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).

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

Coins, exchange; What are they for?

What are exchange coins?

Exchange coins are a type of cryptocurrency issued by an exchange and serve various useful functions within the ecosystem of that exchange.
These coins, often referred to as exchange tokens, provide users with benefits such as trading fee discounts, staking rewards, and access to special features or services.
For example, many exchange coins allow users to receive discounts on trading fees when they use them to pay for transactions on the exchange.
Also, holding these coins often allows users to access premium customer support or participate in token sales events such as pre-sales at exchanges (IEOs).

Source: cointelegraph

Tokens vs. Tokens Coins, exchange; What's the difference?

Although the terms “token” and “coin”
” are often used interchangeably, their meaning differs slightly. It all comes down to whether the cryptocurrency is the native coin of a particular blockchain network or is built on it according to a predefined token standard. For example, BNB is the native cryptocurrency of the BNB Smart Chain, a blockchain network that supports the Binance exchange. Since the exchange coin is native to the network and is used to pay transaction fees (gas fees), it is correct to classify it as an “exchange coin”. On the other hand, there is the KuCoin Token (KCS), the “coin” of the KuCoin exchange. Since KCS is actually an ERC-20 token that runs on the Ethereum network, it is correct to define it as an “exchange token”.
Later during the development of the project, the development team can develop their own blockchain network and migrate the exchange’s existing token to the native network.
For example, Crypto.com’s coin, Cronos (CRO), started as an ERC-20 token on the Ethereum network.
However, in November 2021.
the project migrated the token to the Cronos blockchain, where it now serves as the native coin.
In the same way, Ethereum is a coin that serves as the native currency of the Ethereum network with which transaction fees are paid, while Tether (USDT) is the token that works on that network.

Source: cointelegraph

Trading fee discounts

Exchange coin holders often enjoy reduced trading fees on a particular exchange, which can be a significant saving measure for traders.
For example, BNB users enjoy discounts on trading fees on the Binance platform, which directly leads to lower transaction costs.
Similarly, Huobi Token (HT) and KuCoin Token offer fee reductions on their exchanges, thereby attracting traders looking to minimize costs.

Token burning mechanisms

In addition to fee discounts, these tokens often participate in token burn mechanisms, where a portion of the token is periodically destroyed to reduce the total supply.
This deflationary tactic can increase the scarcity of the token and, theoretically, its value over time.
Binance, for example, regularly conducts token burns for BNB, with the aim of increasing its long-term monetary value.
Such mechanisms create the potential to increase the value of the token.

Source: cointelegraph

Management

Another interesting aspect of exchange tokens is their role in governance.
Many platforms allow token holders to participate in governance decisions, vote on proposals that can shape the future of the exchange.
This democratization of decision-making can empower investors, giving them a voice on important issues such as protocol upgrades, fee structures, and other Huobi Token and Uniswap (UNI) are examples of tokens where holders can vote on significant changes and influence the direction of the platform.
This participatory role not only aligns the interests of investors with the growth and development of the exchange, but also fosters a sense of common purpose.

Revenue generation

Investing in coins and exchange tokens can also be a way to generate income through staking and other DeFi activities.
Many exchanges offer staking programs where token holders can lock their coins to support the security and operations of the network in exchange for staking rewards.
For example, Aave (AAVE) and Synthetix (SNX) tokens can be staked to earn interest or additional tokens, providing a passive source of income.
This ability to generate yields increases the total holding value of these tokens, and thus allows investors to earn returns beyond the price rise itself.

Expanding the usefulness of coin exchanges

Exchange coins like BNB were originally used within their platforms, but they are increasingly being adopted outside of their ecosystems as well.
Although exchange coins are not as common in the payment system as digital currencies like Bitcoin (BTC) and USDT, this does not mean that they do not have their place.
BNB, for example, is widely accepted outside of the Binance platform.
Many Shopify merchants accept BNB as a form of payment through integration with cryptocurrency payment processors such as CoinPayments.
Similarly, OKB is accepted by a number of services for payment purposes.
It is widely used to purchase goods, services, and even travel bookings.
Additionally, ecosystems such as Binance, OKX, and Crypto.com offer Visa cards that allow users to spend their coins and exchange tokens at any merchant that accepts Visa cards.
That said, most exchange tokens and coins are primarily used within their ecosystems and are not designed as a medium of exchange.
BYT, for example, is primarily designed to be used within the Bybit crypto ecosystem for discounts on trading fees and platform-related activities.
Similarly, GT is mainly used within the Gate.io platform for discounts on trading fees, token sales participation, and governance.
Users can always exchange tokens for other currencies that are more freely used when paying for goods and services.
So it’s unlikely that we’ll ever see a major application of these coins outside of their ecosystems.

Source: cointelegraph

Conclusion

Exchange coins represent an interesting and useful part of the crypto ecosystem, offering a range of benefits from reduced trading fees to participating in the management of platforms.
While their primary focus is often within specific exchanges ecosystems, their use extends beyond these boundaries, allowing users to use them for payments and other activities.
Investing in exchange coins can bring financial and strategic benefits, whether through staking, discounts, token burn mechanisms, or participatory governance.
As the crypto industry continues to grow and develop, the usefulness of these coins will continue to expand, providing investors with new opportunities to realize value, and it remains to be seen what kind of ideas exchanges will propose for their coins.
We hope you enjoyed reading this blog, and that you learned something new.
If you have any questions, you can always contact us on our social networks (Twitter, Instagram),

How long does it take to mine 1 bitcoin?

What is Bitcoin mining?

Bitcoin mining is the process by which transactions in the network are validated and new bitcoins, or “miners”, are created.
There are currently around 19.5 million bitcoins in circulation, and the total supply is limited to 21 million.
The remaining bitcoins, estimated at around 1.5 million, are currently “locked” and waiting for users with powerful computers to release them through mining.
This process is like a digital treasure hunt, where miners use computer hardware to find a 64-digit hexadecimal number that confirms a block of transactions.
This number, also known as a hash, is found through what is known as hashing.
Hashing requires computers to scan trillions of hashes to find one that matches the weight of the block, which confirms the authenticity of transactions and allows a block certificate to be issued.
After that, the network releases new bitcoins into circulation as a reward for miners.

Source: cointelegraph

What is the average time it takes to mine 1 bitcoin?

The time it takes to mine 1 Bitcoin can vary significantly.
Each block in the Bitcoin network, when found, rewards miners with 3,125 bitcoins.
The average time to mine one block, and thus 3,125 bitcoins, is about 10 minutes.
However, due to the enormous computing power required to mine a single block, it is almost impossible for a single miner to receive the entire reward.
The time it takes for one person to mine 1 Bitcoin varies depending on the hardware they are using.
Miners with a higher number of powerful mining devices (ASICs) have a higher hashrate, allowing them to earn more Bitcoin per block compared to those with a lower hashrate.
This is why many miners access mining pools, where they collectively contribute hash power to increase the chances of finding the desired hash.
In a mining pool, rewards are distributed among miners based on their contribution to the hash rate.
The pool operator usually charges a management fee, and there are different models of reward distribution, among which are proportional distribution and payment per share.
These models affect the stability of miners’ earnings and their share of earnings from transaction fees.

Source: cointelegraph

How hard is it to mine Bitcoin solo?

Solo Bitcoin mining involves one miner competing with the entire world to find the required hash.
Bitcoin’s proof-of-work (PoW) consensus protocol makes mining extremely competitive.
It is for this reason that the chances of a solo miner beating all other miners in finding the required hash are almost zero, regardless of the strength of their mining hardware.
In the early days of Bitcoin, the difficulty of mining was relatively low due to the smaller number of miners, and the rewards per block were significantly higher, with dozens of Bitcoins per block.
Still, at that time, Bitcoin was worth less than $1, so the rewards in dollar terms were very low.
Today, solo miners mostly access mining pools to have any chance of winning prizes.
Those who do not have powerful mining hardware can opt for cloud mining services, thus avoiding the high initial investment cost.
Cloud mining services allow miners to rent their hash power online, while users pay for a share of that power.
In return, users receive rewards for blocks based on their share of hash power, but this has already proven to be unprofitable several times and the only way to be profitable is if the market entry is timed very well.

Source: cointelegraph

How to earn 1 Bitcoin a day without investing?

Earning 1 Bitcoin per day without investment is almost impossible, as Bitcoin mining requires significant resources and capital investments.
Mining involves high electricity consumption and specialized, expensive hardware.
Over time, the difficulty of mining increases, making the process even more laborious and less profitable, so that only the most efficient survive.
Even with a large investment, an individual would face competition from powerful mining operations that have a huge advantage due to their size.
At the time of writing this blog, one bitcoin was worth about $64,000.
Earning this sum per day without investing is impossible, and therefore dubious programs and websites that promise quick earnings of 1 bitcoin per day are scams.
For those looking to invest in cryptocurrency mining or trading, it is important to first educate themselves on blockchain technology, cryptocurrency markets, and trading strategies.
With the right knowledge and approach, it is possible to convert smaller investments into larger amounts over time, but do not trust those who promise you big profits in a short period of time without any effort.

Source: cointelegraph

Conclusion

Bitcoin mining is a complex and resource-intensive process that requires significant investment in specialized hardware and energy.
Although in the early days of Bitcoin, mining was more accessible and profitable, today the chances of an individual earning a significant amount of Bitcoin on their own are very slim.
Due to increased competition and the increasing complexity of mining, many miners are accessing mining pools to increase their chances of making money.
Also, investing in cloud mining can be an alternative for those who do not have the possibility of large initial investments, but it is extremely difficult to be profitable with this method of mining.
Earning 1 Bitcoin a day without investing is not realistic and you should be wary of offers that promise quick and easy earnings.
For those who are interested in cryptocurrencies, it is important to educate yourself and plan your investments carefully.
In the long run, well-informed investors can find success in this dynamic and often unpredictable market. We hope you enjoyed reading today’s blog, and that you learned something new. If you have any questions, you can always contact us on our social networks ( Twitter , Instagram ).

What happens to lost bitcoins?

What are lost bitcoins?

Bitcoin is considered lost on the blockchain when the owners of the asset can no longer access those bitcoins.
Bitcoin (BTC) is a decentralized digital currency that stores its records among a distributed set of nodes that collectively represent a ledger, known as a blockchain.
On the Bitcoin blockchain, private wallet users have a public address while holding a private key that allows them to control the assets within that address.
There can only be 21 million BTC in circulation; This is designed and encoded within the protocol.
Bitcoin’s design is deflationary, with the scarcity of assets increasing over time.
The value of Bitcoin is largely based on the maximum limit on the total amount of Bitcoin that can exist and by periodically reducing the rewards (through halving Bitcoins) awarded to miners for putting new Bitcoin into circulation.

Source: cointelegraph

Each lost bitcoin further contributes to deflationary dynamics and increases the scarcity of available bitcoins.
It is difficult to estimate the exact number of bitcoins lost, given that wallets may simply be inactive.
However, according to research conducted by Chainalysis, a blockchain data platform, 17%–23% of the total supply of Bitcoin could be lost, which ranges between 2.78 million and 3.79 million BTC.
It is also speculated that the wallets of Bitcoin’s creator, Satoshi Nakamoto, hold up to 1 million BTC from early mining rewards, which contributes to the percentage of these lost or inactive Bitcoins.

Source: cointelegraph

How can all bitcoin be lost?

Bitcoin can be lost due to user errors or malicious actions by third parties through fraud, hacking, or social engineering.
Some potential scenarios are:

Private key compromise: Security flaws or hacks can lead to private keys being compromised, allowing malicious actors to steal bitcoins.
This can happen through phishing, malware, or other scams.
Sending to the wrong network: this error occurs surprisingly often when transferring BTC; if users accidentally send Bitcoin to the wrong network or invalid address (e.g., a digit is missing), it becomes completely unrecoverable.
This is also becoming more common with the advent of Ordinals in the Bitcoin ecosystem, as some wallets have different addresses than the standard BTC address.
Damaged wallets: if a user’s bitcoin wallet is damaged or corrupted for any reason, the user can potentially lose access to their BTC.
However, there is no problem if the user has the private key; A new wallet can be set up and restored using the private key.
User abandonment: many inactive BTC wallets have never had any activity for a number of reasons.
One reason may be that the owners have forgotten their private keys and cannot access their Bitcoin, leading to an unrecoverable Bitcoin on the blockchain.
It’s possible that they’ve thrown away their old computers, hardware wallets, or deleted recovery files, minimizing their options for regaining access.
Inheritance issues: this is another form of user abandonment.
Private key owners can unfortunately pass away, and no one else has access to the original private keys, leading to forgotten crypto assets.
This can also happen with private wallets and accounts at centralized exchanges if there is no clear application process for heirs.
Hacking of centralized exchanges: Centralized exchanges that hold user assets are also at risk of being hacked or losing assets due to insolvency, resulting in users being unable to access their assets.

Source: cointelegraph

Consequences of a lost bitcoin

With growing institutional interest, Bitcoin is gaining more and more recognition as a digital gold and store of value.
Any lost Bitcoin can represent a serious loss of wealth for users over the coming decades.
Bitcoin has been around since 2009.
The general consensus among experts is that it occupies a unique place among digital currencies as a store of value.
The launch of spot Bitcoin ETFs for Bitcoin has brought tremendous institutional liquidity and interest in Bitcoin.
These factors have led many experts to predict significant values for Bitcoin in the coming decades.
Users who have lost their BTC forever with no possibility of recovery may struggle with feelings of guilt.
Usually, the focus is on stories of gains and successes; However, such losses, unfortunately, are also part of participating in the crypto world.
The industry should focus on multisig and innovative wallet solutions that can reduce the possibility of such losses for users in the future.
This would help reduce fraud and accidental key losses, thereby encouraging wider adoption of cryptocurrencies.
The deflationary nature of Bitcoin adds complexity.
All the lost BTC accelerates the scarcity of available units.
Unlike some speculators, institutions and individuals with high net worth tend to take long-term positions in Bitcoin instead of trading frequently.
The combined effect of these factors suggests a trend towards increased Bitcoin scarcity and potentially higher prices in the future.

Source: cointelegraph

Can bitcoin be returned?

Not all hope is lost for beneficiaries who have lost their property; however, the possibility of returning Bitcoin is very small.
Here are some potential ways for users who want to recover lost Bitcoin:

Data recovery services: some companies specialize in recovering lost cryptocurrencies.
They usually deal with situations like disk or hardware issues, forgotten passwords, wallet corruption, data loss, or wrong recipients.
They offer a variety of ways, from brute force reconstruction of partial or entire seed phrases to wallet reconstruction, forgotten passwords, guessing and finding keys stored on the hard drive.
Given the cryptographic principles of Bitcoin, completely reconstructing a forgotten seed phrase is extremely difficult with today’s computing capabilities.
Users must exercise caution and work with reputable companies with verified reviews and proven success, as many services can be outright scams or overpriced with no real results.
Private investigative companies: they are usually involved in cases of hacking or fraud involving large sums of money.
They have a wide range of investigative tools at their disposal and, in many cases, work with law enforcement to prosecute malicious actors and recover some of the stolen bitcoin.
These are viable alternatives for users who have lost a significant amount of assets and want to try to recover lost assets.

Source: cointelegraph

What are the safest ways to store bitcoins?

Cold storage and personal control of private keys are essential for the secure storage of bitcoins.
Using “cold storage,” which keeps private keys offline, helps keep bitcoins safe and prevent hacking.
The most commonly used cold storage solution is a hardware wallet, which allows transactions and provides top-notch security.
Alternatively, for the highest level of protection, the use of paper wallets, which print keys on paper, can be considered.
Regardless of the method used, it is essential to have numerous secure copies of the private keys.
Whether users prefer software or hardware wallets, they should always research and choose reliable options.
Exchanges are definitely not a suitable place to store significant funds because they are an easy target for hackers.
Finally, it’s essential to know about phishing scams, and how to keep your wallet safe to stay safe in the crypto world.

Source: cointelegraph

Conclusion

Lost bitcoin represents a significant phenomenon in the crypto world, and also contributes to the increase in scarcity and value of the remaining bitcoin.
While losses are painful and often irreversible, users can take steps to reduce the risk of loss, such as using cold storage, strengthening security practices, and carefully managing private keys.
The industry must continue to develop innovative storage and recovery solutions to reduce the number of lost bitcoins.
Given the growing institutional interest and predictions about the future value of Bitcoin, asset protection and security are becoming increasingly important.
With proper precautions and awareness, users can maximize the security of their bitcoins by managing their assets wisely.
We hope you enjoyed today’s blog, if you have any questions you can always contact us on our social networks (Twitter, Instagram).

Advantages and disadvantages of cryptocurrencies

Difference between crypto and traditional currencies

Cryptocurrencies are digital forms of money based on blockchain technology, which enables safe, transparent and decentralized data storage and transfer. Cryptocurrencies differ from traditional currencies in that they are not issued or controlled by central banks or governments, but are created and maintained through complex mathematical algorithms and cryptographic methods. These digital currencies are an increasingly popular way of paying in the digital world, but also one of the most lucrative ways of investing in the modern world. Since the advent of Bitcoin in 2009. It is the first and most famous cryptocurrency to date when we have more than 10 thousand different cryptocurrencies that are used for various purposes and goals. All these currencies have a number of advantages, but also some disadvantages compared to conventional currencies, which we will explore and compare in more detail in this blog.

Source: cointelegraph

The biggest advantages of cryptocurrencies

Unlike traditional currencies, which are issued and controlled by central banks or governments, cryptocurrencies are independent of any third party and are not subject to inflation, manipulation or censorship. Cryptocurrencies have numerous advantages over traditional currencies and banks, among which are:

Anonymity: Cryptocurrencies allow users to protect their identity and privacy when making transactions. Transactions are not associated with the user’s personal data, but with unique cryptographic keys.
Low Cost: Cryptocurrencies reduce transaction costs because they do not require mediation from banks or other financial institutions. Transactions are carried out directly between users, without large fees, commissions or hidden costs.
Speed: Cryptocurrencies allow you to send and receive money quickly and efficiently at any time and anywhere in the world. Transactions are confirmed within minutes or hours, depending on the cryptocurrency and network size.
Security: Cryptocurrencies use advanced cryptographic methods to protect money and data. Transactions are recorded in a public and immutable record called blockchain, which is distributed among all network participants. Blockchain prevents spoofing, duplicating, or undoing transactions.
Innovation: Cryptocurrencies encourage the development of new technologies, services and business models that take advantage of blockchain. They offer the ability to create smart contracts, decentralized applications, digital tokens, exchange platforms and other solutions that improve efficiency, transparency and democratization of the financial system.

Source: cointelegraph

Decentralization; The key to the success of cryptocurrencies

Decentralization is another advantage of cryptocurrencies over traditional currencies and banks. Decentralization means that cryptocurrencies are not controlled by any central institution, but are based on a distributed network of users who participate in the maintenance and security of the system. Decentralization has several benefits, such as:

Resilience: Cryptocurrencies are resistant to censorship, manipulation, corruption or attacks by authorities or malicious actors. If one node or part of the network stops working, the other nodes continue to function and ensure continuity and stability of the system.
Greater Democracy: Cryptocurrencies allow users to have more influence over system-related decisions, such as upgrades, protocol changes, or the choice of coins and tokens. Users can vote, propose or participate in discussions about the future of cryptocurrencies through so-called DAOs.
Internationality: Cryptocurrencies provide access to financial services and resources to people who are otherwise excluded from the traditional financial system, such as citizens of poor countries without cheap access to banking services. Cryptocurrencies do not require any personal information, documents or approvals to use, but only access to the Internet and crypto wallet, no matter where you are.

Decentralization is one of the key features and value of cryptocurrencies, which distinguishes them from other forms of money and allows them to be free and secure. The survival of cryptocurrencies would be questionable if they were not decentralized, government institutions and large corporations would have an interest in demolishing and destroying these currencies, but because of their decentralization, such ventures are simply too expensive.

Source: cointelegraph

The biggest disadvantages of cryptocurrencies

With the growing popularity of cryptocurrencies, we have encountered some problems or shortcomings that must be solved before further global acceptance of cryptocurrencies as a means of payment. Some of the biggest disadvantages of cryptocurrencies are as follows:

Volatility: Cryptocurrencies are subject to large price fluctuations, which depend on supply and demand, speculation, news, regulation and other factors. They can very easily experience a sharp rise or decline in value in a relatively short time, making them risky to invest and use. The simplest solution to this problem is the growth of liquidity in the market, and we could potentially expect this with the arrival of spot Bitcoin ETF.
Complexity: Cryptocurrencies require certain technical knowledge and skills to use and understand them. Users need to know how to use crypto wallets, how to store and protect their private keys, how to track and confirm transactions, how to solve any problems or errors, and how to adapt to changes in technology and protocols. Further advances in technology should make it possible to simplify all these aspects, and as a consequence cryptocurrencies could become simpler for the average user.
Limited acceptance: Cryptocurrencies are still not widely accepted as a means of payment or storage of value in most countries and markets. Many traders, businesses and institutions do not support or recognize cryptocurrencies as a legitimate form of money. Also, many countries have different views and rules on cryptocurrencies, which makes it difficult to use and integrate them globally. The best way to solve this problem is to create a demand for cryptocurrency acceptance. The next time you’re in a restaurant, ask if they accept cryptocurrencies or bitcoin, and if the answer is no, tell them to consider introducing them. In this way, entrepreneurs will start considering the introduction of cryptocurrency as a means of payment and we will solve the problem of poor acceptance.

Source: cointelegraph

Conclusion

Cryptocurrencies are digital forms of money that offer numerous advantages and disadvantages over traditional currencies and banks. In this blog, we explored and compared the main features, opportunities and challenges of cryptocurrencies in the modern financial system. Some of the aspects we covered are:

How cryptocurrencies offer anonymity, low cost, speed, security and innovation as advantages over conventional currencies, but also how cryptocurrencies have disadvantages such as instability, complexity and limited acceptance, which limit their wider application and acceptance.

Cryptocurrencies are an increasingly popular way of paying and investing in the digital world, but there are still numerous challenges and risks that need to be addressed. Cryptocurrencies are not only a form of money, but also a way to change the financial system and society. Therefore, it is important to be informed, educated and careful when using or investing. We hope that this blog has helped you to better understand the basic advantages and disadvantages, and if you have any more questions or comments, feel free to share them with us on our social networks (Twitter, Instagram).

Pax Gold: Connecting Gold and Cryptocurrencies

What is PAX Gold?

Paxos gold (Eng. PAX Gold) is a cryptocurrency that is backed by real gold reserves held by Paxos, a company based in New York. Each PAXG token is linked by a ratio of 1:1 to one ounce (oz) of gold bar to the London Good Delivery standard kept in Brinks Security vaults in London. Paxos cryptocurrency, PAXG, is backed by the London Bullion Market Association (LBMA) certified gold bars and can be exchanged for real physical gold. PAX Gold investors are spared the worry of storing and securing physical gold, as well as its transportation given that storage and insurance is provided by Paxos, and transportation takes place digitally. Also, Paxos gold can be bought fractionally (in pieces), making it more affordable for small investors who would otherwise have to buy larger amounts of gold so as not to spend too much on commissions. PAX Gold boasts a combination of the characteristics of physical ownership of gold and cryptocurrencies that provide solutions to the many challenges facing today’s gold market, such as high costs, storage concerns and lack of liquidity. This is exactly why we decided to bring Paxos Gold to our Kriptomate where you can buy and sell it from now on.

Source: cointelegraph

Who is behind Paxos Gold?

Paxos Trust Company, a New York-based financial institution and technology company that specializes in blockchain technology, created PAX Gold. PAX Gold isn’t the only cryptocurrency Paxos is actively working on. In addition to PAX Gold, they also created the PAX Dollar (USDP), a digital U.S. dollar, i.e . stablecoin. Paxos has received strong institutional support and has raised over $500 million in total from investors like PayPal Ventures.

Source: cointelegraph

How does Paxos make money?

Paxos makes profits in two ways: with small gold premiums and a tokenization fee when buying gold initially. The tokenization fee depends on the amount of the purchase; for purchases of one ounce (oz) or less, the fee is 1%, and for purchases greater than one ounce, the commission will be significantly lower. Another advantage of Paxos is that it will not charge for the gold storage service, but on the other hand, when a customer decides to buy or sell a token on the blockchain Paxos will charge a fee of 0.02%.

Source: cointelegraph

The problem with Paxos gold

There are certain problems and risks associated with Paxos Gold, and one of them is the confidence that Paxos really owns the gold it claims to have, as well as the confidence that Paxos will not freeze your funds. Paxos claims that for every Paxos Gold token it issues, it possesses the appropriate amount of physical gold in the vault. However, there is no way to verify this data. Investors simply have to believe that Paxos really owns and stores gold in the right amount to support the value of the issued tokens, and so far we have had a handful of stablecoins claiming that all coins are covered by the dollar, and later still lost their connection, that is, lost value, and therefore investor money. This lack of transparency opens up the possibility of manipulation or fraud. Paxos could claim to have more gold than it actually owns, or it could issue more tokens than it can cover with real gold. This would result in Paxos Gold token offering inflation and a loss of link to the price of gold. Also, there is a risk of stealing the gold paxos claims to own. In the event of unforeseen events, such as the robbery of the vault or the financial collapse of Paxos, investors may be faced with the loss of their assets.

Source: cointelegraph

Conclusion

Trust is a key element in the successful functionality of Paxos gold. Investors must believe in the integrity and transparency of Paxos as the company holding their gold. This is not the case with Bitcoin, with Bitcoin you can verify the validity of transactions and the entire network yourself. However, if you want to own gold without the need for physical storage and securing it, PAX Gold is very likely the best option for you. We hope you enjoyed reading today’s blog, and we would certainly like to hear your opinion about gold that you can share with us on our social networks (Twitter, Instagram).
Until next blog.

Binance Coin (BNB)

What is Binance Coin (BNB)?

Binance coin, better known by its abbreviation BNB, is currently fourth. The largest cryptocurrency by market cap. Created by arguably the largest cryptocurrency exchange, Binance, this coin mostly serves to give holders some benefits compared to the rest of the exchange user. It can be use to pay fees on binance exchange, with slightly lower the commission compared to the one you would have paid if you had not used BNB. Binance is continuously trying to expand the usable sphere of this coin to attract investors, and this has paid off many times over for them so far. It is important to note that if there are any problems such as such as binance insolvency or bankruptcy (similar to FTX exchange), The BNB would completely lose the need for existence, and therefore to draw that by investing in this coin you are relying on success Binance exchange business. If we take all of the above we will see that BNB has become an integral part of Binance’s ecosystems and will be necessary for the survival and further development of this current the dominant crypto exchanges.

Source: Cointelegraph

Binance coin: Initial coin offering

Binance coin was launched in 2017. with an offer of $200 million. Coins. By creating the coin, part of the offer was assigned to the Binance team, part of the it was sold to early investors, and the rest was put up for public sale (public sale), at a price of fifteen cents per BNB. He’s here A brief overview of how BNB coins were distributed:

Binance team: 40% (eighty million BNB)
Angel investors: 10% (ten million BNB)
Public sale: 50% (one hundred million BNB)

Binance raised a total of 15 million from the sale of BNB. dollars in bitcoin and ethereum. Of this amount, 35% is allocated to improving binance exchange, 50% for marketing and education, and the remaining 15% is saved in reserve in case of any unexpected circumstances.

Source: Cointelegraph

Binance Network (eng. Binance chain)

BNB was originally launched on the Ethereum network, but subsequently became the most important coin of the BNB network given that it is used for payment fee for conducting transactions on this network. Similar to Ethereum, Binance has launched its network, which they claim is decentralized and It can be used to build a variety of decentralized applications, such as are DeFi (decentralized finance) platforms, buying and selling NFT- Iowa… However, this is not the most accurate information given that the network It’s not decentralized, and Binance has full control. can freeze user funds which is not a characteristic of any decentralized networks such as Bitcoin and Ethereum.

Source: Cointelegraph

BNB incineration

One of the key links to the success of the BNB in recent years was is the burning of the BNB supply. Unlike others cryptocurrencies that have unlimited coin offerings, BNB has a limited supply of two hundred million coins. It’s a bonus to this The so-called BNB incineration. Binance committed to burning part of it. BNB offers every quarter until the total supply is reduced to one hundred million coins, that is, by 50%. The Burning of the BNB, Binance forever removes coins from the offer, which will lead to a rise in price, If the demand remains the same.

Source: Cointelegraph

How does BNB incineration work?

Every three months Binance takes 20% of the profits made to buy BNB coins. Purchased coins are burned by Binance, i.e. sent to a non-existent address that no one has access to. As we previously Stated Binance will carry out the burning of the BNB until 50% of the total The offer will not be burned.

Source: Cointelegraph

Why did Binance introduce the burning of BNB?

There are several reasons why Binance is carrying out the burning of BNB coins, but one of the main ones is that it helps to maintain the value of BNB. Over time, how will the BNB offer decrease, the demand for it is likely to grow, which will lead to price increases. In addition, burning the offer helps prevent inflation, because it ensures that the supply remains the same, that is, that reduces. Another advantage that the incineration mechanism offers is Increase investor confidence. The fact that Binance committed to will use part of the profits to increase the value of their cryptocurrency it further instills confidence in investors. Certainly the burning of bnb It is a unique and innovative link that was necessary for his it will be interesting to see how it develops in future.

Source: Cointelegraph

Conclusion

Binance’s BNB proved to be one of the best investments in the previous bull market, and constant additions of the usefulness of the BNB from Binance’s side could save this coin for another big leap In the bull market. Binance as the leading crypto exchange currencies are constantly trying to improve their services and thus attract new users, which would increase their earnings. In combination with the mechanism of burning coins, which we mentioned earlier, this is likely to lead to a rise in the price of BNB. It is important to note that the value of the BNB is directly related to binance’s operations, and if there are any problems in the business (similar to FTX- in) this coin would probably become worthless. If you decide to investing in BNB, you can always do it through our Kriptomata. Write to us on our social networks (Twitter, Instagram) your experience with Binance exchange and their a coin. Do you think Binance will remain the dominant exchange office, or will a competitor emerge to take over the place?

Tron (TRX)

Overview of Tron

We have been in a bear market for a long time, due to the global economic situation combined with events within the crypto industry. A specific characteristic of such a period is the decline in popularity cryptocurrency Given that people have less interest in investments of a high-risk character such as cryptocurrencies, but Tron is one of the few exceptions that not only does not lose popularity, but continuously increases the value of the overall ecosystem, building new decentralized applications, which brings in numerous new investors. TRX the tron network’s main coin, is currently the seventeenth most valuable by market capitalization, and Tron as a network is the second most valuable just behind Ethereum, with a total value of $5.33 billion. The main advantage of this network is the speed and efficiency it offers compared to other networks where transactions are often expensive and extremely slow. Tron uses a proof of stake system to verify transactions, unlike Bitcoin, which of course has its pros and cons, but about that a little later. In today’s blog, we will explore what features contribute to the value of this network and whether they are sustainable in the long term, and what is the future of this unique network.

Source: cointelegraph

What is Tron?

Tron is a decentralized digital platform with its own cryptocurrency TRX. The throne was created in 2017. It was created by the Tron Foundation in Singapore. Initially, the target market of this cryptocurrency was Asia, but with the general rise in popularity of cryptocurrencies Tron became globally popular. According to the latest estimates, in August 2021. In 2001, the platform had more than fifty million users. Another interesting fact related to this network is one of its founders, Justin Sun, who is also the CEO of the famous file sharing program, BitTorrent.

Source: cointelegraph

Tron and Ethereum

The structure of the Tron network is often compared to the Ethereum platform, and uses some of the same basic building elements such as decentralized applications (dApps), smart contracts and tokens. In fact Tron has often been criticized for having most of their network completely copied from Ethereum with minimal changes. Yet Tron is in one respect more dominant compared to Ethereum. These are stable coins, as much as 50% of the total supply of Tether (USDT) is on the Tron network, while on Ethereum there is less than 40% of the total supply of this coin. The transition to using Tron instead of Ethereum is likely related to transaction fees on Ethereum. While fee prices have stabilized, they are still far more expensive on Ethereum compared to Tron. The vast majority of exchanges offer the ability to withdraw stable coins via Tron, where transaction fees are a few cents, and withdrawals via Ethereum usually require a few dollars of transaction fees. However, apart from stable coins, Tron is in no way better than Ethereum. All new decentralized applications are built on Ethereum, it’s the same with NFT collections, layer 2 networks also come to Ethereum, not Tron. The degree of decentralization of Tron is much lower than Bitcoin and Ethereum, which can lead to freezing of addresses and other unwanted centralization characteristics. In general, all innovations happen on Ethereum, not tron. To change this Tron Foudnation will need to give some initiative to developers to switch to Tron, but until then Tron is just another network that is years away from Ethereum.

Source: cointelegraph

Data in Tron (TRX) coin

Tron (TRX) was originally launched through an ICO (Initial Coin Offering), and raised sixty million dollars from investors. Tron’s TRX coin does not have a limited amount, but there are currently just under 91 billion TRX in circulation. Below we have attached a graph showing the trx coin offering, as seen, from the beginning of 2021. The coin offering is continuously decreasing which tells us that TRX achieves deflation. This can be useful in maintaining the value and price of a TRX coin given that there is no inflation to reduce its value, as is the case with most other cryptocurrencies. The amount of steaked (locked) TRX, is also continuously increasing, which tells us that investors have confidence in the price of this coin in the long run. At the time of writing, just over 48.5% of trx coins in circulation are locked or steaked.

Source: tronscan

Conclusion

Tron (TRX) is a cryptocurrency with great potential that has not yet been fully realized. The Tron Foundation needs to encourage people, i.e. developers, to build more decentralized applications on Tron to unlock the full potential of this network. Also, the network itself needs to become less centralized and more decentralized to ensure that Tron functions according to its ideas. This means that processes such as issuing new tokens, validating transactions and decision-making should be made as decentralized as possible to ensure the transparency and security of the network, which is not the case at the time of writing this blog. One of the advantages of Tron is the relatively low cost of use compared to other cryptocurrencies, which makes it available to a wide range of users. This makes it an attractive option for people who want to enter the world of cryptocurrencies without losing too much money on transaction fees. On our Kriptomats you can buy Tron and use it to purchase other cryptocurrencies with minimal losses on transaction fees or leave it in your wallet, if you believe in the future of this project. Write to us on our social networks (Twitter, Instagram) whether you have already used Tron and what is your opinion about this project.
Until next blog.

Dogecoin (DOGE)

What is Dogecoin (DOGE)?

Dogecoin (DOGE) is an open source peer-to-peer cryptocurrency, with the coin DOGE. It is one of the ten largest altcoins by market capitalization, and was launched in December 2013. years. This coin is best known for its distinctive “meme” logo of the dog Shiba Inu. It uses the same mining algorithm as Litecoin (Scrypt), but it differs in the coin offering since litecoin is limited to 84 million, and with DOGE the limit does not exist, i.e. the offer is unlimited. One of the features of Dogecoin is its large and passionate community, which over the years has brought popularity to this cryptocurrency, and so the attention of multimillionaire Elon Musk. Despite being originally created as a joke, Dogecoin has gained a significant following and is used for various purposes, including charitable donations, online tips and even as a way to pay for goods and services, all thanks to the low cost of transaction fees on the DOGE network combined with the popularity this cryptocurrency has gained.

What are "meme" coins?

Simply put meme coins are cryptocurrencies, for the emergence of which the inspiration was a certain meme (humorous image or video). Dogecoin is arguably the most famous, and the main reason for this is that it is also the oldest. These currencies carry with them a lack of innovation and general utility, given that their only purpose is to go viral on the internet, the same as the original memes. Since the value of a meme coin is entirely based on the popularity of the meme they represent, these coins are additionally volatile compared to the rest of cryptocurrencies, as their popularity fluctuates every day. Dogecoin developers, Billy Markus and Jackson Palmer, never intended dogecoin to be used in any practical way, much less that this currency would be worth more than eleven billion dollars.

Bitcoin and Dogecoin

Dogecoin is recognized as a “fun” or “meme” version of Bitcoin, with a dog Shiba Inu on its logo. The biggest problem of this cryptocurrency is the unlimited amount of coins in circulation given that rewards to miners are not reduced, as is the case with Bitcoin, where the reward is reduced to half every four years. With Dogecoin, 10,000 new DOGS come into circulation every minute, on the other hand Bitcoin needs 1,600 blocks for this amount of coins, or just over eleven days. The reason for the unlimited offer, according to the developers of the Dogecoin project, is a faster, more adaptable and friendly network, unlike Bitcoin. This argument may have been valid in 2013. Dogecoin was launched in 2001, but today there are numerous cryptocurrencies that offer all the capabilities of Dogecoin, with lower inflation, and some other benefits such as building smart contracts and other decentralized applications.

Famous people interested in Dogecoin

The success of Dogecoin is closely related to several celebrities who have publicly supported this meme cryptocurrency. Mark Cuban, Snoop Dogg and above all Elon Musk are some of the famous people who have had a huge impact on the growth of the popularity of this meme currency. A few weeks ago, the American entrepreneur who owns the social network Twitter, Elon Musk, uploaded an image of Dogecoin as the logo of Twitter. This caused a growth of almost 40% within a few hours. The only problem was that this growth did not last. Just a few days later, the price of Dogecoin returned to the level it was previously with elon musk’s change. An even bigger drop occurred when Elon decided to restore the recognizable Twitter logo again, i.e. the blue bird instead of the yellow dog. This gives us an insight into the enormous volatility of Dogecoin. The entire crypto market has been recognized as extremely volatile and risky by the traditionally financial world. Dogecoin and other crypto memes take this volatility to a higher level given that double-digit, sometimes triple-digit, price shifts are daily events for crypto currency memes. On the other hand, Bitcoin is decreasing volatility day by day, making it increasingly attractive to institutional investors.

Conclusion

Despite its large market capitalization, Dogecoin remains an extremely risky digital asset. Its value is proportional to online excitement combined with the support of celebrities. As a result, you should be extremely careful if you decide to allocate some of your capital to Dogecoin or other meme cryptocurrencies. Investing in them is very risky, but equally extremely rewarding, if you choose the right moments to buy. Other cryptocurrencies base their value on fundamental values, so it is easier to determine whether they will be relevant in a dozen years. With Dogecoin, this is completely unpredictable, because no one can say for sure whether people in the future will be interested in this cryptocurrency or not. In any case, if you decide to buy Dogecoin, you can always do it on our Kriptomats, with minimal commissions and maximum security. We hope you enjoyed reading today’s blog, and you can share your opinion about Dogecoin and other meme cryptocurrencies with us on our social networks (Twitter, Instagram).