Friday, December 12, 2014

Burst, a cryptocurrency minable with your hard drive!



I have been involved in the cryptocurrency scene for about 2 years now and this is the first time I have come across a crypto that can be mined with a regular hard drive. When I first stumbled on to Burst I have to admit I really did not give it much thought due to the complex instructions on setting up the wallet software and the actual mining process itself which seemed even more convoluted. I had some spare time one day and decided I was gonna spend several hours understanding the set up procedure for the Burst wallet and how to go about mining with my hard drive. Burst uses an algorithm called "POC" which mean "Proof of Capacity". In traditional Bitcon/Litecoin mining the actual mining is called "POW" which stands for "Proof of Work" which done with a GPU/CPU/ASIC, in the case of Burst, the mining is done by proving that you have a certain storage capacity(space on your hard disk).

In order for a miner to "prove" that he/she has the available space on the hard disk, that particular space has to be filled with a file called a "plot". In layman's terms, a plot is a very large file that is generated on your hard disk that contains you Burst account number and the size of the plot is of your choosing. Let's say that you have a 200 Gig hard disk and you decide that you would like to use 100 gigabytes of that hard disk to mine Burst coins, you would use the plotting software to make a 100 gigabyte file and that file can then be used as proof that a certain portion of your drive has been used up. The bigger your plot file the more Burst coins you are likely to mine. So a miner with a 1 Terrabyte plot file will receive more Burst coins than a person with 100 gigabyte plot file. Once you go through the plotting procedure you can either solo mine or mine in a pool. I have been using Uray's burst pool with one of my 1 Terrabyte drives and I have been getting about 200-300 Burst coins per day depending on the difficulty which seems to fluctuate quite a bit through out the day. At this point, there is not much you can do with your Burst coins other then trading them for Bitcoin at one of the major crypto exchanges, but I am sure that will change as more and more people start seeing the potential of this unique coin. Btw, I am keeping all my Burst! :)

Pros:

Burst was launched on August 10, 2014 with a starting block reward of 10,000 coins per block with a 5% decrease each month. I find this gradual decrease in block reward to be much better than the sudden chops that happen in other cryptos which can cause severe volatility. A good currency in my opinion is one that has a stable value/exchange rate, not roller coaster rides that keep the day traders happy!

The one thing I love about Burst is that it uses minimal amount of electricity in comparison to other cryptocurrencies. Most hard disks today use only about 5-10 watts, so the power draw is very minimal and every Burst coin you generate is pure profit on your end, there is no hefty power bills coming at the end of the month like in Bitcoin/Litecoin mining.

Since Burst only uses the hard disk for mining, in addition to the minimal power usage there is also very little heat being generated. Those who have mined Bitcoin/Litecoin with GPUs know very well the kind of heat graphics cards produce when they are used for cryptocurrency mining! So another plus for Burst in my book!

The Burst wallet has a built in asset exchange functionality, so any party/user on the network can issue and purchase digital assets/stocks! This option gives a lot of potential for future expansion and growth in the Burst economy and I am sure it will further add to the value of Burst.












Cons:

Like I mentioned in the beginning of the article, at this point in Burts's development, the burst wallet, plotting software and miner software are not very user friendly unless you are a techie. The hardest part in my opinion is the generating of the "plot" file itself. My first plot file was a 200 gigabyte file and it took my AMD 3ghz dual core cpu almost 2 days to plot, and that was after spending several hours finding out the proper commands and how to get the plotter to work.

Later through extensive research on the main Burst forum I found out there was a GPU plotter that is much faster than the CPU plotter I had used, but that took me quite a bit of time to figure out how to use. Having done the plotting myself I can safely say that this is definitely not a task your average computer user will be able to accomplish without extensive research. All of the CPU/GPU plotting tools are command line only, so unless you are techie you are in the deep end right from the start. I am sure as time goes on and the Burst economy grows the plotting tools will be improved and made much more user friendly and accessible for the average computer user.

Conclusion:

Considering that every computer is equipped with a hard disk, the potential user base for Burst is pretty much anyone with a Pc/laptop. This is what really makes me excited about the future potential of this unique coin. If the process of plotting could be simplified and made more accessible to the average computer user I can not see any reason why Burst can't become the next major competitor to Bitcoin. The low electricity cost required to mine Burst is a big sticking point for me personally, I have mined Litecoin/Bitcoin and many other cryptocurrencies and I can say from experience that getting that hefty electricity bill at the end of the month is not very fun at all. If the entire setup process from wallet setup through plotting and pool mining can be encapsulated into a simple point and click setup wizard I can see Burst going mainstream with ease, everyone who has a computer will be able to join regardless of local electricity costs. Now that is something to look forward to!



Burst Resources:

Bitcointalk thread: https://bitcointalk.org/index.php?topic=731923.0

Official site: http://burstcoin.info

Freenode: #burstcoin #burst-coin

Reddit: https://www.reddit.com/r/burstcoin/

Wednesday, November 19, 2014

Gold Ready For a Trend Change?

I checked out the weekly chart for the the XAU/USD pair and I was immediately confronted with this beautiful double rejection candles at a massive support level. On the chart bellow I have marked the the 3 lows we had in the price of Gold since 2013. The red arrow shows the double rejection weekly candles, you can see on the chart how price briefly plunged below those green support levels and then came back up. To me this is a strong indication Gold may be about to reverse it's downtrend and I think there is a good chance we might see price head back up to the $1250 price pivot!

Thursday, July 17, 2014

Janet Yellen dreaming of DOW 30,000!

I just could not resist drawing this after watching the speech by Janet Yellen on the TV the other day. I am sure DOW @ 30,000 is probably on the low end, the FED probably wouldn't mind the Dow Jones Index at 50,000.

Friday, June 20, 2014

Janet Yellen running from the Bitcoin Bazooka!

I am a big proponent of cryptocurrencies and with the recent wave of Bitcoin acceptance by major retailers and business across the globe, it seems to me the days of the central banking and fiat money are numbered. There is nothing worse for an economy/society/country than the blatant debasement of it's currency. Inflation hits across the board and the poor always get it the worst. I hope someday we will live in a world free of central banking!

Thursday, June 19, 2014

This is probably how the Spanish goalie feels after the 2014 World Cup!

I know this is not forex related, but I just could not resist. A picture can truly be worth a thousand words!

Wednesday, June 18, 2014

Why I like Darkcoin and anonymous cryptocurrencies!

I had some free time the other day and I decided to draw this for some reason. I feel this cartoon depicts fairly accurately how I feel about Darkcoin and anonymous cryptocurrencies in general. I am sure not all people will share this point of view, but I got a hunch many will agree!

Thursday, April 24, 2014

Gold Technical Analysis - Bullish Formation Showing On The Daily Chart!

I haven't posted any forex setups in a while, but today there is a nice formation on the daily XAU/USD charts. On the one hour chart I have marked a massive trend line break with a green line. Gold has been in a very consistent and steady downtrend for the past few days, but today I think everything has changed. The daily chart is showing a bullish engulfing candle right on the $1277 price level which has been used both as support and resistance in the past (marked with green arrows). My gut tells me in the next few days or even tomorrow we might see a lot of Gold buying!!!


Resistance:
1: If we break higher tomorrow I expect first resistance is @ $1304 level.
2: If the $1304 breaks hard I think we may even see Gold heading for the $1330 high from the 14th of April!



1-HR Chart

Daily Chart