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The Definitive Guide to Bitcoin Mining

Bitcoin is a decentralized person-to-person payment system that is not powered by middlemen or any central authority. Mining can be described as the process of spending computing power to process Bitcoin transactions, make the network secure, and keep all people in the Bitcoin network synchronized together. This process is viewed as a mining process because it is the temporary mechanism that is used to create and issue new Bitcoins.

old-gpu-bitcoin-miners

How Bitcoin mining works

One can start mining Bitcoin by simply running the software with a specialized hardware. The mining software is designed to listen to transactions broadcast through person-to-person network and then perform important tasks to complete those transactions. Miners earn more money from transactions paid by users of the software and the newly created coins issued according to the set formula.

For any new transactions to be confirmed, miners need to include a block together with a mathematical calculations as a proof of work. To generate these proofs, miners have to try millions of calculations in one second. The system requires the miner to do these mathematical calculations before their transaction can be given a nod by the system, and for them to be rewarded. Entry of more miners leads to adjustment of average time taken by each miner to locate a block. The average time is normally ten minutes. This is done to increase the competitiveness of the mining business and make it difficult for any person to control the Bitcoin mining process.

Asic-miners

Miners cannot reverse previous transactions. This is because; proof of work in the network is set out to rely on the other blocks to force a well defined chain of the blocks. Thus, if a miner decides to reverse the transaction, they will be forced to recalculate proofs of activity of all the previous transactions, a process which is not easy. If a miner finds two blocks at a time, they are supposed to start working on the their first block before switching to the largest sequence of blocks when the next block appears. This procedure allows Bitcoin mining to have a universal processing power.

The network can detect any fraudulent activity that miners could engage in. Bitcoin nodes automatically rejects any block withdata that is not consistent with the set rules of the mining process. This means that miners cannot increase their rewards or manipulate the network through cheating or corrupt ways. Thus, the system poses no risk of losing your investment during the mining process. Miners then can visit exchanges where they can sell their coins for cash.

Betting Safely: Bitcoins the Digital Currency

In this era of technology, the internet has made it possible to do so much from anywhere with a data connection. On the road, on the plane even from the comfort of your home anything is possible; from ordering groceries at the local supermarket to booking tickets online. Taking into account these things, it was only a short time before gaming and to an extent gambling started linking with these technologies.

The establishment of online gambling and betting mean that a way in which to convert paper money to digital was necessary. This required persons to obtain credit cards or visa debit cards and pay exorbitant fees to change hard earned money to digital currency. Another concern was security; placing your credit card information on the World Wide Web was not endearing to most persons. Thus the advent of digital currency came. The most notable form of digital currency to date is the Bitcoin.

What is Bitcoin?

Bitcoin’s are a digital currency, plain and simple. They are used for many online transactions and have no ties whatsoever to a central bank. Bitcoin is owned and controlled by absolutely no one. The currency is decentralized and peer-to-peer so no changes can be made without the consensus of majority members who utilize it. They can be acquired via payment for goods and services, purchased, exchanged or mined. The payments are easier and safer to make than credit or debit card payments. The fees are cheaper and there are many wallet applications to choose from.

Recently, gambling has moved from shops to an online presence. As such, they have migrated to the digital age and are using digital currency. They are moving away from the cards and to the Bitcoin. As stated before acquiring Bitcoins is relatively easy and once done they are stored in a wallet app which can be accessed online or from a mobile device. Since it has the attributes of money and is used as such so it has value.

bitcoinsportsbook

Once a particular betting house known as Betvip.com which is a Bitcoin Sportsbook site, accepts them in lieu of cash the bets can be placed using the Bitcoins. The process is the same as betting regularly. In the United States where betting is still illegal, Bitcoins are regularly used to afford individuals anonymity. Bets on sports on some sites even go as low as twenty cents which are fractions of Bitcoins. The payouts are a lot quicker than traditional methods as little turnaround time as between four to twelve hours because it takes time to count the bets made with the Bitcoins and as the payouts are irreversible it makes sense to check and double check them. Here is a great list of sites provided by BitcoinGamblingSites.com. The have really offered a great alternative to traditional betting especially in the United States of America where this simple past time of betting on your favorite sports team is fast becoming a thing of the past due to the massive regulations being put into place.

Credit Suisse Under Fire Over Tax Dispute

Credit Suisse, a Swiss bank, has been under scrutiny for allegedly helping wealthy Americans hide their money on Swiss bank accounts to evade tax payments. Other Swiss banks, aside from Credit Suisse, are also under investigation due to the allegation of helping Americans stash cash on Swiss bank accounts.

Naming Account Holders

US authorities want Credit Suisse and other Swiss banks to name the Americans who have deposited untaxed money on these banks. The authorities demanded that the names be given to be able to determine wealthy US citizens who are evading tax obligations and be able to file appropriate cases.

  • Guilty Plea

The case against Credit Suisse became intense when a former employee of the company pleaded guilty on helping US citizens stash away untaxed money by depositing the latter on Swiss bank accounts.

This strengthened the US authority demand for the names of the US citizens who have sought help from Swiss banks in evading taxes. Thus, US authorities are pressuring Credit Suisse on giving out the names and providing appropriate information to aide in the prevention of tax evasion of US citizens. Citing extreme fines, the US authorities are trying to squeeze out information from the bank. Other Swiss banks are also subject on this tax probe, which are also deemed to have helped wealthy US citizens stash untaxed money on Swiss accounts.

  • Swiss Bank Laws

Swiss banks cannot provide information regarding their depositors due to the laws that bar banks from disclosing such information. But an exemption was made in 2009 when the Swiss authorities provided the US authorities the information of their rival’s clients. The exemption was made to prevent the US from indicting the bank.

The exemption five years ago indicated that Swiss banks are able to provide their clients’ information to the US authorities if need be. Thus, the US authorities are putting pressure on Credit Suisse to get the same results from 2009. This puts a lot of pressure on Credit Suisse and also on other Swiss banks that have helped US citizens in evading tax obligations.

  • Emergency Law

Though the spokesman of Credit Suisse has not given comment regarding the emergency law, reports have emerged that the bank was asking for the Swiss government to use the exemption if there are no other solution to the issue.

  • Discussions Between Swiss Finance and US Justice

Swiss Finance Minister Eveline Widmer-Schlumpf and U.S. Justice Minister Eric Holder discussed the tax row that Swiss banks are currently facing yet no specific conclusions had been released to the public. The discussions yet revealed that the Swiss Finance Minister was seeking fair and equal treatment of Swiss banks regarding the probe.

The US authorities are yet to discover the names of the wealthy US citizens who were able to hide their untaxed money on Swiss banks accounts depending on the outcome of the trial. Yet, authorities are optimistic that they will be able to unearth the truth and discover the citizens who are evading their tax obligations.