Tag: bitcoin hack

Bitcoin Mining Hack Trick Only This Bitcoin Trick Will Earn You 1 Bitcoin Through Mining

Published / by Jonathan / 1 Comment on Bitcoin Mining Hack Trick Only This Bitcoin Trick Will Earn You 1 Bitcoin Through Mining

In the Bitcoin system, the production of all the new money is done on a stable base. This money is equally paid to those who operate the Bitcoin network by doing Bitcoin mining.

Making money with your computer

So yes, Bitcoin mining allows to make money by letting a computer work. However! Bitcoin mining is a free and open market. It is not a easy way to make money out of thin air.

Gains with Bitcoin mining are proportional to the power of computer hardware to solve the mathematical calculations. The whole network is powered by these calculations, which rewards you for your services. To be profitable, Bitcoin mining have to generate profits despite the cost of equipment and the electrical cost to operate at full capacity. That may be difficult.

Technologies used for Bitcoin mining

At the dawn of Bitcoin, classic computers were enough to run the network. However, competition has intensified gradually as the use Bitcoin increased as a dynamic market. In order of effectiveness, CPU processors, ATI graphics cards and FPGA chips succeeded to each other. Today, all these technologies are outdated and are no longer profitable.

Due to strong competition, ASIC is the only technology that can now offer potential income. An ASIC chip is a chip specialized to perform specific calculations. Some companies such as Avalon and ButterflyLabs faced the challenge of producing ASICs for Bitcoin network. ASIC chips can produce up to 40 times more calculations per second than a graphic card for the same price with a much lower power consumption. However, unlike graphics cards, ASICs have no resale value outside of a use with Bitcoin.

Pool have more stable incomes

When starting with Bitcoin mining, it is important to understand that a computer has very little chance of solving a mathematical problem aired by Bitcoin. It is a matter of chance. The more powerful is the equipment used, the more it can make attempts per second, increasing the chances of success. However, without buying a fleet of very expensive ATI cards, Bitcoin mining alone can take weeks, months or years before touching any gain.

The pools are small cooperation of bitcoins miners who wish to combine their strength in order to share Bitcoins earned fairly. Being part of a pool is the best way to raise Bitcoins stably when you don’t wish to invest heavily in computer parts. Many free open pools exists, such as bitminter.

the evolution of incomes with Bitcoin mining over time
Bitcoin mining is not a guaranteed investment. Indeed, the income can be earned with Bitcoin mining depend on several things. The value of the BTC (Bitcoin) is the first of all, because the value of Bitcoin fluctuates according to supply and demand. Since the creation of new BTC is stable and limited, an increase in demand for Bitcoin also means an increase in its value, and vice versa.

Competition and the difficulty are also important factors. The more there is people mining, the more the mathematical difficulty factor to generate Bitcoins increases, because the network Bitcoin is designed so that the same amount of money is created each month, regardless of the number of people working to generate this amount. This way, Bitcoin mining is a perfect market. If Bitcoin mining is too profitable, new investors arrives and dilute earnings. When Bitcoin mining is not profitable enough, some investors abandon, increasing the gains of subborn investors.

It is also interesting to note that the creation of new BTC is designed to gradually stop. Deprived of this source of income in the coming years, then Bitcoin miners will increasingly perceive optional transaction fees. Since transactions with fees are likely to be processed more quickly by the Bitcoin miners, banks and network users will be likely to add a tiny fee like a fraction of a cent for certain transactions.

How to start Bitcoin mining

The bitminter pool probably offers the easiest way to start without having computer knowledge. You can simply register with bitminter and click to start their software. The software immediately displays the calculation speed your computer gets to reach and earnings are displayed consistently and rapidly inside the bitminter account. It is then possible to transfer the obtained Bitcoins Bitcoin to an address that belongs to you.

In contrast, if you want to make Bitcoin mining alone, the procedure is generally more complicated. It requires to install the bitcoin software on a computer and change its configuration to start in server mode. Then, it requires to use a specialized command line software such as poclbm or cgminer on each computer used to generate Bitcoins. This software must connect to the server to receive Bitcoin calculations to be done and transmit the results.

There is also a possibility to avoid centralized pools and take good sides of both world with p2pool, which is a decentralized pool. It is still more complicate to setup than just using bitminter. However, you don’t rely on a pool that is vulnerable to DDoS attacks or dishonnest pool owners practises and you get paid directly on your Bitcoin wallet without intermediate.

Participating on the Bitcoin network operations

Bitcoin mining is a way to participate in the Bitcoin network operation. Some only sees Bitcoin mining as an investment since it is designed to be an open and competitive market. Still, some people involved in Bitcoin mining also do it for the interest of helping the network to function. Each computer used for Bitcoin mining allows the system to verify the validity of each transaction and protects the network from any form of attack.

Why Bitcoin, Bitcoin Cash & Crypto Market has been Crashing

Published / by Jonathan / Leave a Comment

Japan might be leading the race to become a global giant in cryptocurrencies, but it also is gaining news for all the wrong reasons as well. Japanese exchanges have been found vulnerable to hacks and security glitches pretty often and things don’t seem to be improving. In a recent hack, Japanese cryptocurrency firm Tech Bureau Corp said it said its Zaif Exchange was compromised to hackers and has nearly lost US$60 million worth of crypto assets.

Hack despite business improvement orders by regulators
In hacks, exchanges and companies are usually surprised by the attacks as they themselves are not aware of the vulnerabilities. But in case of this hack, it looks more of a negligence then unawareness. Tech Bureau the company that runs Zaif exchange was already slapped with two business improvement orders by the Japanese regulators this year.

In its statement, the company said its Zaif exchange was hacked over a two-hour period on Sep 14. It detected server problems on Sep 17, confirmed the hack the following day, and notified authorities, the exchange said on Thursday.

In this theft, virtual currencies worth about ¥6.7 billion, including Bitcoin, Monacoin and Bitcoin Cash, were stolen from the exchange’s “hot wallet”. About ¥2.2 billion worth of the stolen currency was its own while the remaining ¥4.5 billion belonged to customers, it said.

Following the hack, Tech Bureau said it had agreed with JASDAQ-listed Fisco Ltd to receive a ¥5 billion (US$44.59 million) investment in exchange for majority ownership. The proceeds from the investment would be used to replace the digital currencies stolen from client accounts. However, Fisco said in a statement the ¥5 billion in “financial assistance” may change in value if the amount affected by the theft changes upon further investigation.

Documents seen by Reuters on Thursday showed Japan’s Financial Services Agency would conduct emergency checks on cryptocurrency exchange operators’ management of customer assets, following the theft. FSA officials were not immediately available for comment.

Loss: caused by hacking damage The type and quantity of the virtual currency that we lost due to hacking damage are as follows.

  • BTC 5966
  • MONA Currently being investigated
  • BCH It

is estimated that the total loss due to damage more than the current investigation is equivalent to approximately 6.7 billion JPY (including MONA and BCH) in Japanese yen. The reason for not being able to determine the damaged quantity at the moment is that the server is not restarted until the reliable safety can be confirmed in order to prevent secondary damage. As soon as the quantity of the lost virtual currency is determined, we will report it promptly.

Impact on customer’s assets due to hacking damage:

Among the virtual currencies equivalent to about 6.7 billion yen lost, our company’s unique assets are approximately 2.2 billion yen, and the virtual currency equivalent to customer’s assets is about 4.5 billion It becomes yen.
After discovering this case, we are striving to secure financial resources not to damage the customer’s assets, and we will explain the situation in the following “3. Response of our company”.