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How You Can Spend Your Bitcoin Fortune wisely

How You Can Spend Your Bitcoin Fortune wisely

http://bargeldwillkommen.com/wp-content/uploads/2014/06/BellaVista_sample.jpgLet’s face it: Having only crypto will not make for a good life. And crypto now is high, very high. A correction is in the cards, so why not lock in the insane profits and convert it to something you can touch, see, feel and use? At  a bargain?

A friend of mine is offering this one-of-a-kind real state in the Caribbean, a true mansion, your neighbors will be Schmid from Google, and other hi-flyers. Cabarete, one of the six important surf and kite surf locations in the world is just 5 minutes by car.

He is very motivated to sell as he needs to go back to Europe to take care of his elder parents.

Go and have a look for yourself

Or here first a video:

 

The Implications of Bitcoin’s Blockchain Growth

Bitcoin is based on a blockchain, which is a string of blocks, where each block includes numerous transactions. The total size of the blockchain is inexorably growing, and this has implications for the future of running Bitcoin nodes. Currently, the Bitcoin blockchain is 178.8 GB in size as of this writing on 14 August 2018, a size so large that it is difficult to download and a significant obstacle towards running a full Bitcoin node.

Catching up to block size

Each Bitcoin block originally had a hard cap of 1 MB but this was changed when Segregated Witness (SegWit) was implemented. Now, Bitcoin blocks can be up to 1.2 MB on average and rarely 2 MB or slightly more. On average, there is a new Bitcoin block every 10 minutes, which adds up to 144 MB of new data added to the blockchain every day. This equals almost exactly 1 GB of data being added to the blockchain every week, which is similar to the size of a movie download. Every month, 4 GB of data is added to the blockchain and every year this is 52.5 GB of data. These numbers assume an average of 1 MB per block, which may be an underestimate due to SegWit. However, empty and partially-filled blocks are a common occurrence, so choosing 1 MB is probably better than performing calculations with 1.2 MB.

Up until 2015, less than this amount was being added to the blockchain every year, since there was less data being used for transactions than the maximum capacity of blocks on average. However, since 2015, Bitcoin has been filling up blocks consistently, and this will likely continue since Bitcoin is becoming even more popular as time progresses.

There are many computers with 100 GB of data storage or less and for these computers, running a full Bitcoin node is already impossible. In order to run a full Bitcoin node and therefore make the Bitcoin network healthier by actively participating in broadcasting data to users, a computer must have a full and current version of the blockchain. Most high-end computers have 1 TB of storage, which is 1,000 GB, and these computers will be able to download the entire Bitcoin blockchain for more than a decade. Hard drive sizes on high-end computers will likely continue to increase, so there should always be a suitable computer for people wanting to run a Bitcoin node.

Fewer full nodes?

However, the biggest problem as the Bitcoin blockchain grows is the time it takes to download the whole blockchain. It already takes weeks and even months with a good internet connection, making it unfeasible for most Bitcoin users to download the Bitcoin blockchain and run a full node. Equivalently, this situation makes it unfeasible for most Bitcoin users to use the Bitcoin Core wallet software.

Currently there are 9,637 full Bitcoin nodes in the world, and this number has been declining since March 2018 from a peak near 10,500. This is a very small amount of nodes compared to the number of Bitcoin users in the world and in the futurem as Bitcoin’s blockchain grows, it will be progressively more difficult for the number of nodes to increase since the time to download the blockchain will get even longer.

Unfortunately, fewer nodes means the Bitcoin network is less healthy. It also means that there are less people running a full version of Bitcoin and choosing online wallets, which are far less secure and increases risk across the Bitcoin world. Due to the nature of Bitcoin, in that it requires a full blockchain history to function, this problem may only be fixable with faster internet and computers that have more storage.

Current mitigations include running a full node in “pruned” mode, currently allowing a storage space below 10 GB. Depending on the version and client, the Bitcoin blockchain could also be faster to download via torrenting.

 

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Price Poor Metric to Judge Bitcoin, Says CoinShares

Digital asset management company CoinShare’s chief strategist Meltem Demirors featured on CNBC’s Fast Money on Monday, where she discussed the problematic nature of judging Bitcoin on price alone.

Demirors offered that actual utilization may be a better alternative metric for institutional and retail investors to consider, which she put down as the real struggle right now. Although she said that it is not yet clear when or how Bitcoin may regain its value, the best way to predict this is by determining solid metrics that best fit Bitcoin.

The strategist noted that ”real traction” is imminent but a lot is relying on analysis to find the key metrics that will drive growth.

She compared cryptocurrency with similar innovative enterprises such as Intel, Amazon, and Microsoft in the early days of internet stocks, noting that it took Amazon nine years to recover from its initial price high during the dotcom bubble, Intel 15 years, and Microsoft 17 years.

Such as these early internet stocks, Demirors said that the real traction for Bitcoin will come with time. The late 2017 price run can be put down to “fear of mission out” (FOMO), which caused a similar type of speculative bubble, she said. With that bubble burst, real businesses with real-life use applications are being developed in the space.

As she put it: “New technologies that shift the paradigm take a long time to really understand.”

This goes to what she described as a key issue right now in the lack of a coherent narrative from the cryptocurrency community. With institutional interest in the space growing, Demirors said that this could well be an opportune time for Bitcoin, but it is not being considered a store of value because of the poorly-relayed narrative.

Bitcoin (BTC) currently sits at USD 6,038.18 after struggling this year to make significant gains compared with last years highs of nearly USD 20,000.

 

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