous historical highs. A legendary example is Laszlo Hanyecz, known for his first real Bitcoin purchase – two pizzas in May 2010 that he paid for with 10,000 BTC. While the move was historically important, today’s value of these Bitcoins is measured in billions of dollars.

On the other hand, selling too late can result in serious losses, especially during bear markets or sudden corrections. History teaches us how unpredictable the crypto market can be – for example, Bitcoin fell from around $69,000 in November 2021 to below $16,000 in November 2022, causing panic among investors.

Despite this volatility, some investors consciously choose not to sell. Michael Saylor, co-founder of MicroStrategy, is known for his “HODL” strategy. His company continuously accumulates Bitcoin, even during the worst crashes. This long-term approach is based on a strong belief in the future value of Bitcoin – but it also carries significant risks, as it requires patience and resilience to extreme volatility.

Source: cointelegraph

The role of emotions remains a key challenge

One of the biggest challenges when selling cryptocurrencies is not related to technical analysis or market indicators – but to your own emotions. Fear and greed are often the strongest psychological triggers that can cloud rational thinking. Greed drives investors to hold positions even after the targets have been reached, hoping for even bigger gains, while fear leads to panic selling during sudden market crashes.

That is why a predefined exit strategy is the key to mitigating impulsive decisions. When you already know in advance under what conditions you are selling – whether it is price targets, changes in the market or personal circumstances – there is less chance that you will react emotionally. In a world known for speculation and sudden price fluctuations, controlling emotions becomes just as important as analyzing the market.
We hope you enjoyed reading today’s blog, and that you learned something new and useful. If you have any questions or suggestions, you can always contact us on our social networks (Twitter, Instagram).

What are storage tokens and how do they work?

What are Storage Tokens?

Storage tokens are digital assets that prove ownership of data stored on a decentralized storage network. Similar to how an account confirms ownership of a purchased product, storage tokens confirm your right to access and use the stored data. This means that you can retrieve your data at any time and even sell or transfer ownership to another person. Like other cryptocurrencies, storage tokens can be bought and sold on different exchanges, and their value depends on the demand for storage space.

Source: cointelegraph

How to get storage tokens?

You can acquire storage tokens in several ways through decentralized storage platforms. One way is to provide your own storage space to the network, which you can do by running a node on your computer or server. To get started, you need to download the platform’s app, register, and connect your storage device, such as a hard drive, to the network. Once set up, the platform starts using your storage space, and in return, you get storage tokens to store other users’ data.

Another way to acquire storage tokens is to participate in the platform’s governance process. This can include voting on future decisions or contributing to the development of the platform, which often earns users rewards in the form of tokens.

Source: cointelegraph

What is decentralized storage and how does it work?

Decentralized storage distributes data across multiple computers or servers instead of relying on a single centralized server. This approach increases the privacy, security, and resilience of the system, reducing the risk of glitches or censorship.

However, there are also some drawbacks. If a large number of computers on your network stop working or become unresponsive, access to data can become difficult. In addition, because it is necessary to communicate with multiple computers, retrieving data can sometimes take longer.

Blockchain technology plays a key role in the functioning of decentralized storage. It secures data by encrypting it and organizing it into cryptographically linked blocks, making it secure and immutable. This makes it almost impossible for unauthorized access or modification of data.

Source: cointelegraph

Decentralized storage compared to traditional cloud solutions

Businesses and individuals often use centralized services to store large amounts of data. Traditional cloud platforms such as OneDrive or Dropbox store data on one or more servers managed by centralized organizations. While such solutions are practical, they come with certain risks.

Millions of users can lose their data in the event of technical problems or cyberattacks on these platforms. In addition, users’ privacy can be compromised if service providers sell or use their personal information without permission.

Decentralized storage platforms, which use blockchain technology, offer solutions to these problems. Distributing data across multiple nodes in a network reduces the risk of data loss and increases security. Users retain complete control over their information, without fear of being sold or altered by a centralized organization.

Some decentralized platforms also allow users to earn cryptocurrencies by sharing unused storage, making them a more secure and cost-effective alternative. While centralized storage has its benefits, decentralized storage is becoming increasingly popular among those looking for greater security, privacy, and financial rewards.

Fun fact: Decentralized platforms can reduce the environmental footprint of traditional cloud solutions by using pre-existing, unused storage space on individual devices.

Source: cointelegraph

Use a storage token

Storage tokens are widely used in various industries, which is why they have attracted a lot of attention in recent years. Here are some of the most common use cases:

  • File storage – Storage tokens like Filecoin allow users to store data securely and efficiently without relying on centralized providers. This ensures data integrity and easier access to information.
  • Data monetization – Tokens like Ocean Protocol and Arweave allow for more secure and transparent data sharing. At the same time, they give individuals and companies the opportunity to make money from their own data while maintaining control over it.
  • Decentralized applications (DApps) – Tokens like Holo (HOT) help DApp developers by providing a secure infrastructure for storing application data.
  • Supply Chain Management – Tokens like OriginTrail (TRAC) improve the transparency of supply chains by allowing for the secure storage of product origin data.
  • GameFi – Tokens like Chiliza (CHZ) allow players to securely store virtual items within games and exchange them with other players.

In summary, storage tokens have the potential to reshape the way we store and exchange data and offer more efficient solutions across a variety of industries.

Source: cointelegraph

How to Invest in Storage Tokens

Before investing in storage tokens, it is important to note that there is no completely safe investment and that this is not financial advice. As with all cryptocurrency investments, there is a risk of losing capital, so thorough research is recommended before making decisions.

Step 1: Market Research

The first step in investing in storage tokens is to understand the market. When choosing the right token, consider factors such as network activity, price growth potential, and ease of use. Each storage token has specific characteristics and is based on different technologies, so it is important to familiarize yourself with its application and the problems it seeks to solve.

When researching projects, pay attention to:

  • Team and development – Check the development team, their previous work and plans for the future.
  • Community and ecosystem – An active community often indicates a healthy project with a higher chance of success.
  • Partnerships and integrations – Strong collaborations with established companies can increase the credibility and market value of a project.

Step 2: Choosing an investment strategy

Depending on your financial goals and risk tolerance, you can choose from several investment strategies:

  • Long-term holding (HODL) – Buying and holding tokens with the expectation that their value will increase over time.
  • Active trading – If you have trading experience, you can take advantage of short-term price changes to make a profit.
  • Staking and yield farming – Some platforms offer the ability to lock tokens in exchange for rewards, earning you passive income.

Step 3: Participating in the ecosystem

In addition to classic investments, you can earn storage tokens by actively participating in their ecosystem:

  • Become a host or node – By providing additional storage space to the network, you can earn tokens, while validating transactions as a node contributes to the stability of the network.
  • Participate in governance – Some projects allow token holders to vote on the future development of the network, which can increase the value of your investment.

Fun fact: Some decentralized platforms allow you to earn tokens not only by providing storage space but also by sharing files with other users. The more people access your data, the more tokens you can earn.

Source: cointelegraph

Should you start using decentralized storage and earn storage tokens?

With the growing popularity of blockchain technology, users around the world can efficiently rent out their excess storage space. Decentralized storage, protected by encryption and based on peer-to-peer networks, not only increases global data storage capacity but also allows individuals to make money from unused hard disk space.

However, before deciding to participate, it is important to carefully consider the potential risks and benefits. Setting up and managing decentralized storage can be technically challenging, and the value of storage tokens varies depending on market demand and available storage space.

Still, if you have extra storage space and are comfortable working with decentralized storage technologies, joining the network can be a good way to generate additional income.

Ultimately, the decision to use decentralized storage depends on your personal goals, risk tolerance, and technical knowledge.

We hope you enjoyed reading today’s blog, and that you learned something new and useful. If you have any questions, you can always contact us on our social networks ( Twitter , Instagram ).

Confirm Bitcoin transactions

Simple understanding of Bitcoin certificates

In the traditional financial system, the process of confirming Bitcoin transactions can be compared to processing and settling checks. When you deposit a check, the bank temporarily credits the funds to your account, but they are not immediately available. The bank must first verify the validity of the check and ensure that the issuer has sufficient funds. This process involves multiple steps and can take several days, as the check goes through different banking institutions. Only after all the steps have been completed, the transaction is considered final, and the funds are fully available.

Similarly, when a Bitcoin transaction is initiated, it is broadcast to the network but remains unconfirmed until miners include it in the block. Each new block added to the blockchain brings additional confirmations, further ensuring the validity of the transaction. Just as a check requires multiple steps in order to be processed, a Bitcoin transaction needs multiple confirmations to be final and secure.

Did you know? Bitcoin transaction fees are paid by the sender and are determined by the size of the transaction data rather than the amount being sent. This means that sending 1 BTC can have the same fee as sending 100 BTC, provided that the size of the transaction data is identical.

Source: cointelegraph

Bitcoin Wallet Verification Process

When a user initiates a Bitcoin transaction through a wallet, the entire process from creation to confirmation goes through several key steps:

  • Creating a transaction: The user enters the recipient’s Bitcoin address and the amount they want to send. The wallet software then constructs a transaction that includes inputs (the user’s unspent Bitcoin) and outputs (the recipient’s address and possible balance that is returned to the sender).
  • Digital signature: The wallet uses the user’s private key to digitally sign the transaction, ensuring its authenticity and preventing unauthorized modifications.
  • Broadcasting to the network: The signed transaction is sent to the Bitcoin network and enters a pool of unconfirmed transactions known as a “mempool”.
  • Verification by nodes: Bitcoin nodes check the transaction structure, signatures, and ensure that inputs have not already been used. Valid transactions remain in the mempool until they are included in the block.
  • To join the block: Miners select transactions from the mempool, prioritize them (often based on the transaction fee), and try to include them in the next block by solving a complex mathematical problem to find the appropriate hash.
  • Confirmation: When a miner successfully adds a block with a transaction to the blockchain, the transaction receives its first confirmation. Each subsequent block that is added to the chain brings additional confirmations, further securing the transaction.

Throughout this process, Bitcoin wallets provide users with updates on the status of the transaction. The most common indicators include:

  • Pending/Unconfirmed: The transaction has been created and sent to the network, but it has not yet been included in the block.
  • Confirmed: The transaction is included in the block and has received at least one confirmation.
  • Number of certificates: Most wallets display the number of confirmations a transaction has received – the more of them, the more secure and final the transaction.

Did you know? Users can track the progress of their transactions using the Unique Transaction Identifier (TXID), which is provided by the wallet. By entering the TXID into the blockchain explorer, it is possible to see detailed information about the transaction, including its status and confirmation number.

Source: cointelegraph

Blockchain Validations vs Blockchain Finality Explained

In the Bitcoin network, certificates indicate the number of blocks added to the blockchain after the block in which a particular transaction is located, thus increasing its security. On the other hand, the finality of a transaction refers to the moment when the transaction becomes irreversible and permanently recorded.

It is important not to confuse these two terms.

On the Bitcoin network, certificates are probabilistic – each new confirmation makes it even more difficult to reverse the transaction, gradually increasing its finality. For example, a Bitcoin transaction is generally considered final after six confirmations, which usually takes about an hour.

However, there are other forms of finality that are characteristic of different blockchain networks:

  • Deterministic (absolute) finiteness: Some blockchains achieve immediate and irreversible finality of transactions through consensus mechanisms that allow for instant confirmation. Once a transaction is validated and added to the blockchain, it can no longer be modified or undone. This approach is used in networks with algorithms such as practical Byzantine fault tolerance (pBFT). For example, Algorand uses such mechanisms to ensure instant and irreversible confirmation of transactions.
  • Economic finality: In proof-of-stake (PoS) systems, economic finality is achieved by making the return of transactions financially unprofitable. Validators must stake a certain amount of cryptocurrency as collateral. If they try to confirm fraudulent transactions, they risk losing the amount invested, which deters them from engaging in malicious behavior. This economic protection ensures that once confirmed transactions remain valid permanently.

Source: cointelegraph

Bitcoin Transaction Confirmation Time in 2025 |

The average confirmation time for Bitcoin transactions depends on several factors, including network congestion, block size, transaction fee dynamics, and network scalability.

Factors affecting confirmation time:

  • Network congestion: The increased popularity of Bitcoin leads to a higher number of transactions, which can cause network congestion. This results in unconfirmed transactions lagging and longer wait times for confirmation.
  • Block size limits: Bitcoin blocks have a size limit of 1 megabyte, which limits the number of transactions that can be included in each block. During periods of high traffic, this limitation can contribute to delays in processing and confirming transactions.
  • Dynamics of transaction fees: Miners often prioritize transactions with higher fees. Users who attach lower fees to their transactions may experience longer confirmation times, especially during network congestion when competition for block space is more intense.
  • Scalability Challenges: The design of the Bitcoin network faces scalability challenges. The combination of fixed block sizes and 10-minute intervals between blocks limits the system’s capacity to efficiently process an increasing number of transactions, leading to an increase in confirmation time.

Source: cointelegraph

Strategies for Fast Bitcoin Transaction Confirmation

Sometimes it is important that Bitcoin transactions are confirmed as soon as possible – for example, when trading or time-sensitive purchases. In other cases, such as personal transfers, longer waits are not a problem. Understanding when speed is key can help you plan your transactions better.

Set the appropriate fee or risk delays

Miners prefer transactions with higher fees. If you don’t include enough compensation, your transaction can stay in the mempool for hours or even days. In extreme cases, it can remain unconfirmed and never enter the block. Most wallets offer fee recommendations based on current network conditions, so it’s helpful to keep track of them.

How to Speed Up Slow Transactions with Wallet Options

If you’ve already sent a low-fee transaction and it’s stuck, there are ways to speed it up:

  • Replace-by-Fee (RBF): This option allows you to resend the same transaction for a higher fee, increasing the chance of faster confirmation.
  • Child-Pays-For-Parent (CPFP): If you have a stuck transaction, you can send a new (so-called “child” transaction) with a high fee. Miners will then process both together to earn more fees.

Source: cointelegraph

The Future of Bitcoin Transaction Confirmation

The Bitcoin community is actively working to solve the problem of increasingly long transaction confirmation times. In addition to the already implemented Layer-2 solutions, such as the Lightning Network, and significant upgrades, such as SegWit, the Bitcoin network is expected to receive even more advanced scalability mechanisms in the future.

Possible solutions for faster confirmations:

  • Rollup technologies: Rollups process multiple off-chain transactions and then group them into a single transaction on the main Bitcoin blockchain. This significantly increases throughput and reduces fees, while security is maintained by the final settlement on the main chain.
  • New State Channels: State channels allow two parties to perform numerous transactions outside the blockchain, with only the initial and final transactions recorded on-chain. This reduces network congestion and speeds up the transfer of funds.
  • Sidechain solutions: Sidechains work in parallel with the main Bitcoin blockchain, allowing funds to be transferred between networks. They make it easy to experiment with new features and can process a greater number of transactions without burdening the main network.

While Bitcoin is evolving to remain relevant in the world of new blockchain solutions with an extremely fast and deterministic finality, only time will tell if these improvements will be enough to maintain its dominant role.

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Ripple’s Stablecoin (RLUSD) – Everything You Need to Know

What is Ripple's stablecoin RLUSD?

Ripple’s stablecoin RLUSD (Ripple Labs USD) is a new digital currency developed by Ripple Labs, a company known for its cryptocurrency XRP. RLUSD is a stablecoin pegged to the US dollar, which means that 1 RLUSD is always worth $1. Its stability is provided by full collateral support in the form of deposits in US dollars or equivalent cash funds. After receiving regulatory approval from the New York Department of Financial Services on December 10, 2024, RLUSD was officially launched on December 17 and became available on five crypto exchanges. The stablecoin is expected to play a key role in Ripple’s global payments network from 2025, enabling faster and cheaper international transactions for business users.

Source: cointelegraph

How does RLUSD work?

RLUSD works in a similar way to other stablecoins pegged to the US dollar, such as USDT and USDC. Each new RLUSD token is created when individuals or institutions deposit capital assets, such as US dollars, as collateral. Thanks to this support, the stablecoin maintains a fixed value of $1, eliminating the volatility typical of many other cryptocurrencies. RLUSD is available on the Ethereum and XRP Ledger blockchains, which means it can be used to trade on exchanges or sent and received through these networks. While it doesn’t bring revolutionary innovations technologically, its interoperability and integration into Ripple’s payment infrastructure make it a competitor to existing stablecoins.

Source: cointelegraph

Advantages of RLUSD stablecoins

RLUSD brings a number of advantages that make it a reliable and efficient stablecoin in the world of cryptocurrencies. Its main advantage is its stable value – each unit of RLUUSD is always worth $1, which allows for safer and more predictable transactions. Additionally, RLUSD is one of the few stablecoins with regulatory approval from the New York Department of Financial Services (NYDFS), which gives it additional credibility. It focuses on institutional payments, enabling fast and low-cost global transactions for business users. Also, its wide availability and planned listing on major crypto exchanges make it easily accessible to users worldwide. We mentioned earlier that RLUSD supports two blockchain networks – the XRP Ledger and Ethereum – which ensures flexibility and interoperability within the broader ecosystem. A key advantage is also the fully secured reserve, with each RLUSD covered by cash deposits or equivalents that are continuously verified, allowing for a safe and stable 1:1 exchange with the US dollar at any time.

Source: cointelegraph

Uses of RLUSD stablecoins

RLUSD is designed to be fast, reliable, and cost-effective, making it useful for a variety of financial applications, including payments, trading, DeFi, and asset tokenization. One of its key purposes is international payments – it allows you to send money instantly around the world at minimal cost, which is especially useful in a globally connected economy. Also, RLUSD serves as a bridge between the traditional financial system and the crypto market, making it easy to enter and exit cryptocurrencies without the risk of volatility. Ripple Labs describes it as “digital money,” emphasizing its application in everyday transactions. In addition, RLUSD enables the tokenization of real assets, such as bonds, commodities, and securities, providing institutions with a way to secure collateral in trading tokenized assets. Thanks to its integration with the Ethereum blockchain, RLUSD will play a significant role in the DeFi sector, either as a means of trading on decentralized exchanges (DEXs) or as collateral in lending and lending platforms.

Source: cointelegraph

The future of the RLUSD stablecoin

Ripple has big plans for RLUSD, with an estimate that its market capitalization could exceed $2 trillion by 2028. years. This is an extremely ambitious prediction, given that Bitcoin only reached this limit after 15 years of existence, while the leading stablecoin USDT had a market capitalization of $138 billion in November 2024. The regulatory approval gives RLUUSD a stable foundation for expansion, and the planned launch in 2025 should include a number of major integrations from day one. Ripple has been gradually revealing details about the stablecoin, emphasizing that RLUSD is not a replacement for XRP, but will complement it in cross-border payment solutions. Also, the company has promised regular audits and transparency regarding the reserves that underpin RLUSD, including monthly financial reports and independent third-party collateral checkers, although it has not yet been revealed who will conduct these audits.

We hope you enjoyed reading today’s blog, and that you learned something new and useful. If you have any questions or suggestions, you can always contact us on our social networks (Twitter, Instagram).

Who is the mysterious creator of Bitcoin?

Who is Satoshi Nakamoto?

Satoshi Nakamoto is a name that has become synonymous with a revolution in the world of digital currencies, but his true identity remains unknown. The first Bitcoin “mined” is 3. January 2009. years by the person or group of people behind this pseudonym. The person or group behind one of the most significant technological inventions of modern times, became famous among cryptography enthusiasts, computer scientists, and hackers even before Bitcoin conquered the world.

Before Bitcoin was officially introduced, Satoshi Nakamoto was already active in online forums and corresponded via email with other developers using the same name. Although the identity of the person or persons behind the pseudonym has never been confirmed, there is a widespread suspicion that they are the authors of these communications.

It all started on October 31, 2008, when Nakamoto published a “white paper” on a cryptographic mailing list called Bitcoin: A Peer-to-Peer Electronic Cash System. This document details a decentralized system that uses cryptography to conduct transactions securely. Satoshi envisioned Bitcoin as a “pure peer-to-peer version of electronic money” that allows payments directly between parties, without the intermediation of banks or other financial institutions.

Who is Satoshi Nakamoto really? The question remains one of the greatest mysteries of our time, and its invention continues to shape the world of finance and technology.

Source: cointelegraph

Why was Bitcoin created?

Bitcoin was created in response to the crisis of the modern financial system, especially the Great Financial Crisis of 2008, which exposed the fragility of traditional banking institutions and their inability to prevent collapse. Satoshi Nakamoto created Bitcoin to put financial control back in the hands of ordinary people, giving them the opportunity to participate in a decentralized financial system that is not controlled by the financial elite. The basic idea of Bitcoin is decentralization. As an open-source project, Bitcoin is not owned by any person or organization; Its design is public and anyone can participate. This provides an alternative to the traditional system, in which banks and intermediaries dominate financial transactions. Instead, blockchain, a decentralized digital ledger, ensures trust and security in the system. The first Bitcoin block, known as the genesis block, was mined on 3. January 2009. This is the official launch of blockchain. Initially, Bitcoin had no monetary value, and early miners, who used their computers to solve complex mathematical problems, did so out of curiosity. Their task was not only to mine new Bitcoins, but also to validate transactions, thus ensuring that each Bitcoin was used correctly and could not be spent multiple times. The first real economic transaction with Bitcoin occurred on May 22, 2010, when a Florida man exchanged 10,000 BTC for two pizzas, marking the day as “Bitcoin Pizza Day.” Bitcoin’s value at the time was four BTC per cent, but since then, its value has grown exponentially, symbolizing the success of the idea behind this cryptocurrency.

Source: cointelegraph

Potential identities of Satoshi

Three years after publishing the Bitcoin whitepaper and mining the genesis block, Satoshi Nakamoto has retired from the world of cryptocurrencies. On April 23, 2011, Satoshi wrote in an email to another Bitcoin developer that he had “devoted himself to other things” and that the future of Bitcoin was “in good hands.” Since then, no communication has been recorded from Satoshi’s previously known email addresses, making his identity one of the greatest enigmas in Bitcoin’s history. Theories about who or what is behind the pseudonym Satoshi Nakamoto have constantly sparked controversy. Some believe that Satoshi is a pseudonym used by a group of cryptographers rather than an individual. Others speculate that Satoshi could be British, a member of the Yakuza (criminal group) or even a woman posing as a man. Over the years, several individuals have been associated with this mysterious pseudonym, but a definitive answer about the true identity of the creator of Bitcoin continues to elude, leaving room for endless speculation and conspiracy theories.

Source: cointelegraph

Dorian Nakamoto - The Man Mistaken for the Creator of Bitcoin

In 2014, Newsweek reporter Leah McGrath Goodman published an article titled “The Face Behind Bitcoin,” trying to uncover the identity of Satoshi Nakamoto. Goodman identified Dorian Prentice Satoshi Nakamoto, then a 64-year-old resident of Temple, California, as the mysterious creator of Bitcoin. She based her claims on similarities between the two Nakamoto, including mathematical skills, temperament, Japanese ancestry, and political views. According to Goodman, Dorian worked on computer engineering projects and high-security defense projects, making him a potential candidate.

However, Dorian Nakamoto later resolutely denied any connection with Bitcoin. He claimed that his statements had been misinterpreted and that he was talking about his engineering work, not Bitcoin.

The Newsweek article sparked heated debate about the invasion of Dorian’s privacy, especially after the magazine published a photo of his home in Los Angeles. The crypto community, outraged by such an action, collected more than 100 BTC as a sign of support and gratitude to Dorian for the unfair attention he had to endure. Dorian later made a YouTube video thanking the community, stating that he would keep his Bitcoin account “for many, many years to come.” Although the original video was later removed, copies continue to circulate online, reminiscent of this unusual episode in Bitcoin’s history.

Nick Szabo: The Visionary Behind Bit Gold and Decentralized Currencies

Nick Szabo, a prominent cryptocurrency expert, has often been on the list of suspects for Satoshi Nakamoto’s identity. A 2015 article in The New York Times, titled “Decoding the Enigma of Satoshi Nakamoto and the Birth of Bitcoin,” drew parallels between Szabo and the mysterious creator of Bitcoin due to similarities in their writing, interests, and key contributions to the development of decentralized systems. Szabo is a computer engineer, cryptographer and legal scientist, known for his pioneering work on the concept of smart contracts, which he presented in 1996 in the paper “Smart Contracts: Building Blocks for Digital Markets.” Also, in 2008, Szabo came up with “Bit Gold,” a decentralized form of digital currency that served as a precursor to Bitcoin. Additionally, it was associated with DigiCash, an early digital payment system that used cryptography to secure transactions. Interestingly, both Satoshi Nakamoto and Szabo mentioned economist Carl Menger in their works, which further fueled speculation about their possible connection. Dominic Frisby, author of Bitcoin: The Future of Money?, even claimed that Szabo and Nakamoto were one and the same person, basing his hypothesis on thorough analysis. Szabo, however, denies any claims that he is Satoshi, leaving the issue open and a subject of debate in the crypto community.

Source: cointelegraph

Hal Finney: Early adopter of Bitcoin with Satoshi

Hal Finney was a computer scientist, programmer, and cryptography enthusiast even before Bitcoin became a global phenomenon. He died in 2014 at the age of 58 after a five-year battle with amyotrophic lateral sclerosis (ALS). Finney is considered one of the first and most important contributors to the Bitcoin project, working to fix bugs and improve the open-source code. In addition, he was the recipient of the first Bitcoin transaction sent in 2009 by Satoshi Nakamoto himself. Interestingly, Finney was a neighbor of Dorian Satoshi Nakamoto, which Forbes journalist Andy Greenberg found intriguing and even suspicious. Greenberg analyzed the writing style of Hal Finney and Satoshi Nakamoto, with the help of text analysis experts. The similarities in their styles have led to speculation that Finney may have been Satoshi’s shadow writer or even used Dorian Nakamoto as a “cover” to hide his true identity. However, Finney vehemently denied these claims. When meeting with Greenberg, he showed the emails he had exchanged with Satoshi, as well as the history of his Bitcoin wallet, confirming that he was not the creator of Bitcoin. Analysts also concluded that the writing style in Satoshi’s emails sent to Finney matched Satoshi’s other publicly available works, further supporting Finney’s claim.

Fun fact: Hal Finney was a key developer for Pretty Good Privacy (PGP), one of the most famous programs for encrypting digital communications. His work on PGP revolutionized email encryption and laid the groundwork for privacy, which later became a key feature of Bitcoin.

Len Sassaman: Can the pioneer of cryptography be Satoshi?

Leonard “Len” Harris Sassaman was a respected cryptographer and a prominent member of the cypherpunk movement, dedicated to improving privacy and security in digital communications. His work on anonymity technologies, such as the Mixmaster protocol for anonymous emailing, reflects the core principles of decentralization and security that are also the basis of Bitcoin. Like the Bitcoin node, anonymous remailers process messages without revealing their source, which is analogous to the pseudo-anonymous way the Bitcoin blockchain processes transactions. In addition to technical innovations, Sassaman has been associated with some of the key figures in the cryptographic world. He worked closely with Adam Back, CEO of Blockstream, worked on PGP alongside Hal Finney, and participated in projects with Bram Cohen, the creator of BitTorrent. Together with Cohen, he developed the Pynchon Gate project and co-founded the annual Codecon technology conference. Interestingly, Sassaman, although American, used British English in his communication, which is also a characteristic of Satoshi Nakamoto. This linguistic similarity has further fueled speculation about a possible connection. Sassaman’s work in academic research, as well as his mentor David Chaum – often referred to as the “father of digital money” – provide another layer of interesting connection between Sassaman and Satoshi. His death in 2011, reported as a suicide, coincided with the moment when Satoshi Nakamoto ceased public activity. This coincidence of time gave rise to speculation that Sassaman may have been Satoshi and that his death was his way of preserving anonymity forever. Whether or not Sassaman was Satoshi, his work and vision of privacy and innovation continue to inspire the blockchain community. As Adam Back noted, the mystery of Satoshi’s identity may never be solved – and maybe that’s for the best.

Source: cointelegraph

Adam Back: Cryptographic Pioneer Linked to the Origins of Bitcoin

Adam Back, a pioneer in cryptography, was the first person to communicate with Satoshi Nakamoto, and his technological achievements have deep connections to the origins of Bitcoin. Back’s journey in the world of cryptocurrencies began with the development of HashCash, a proof-of-work system designed to prevent spam and DDoS attacks. This innovative system has become a fundamental part of the Bitcoin mining process, as Satoshi has integrated it into the network’s architecture. Back has also been involved in the development of several OpenPGP implementations and had close ties with other cryptographers through the PGP web of trust. Based on his own experience, Back speculated that Satoshi may have been a developer of anonymous remailers, since these experts often used pseudonyms to participate in cryptography discussions. While his innovations and contributions to technologies crucial to Bitcoin are unquestionable, Back consistently denies claims that he is Satoshi Nakamoto. He believes that the true identity of the creator of Bitcoin will likely remain a secret forever.

Fun fact: Wei Dai, the creator of the concept of b-money – a decentralized digital currency – has also been the subject of speculation about Satoshi Nakamoto’s identity. Dai introduced many of the ideas that were later incorporated into Bitcoin, and his work was even cited in the original Bitcoin whitepaper.

Peter Todd: Bitcoin Developer and HBO's Satoshi Nakamoto Controversy

Peter Todd, born in 1984, began his journey by studying fine arts before turning his attention to cryptography and decentralized systems, where he made significant contributions to Bitcoin’s security and private protocols. As a software engineer, Todd has been actively involved in the development of Bitcoin’s underlying code since 2012, particularly through projects such as OpenTimestamps, a timestamping standard on the blockchain. In addition to his role as a Bitcoin Core Developer at Coinkit since 2014 and an advisory position at Verisart since 2015, Todd has a wealth of experience in the industry. He has worked as a Linux supporter, electronics designer, and has held key roles in projects such as Mastercoin and Dark Wallet, advocating for strengthening privacy and decentralization in the world of digital currencies. HBO’s documentary about Satoshi Nakamoto sparked controversy by pointing the finger at Todd as a potential creator of Bitcoin. Over the course of the film, producer Hoback confronts Todd with the evidence, to which he ironically replies, “Well yes, I’m Satoshi Nakamoto.” Despite this, Todd repeatedly denied these claims, both before and after the film’s premiere. On social media, he expressed doubts about the documentary’s conclusions, claiming that he was not Satoshi. The film’s conclusions remain speculative, and the identity of the actual creator of Bitcoin remains an unsolved mystery.

Source: cointelegraph

The future of Bitcoin and the identity of Satoshi

Since its inception, Bitcoin has gone through a turbulent history, marked by scandals. Originally designed as a decentralized and borderless alternative to fiat currency, Bitcoin has become somewhat centralized over time. Major banks and financial institutions have begun opening crypto-trading departments and services to store cryptocurrencies, which some see as a “compromise” that deviates from Satoshi’s original vision of a revolutionary platform that would avoid financial institutions. With the increase in the number of Bitcoin “whales” (large investors who own the bulk of Bitcoin), it is considered that the cryptocurrency has once again come under the control of the elite. These large investors influence the price of Bitcoin in the markets and have the means to build mining farms, which is why it becomes increasingly difficult to mine, given that the mathematical problems become more complex. Nevertheless, Bitcoin has paved the way for the creation of more than 11,000 different cryptocurrencies and continues to grow in value. Although the HBO documentary encourages further speculation about Satoshi, without concrete evidence, the true identity of the creator of Bitcoin still remains a mystery. Many believe that it should stay that way. Satoshi’s anonymity is fundamental to Bitcoin’s decentralized system, ensuring that no one person holds influence over its future. As Bitcoin continues to evolve, its true value lies not in who created it, but in how it shaped global finance and technology. If the right technological advances are made, there is a high possibility that Bitcoin will be accepted in everyday transactions. Many organizations believe that Bitcoin could become the “currency of choice” in the global trade scene. But for Bitcoin to be sustainable, its blockchain technology must also evolve and be able to process a greater number of transactions in a shorter period of time. We hope you enjoyed reading today’s blog. If you have any questions or suggestions, you can always contact us on our social networks (Twitter, Instagram).

Layers of the blockchain

What is the difference between Layer 1 Layer 2 and Layer 3 blockchain?

The difference between Layer 1, Layer 2, and Layer 3 blockchains lies in their role and functionality within the blockchain ecosystem. Layer 1 (L1) represents the basic layer of infrastructure, i.e. the blockchain network itself, such as Bitcoin or Ethereum. This layer is responsible for key functions such as the consensus mechanism, security, and on-chain transactions. Layer 2 (L2) is an upgrade to L1 that improves scalability and transaction processing speed without changing the underlying architecture. An example for L2 are solutions such as the Lightning Network on Bitcoin or zk-rollups on Ethereum. Layer 3 (L3) refers to the application layer, where decentralized applications (dApps) and various blockchain tools provide end-users with functionality, relying on L1 stability and L2 efficiency.

Source: cointelegraph

Layer 1 (L1)

Layer 1 (L1) blockchains are the base layer where blocks are added and transactions are finalized, this layer provides a secure foundation for the entire network. These decentralized networks rely on consensus mechanisms such as proof-of-work (PoW) or proof-of-stake (PoS) to validate transactions. L1 blockchains are independent of any other network, making them the underlying infrastructure of the blockchain. While they ensure the security and validation of transactions, they often face the problem of overload due to the large number of transactions. In addition, they face the so-called blockchain trilemma, where it is difficult to achieve an optimal balance between scalability, decentralization, and security.

Source: cointelegraph

Layer 2 (built on top of Layer 1)

This layer is a secondary protocol that enhances the functionality of the base layer without the need to function as a separate blockchain. These solutions, such as state channels, rollups, and sidechains, are designed to mitigate Layer 1’s scalability issues. Through off-chain calculations and periodic confirmation of transactions on the main chain, Layer 2 enables faster transaction processing and reduced costs, without compromising on security. While it significantly improves scalability, L2 may be limited by interoperability issues between blockchains and the ability to customize specific solutions.

Source: cointelegraph

Layer 3

This layer functions as an application layer that uses the functionalities of the core Layer 1 and the upgrades of Layer 2. Layer 3 enables even greater scalability, increasing the number of transactions, enabling custom applications, and encouraging efficient and cost-effective financial transactions by combining various consensus algorithms such as proof-of-stake (PoS) and proof-of-authority (PoA), while ensuring network performance, decentralization, and security. Its key feature is to enable communication and interoperability between different blockchain networks without intermediaries. With advanced protocols and cross-chain bridges, Layer 3 opens the door to decentralized finance (DeFi), asset tokenization, and cross-border payments. Although Layer 1 provides the highest degree of decentralization, Layer 3 inherits moderate decentralization from Layer 2, with an emphasis on communication between different blockchains through interoperable protocols.

Source: cointelegraph

How does layer 3 work?

Layer 3 blockchains use off-chain computations and new consensus mechanisms to achieve scalability and interoperability for decentralized applications (dApps). They rely on the security and transactional capabilities of Layer 1 and Layer 2, and add advanced smart contract features. Scalable solutions like state channels and sidechains allow Layer 3 to perform complex off-chain computations while maintaining the security of the underlying blockchain. Layer 3 improves interoperability by enabling communication between different blockchains through protocols such as inter-blockchain communication (IBC), facilitating the interaction of dApps, including decentralized finance (DeFi) and non-fungible tokens (NFTs) developed on different blockchains. Within the Layer 3 architecture, virtual machines enable multiple dApps to be run through smart contracts, while Validium uses zero-knowledge proofs to validate off-chain transactions, reducing transaction costs and time. Rollups, on the other hand, group multiple transactions into a compressed structure and periodically send them to Layer 1, improving scalability without compromising security. Innovative consensus mechanisms, such as proof-of-stake (PoS) and delegated proof-of-stake (DPoS), further improve the efficiency and scalability of Layer 3.

Source: cointelegraph

What is Layer 3 used for?

Layer 3 blockchains are widely used in various industries where they enable scalability, interoperability, and low transaction costs. In gaming applications, Layer 3 enables the processing of a large number of transactions per second, reducing costs for users and developers, which is crucial for games with frequent transactions. In the DeFi sector, Layer 3 fosters liquidity and innovation by connecting different DeFi protocols, enabling secure and decentralized asset exchanges between blockchains. Layer 3 also improves supply chains by enabling product tracking through data sharing and verification between blockchains. In business applications, L3 offers scalability and optimized transactions, making it suitable for high volumes of low-cost transactions. The development of decentralized applications (dApps) on Layer 3 allows developers to build multichain applications with more advanced functionalities and a better user experience. For NFT applications, Layer 3 facilitates multichain markets, allowing NFTs to be traded across different blockchains. In security applications, Layer 3 offers a unique identity layer that reduces the risk of attacks and simplifies fraud detection, especially in the DeFi sector. In short, the scope of application is huge.

Source: cointelegraph

The Future of Layer 3

As the adoption of innovative technologies expands, Layer 3 blockchains face challenges in integrating and compatibility with the existing layered blockchain architecture. The development of interoperability solutions and the creation of common standards will be key to further adoption and innovation. While Layer 3 offers greater scalability, challenges remain in maintaining security and decentralization, especially as transaction volumes and the number of users grow. Maintaining a balance between decentralization and performance will be critical to the stability and durability of Layer 3. Layer 3 regulation at the international level is also an obstacle, so cooperation with regulators will be key to creating transparent and flexible frameworks that support innovation. The future success of Layer 3 will depend on addressing scalability and interoperability issues and its potential to transform various industries and advance decentralized ecosystems. Educating users and developers about the benefits and challenges of this technology will be key to driving adoption and further innovation, especially in the DeFi sector.

We hope you enjoyed reading this blog. If you have any questions or suggestions, you can always contact us on our social networks (Twitter, Instagram).

What are Bitcoin Runes?

What are Bitcoin Runs for?

Bitcoin runes represent an essential step to preserve the relevance of the Bitcoin network in a world of increasingly complex blockchain applications. Given the fact that Bitcoin is the first cryptocurrency, it has certain limitations. For example, unlike Ethereum, Bitcoin does not support complex smart contracts, which limits its application beyond simple transactions. Also, Bitcoin was created as a fungible asset, which makes it difficult to create and manage non-fungible tokens (NFTs), which require unique identifiers. Additionally, scalability is another challenge, as the network often becomes congested, resulting in slower transactions and higher fees. Although the Ordinals have tried to solve these problems, Bitcoin Runes strives to be a more efficient and comprehensive alternative.

Source: cointelegraph

What are Bitcoin Runes?

Bitcoin Runes work by incorporating additional data into Bitcoin transactions that contain information about the unique identifier of each token or digital asset, thus distinguishing them from regular Bitcoin transactions. This mechanism allows for the creation of non-fungible tokens (NFTs) and other unique digital goods on the Bitcoin blockchain, which is considered more secure and decentralized than other blockchains such as Ethereum. For example, an artist can issue her digital work as a Bitcoin Rune by first encoding the artwork into metadata that includes information about the work, then initiating a Bitcoin transaction with a small amount of BTC and embedding that data into it. When a transaction is confirmed, the digital work permanently becomes part of the Bitcoin blockchain, and the satoshi associated with that transaction become NFTs or unique digital assets whose value can exceed the standard market price of Bitcoin, precisely because of their uniqueness.

Source: cointelegraph

Differences between Ordinals and Runes

The main difference between Ordinals and Runes lies in the way the data is encoded. Runes use metadata within a Bitcoin transaction, which allows for much more flexibility compared to Ordinals, which are limited to 80 bytes within an array. For example, a creator creating a detailed digital work can encode comprehensive metadata with Runes, including a title, description, author information, and links to high-resolution images. Ordinals, on the other hand, only allow basic information like a short headline or description to be encoded, which significantly limits the level of detail. While Ordinals have a wider application, Runes are optimized for creating and managing non-fungible tokens (NFTs) and other unique digital goods. Runes make it easy to mint, transfer, and trade these unique tokens. On the other hand, Ordinals are more versatile and can track different types of data, supporting a wider range of applications. In terms of scalability, Runes also outperform Ordinals. Because the field in which the data is stored has limited capacity, more complex data sets require more transactions, which can overload the network and lead to higher fees. Bitcoin Runes allow you to process a larger number of transactions without significantly congesting the network and increasing fees, so in the long run they are a more efficient way to store data on the Bitcoin blockchain.

Source: cointelegraph

How to buy Bitcoin Runese?

Unless you’re some kind of artist, developer, or representative of the Web3 gaming community, you’re likely to trade Bitcoin Runese as a crypto enthusiast or investor. While artists would have to “mint” or “engrave” Bitcoin Runese through protocols like Counterparty or Stacks, trading Runes is simpler and more similar to buying other tokens, with a few key differences.

Step 1: Create and set up a Bitcoin wallet. Choose a Bitcoin wallet that supports Runes, such as MetaMask or Ledger. Install a wallet, create a strong password, and back up your recovery phrase.

Step 2: Find the market. Look for markets that offer Bitcoin Runes, such as OpenSea or OKX. Register and verify your account on your chosen market.

Step 3: Buy Bitcoin. If you don’t have Bitcoin, buy it at Kriptomat, or if you can’t, then through one of the many exchanges.

Step 4: Buy Runes. Find the Runes you want in the market and use your Bitcoin to make a purchase, following the platform’s instructions.

Source: cointelegraph

The future of NFTs on the Bitcoin network

NFTs have several useful applications, such as representing ownership of real physical objects, thereby enabling collateralization and price stability, or in digital art, where they allow artists to create unique and verifiable digital works. But the question is whether NFTs on the Bitcoin network will become really necessary. Proponents point out that Bitcoin’s unparalleled security and immutability is an ideal basis for protecting digital assets, but over time, this argument is likely to weaken. Blockchains such as Tezos, which are self-upgraded without the need for hard forks, and alternative consensus mechanisms such as Cardano’s Ouroboros or Algorand’s Pure Proof-of-Stake, are increasingly reducing security doubts between Bitcoin and other networks. In fact, security is often cited as the only reason why someone would prefer NFTs on Bitcoin over Ethereum or other blockchains. While Bitcoin NFTs offer an opportunity for additional relevance of Bitcoin in a world of diminishing use for payments, there is a suspicion that short-term profits and maintaining the value of large Bitcoin holders are key motives behind this trend. Nevertheless, protocols that use Bitcoin upgrades such as Native SegWit and Taproot are certainly interesting, but in the long run, more suitable networks will likely be sought for wider crypto adoption or a different application on the Bitcoin blockchain. We hope you enjoyed reading today’s blog. If you have any questions or suggestions, you can always contact us on our social networks (Twitter, Instagram).

What is a USB Bitcoin miner and how does it work?

How does Bitcoin USB miner work?

USB Bitcoin miners are compact devices that connect directly to your computer’s USB port.
They are actually scaled-down versions of the larger ASIC miners used in traditional setups, but with much less power and processing capabilities.
When you connect a USB miner to a computer, it begins a trial-and-error process to encode transaction data into a hash (a process known as mining) that meets specific length requirements — the same task that larger miners perform.
Once a suitable hash is found, other miners on the network validate it, thereby adding a new block to the blockchain.
In return, the miner receives bitcoin as a reward.
In short, a USB miner works like any other (usually an ASIC machine), the only difference is that it has much lower power consumption, but also less processing power.

Source: cointelegraph

Profitability of Bitcoin USB Miner

When studying the profitability of USB Bitcoin miners, it is important to analyze the numbers to understand how realistic making a profit is.
One of the more popular USB miners on the market is the GekkoScience Compac F, which offers a hashrate of around 200 gigahashes per second (GH/s) and costs between $120 and $150.
Although it is affordable, its profitability is modest.
For example, with a hashrate of 200 GH/s, an electricity cost of $0.10 per kilowatt hour (kwh), and a current Bitcoin price of $58,000, the daily earnings are approximately $0.275, while the daily electricity costs are around $0.024, leaving a net daily profit of only $0.251.
According to these calculations, it takes almost a year and a half to recoup the money invested, provided that the complexity of mining does not increase and the price of Bitcoin remains stable, which is unlikely due to its volatility.
If we compare this to ASIC miners like the Antminer S19, which costs thousands of dollars but offers a hashrate of over 100 terahashes per second (TH/s), it’s clear that USB miners lag far behind in terms of earnings.
While an ASIC miner can bring in hundreds of dollars per month, the payback period is often under a year, depending on the cost of electricity and the price of Bitcoin.
From this, we can conclude that a USB miner like the GekkoScience Compac F is more of a hobby or educational tool than a serious source of income.

Source: cointelegraph

Best Ways to Use Bitcoin USB Miner

Apart from joining a mining pool, there are other best methods that you can apply to successfully use USB Bitcoin miners, which are beneficial not only for USB mining but for the entire industry.
One of them is to use multiple USB miners at the same time to increase the overall hash power.
While this won’t drastically increase profitability, it can increase your earnings slightly.
It is essential to ensure that your computer or USB hub can handle the energy and cooling needs of multiple devices.
Optimizing electricity costs is also crucial.
Although USB miners consume little electricity, any savings are important.
Start mining during periods of lower electricity prices if you have variable tariffs or use renewable energy sources to reduce costs.
Also, ensure adequate cooling, as USB miners can become surprisingly hot during continuous operation.
Good airflow and additional fans can help keep the temperature low, which extends the life of your devices.
Regular firmware updates are another important item, as manufacturers periodically release updates that can improve the performance or stability of the device.
If you use multiple USB miners, invest in a quality USB hub with enough power for each miner, avoiding cheap and unreliable versions.
Finally, be aware of the security risks.
Use proven mining software, watch out for phishing attacks, and protect your computer with an up-to-date antivirus program.
These methods will help you get the most out of your USB Bitcoin miner, whether you’re doing this as a hobby or just starting your mining education.

Source: cointelegraph

How to set up a Bitcoin USB miner?

Once you’ve acquired your USB Bitcoin miner, setting it up is pretty simple.
Here are the steps to follow:

Hardware: connect the USB miner to an available USB port on your computer.
If you are using multiple miners, it is recommended to use a powered USB hub, as these devices can consume a significant amount of power.

Software: You’ll need mining software like CGMiner or BFGMiner.
Download and install software that is compatible with your miner.
Most miners come with instructions on which software to use.

Configuration: after installing the software, configure it to connect to the selected mining pool.
You’ll need the pool URL, worker ID, and password.
The software will also look for settings like your miner’s hashrate.
You can find this information in your device’s specifications.

Cooling: The USB miner can get very hot.
Consider adding a small fan to keep temperatures low and ensure optimal performance.

Overclocking: Some miners allow overclocking for better performance, but this can increase heat output, so be careful.

Some USB miner devices may experience recognition issues or reduced performance.
To avoid these problems, make sure your USB port or hub is working properly.
Try plugging the miner directly into your computer to rule out hub issues.
If the hashrate is less than expected, double-check the settings and make sure your computer isn’t overloaded with other tasks.

Source: cointelegraph

Conclusion

As we have explored, USB Bitcoin mining represents a niche within the wider crypto market, attracting mainly people who decide to pursue it as a hobby and those who are interested in the technical side of mining.
As technology advances, USB miner devices are likely to experience incremental improvements in efficiency and hashrate.
However, their role in the overall mining ecosystem is likely to remain limited due to their lower power compared to larger ASIC miners in an ever-growing market.
Looking to the future, USB miners could continue to serve as educational tools, offering a practical introduction to the world of Bitcoin mining.
Whether they will integrate with other devices — perhaps even as add-ons to existing technologies like smart home systems — is still uncertain.
So, while you won’t make a huge amount of money with USB Bitcoin mining, this type of mining provides a fascinating insight into the world of cryptocurrencies and the opportunity to participate in the Bitcoin network, no matter how small your contribution.
We certainly hope that you have learned something new in this blog, and that we have interested you in the topic of Bitcoin mining. If you have any questions, you can always contact us on our social networks ( Twitter , Instagram ).

What is Ethereum’s “Pectra” upgrade?

What is the Ethereum Prague-Electra (Pectra) upgrade?

Ethereum’s “Pectra” upgrade is a combination of two separate upgrades: “Prague” and “Electra”.
While the “Prague” upgrade focuses on changes within the main execution layer of the network, the “Electra” upgrade affects the consensus layer.
This joint upgrade, known as “Pectra,” follows the “Dencun” hard fork, which was successfully implemented in March 2024 and aimed to reduce transaction costs and improve Ethereum’s scalability. “Pectra” is planned to become a new key step in the development of Ethereum during the first quarter of 2025.
year, with the aim of further improving the user experience by introducing some new features.

Source: cointelegraph

Features and Benefits of Pectra Upgrade

The Pectra upgrade brings a number of minor but significant improvements to the consensus and execution layer of the Ethereum network.
One of the key changes is the introduction of EIP-7251, which increases the maximum stake for validators from the current 32 ETH to 2048 ETH.
This change allows staking providers to consolidate their roles into a smaller number of validators, which reduces the number of transactions that must be sent through the network, thereby reducing the pressure on the network’s communication layer and potentially improving its efficiency and performance.
In addition, the Pectra upgrade brings PeerDAS and improvements for rollups, which expand the possibilities of optimizing data storage in Ethereum layer-2 networks.
This includes the use of “blobs”, introduced through EIP-4844, to increase block space and reduce transaction costs.
Advancements in the Ethereum Virtual Machine (EVM), such as EOF, will further enhance the user experience as well as the developer experience, improving performance on layer 1 and layer 2, making Ethereum more efficient and secure for all users.

Source: cointelegraph

What are EIPs (EIPs)? Ethereum Improvement Proposals?)

EIPs (Ethereum Improvement Proposals) are a key part of the development of the Ethereum network and how upgrades are implemented.
An EIP is a proposal or standard that describes potential new features, improvements, or processes for the Ethereum blockchain.
It contains technical specifications for proposed changes and, according to Ethereum.org, serves as a “source of truth” for the community.
Upgrades to the Ethereum network begin as proposals in the form of EIPs, which are then discussed and developed by the developer community.
Any member of the community can create an EIP, and the author of the proposal is responsible for reaching an agreement with the community and documenting any opposing opinions.
If the proposal is accepted, it is implemented in network upgrades, such as Dencun and Pectra, which consist of a series of EIPs that must be implemented by all Ethereum clients on the network.

Source: cointelegraph

Ethereum Development Plan

Ethereum’s development after switching to a proof-of-stake (PoS) consensus mechanism in September 2022.
It takes place through five phases: Merge, Surge, Verge, Purge and Splurge, according to the plan presented by Vitalik Buterin.
Following the Dencun upgrade in March 2024, the next step in this development trajectory is Pectra, which is scheduled for 2025.
year.
Although Pectra is considered a relatively minor upgrade, the Ethereum development team decided not to rush its release before Devcon in November 2024.
to enable more effective monitoring and evaluation of changes.
After the Pectra upgrade, the implementation of “Verkle trees”, a new data system that will allow Ethereum nodes to store large amounts of data with reduced hardware requirements, is expected.
This upgrade, planned for later in 2025, will be part of the “Verge” development phase and will bring significant changes to the efficiency and user experience of the Ethereum network.

Source: cointelegraph

Conclusion

Ethereum’s development continues according to a set five-stage plan, which aims to advance the network and improve the user experience.
The Pectra upgrade, scheduled for 2025, represents an important step in that process, bringing key improvements to the consensus and execution layer.
Although it is relatively smaller compared to upcoming changes such as Verkle trees, Pectra will allow you to optimize the staking process and improve the scalability of the network.
These upgrades continue Ethereum’s journey towards greater efficiency, security, and accessibility, preparing it for future challenges and user demands.
We’d love to hear your thoughts on these Ethereum changes, and you can share it with us on our social media (Twitter, Instagram).
Likewise, if you have any questions or suggestions you can always contact us there.

Tether’s gold-backed stablecoin

What is a "related" asset?

Related assets refer to digital tokens that are designed to track the price of certain benchmark assets, such as the US dollar or gold.
These currencies, also known as stablecoins, can be backed by different types of collateral, such as gold, certain fiat currencies, or a diversified portfolio of assets.
This flexibility allows related assets to track the prices of a wide range of assets, including major fiat currencies, commodities such as oil or wheat, and even other financial instruments.
The key characteristic of related assets is the maintenance of value stability through various mechanisms, such as excessive collateral and liquidity in secondary markets, which allows their value to be closely linked to the reference asset, and the goal is, of course, that their value or price does not move away from each other.

Source: cointelegraph

Alloy (aUSD₮) – Tether's stablecoin

Alloy (aUSD₮) is the first Tether stablecoin to use Tether Gold (XAU₮) as collateral to maintain stability.
This digital token was created using EVM-compatible smart contracts, allowing for its interoperability within the Ethereum ecosystem and other compatible blockchains.
Using Tether Gold, Alloy is linked to gold, a traditional value asset known for its low volatility.
Each XAU₮ token represents one ounce (31.1 gram) of gold stored in a Swiss vault, ensuring stability and security for holders.

Source: cointelegraph

How does Alloy (aUSD₮) work?

Alloy (aUSD₮) works by combining the stability of the US dollar with the value characteristics of gold.
The key elements that enable the operation of aUSD₮ are excessive collateralization, smart contracts known as Vaults, and a liquidation mechanism.
Overcollateralization means that each aUSD₮ token is backed by a higher value of Tether Gold (XAU₮) than its face value, which serves as a hedge against gold price changes.
Users wishing to mint aUSD₮ must deposit more collateral than the value of the tokens they wish to create, and the maximum amount that can be minted is determined by the collateral-to-asset ratio, known as the liquidation point.
Vaults, Ethereum-compatible smart contracts, allow you to mint and manage aUSD₮, while independently verifying collateral by any third parties.
These contracts store the user’s collateral, unissued aUSD₮ tokens, and the user’s collateralized position data.
Liquidation occurs when the value of the collateral falls below a predetermined limit, and authorized liquidators can intervene, take over the collateral and recover the corresponding amount of aUSD₮.
This mechanism ensures the stability and integrity of the system.

Source: cointelegraph

How to get Alloy (aUSD₮)?

Users can acquire aUSD₮ in two ways: by transferring XAU₮ tokens to an aUSD₮ smart contract, which then mints and issues the corresponding amount of aUSD₮ tokens to the user’s address, or by trading aUSD₮ tokens on the secondary market through centralized exchanges like Bitfinex or decentralized exchanges (DEXs).
When acquiring aUSD₮, there are three types of fees: minting, returning, and liquidation.
The minting fee is 25 bps (0.25%) on each newly issued aUSD₮ token.
The refund fee is also 25 bps when exchanging aUSD₮ for underlying collateral.
The liquidation fee, which is applied when the customer’s position reaches the liquidation threshold, is 75 bps and is charged to liquidators for each liquidated XAU₮ token.

Source: cointelegraph

What are the benefits of aUSD₮?

AUSD₮ offers a number of advantages, including stability thanks to its peg to the US dollar, as well as gold backing.
This stability reduces the volatility often associated with cryptocurrencies, providing a reliable means of preserving value.
Additionally, aUSD₮ uses audibly smart contracts on the Ethereum blockchain, allowing for secure and transparent token minting and return processes.
The over-collateralization model and compatibility with the Ethereum ecosystem make it easy to generate yields and integrate with various decentralized finance (DeFi) platforms.
These characteristics make aUSD₮ a resilient alternative to the traditional banking system, offering investors stability, diversification, and the opportunity for passive income given the fact that you can use your gold investment as collateral to mint this stablecoin.

Source: cointelegraph

Tether token pegged to fiat (USD₮) vs. Tether Gold (XAU₮) vs. Alloy Tether (aUSD₮)

Tether (USD₮), Tether Gold (XAU₮), and Alloy Tether (aUSD₮) are three different approaches to stablecoins.
USD₮ is a stablecoin pegged to the US dollar, designed for everyday transactions, providing simplicity and security in the use of fiat currency on the blockchain.
On the other hand, XAU₮ is a gold-backed token that represents one ounce of physical gold, offering investors the opportunity to gain exposure to gold as a safe haven.
Alloy Tether (aUSD₮) combines the stability of the US dollar with the safety of gold, providing additional opportunities to generate yields through a unique over-collateralization mechanism.
While USD₮ is ideal for fast and stable transactions, XAU₮ and aUSD₮ offer investment opportunities through a gold backing, with aUSD₮ further enabling dollar stability with the potential for passive income.
It is up to you to Sami research how to take advantage of this opportunity to profit.

Source: cointelegraph

Conclusion

Alloy Tether (aUSD₮) represents an innovative combination of the stability of the US dollar and the security of gold, providing a unique investment opportunity through overcollateralization.
While USD₮ offers simplicity and stability for everyday transactions, and XAU₮ allows exposure to gold as a safe haven, aUSD₮ combines the best features of these two stablecoins.
With transparent and secure smart contracts, and compatibility with the Ethereum ecosystem, aUSD₮ offers investors not only stability and diversification, but also the opportunity for passive income.
In the world of digital finance, Alloy Tether sets new standards by providing gold-based stability and reliability, while also allowing for easy integration with modern DeFi platforms.
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