Bitchcoin creator Sarah Mayhos at Stock Performance
On Friday January 22, artist Sarah Meijos finished her Stock Performance show in New York, the York gallery. The last drop and, at the same time, inspiration for Meiokhas was the news that the losses of the world stock market amounted to $ 8 trillion.
The exhibition lasted for 10 days. Every day, Mayohas invested a small amount of money and watched its investment. Then she painted the diagram of the oil changes, creating a picture. In an interview with The Atlantic, Mayohos said that in her works she wants to combine “philosophy, art, understanding of what it is like to exist, and finances.” According to the artist, finance as a relationship “prevents existence and is entirely invented by people.”
Meihaas also created her own crypto currency – Bitchcoin. One Bitchcoin is $ 100 and physically reinforced with 160 square centimeters of one of the artist’s works. “The sale of art objects has turned into a mechanical process,” says Meiokhas, explaining the essence of creating his own crypto currency.
The value of “bicots” is reinforced by the works of Meihaas. For example, the painting Speculation
Bitchcoin, created by the artist, is a confirmation of how easy it is to create your own crypto currency. In 2014, Fast Company issued training material on how to do it. In their opinion, the process of writing code is the simplest of the five steps, because all the crypto-currencies are based on the open code Bitcoin or Litecoin.
The first step in creating a crypto currency is to search for a community and then build a currency. But many people think that you first need to create the code itself – it’s not right.
Chris Ellis, creator of the crypto currency of Feathercoin
The Feathercoin crypto currency created by Chris Alice achieved the best performance in December 2013. Then the capitalization of the crypto currency was $ 11 million. Now – only $ 330 thousand, and for one day, transactions amounting to not more than $ 700. For comparison, the daily turnover of Bitcoin in one day is approximately $ 76 million
By early 2014, the number of crypto-currencies exceeded 600. But only six of them (according to other sources – five), the capitalization exceeds at least $ 10 million: Bitcoin, Ripple, Ethereum, Litecoin, Dogecoin and Dash.
Capitalization: $ 5.8 billion
At the end of 2015, Wired found the possible creators of bitcoins. Under the pseudonym of Satoshi Nakamoto, who allegedly invented bitcoin in 2008, the Australian, Craig Wright, could be hiding. A number of proofs-coincident mailing addresses, hidden investments in bitcoin-purses and Wright’s correspondence-made him the main candidate for the role of the creator of the most used crypto currency and the peer payment system.
The first operation with bitcoins occurred in 2010 – then the American Lazlo Khanich exchanged 10 000 bitcoins for two pizzas. At the current rate, such a number of bitcoins is almost $ 4 million.
At that time, bitcoins had no value, and the idea of exchanging them for pizza seemed to me very steep.
Compared to the maximum price of almost a thousand dollars, which bitcoin reached in November 2013, its current value does not look so impressive – only $ 395. Because of such volatility, anonymity and impossibility of state control, bitcoins are treated differently in different countries.
In September 2015, the US Commission for Trade in Commodity Futures equated bitcoin and similar currencies to official financial instruments. The recognition of the currency by the US authorities had an ambiguous effect. Now all exchanges trading bitcoins should be registered as ordinary exchanges and subject to state regulation.
An online store of drugs Silk Road played a significant role in the desire of the state to regulate crypto-currencies. Since 2012, virtually all transactions on the site were paid using bitcoin. The founder of the store, Ross Ulbricht, was sentenced to life imprisonment in May 2015. Two years earlier, when Ulbricht was detained, it turned out that the total volume of transactions on the site was 9.5 million bitcoins. In all, 11.75 million bitcoins were produced at the time.
Caricature of Ross Ulbricht, drawn in the courtroom. Ulbricht listens to accusations for his side
Bitcoin is not recognized as an official currency in any country. But in April 2015 Czech Vit Yedliczka proclaimed a small piece of land between Serbia and Croatia, the “Free Republic of Lieberland”. He declared himself the president, and bitcoin made the official currency.
In Russia bitcoin is ambiguous. In July 2015, Vladimir Putin said that “bitcoins can be used.” But in September the government returned to the idea of criminalizing the release, distribution and use of crypto-currency.
Capitalization: $ 214 million
Ripple is the crypto currency of the same currency network. The Ripple website is described as an “Internet technology for banking transactions”. The maximum amount of Ripple is limited – they can be created not more than 100 billion. This is done so that the currency is not devalued. With each transaction, a commission of 0.00001 cents is written off. This is the minimum possible amount that is destroyed and does not arrive at the expense of either side of the operation. It serves as a defense against DDoS attacks – it is unprofitable for malicious users to load the system with millions of fictitious transactions, because then the commission will be impressive.
Alice is friends with Bob, Bob is friends with Carol. Alice wants to exchange her 50 XRPs for 10 bitcoins. Carol wants to do the opposite, but they do not know each other.
Any two friends have between themselves some limits “how much I am willing to lend to a friend.” And now there was a chain of Alice – Bob – Carol (for example, all zero balance of debts). As a result of applications from Alice and Carol, the following happened: Alice should Bob 10 BTC, Bob should Carol 10 BTC, Carol should Bob 50 XRP, Bob should Alice 50 XRP. But now Alice’s purse has 10 BTC, and Carol has 50 XRP (instead of old money, of course). Bob’s balance in both currencies is zero.
Since 2014, the main clients of the company are banking institutions, but private individuals can also trade in Ripple. The first system Ripple was supported by the German bank Fidor Bank. Then, in December 2014, Ripple Labs began working with the payment system Earthport, whose clients are Bank of America and HSBC. As a result of this transaction, the XRP price doubled and by market capitalization Ripple became the second, behind only bitcoins.
At the end of 2013 the company released iOS-application for the exchange of Ripple. Subsequently, it was removed by Apple along with a dozen other applications for working with crypto-currencies
The advantages of Ripple are several. First, money can be stored in any currency – dollars, euros, rubles, Bitcoin or gold. Secondly, the transaction takes place within a few seconds. Thirdly, not counting 0.00001 cents, the system does not charge any commission from the parties.
Capitalization: $ 198 million
Ethereum was created in 2013 by Russian developer Vitalik Buterin, who is also the co-founder of the Bitcoin Magazine crypto currency publication. In 2014, Buterin won the World Technology Awards for creating a platform.
The name of Vitalik got accustomed to Butterin (left) in Canada, where he lives from the age of six
“Ethereum is how the Internet should work,” the website says. The project is a platform for launching smart contracts – applications that operate “as it was programmed. Without censorship, fraud or the influence of third parties. ” In an interview with the publication of Kommersant, Ethereum’s operating director Stefan Tual explained the essence of the platform.
Most of the applications that we use today are centralized. For example, we trust the bank to store our money. But you need to look after him to prevent abuse. We trust Facebook photos of our children, Dropbox – documents, medical service – a history of diseases.
Centralized systems require monitoring and support. They are vulnerable, because the bigger the project, the stronger it attracts the burglars. Solve these problems and should Ethereum, which borrows not only Bitcoin demonstrations, but also some of its technical solutions. For example, block chain technology, where Ethereum, like Bitcoin, stores data.
In order to finance Ethereum, Buterin created his own crypto currency Ether (ether). Unlike Ripple, Ether can only be exchanged for bitcoin or vice versa. You can get it in the usual way – mining. Ether capitalization is $ 203 million, and with its help in Ethereum you can create your own crypto-currencies.
The site of the platform, which is still in beta, has information on what it will take to create its own crypto currency: basic programming skills, about 0.002 Ether and “cool name”. All programs and crypto-currencies created on Ethereum use Ether as a “fuel” – they pay the platform for the resources they consume.
Imagine a world where everyone can release their own currency, and people have electronic wallets that are able to all these currencies are accepted. Such a currency business could encourage its users by creating a fundamentally new version of bonus points that can grow in value.
The idea of ”create your own currency and pay it for product development” will perfectly suit start-ups. This is a new model, and in the past it did not exist in principle, because there was no technology for it.
Vitalik Buterin Litecoin (LTC)
Capitalization: $ 137 million
Crypto currency is a fantastic rate hike that is not inherent in ordinary currencies. In the case of the payment system and the Litecoin crypto currency of the same name, this occurred on November 28, 2013. The day before, one lightcoin was $ 22. The next day the price of lightcoin was already $ 43.
Developer Charles Lee created Litecoin in 2011. The system is Bitcoin fork – for its creation the Bitcoin program code was used. Lee wanted his system to become “Bitcoin 2.0”, so he introduced everything that he lacked in bitcoins.
The settings for crypto currency mining may look different. Serious looks like this
Lee did not like the speed of transactions in Bitcoin – because of the complexity of the calculation, one set of transactions, combined into blocks, could be generated up to 10 minutes. In Litecoin, the processing time of one block is not more than two and a half minutes.
In 2013, Litecoin capitalization was 4 times larger, and Lee called the crypto currency he created “silver of the crypto-currency market”. In his opinion, “the gold standard – bitcoin – will need an alternative.” In the same year, Lee quit his job in Google and moved to the startup Coinbase, which creates an online wallet for bitcoin. In Google, he worked in the department of Google Wallet.
Capitalization: $ 32 million
Programmer Jackson Palmer, who was behind the creation of Dogecoin, wanted to create a “good reputation” crypto currency. Just at this time, the scandal associated with bitcoin and the sale of drugs was in full swing, and in late 2013, Marcus presented his crypto-latitude. The Dogecoin code is based on the code of another crypto currency – Luckycoin. The code of the one, in turn, is on the code Litecoin, and Litecoin on Bitcoin. That is, Dogecoin is the fork of the fork.
Unlike the rest of the crypto currency, the amount of Dogecoin is unlimited. Issue 5 billion Dogecoin each year Palmer took in February 2014. The community took this news mostly negatively, noting that the value of the currency will decline with each annual release.
Thank you for killing the value of the currency. In a couple of years, it will depreciate and never reach value even close to bitcoin.
GitHub user, MadCold
Those who bought Dogecoin in large quantities before noted that now their investment has become useless. Such uncertainty is attributed to crypto-currencies as a major drawback – buyers can not be sure that the creator will not have a spontaneous decision to change something that will affect their contributions.
But some people took this change positively. Dogecoin was named the first crypto currency, which can get mass distribution. This is explained by the fact that unrestricted release reduces the chance of speculation among the first crypto currency users – as it happened with bitcoin.
Since the beginning of February 2015, when the decision was made to lift the restriction on the release of Dogecoin, the capitalization of the currency began to decline. February 10, it was at a peak and was $ 77 million, since then the figure has halved.
Wise machine with Dogecoin branding
The Dogecoin community has repeatedly collected money for charity. In January 2014, thanks to the $ 50,000 collected, Jamaica’s bobsled team was able to head to the Winter Olympics. And in March the community collected 67.8 million coins to provide financial support to NASCAR racer Josh Wise. At that time this number of coins was $ 55 thousand. On May 4, Uyaz went on the road to the Ford Mustang with Dogecoin symbols and took the 20th place out of 43.
Capitalization: $ 26 million
Many crypto-currencies appeared due to the fact that their developers did not like something in Bitcoin. Developer Dash Evan Duffield was not satisfied with the security of the system.
In mid-2012, I began to think about how to improve the anonymity of Bitcoin. I thought of and suggested, it seems, 10 ways to do this, but the Bitcoin developers did not implement any of them. They wanted the basic protocol to remain unchanged.
After receiving a denial, Duffield introduced the X11 algorithm he created to the open Bitcoin code over the weekend. Its main goal is to make it difficult to clear the currency. He saw that “everything works quite well” and proceeded to create its own crypto currency.
In January 2014, Duffield announced the XCoin crypto currency. Then there were a few restarts and name changes. Eventually, Duffield renamed the system and Crypto-currency in Dash, connecting the words digital and cash.
Daily turnover of Dash is $ 127 thousand, Bitcoin – $ 74 million
The biggest drawback of Dash was the initial mining or “instamayn” – the production of crypto currency in the first hours and days after launch. In the first hour after the launch, users produced 500,000 currency units. Over the next 43 hours, another 1.5 million units were produced. At the moment, two million units account for one third of all Dash crypto currencies in circulation. The current situation Duffield explained a bug in the code. According to him, this error incorrectly transformed the progression of complexity under constant mining.
At this time, my life was a real chaos. Even without Dash, I had a lot of work – I worked for 120 hours a week. Sometimes I’m impatient and I admit that I had to wait a week or two to thoroughly test the code before launching.