◤QUOTE OF THE DAY
Accounting Disaster: Is Bitcoin facing an impending accounting disaster? Emin Gün Sirer says that problem has to do with how positive Bitcoin balances are unconditionally rewarded with Bitcoin Cash, while negative balances are not accounted for properly.
Below is the example Emin gives in his article.
- Alice, suppose that she has 1 BTC, and she deposits it at Bitfinex.
- Stuart (the Scammer) reads the rules for how BCC plans to account for coin distribution, and creates an account on Bitfinex. He then margin-shorts 1 BTC. That is, he borrows Alice's 1 BTC, and sells it. He now owes 1 BTC to Alice.
- Stuart then, in a funny trade, buys his own margin-short with cash. He now owns 1 BTC, and owes 1 BTC to Alice. His position is market neutral and he carries no risk. Alice also owns 1 BTC.
- Then the split happens. Bitfinex decides to credit both Stuart and Alice with 1 BCC, each! That is, Bitfinex erroneously creates a liability of 2 BCC. Meanwhile, they only actually own 1 BCC.
- Bitfinex immediately becomes a fractional reserve, and simultaneously inflates the BCC supply.
Plane Crazy: Marco Streng, chief executive of Genesis Mining said that they are renting Boeing 747's to ship them graphics cards.
In Adoption News:
- Falcon Private Bank has become the first Swiss bank to offer customers Bitcoin and crypto asset management services. The bank allows customers to buy, hold and sell bitcoin.
- UK Government is looking for Blockchain pitches for £8 million startup competition.
Fork Updates: No updates here, the Bitcoin user activated hard fork is still happening. Crypto startups are bracing themselves, so should you.
Anyways, here's a nifty countdown until the Bitcoin hardfork.
Also, here is also an ugly but useful chart of exchanges and that shows whether they will credit you Bitcoin Cash and/or let you trade Bitcoin Cash.
Note, just because some exchanges choose to not credit you Bitcoin Cash on Tuesday, doesn't mean they will never be able to credit you Bitcoin Cash.
It also doesn't mean that they are planning on hoarding your Bitcoin Cash so they can sell it at a later date (at least Coinbase probably isn't).
Technical's for Bitcoin are still bullish. This does not mean you should be stock pilling Bitcoin. Unless you have an great plan where you thought about all possible outcomes of what might happen with this upcoming fork, I recommend you stay out of the market until the water is calm. I think it is very hard for the average person to make profit during this time.
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