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Tuesday, April 8, 2014

Vertcoin: The Soaring Cryptocurrency Set to Surpass Bitcoin




 When bitcoin was launched back in 2009, anyone with a computer connected to the internet and with the right software could mine it. Early users gathered thousands of coins with ease, but because they were worth a tiny fraction of their current value there was no real incentive to mine them more quickly.

But now, huge gains in value over the last six months mean the problem with bitcoin - and, to a lesser but growing extent, litecoin - is how difficult the cryptocurrency has become to mine.

In the early days of 2009 any miner could earn coins using their own computer, but as bitcoin's value rose and more people started mining, the difficulty to extract the currency increased, leading to an arms race where the winners spent tens of thousands of pounds on dedicated hardware known as ASIC (application-specific integrated circuit).

Why is vertcoin different?

David Muller's Vertcoin hopes to offer an alternative. By taking the foundations of bitcoin and making some adjustments, vertcoin punishes miners who use powerful machines and work together in 'pools' to monopolize the mining market.

Muller writes in a brief essay introducing vertcoin: "Now that bitcoin computational power is handled almost entirely by large data centers, the currency has rapidly changed from a distributed, decentralized currency, to one that is much more centralized and vulnerable."

By preventing, or at least lessening, this 'centralization' of mining power, vertcoin aims to level the cryptocurrency playing field.

What is vertcoin worth?

As with most cryptocurrencies, vertcoin had an almost worthless valuation when it was created at the start of 2014, but while others have seen small peaks and troughs since then, vertcoin has soared from mere cents to more than $9 per coin, increasing by several hundred percent every day.
Vertcoin value
CoinMarketCap.com

Although a long way from bitcoin's circa $900 valuation, vertcoin's triple-digit growth is reminiscent of bitcoin's own success in early 2013.

Cryptocurrency fans eager to turn a quick buck on vertcoin's rising value have flocked to the currency, driving its price up further and crippling the vertcoin.org website.

Where can I buy vertcoin?
Because it was only launched earlier this year - and is resistant to industrial-scale mining from powerful computers - vertcoins are somewhat scarce. Due to a lack of bitcoin-style ecosystem of exchanges where coins are traded for real-world currencies like dollars, sterling and the euro, vertcoins are bought in exchange for bitcoins on sites like CoinedUp.com.

At the time of publication, CoinedUp is offering vertcoins for 0.009 bitcoins each, but if you are hoping to turn a quick profit you will have to act now, as even in the time this article was written, vertcoins rose and fell by several dollars.

Once your vertcoins have been bought, it is strongly advisable that you encrypt the digital wallet in which they are held - or better still, create an offline paper wallet where access to the coins is only possible if someone has physical access to wherever it is stored. More information on creating paper wallets can be found in this YouTube video.

What happens next?

There are more than 85 cryptocurrencies listed on the CoinMarketCap website, and while many of these are unlikely to become as widely recognized and accepted as bitcoin and litecoin, some will undoubtedly shine through.

Given its anti-ASIC mining construction and soaring value, vertcoin could well be one of the few to make it out of a Reddit sub-forum into the mainstream.

Bitcoin Rising Against Odds



Ross William Ulbricht was treated to a nasty surprise on October 1 when the FBI arrested her in the raid of a public library in San Francisco. His worries did not end there as the FBI proceeded to close down his black market site known as Silk Road. The Silk Road is known to use bitcoin as an exchange for bad deals that include money laundering, drug trafficking and even hiring contact killers. As at the raid the site had made something close to 9.5 million bitcoins valued at above $1 billion.
Despite the bad reputation that bitcoin got from the above incident, its popularity and acceptance has been growing everyday. Overstock.com, eBay and other small businesses are now accepting bitcoin as exchange with traders crediting it that it’s more convenient since transactions can be made freely internationally and it has no delays like the credit card companies. They also love it because of its anonymity; you transact directly without involvement of banks therefore no ledger fees normally charged at banks.
Satoshi Nakamote, the creators of bitcoin in 2009 is unknown group, or rather is unmasked individual. Anyone with a computer can mine bitcoin provided he is able to solve the complex algorithms; this is because bitcoin exists as an open source software program. Bitcoins are mined with strict compliance with a computer algorithm. Currently one bitcoin is said to be worth $800.
Unlike other government maintained currencies bitcoin has numerous merits, for starters its value is not subject to any particular authority, and transactions are also done directly to the intended individual with absolute anonymity. Also the owner of the wallet has the will to authorize payment or not. As the chairman of the Federal Reserve Ben Bernanke once said, “Cryptocurrency may have long-term promise”, and bitcoin is no exception.
Bitcoin like other currencies has its share of demerits. To begin with, being an online currency it is prone to hacks and other cyber crimes. Its volatility is also worrying making it a risky bet especially after it rose from $13.50 to $1200 in 2013 only to drop to something below $500. As bitcoin continues to rise to fame other countries are thinking of regulating it. Recently china banned bitcoin from one of its online exchange while Europe is contemplating regulating it.
Different economists have expressed varied future expectations on bitcoin. While Nobel Laureate economist Robert Shiller opines that bitcoin is a bubble about to burst, Finance professor Mark Williams is in complete contrast as he warns that the value of bitcoin might even drop to $10 by med 2014.However Hugh Hendry, hedge fund manager is hopeful that the value of bitcoin might reach $1million.
It will be wrong if we assumed that there is only one cryptocurrency, bitcoin has received much media attention and preference by many users but besides it are other cryptocurrencies, over 83 to be precise, that have their own unique algorithm and  structures. These cryptocurrencies has maimed the power of central banks as they have placed the power to control finances in hands of users.