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Chinese banks can’t deal in ecoins

It is 2:30 am in California and the ecoin world is ablaze with recent news out of China that banks are banned from participating in ecoin transactions. According to a statement on the central bank’s website, banks can not give pricing in Bitcoin, buy, sell or insure Bitcoin. The immediate reaction from the market is panic. However the news out of China was not nearly as bad as it seems.  It is actually unexpected good news.

Most banks can’t deal in ecoins

China is not the only country in the world to be restricting its financial institutions from participating in ecoins.  Most banks are forbidden from investing in or buying/selling  speculative, unregulated, anonymous transactions. Have you ever seen a Bitcoin option from your local bank? The Central Bank also said that individuals in China are free to buy, sell and hold ecoins as long as they take on the risk themselves.

This is great news for ecoins

Banking in China is not great, the banks pay almost no interest and the government has authority to take money out of banks. Ecoins represent a place to park wealth and transfer money in and out of the country. For the first time, the Chinese Government, through the Bank of China has nodded that its people can continue to buy, sell and trade ecoins. This is a pro individual freedom and pro ecoin position. Read more from Bloomberg News.

Here is the message as translated and edited by on Quora:

中国人民银行等五部委发布《关于防范比特币风险的通知》-中国人民银行

1) The Chinese government does not consider bitcoin to be a currency.  This is very good news as it means that bitcoin is not subject to currency restrictions.

2) Financial institutions cannot offer services in bitcoin including deposits, clearing, and market making, nor can they do things like offer loans in bitcoin.

3) Bitcoin exchanges can operate as long as the abide by the provisions of the telecommunications regulations and abide by anti-money laundering rules.  The telecom regulations are primarily censorship restrictions which are irrelevant for bitcoin exchanges.  Bitcoin exchanges will be allowed to operate as long as they get the real identities of bitcoin users.

4) The public should be made more aware of the risks of bitcoin.

EcoinClub

Join Ecoin Club for free

And get free bitcoins to start

Ecoin Club is a open community of Ecoin enthusiasts, investors, businesses and researchers dedicated to improving the Ecoin community.  The Ecoin revolution may be one of the most rapid and largest wealth creation and wealth redistributions in history. Ecoin Club is building a stronger ecoin community through promotion, advocacy and education.

When you join Ecoin Club for free, we will send you a few units of bitcoin.  There is a lot of learning in the beginning and it is best to start small.  Bitcoin is the best Ecoin for your start because it is the most recognized Ecoin and can be easily converted into other ecoins.   Once you receive your free bitcoin you will be able to send your bitcoin through the network and watch it in real time through the block chain.   You will also be able to exchange your bitcoin for other ecoins like litecoin, feathercoin and infinitecoin for trading, buying and selling. Complete the form below with your email and first name to join the club and get startedI

Colossus Coin

Colossus coin (COL) is an open network, open-source,  peer-to-peer (P2P) Internet currency. It runs off the popular script protocol similar to Litecoins, which gives it stability, speed and accessibility to GPU ecoin miners.  Colossuscoin (COL) was announced on 22 August 2013 on bitcointalk.org – Forum by muddafudda. It is currently a top 50 ecoin by market cap.  A lot of Colossus coins have already been mined as is relatively difficult to acquire by mining. As of Dec 2013, colossuscoin is traded on multiple exchanges primarily for other ecoins like Bitcoin, Litecoin and Feathercoin. Most of these exchanges require you to trade other ecoins for Colossuscoins.  The best way to get Colossus coins maybe to buy them from a dealer or trade for them on an exchange. Colossuscoin is a relatively new coin without much media or news coverage. Most information is on the colossuscoin forum, Facebook, Twitter and the Colossuscoin website.

What you do with Colossuscoin

Colossus coins are exchangeable for other Ecoins like Bitcoins and Litecoins.  There are many ecoin markets that exchange Colossuscoins for other ecoins.  If you want to send someone a small amount of ecoins, Colossuscoins is one of the best ways to do it. While transferring Litecoins and Bitcoins is relatively inexpensive, transferring Colossus coins are even cheaper.

How to get Colossuscoins

The first thing you need is a colossuscoin specific wallet. If you want to receive, hold or send Colossuscoins, you need a Colossuscoin wallet. Most wallet options are free. An online wallet will require you to create an account and an offline wallet requires a download. You can use either an online Colossuscoin wallet available at the Colossus coin website, or at offline Colossuscoin wallet available at ecoin exchanges like Cryptsy or Bter . You will be able to track Colossus coin transactions on the colossuscoin Block Chain.  As of now most of those exchanges only allow intra-ecoin trading rather than USD or EUR to ecoin trading for COL.

Generally you can not buy colussuscoins with cash or credit.  You need to exchange them for other ecoins (typically Litecoins or Bitcoins) in ecoin exchanges. Once exception is our colossuscoin starter kit.

(1) Start downloading your colossuscoin wallet from the colossuscoin website.  The wallet will need to sync with the blockchain.  This will take sometime to update.  While you are waiting for syncing.

(2) Order the Ecoin Club Colossuscoin starter kit including 10,000 Colussuscoins, and bonus colussuscoins for $5 with paypal.

(3) You will receive a confirmation email, reply to that confirmation email with your Colussuscoin wallet address.

(4) Your security and satisfaction are paramount to us.  We will transfer you a small test amount of Colussus coin to your wallet, once you confirm that you received the test amount, we will send the rest of your starter Colossuscoins.

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Infinitecoins

bitcoin-hacker_photobucketEcoin Insurance

When you buy or sell an Ecoin you can use escrow services like Local Bitcoin to increase the likelihood that you will get a fair trade. If a Bitcoin (or other Ecoin) is stolen it is almost impossible to get it back. There is no buyer guarantee, charge back or refund option. Also there is no way to delete the stolen Bitcoin and replace it.  Basically the victim is without recourse.

Hard to hide stolen Ecoins

Unlike cars, jewelry and cash, it is extremely difficult, if not impossible to hide coins from the world and still use them. This is because of the peer to peer block chain. A thief is attempting to do it right now with 96,000 stolen bitcoins. You can actually watch it happen real time on the block chain. The block chain records every Ecoin transaction that has ever occurred.  The entire world knows the exact network location (Bitcoin Wallet) of the stolen Ecoin. The entire world also knows exactly when that Bitcoin or portion of that Bitcoin is moved on the network from one Wallet to another.

Tagging stolen Ecoins

Because every ecoin transaction is recorded, the ecoin can also be tagged as stolen. The tag could follow the stolen Bitcoin around the network. The stolen ecoin index could be available to the entire peer to peer network and ecoin clients could look at the index to determine if a coin that they received is stolen.

How Bitcoin and Ecoin insurance could work

Ecoin holders would pay the insurance premiums with ecoins the same way we buy insurance now. When a ecoin is stolen the victim would make a claim against the insurance similar to claims against ordinary theft insurance. Once the insurer confirms that the coin has been legitimately stolen, the insurer would replace the ecoin. The insurer would become the rightful owner of the stolen ecoins.

The insurer could offer a bounty for the return of the stolen ecoins. The first time the coin is traded or held in an online wallet it would be identified as stolen and could be transferred back to the insurer for the bounty. Once the ecoin is back in the hands of the rightful owner, the stolen tag could be removed and the ecoin recirculated.

 

cellphoneuser

The Ecoin revolution may very well be the fastest and largest wealth redistribution in the history of the world.  Currently millions of computers are mining for Ecoins.  Most of the computers powerful enough to mine Ecoins are owned by the wealthiest people and organizations in the world.    Can we use mining to help solve world poverty?

Mining Ecoins is expensive

All Ecoins begin their life when they are mined by a computer.  Effective computer mining requires a great deal of computing horsepower and energy.  If you do not have a powerful computer and a cost effective power supply, you will not be able to mine Ecoins.  Unfortunately, this describes most of the people living in the world.

Most of the world is disenfranchised

Right now there are about 2B computers connected to the Internet.  Probably less than 10% of those computers can mine Ecoins effectively because of the power and hardware required.  There are over 6B cell phones in the world.  How can get those 6B cell phone users participate in Ecoin mining?  One idea is an Ecoin with mining opportunities for even the most basic cellphone.  An Ecoin where a  percentage of the coins are reserved for cellphone mining only.  For example, a Ecoin that allows cellphone users to manually enter number sequences or very advanced captchas into a cellphone to mine for coins.  While there are some technical challenges, it can be done.

Doing well, doing good

The long term value of Ecoins is directly related to the amount of real Ecoin buying and selling transactions.  For now, most of the world is out of the game.  If you believe that the Ecoin revolution is a wealth redistribution, this project is both a market opportunity and an important economic justice project.  This is our generation’s opportunity to do well while we do good; and set the stage for global wealth for the next 100 years or more.    We run Ecoin club.  We have the technical talent to accomplish this task.  You can get involved now by contributing to the cause and staying tuned.

How this could be done

The coin would probably need to have some percentage of the coins to be reserved for human mining instead of just machine mining.  It would be best if the human task is actually trying to solve real world problems like Gamer’s did for protein sequencing.

One of the challenges with the current mining ecosystem is that the coin creators would have to determine the human mining task ahead of time once, for the entire life of the coin.  This may not work because over time the human task may become irrelevant or ‘solved’.  It should be possible to crowd source the nomination and voting of the human task that should be rewarded with coins and also change that task over time.

Most coins are created with milestones that adjust the coin award per block over time.  For example, the Bitcoin award per solved block started at 50 coins per block at the first block solved, and will eventual reduce to 6 Bitcoins per block when block 630000 is solved.   The human mining task could use the same type of supply control and in addition to a reduction of the coins per block, the task could change at certain block milestones.  The human task for the upcoming block could be nominated and voted on by the coin community ahead of the block and adjust automatically when the milestone block is reached.

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BTC address: 16wG6iKuJ8G9Eohjy1kxQgsABVFHRC3Syh

LTC address: LWWfKi8dd3BMMqd76HuRV9849jwYXoo5mD

What is Ecoin Mining

bitcoin-mining-rigMining Bitcoins can be compared to mining minerals like gold, copper silver etc.  The way you mine gold is my digging in the ground, looking for something shiny, then testing to make sure that it is gold.  When you mine Ecoins, your shovel is a computer doing math and your testing kit is all the other computers on the Ecoin peer to peer network.  Instead of digging in the dirt to find something that looks like a Ecoin, your computer tries to solve a difficult math problem.  The math problem that has many correct answers, but not an infinite number of answers.

Since there is a finite number of correct answers to the math problem, as Ecoins are discovered there are less to find.

Mining computers requires a great deal of computing horsepower.  If you do not have a powerful computer and a cost effective power supply, you will not be able to mine Ecoins.  Unfortunately, this describes most of the people living in the world.

101201privacyreport_ES1Part of the discourse around the pros and cons of Ecoins is that they can be easily used to launder illegal funds or purchase illegal goods.  If anonymity and secrecy are good for crime, Ecoins are bad for crime.   Buying with Ecoins is like buying with cash.  Like cash, the identity of the buyer and seller are anonymous to one another and everyone else.  However, the payment network that processes Ecoin transactions is complete transparent.  Anyone in the world can look up the exact path of every Ecoin transaction of all time.  This information is stored in the block chain.

blockchain2

The block chain is the perfect genealogy of every Ecoin.  If people are still using Bitcoins in a million years, the Block chain will still be able to track every transaction back to the original Ecoin mining event.  While the block chain increases at an amazing rate, the data is well organized and therefore easy to query.  It is relatively simple to identify suspicious patterns and once one illegal actor is identified, it is easy to track the flow of currency every step of the way out.

Ecoins offer criminals no secrecy and only a a trivial amount of anonymity.  Every Ecoin transaction requires a computer or internet device to have a unique (anonymous) identity on the Ecoin peer to peer network.  While your identify on the network is anonymous, it is unique.  Almost all web devices are identifiable by location or owner.  Criminals get almost no anonymity and no secrecy when they transact criminal activities using Ecoin.   The real anonymity of Ecoins is the anonymity the consumer gets from the seller, marketers, credit card processors etc.  It is not the type of anonymity that protects or hides illegal activities. For the most part, law enforcement seems to be embracing the Ecoin movement, perhaps in part because it may make their jobs easier.

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Bitcoin Congress Hearing

Nov 2013 Senate hearing described as a ‘Bitcoin lovefest’

Watch the November 2013 Congressional hearing about Bitcoins

 

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Would you like to see a Bitcoin transaction that had nothing to do with you?  Well you can, anyone can!  That may sound scary but this feature is one of the coolest and most transparent things about Ecoins.  While the buyer and seller’s identify remain anonymous in the network, the payment processing system is completely transparent.  All transactions are managed, reports and processed through the public Bitcoin network. The reporting aspect of the network is called the Block Chain  This is true for most open source peer to peer Ecoins as well.  At anytime you can enter a wallet address or other identifying number thread into the search bar and see all the information about that transaction.  This is particularity cool when you send a Ecoin.  You can match the Ecoin go through the network and start to get confirmations.

blockchain

Most Ecoin transactions require a certain number of confirmations before the recipient will consider the transaction valid.  The Bitcoin community has commented that 5 Bitcoin network confirmations have the same level of validity of waiting 6 months to validate a credit card transaction.  It will usually take less than 30 minutes to get the confirmations required to confirm the transaction.

blockchain2

Many recipients require 3 confirmations before accepting the validity of an Ecoin transfer. This is a recent transfer with only 2 confirmation so far.

bitcoin-mining-rig

The first thing you need to decide is what Ecoin to mine.  You will want to understand how accepted the Ecoin is as a currency, how hard it is to mine and who is leading the evolution of the Ecoin.  Some Ecoins grow and some Ecoins fail.  A successful Ecoin has greater demand than supply, this is often reflected by the value of the Ecoin.  As an Ecoin becomes more valuable it also tends to become harder to mine.  The computing required to find the Ecoin becomes more expensive and more powerful. For example, right now only ASIC computers (computers with custom circuits for mining) will be successful mining for Bitcoin.  GPU (graphic cards) processing based computers are still successful for other Ecoin mining like Litecoins and Feathercoins.   A great shortcut to determine the best Ecoin to mine is to look at the market cap of the Ecoin, the relative difficulty to mine the Ecoin, and the community around the Ecoin.

The market cap of the Ecoin

The market cap of the Ecoin is  how much all the Ecoins in existence are worth (does not include undiscovered Ecoins).  This is important because as you will find out soon enough there are many Ecoin types to choose.  Picking an Ecoin with a reasonable market cap vs. other Ecoins is a quick way to get an idea of value and acceptance.  Also look at the percentage of the Ecoin that has been discovered to get an idea of the maturity of the market.  These are two factors that help to predict which Ecoins are going to grow and which Ecoins are going to perish.

Relative difficulty to mine the coin

The easier it is to mine the Ecoin, the more of it will find with your computer equipment.  Generally, the easier it is to find the Ecoin, the less computers are looking for it. As demand for the coin grows, the mining difficulty increases and so does the market cap.  Also keep in mind, the computer that youa re going to use to mine for eht coin.  if you have a MONSTER system you can go after slightly more mature and valuable Ecoins.  If you are using a typical desktop, it is probably best to Ecoin that is easiest to mine.  Balancing an Ecoin’s market cap and mining difficulty will help you pick the best coin to mine for you.

Ecoin community around the Ecoin

Taking  a look at the community around the Ecoin is sort of like getting to know the people who are building a company.  Most open source Ecoin projects are built and maintained by a core community of developers, enthusiasts and businesses.   Getting to know the team may help you gauge the strength of the coin and its potential for growth.

Lastly, when you are calculating the cost of mining vs. the reward, don’t forget about your power costs.  When you are mining, your computers are basically working full force, full time.  This costs power which is a real cost for mining.

 

feathercoin

Feathercoin is built on Bitcoin’s open source software. One of Feathercoins’s biggest advantages is the software that it uses to find coins.  The software that feathercoin uses is only good on GPU mining computers (basically programmable computers like the one you are using now).  Bitcoins can be mined using specialized hardware designed ONLY for mining Bitcoins.  Hence, bitcoin mining is dominated by high end mining hardware.   Feathercoin is safe guarded from the effects of expensive machines dominating mining. Feathercoins  also have additional protections against hostile takeovers of the peer to peer mining network.

Interesting things we noticed about Feathercoins

As of 11/2013 many popular markets tie Feathercoin (FTC) value directly to BTC value.  You can only trade BTC for FTC or FTC for BTC (no cash transactions).  In an appreciating market, FTC has the ability to appreciate twice in effect, once when BTC goes higher in value and a 2nd time when FTC appreciates vs. BTC.  Of course in an depreciating market it also has the potential to depreaciate twice as well,  For example during a recent 24 hour period, FTC was up as much as 50% vs. BTC, from a trading value of .00052 BTC to a value of .00078 BTC.   At these numbers, BTC converted to FTC at .00052 would go up in value 81% whereas BTC not converted into FTC would have appreciated 31%.