Tag Archives: cryptocurrency

You are unconsciously mining Bitcoin!

You can become the Bitcoin owner in two ways. The simpler way is to buy it on one of the many cryptocurrencies exchanges for the US dollar, or exchange it for other cryptocurrencies. The more difficult way is to mine it. Many of you have probably heard about mining a bitcoin, in a nutshell, it is sharing the computing power of your laptop or PC, or other high-performance machines. Today, cryptocurrency mining on a laptop is unprofitable, and special mining machines are used for this purpose, that is computers consisting of a dozen or so graphics cards or more, as well as super-fast processors. The higher the equipment’s performance, the more dug-out bitcoins are.

“Computers” used for cryptocurrency mining.

The text above is an introduction to cryptocurrency mining. I just wanted to introduce you to the issue, because many people have heard about it, but no one knows how it works. Why am I focusing on this? Because probably many of you have already mined cryptocurrencies without even knowing about it. How is this possible? Thanks to the CoinHive plugin. This is a JavaScript code that website owners put on their websites. This code uses the computing power of the person’s laptop entering the site to dig cryptocurrency such as Bitcoin, Ethereum, or Monero. As mentioned above, cryptocurrency mining on one laptop is unprofitable, but what if we use thousands of such laptops? Pockets of website owners will quickly fill up and we will not be aware of anything. The Pirate Bay has recently admitted such practices, and in December it was discovered that customers using WIFI in several Starbucks cafes in the US also unconsciously mined Bitcoins. Starbucks quickly solved the problem saying that it was the internet provider, who “hacked” café’s WIFI, and not the franchise owner.

Many website owners explain this with high server maintenance costs, or the desire to disable website ads in exchange for allowing them to mine cryptocurrency on your laptop while browsing their website. What do you think about such practices? If you have ever entered a simple website and your computer has started to reach high temperatures and the CPU fan has been running at full speed, you may have unconsciously been mining cryptocurrencies.

 

Sources:

https://nypost.com/2017/12/13/free-starbucks-wi-fi-caught-mining-for-bitcoin/

https://www.cnbc.com/2017/12/12/starbucks-customer-laptops-hacked-to-mine-cryptocurrency.html

https://gizmodo.com/the-pirate-bay-added-a-cpu-hijacking-bitcoin-miner-to-s-1818488143

 

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Bitcoin – Future global currency or big bubble?

When I first saw a movie In Time starring Justin Timberlake and Amanda Sayfried last year, I began to wonder if it is possible to unify the global payment system. I am not talking about extending a person’s lifetime, as it is shown in the film, but one global currency. For those who like sci-fi and various visions of the future world, I strongly recommend this film. But let’s talk about cryptocurrencies, Bitcoin in particular.

In Time (2011)

Is it possible for Bitcoin to become world’s global currency? With the market cap of nearly $100 billion it surpasses its crypto competitors and is definitely the most popular one. Just imagine how convenient it would be, going abroad and not thinking about exchanging the currency, doing business with international partners and not worrying about the decline in the value of a particular currency against other. America will never accept euro as its own currency, eurozone on the other hand will never accept dollar as the local currency. The same is happening with other great powers and their currencies. And at this point a bitcoin appears. Cryptocurrency, which is decentralized, has no bank over it, and all transactions are extremely difficult to trace. Sounds beautiful? Unfortunately, it also has its disadvantages. Thefts are also extremely difficult to trace and decentralization has its pros and cons.

The questions is what Bitcoin holders are expecting it to be? Do they hold it just to sell it with profit, to speculate, or do they believe that one day it will become global currency, commonly accepted in all countries by all shops and institutions. Right now you can pay using Bitcoin in some restaurants and shops but still it is long way for Bitcoin to be widely used. On the other hand, we are seeing increasing interest from the states and institutions. The Swiss city of Chiasso has recently made it possible to pay taxes with bitcoin, state institutions see a profit in it and we hear more and more about the possibility of taxing all cryptocurrencies. European Central Bank chief Mario Draghi recently said that ECB has no power to regulate Bitcoin and that cryptocurrencies are not mature enough to think about regulating them. So we can breathe a sigh of relief, because in the near future politicians will not put their hands on it, but unfortunately investment banks will, Goldman Sachs is thinking about trading Bitcoin and other cryptocurrencies. If this happens it will just be another speculative asset.

 

 

Sources:

In Time movie

Cryptocurrencies market cap

Regulating the cryptocurrencies

Swiss town to accept tax payments

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