What is the Bitcoin Halving - Easy Crypto Australia

 

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What is the Bitcoin Halving?  In-depth guide.

So you know the basics about Bitcoin and want to find out more about the Bitcoin halving?  Let’s take a deep dive into it, so you can understand the technicalities like a pro!  First, we will look at the history of previous halvings and what we can learn.  We will follow this up with what we are expecting with the upcoming halving and how this may influence Bitcoin in reaching an all-time high.

 

 

Technically speaking, the Bitcoin halving...

The Bitcoin halving takes place roughly every 4 years or to be precise every 210,000 blocks.  The upcoming halving which is expected sometime in May 2020 (this month) will be the third such halving.  The previous halvings have occurred on:

  • Halving 1 - November 28, 2012 - reward drops from 50 Bitcoin down to 25 BTC
  • Halving 2 - July 9, 2016 - reward drops from 25 Bitcoin down to 12.5 BTC

So, as we know when mining Bitcoin we are rewarded for confirming blocks (see Bitcoin Mining).  We also know that Bitcoin only has a finite supply.  There are only going to be 21 million Bitcoin ever created.  Therefore in order to increase the scarcity and create value for investors while keeping the price stable or slowly rising, Bitcoin's mined block rewards are halved occasionally.  This does a number of things.  The miner's obviously are getting reduced rewards for proof of work.  The number of Bitcoin's being produced has now halved.  Given the demand for Bitcoin stays the same, Bitcoin has now become much more scarce and price tends to rise because of this.  The fact that the miners now need to do double the work to get the same dollar amount of Bitcoin can also have a positive effect on price.  Miners are not going to sell Bitcoin for the same price as they used to, due to their outlay of power, workload, and bottom line.

The halving was integrated into the Bitcoin protocol by Satoshi Nakamoto himself as it is widely believed that this was his way of keeping the currency price under control over the long term.  His disgust at the inflationary FIAT system pushes Nakamoto to create the top supply cap of 21 million Bitcoin.  To encourage miners to mine blocks while encrypting and verifying transactions on the Bitcoin network Satoshi created the mining rewards.  This not only incentivized miners to mine blocks but also helped to decentralize the network.  He had great foresight to see that once Bitcoin took off, halving would occur to reduce the rewards, but the price of Bitcoin would be such that the incentive to mine would still be there.

 

Supply and demand

These are the 4 basic principles of supply and demand:

  • If supply increases but demand is unchanged, the result is lower price and higher quantity.
  • If supply decreases but demand is unchanged, the result is a higher price and lower quantity.
  • If demand increases but supply is unchanged, the result is a higher price and a higher quantity.
  • if demand decreases but supply is unchanged, the result is lower price and lower quantity.

So if miners had free reign to mine as many Bitcoins as they could the top scenario would take place and the price of a Bitcoin would dilute.  Satoshi Nakamoto knew this and the halving was one of many protocols embedded into the Bitcoin code to alleviate these issues.

Hashrate

In order to understand the halving, we need to have a basic understanding of hashrate and how it affects mining.  Hashrate or Hashpower as it is sometimes known is essentially the speed at which a piece of cryptocurrency mining equipment operations on a computational level.  In short the more hashrate you have the more Bitcoin you can mine.  How is hashrate affected during the halving?  Hashrate may drop periodically because of the halving due to some mining equipment now not being economical enough to run and therefore switched off.

 

Bitcoin Halving: The Most Important Date In Bitcoin

 


 

Mining profitability

How does the halving affect mining profitability?  Well dramatically at first.  Historically speaking, due to the halving of rewards, it doesn't take a genius to figure out the mining profitability suffers as a result. So, how long does it take for the network to recover?  Let's take a look at the two last halvings to come to a conclusion.

2012

Bitcoin Halving: The Most Important Date In Bitcoin

So, if we take a look at 2012 it took roughly 1 year and 3 months to recover.

 


 

2016

Looking at 2016 it took roughly 1 year and 2 months to recover.  Let's correlate the time for bitcoin mining profitability to recover and the Bitcoin price in USD.

 


 

2012 price in USD at the time of halving

In 2012, momentum was too strong and the halving had very little negative effect on the price per Bitcoin.

 


 

2016 price in USD at the time of halving

In 2016 however, it took until 24/10/2016 or a bit over 3 months to recover but strongly exceeded that price as the year went on.

 


 

Future halving dates and block number:

  • Halving 3 - Block 630,000     - expected 18th May 2020    - 6.25 Bitcoin reward
  • Halving 4 - Block 840,000     - expected 2024                    - 3.125 Bitcoin reward
  • Halving 5 - Block 1,050,000  - expected 2028                    - 1.5625 Bitcoin reward
  • Halving 6 - Block 1,260,000  - expected 2032                    - 0.78125 Bitcoin reward

 

Finally, let's conclude...

So we have a vast amount of information on what the Bitcoin halving is, why it happens, and historical information.  Now let's try to use our crystal ball and think about what may occur in the future.  Many believe that similar outcomes, like those presented to you above, will occur.  Some miners will become uneconomical and discontinue, while others will join the network with the temptation of a higher Bitcoin price due to increased demand and lower mining rewards in addition to scarcity.  This whole concoction of variables makes for quite an interesting investment regardless of the eventual outcome.  My personal belief and this is not financial advice, however, I truly believe we will see similar patterns in the charts.  Something we didn't touch on was market sentiment.  I believe market sentiment is at an all-time high.  I believe due to the uncertainty of our worldwide situation, including the current COVID-19 pandemic we have the perfect opportunity to take Bitcoin to a new level of acceptance and adoption.

My prediction is that at a maximum it will take until the mining profitability recovers which historically is just over 1 year as we discussed, to really start to take off and hit a new all-time high.  Let's go!


Bitcoin physical BTC coin infront of green price arrow

Bitcoin and Cryptocurrency Statistics

 

 

BITCOIN AND CRYPTOCURRENCY STATISTICS

 


 

As you can see on the X-Axis of this graph the number of Bitcoin transactions per quarter is increasing over time.  The Y-Axis of this chart shows each quarter from Q1 2016 – Q4 2019


In this graph, we take a look at the Bitcoin Blockchain size in megabytes over time quarterly.  As we can see the Bitcoin Blockchains total size increase is a perfect exponential uptrend.

 


Below’s graph represents Bitcoins market cap in U.S. Billion dollars quarterly between Q4 2013 and Q1 2020.

 


Here we can see the number of Bitcoins in circulation from Q4 2012 till the first quarter of 2020.  Currently, there are roughly 18.3 million Bitcoins in circulation worldwide.

 


Here we have statistical information on Bitcoin transaction times from Jan 18 through until Feb 2020 with the average time per transaction in minutes being roughly 11.

 


This Infographic represents the total number of active Crypto traders across the globe.  If this information is accurate that means roughly 1.3% of the total world’s population owns some Bitcoin or Cryptocurrency

 


Let's take a look at some Bitcoin Mining statistics!

Current Bitcoin mining difficulty - 139,12,524,048,946

Current Hashrate - 115.014 E hash/s =18.12% in 24 hours

Profit made mining Bitcoin with 1THash/s in USD per day - $0.1329

Reward received per block in BTC - 12.50 + 13.79 BTC

Reward received per block in USD - $88,002.85 USD

Reward in BTC for the last 24hrs - 2,000 + 13.79 BTC

Reward in USD for the last 24hrs - $14,080,453,39 USD

Bitcoins left to be mined - 2,692,013.0

Percentage of Bitcoins issued - 87.182%

New Bitcoins created per day currently - 1,800 BTC

 

Slushpool has around 200k miners, this equates to 12% of the network hash rate.  Judging by these figures and guesstimating that other pools have numbers in this region we can safely say there is likely to be over 1 million unique individuals mining blocks on the Bitcoin network!


According to the mainstream media, Bitcoin has died 380+ times in its 11-year reign

 


 

On May 22nd, 2010 Laszlo Hanyecz paid 10,000 BTC (USD 41) at the time of purchase for two Papa John's delicious (I hope) Pizzas.  Today worth a staggering AUD 105,832,500

 

To commemorate the occasion May 22nd each year is celebrated as Bitcoin Pizza Day and many pizza joint's worldwide give discounts on the day

 

 


When WikiLeaks banking was blocked by the US government in October 2017, Julian Assange tweeted thanking the government for forcing them to invest in Bitcoin with fantastic results!
50,000% return!

 

 

 

 


More fun Cryptocurrency and Bitcoin statistics coming soon...


Buy BTC image with physical Bitcoin gold nuggets and black background

How to Purchase Cryptocurrency in Australia - Easy Crypto AU

 

 

How to purchase cryptocurrency in Australia

 

 

Beginners guide to purchasing cryptocurrency in Australia

Use this guide as a general overview of the process

 

 

Purchasing cryptocurrency in Australia has never been so easy. Depending on your knowledge of the crypto world of course, but even for beginners, we will help the process be less daunting so that even your Grandmother can quickly purchase some!

First and foremost you will need a wallet. We won't go into wallets in this article so we can stick to the actual purchasing of cryptocurrency and focus our efforts on the process directly. Click the word wallet in this paragraph to learn all about the best Australian cryptocurrency wallets.

 

To purchase cryptocurrency in Australia you will need the following:

 

  1. A digital wallet capable of receiving the cryptocurrency you are choosing to invest in.
  2. Identification, for example, Australian Drivers Licence, Australian Passport If you cannot provide these we have an extensive list we can accept which is case by case but most exchanges will endeavor to assist you with any of these queries.
    If you are planning on purchasing larger quantities, for example, $10,000 per day limit, $25,000 cumulative, that is no problem at all but more documentation and control measures are in place. So you may be asked to provide proof of funds or proof of income for example. These rules are in place Australia wide to protect against fraud.
  3.  A phone capable of taking digital photos. The majority of Australian exchanges require a photo of yourself holding up your identification so that we can identify you as matching your documentation. Here at Easy Crypto, we have an automated process to check your identification which we will go into in this article.
  4. An Australian bank account with the funds necessary for the purchase
  5. An Email address
  6. You must be an Australian Citizen, Australian Resident or Permanent Resident

 

 

 

 

Now that we have looked at what is required to purchase cryptocurrency in Australia, let’s look at how to do so.

First, let’s look at the 3 main steps.  We will use Easy Crypto as it is the easiest way in Australia to purchase cryptocurrency:

 

 

Step 1:
Create an order for the coins you want. We can send it to any wallet or exchange account.

 

Create an order by typing the amount of Australian dollar you want to spend or cryptocurrency you want to purchase.  The system will automatically do the maths for you so you will see what your quote is on the same page.

 

 

Step 2:
Pay with one of our instant-payment methods, or use a standard bank transfer.

In this step, we create an account and verify it. Then we pay for our order using PoliPAY or Direct Bank Transfer!

 

Sign up via your Google account, Facebook account or just an email address.

 

Enter your details

 

 

Answer some simple questions

 

 

A few more quick questions

 

 

Verify your identity and identification

 

 

Receive a text message from OriginID and follow the link!

 

Boring…… Disclaimer!

 

 

Use your camera to take a photo of your ID and your face.  Simple!

 

 

Insert a cryptocurrency wallet address

 

 

Review your order and make sure all details are correct

 

 

Deposit into the account provided then confirm payment or use PoliPAY which is instant!

 

 

Step 3:
That's it! We'll process your order straight away, and most orders are delivered in less than 2 minutes.

 

Congratulations!  You are now another satisfied and proud Australian owner of cryptocurrency.  Your wallet has received its order from your Easy Crypto account and you can now transact, purchase more, trade with or watch your investment grow over time.  Getting into crypto at such an early stage is a great feeling.  Many Australians have jumped on the bandwagon and some have done incredibly well.  With the uncertainty of today's financial situation now is a great time to get involved in cryptocurrency and start to see the technology for what it is.  It is revolutionary...


Yes, Bitcoin can be sold for Fiat or normal currency like AUD through exchanges directly to your bank account with EasyCrypto being one of those exchanges.

Yes, Bitcoin so far has been a good long term investment or hedge against the market as has performed well even under bad circumstances.

Yes, Bitcoin is classed as money, is legal in Australia and taxed uniquely.

No, Bitcoin is not a bubble as some mainstream media occasionally suggests,  It is a battle-hardened 11 years old now and as the logarithmic scale graph illustrates, the number of Bitcoin transactions is steadily climbing year on year.

No, there can not be more than 21 million Bitcoins created so unlike Fiat which can be printed and printed Bitcoin can not.

No, Bitcoin is not 'Dead', according to the media Bitcoin has died some 350+ times all of which have been poor excuses for journalism and just fear-mongering for a quick story.


If you have not already make sure you start to research Blockchain Technology and wrap your head around it.  This is the true juggernaut of the technology as not only can it produce and sustain peer to peer, trustless digital currency, but also it can create smart automatically executable digital contracts known as 'smart contracts'.  Do not forget to research smart contracts if you are planning on investing in this space as they are very much in their infancy.

This document was brought to you by Easy Crypto and we are here 24/7 to answer your questions or emails that you may have.  We will endeavor to support you from start to finish in necessary to get as many people as we can be involved in a world-changing technology!

 

https://www.easycrypto.com.au/


Buy Cryptocurrency Australia - Hints and Tips

Buy Cryptocurrency Australia

Hints and Tips

Stuart Butler  2020

Are you confident to start buying cryptocurrencies safely & securely after creating an account on a cryptocurrency exchange in Australia?

Buying, selling, storing & managing cryptocurrency seems like a complex & complicated procedure that requires extensive knowledge prior to investing.  However this is definately not the case.

The following steps are a minimum requirement to investing in cryptocurrencies in Australia:

1. Choose the right Cryptocurrency

2. Create a wallet

3. Research Exchanges

4. Take some security measures

5. FAQ

1. Choose the right Cryptocurrency

Cryptocurrency is a decentralized, digital asset. It is highly volatile in nature, therefore, invest only what you can afford. Always do your own research before buying cryptocurrency. An easy way to choose a specific Cryptocurrency is by reviewing the history & charts of cryptocurrencies which are available on coinmarketcap.com & choose the currency which increases in value over time or excites you the most. 

This all depends on the reason for investment for example, whether it is a long or short term investment or It could also depend on the risk you wish to take and the amount of money invested. The most prominent cryptocurrencies in Australia are Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin and many more. 

Each of these Cryptocurrencies have their own technology embedded within them and due diligence should be taken before making any investment decisions.


2. Create a wallet

Wallets are used to send,receive & store your crypto assets. Cryptocurrency can be stored in a multitude of wallets including software wallets. These wallets are online wallets like mobile wallets. This type of wallet is easy to access the liquidity of your funds & its utilization is also easy. Online wallets are perfect for making online shopping payments for example.

Another kind of wallet is a hardware wallet which is not linked to the internet. These wallets are considered the best option when it comes to security and if you have large amounts of cryptocurrencies to store. A user can transfer crypto assets from hardware wallets to online wallets flawlessly and confidently with no worries once shown.
It is a well-known lesson to try and avoid leaving your cryptocurrency on online exchanges, use cold storage hardware wallets like Ledger Nano S, Ledger Nano S or Trezor to keep your cryptocurrency safe from hackers and failing companies.  As they say “not your keys, not your crypto”.



3. Research Exchanges

Firstly choose an exchange that is based in Australia and allows Australian Bank account deposits for example easycrypto.com.au. Some exchanges are limited in their options for purchasing cryptocurrency whereas some exchanges make is fast, simple and safe when it comes to buying cryptocurrencies including but not limited to Credit card, Debit card and Bank transfer.

In addition to these points,  We should not negate the fact that fees are involved and we should research how much fees would be paid for crypto transactions to make sure we pick a competitive exchange.

Here are three types of fees you may encounter:

  • Deposit fee
  • Transaction fee
  • Withdrawal fee

Each set of fees is different on different exchanges. The lower the fee the more profit in your digital wallet.  But never forget the price of convenience and safety.  It all has its place when choosing an exchange.

4. Take some security measures:

Keep all information safe & secure, for example, wallet password & login credentials should be kept safely offline. Use new emails & a single password to register your account with exchanges, use 2FA & download Google Authenticator as an extra layer of security, make sure you are not visiting a fake site and double check domain addresses, never click on a link sent you through email & always transfer your crypto funds from exchanges to your cold storage wallets.  Remember NOONE requires your private keys except YOU!



Cryptocurrency Frequently Asked Questions (FAQ)

Q. Why does Cryptocurrency have value?

A. Cryptocurrencies like any other currencies are built on the fact that when traded for a service or commodity, they can facilitate that transaction fast and efficiently at a low cost.  However, the added value here is the trustless blockchain ledger which requires no middle man or centralized authority to facilitate such a transaction.  This saves on fees, increases security and puts control back in the hands of the rightful owner of the currency.  Cryptocurrencies like Bitcoin for example are also becoming a fantastic store of value over time with good long term returns.  Cryptocurrency allows us to transact, anywhere in the world, regardless of demographic or geographical location and allows us to do this at low cost, at minute quantities, in minutes.

Q. How Cryptocurrency is created?

A. Cryptocurrency is created using cryptography which is basically combinations of numbers in certain patterns to represent transactions.  Bitcoin, the first Cryptocurrency was created by the anonymous handle of ‘Satoshi Nakamoto’ this could be a single person or a group of people but once a mathematical equation is solved then the Bitcoin protocol releases Bitcoin to the node or computer which solved the problem first.  This is how Bitcoin is created.

Q. What determines Cryptocurrency value?

A. Just like any market, whether it be a service, commodity, online gambling cash, online gaming item or anything in between.  It is about supply, demand and of course scarcity.

Q. Why were cryptocurrencies created?

A. Cryptocurrencies were created to give the people back control over their own hard earned money and provide trustless digital accountability in doing so.  Free of overbearing and unwanted fees to power hungry controlling corporations.  Crypto was also created to provide the unbanked population of the world which is somewhere in the region of 1.7 billion people, financial independence.  These people generally don’t have access to banks or proper identification but the majority own mobile phones/cell phones.  This gives them access to the internet and the blockchain.  With this technology they can now transact between one another or globally in seconds and have somewhere to securely hold their personal wealth.

Q. What do miners do?  Like Cryptocurrency miners?

A. Cryptocurrency or Bitcoin ‘miners’ are simply computers which run, in Bitcoin’s case, the Bitcoin protocol which basically makes your computer or network of computers calculate random mathematical equations using algorithms to try and find the answer to a random but very complex mathematical question.  Whilst completing this mathematical equation, your computer and all other computers connected to the Bitcoin network are working hard independently or sometimes in pools to solve the question.  This, in turn, provides the network with computing power to facilitate, record and verify transactions on the network at the same time.  The reward for all this work?  The first computer or pool of computers to solve the mathematical equation is rewarded with (currently) 12.5 Bitcoins.  This depends on the difficulty of the equation which increases every 2016 blocks.  Some pools split this evenly and some split it depending on the CPU power provided to the pool etc.  The average block time is 10 minutes which is why it takes roughly 1 hour to complete 6 confirmations on the Bitcoin Blockchain.

 

In a nutshell ‘mining’ is connecting to a network and chipping away at a maths problem until it is solved.  When solved the ‘miner’ is rewarded in said cryptocurrency.  This POW or proof of work ensures the network of transactions are facilitated and verified.

 


Bitcoin Price Aud

Bitcoin Price AUD

Bitcoin Price AUD

 

Bitcoin Price and Australian Dollar Correlation

Stuart Butler | 2020

What do we mean when we say Bitcoin Price AUD…

Many people search Bitcoin Price AUD as the quickest way to find the price of Bitcoin in Australian dollars.  Why? you ask…  Because day in and day out, more Aussies are jumping on the Bitcoin train.  They are searching for the term Bitcoin more than ever before.  They are also constantly checking the price of Bitcoin and its relation to the Australian Dollar.  At the time of writing this article Bitcoins price against the AUD is $12278 per single Bitcoin.  In December 2017 it hit roughly $25,000 Aussie Dollars per 1 BTC.

This is the line graph of Bitcoins price to Australian dollar including volume bar graph
Bitcoin Price AUD

Where to purchase Bitcoin for Australian Dollar right now?

If you are just ready to go now, cut to the chase and purchase Bitcoin now, simply go here!

www.easycrypto.com.au

 

 

What influences Bitcoin’s price to AUD?

    1. Adoption
    2. Simplicity
    3. Supply and Demand
    4. Brand Power
    5. Battle Hardened
    6. Attention

 

Adoption:

The more people that use Bitcoin the more it’s price increases.  This includes businesses and investors; both individual and institutional.  It also includes traditional Financial services, for example, ETF’s, etc.

 

Simplicity:

As Bitcoin becomes simpler to use with more streamlined software and hardware options becoming available the price of Bitcoin inevitably rises accordingly.

 

Supply and Demand:

Bitcoin, as we know, has a total supply of 21 million coins.  We also know at the time of writing this article 17,911,125 BTC has been mined already.  That leaves 3,088,875.0 bitcoins left to be mined.  Also, we must take into account the ‘lost’ Bitcoins which is estimated to be around 3 to 4 million coins.  So yes scarcity is definitely a factor when considering price action.  (Source – https://www.buybitcoinworldwide.com/how-many-bitcoins-are-there/)

 

Brand Power:

Bitcoin’s brand power is by far the best of all cryptocurrencies.  This gives it power, prestige, and value.  It is and always will be the first cryptocurrency.  It is also the current reigning champ when it comes to market share.

 

Battle Hardened:

Bitcoin has stood the test of time.  At the time of writing this article, Bitcoin has died (according to the media and the naysayers) approx 375 times.  Needless to say, it keeps pushing on and breaking rules and boundaries along the way giving room for financial growth at every turn.  (Source – https://99bitcoins.com/bitcoin-obituaries/)

 

Attention:

Every time Bitcoin’s price surges so does its media attention.  Conversations at the watercooler at work now become quite often about Bitcoin instead of the normal ‘What have you got for lunch’ type of jazz.  When Bitcoin starts to rise in price and volume, so does its attention, which feeds the beast and really gets the price inflating rapidly, as people scramble for their share of the pie.

Where can go to learn how to purchase Bitcoin with AUD?

Below is a link which will take you step by step through the process of buying Bitcoin with AUD.

https://learn.easycrypto.com.au/buy-bitcoin-in-australia/

Where can I go to sell Bitcoin for AUD?

Follow the link below for step by step instructions on how to sell your Bitcoin and get AUD deposited into your account at optimal rates.

https://learn.easycrypto.com.au/sell-bitcoin-australia/

Where can I go to purchase Ethereum or any other Alt coin with Australian Dollars?

Follow the link below for a step by step guide on how to purchase Ethereum or other Alt coins with your Aussie Dollars.

https://learn.easycrypto.com.au/buy-ethereum-in-australia/

Where can I learn about different Bitcoin wallets used in Australia?

The following link will give you all the information you need to make an informative choice on Australian used Cryptocurrency wallets.

https://learn.easycrypto.com.au/best-bitcoin-wallet-australia/

Who buys Bitcoin in Australia with AUD?

The following link demonstrates you are not alone in your persuit of Bitcoin in Australia.  The link below shows statistics about Aussies buying up Bitcoin in a big way!

https://learn.easycrypto.com.au/who-buys-bitcoin-in-australia/

Bitcoin – Frequently Asked Questions (FAQ)

Q. In a nutshell, what is Bitcoin and blockchain?
A. Bitcoin is a decentralised form of cryptographically secured non-editable digital currency based on a digital trustless blockchain ledger.  It has no borders which means it can be sent digitally globally within minutes.

Q. What is the difference between Bitcoin and other Cryptocurrencies?
A. Simple.  Bitcoin is the first and by far the largest decentralised digital network.  The difference is Bitcoin is easily the most trusted and battle hardened Cryptocurrency with a massive worldwide network of users.  At the time of writing this article Bitcoin has a 66.9% dominance of the market share.

Q. What is AUD/BTC pair
A. AUD/BTC pair is basically the Australian dollar tied to BTC (Bitcoin)’s price.  So at the time of writing this article AUD/BTC pair is $12284.60 to 1 BTC.

Q. Where was Bitcoin developed?
A. See https://easycrypto.guide/bitcoins-early-days/

Q. What year was Bitcoin created?
A. The bitcoin network started mining the first block named ‘the genesis block’ on the 3rd of January 2009 which was block number 0.


Buy NEO Australia

Buy NEO Australia

 

NEO Smart Economy

Stuart Butler | 2020

NEO is an open source community directed blockchain technology.  The aim of NEO is to create a digitalized smart economy via a distributed network.  NEO utilizes smart contracts to automate the creation, recording, execution and management of Digital Assets and Digital Identities.

NEO was created in 2014 then released as open source software on GitHub early 2015.  Following this was the release of its MainNet in 2016 and since this time has been growing in popularity ever since.  Prior to 2017 the project was known as ‘AntShares’ but it went through a major re-branding and the name NEO was born.

What is GAS and how does it work with NEO?

GAS is another cryptocurrency which accumulates and is paid into your NEO wallet (NEON wallet) for example or any other supporting NEO/GAS wallet (see https://neo.org/client).  GAS accumulates and is paid similar to a dividend depending on how much NEO you own and hold in your digital wallet.

The more NEO you have the more GAS you will accumulate.  GAS is used as fuel within the NEO blockchain and GAS is used to facilitate the transactions on the network.  Every NEO block that is generated creates GAS which is then distributed to everyone holding NEO in their digital wallet.

There is more information here https://neotogas.com/ explaining where you can calculate how much NEO you must hold to generate the amount of GAS you want as your passive income.

Create a NEON wallet to store your NEO and collect GAS

Do your own research on wallets but for the sake of this article we are going to use the NEON cryptocurrency wallet https://neonwallet.com/ to facilitate our first hypothetical NEO transaction.

So once we go to the neon wallet link above we can then choose our operating system to download the client software.

 

Download and install the file.  Then hit the Create Wallet button and follow the instructions carefully!

 

 

***NOTE*** Please take extra care with all passphrases and passwords and never share your private keys with ANYONE.  Only your public address should ever be shared!!!

Once you have created your wallet you will see one passphrase/password and three encrypted addresses:

Save these details! If you lose these credentials, you lose access to your assets.

PASSPHRASE/PASSWORD

This is your manually set password to login to NEON with.

PRIVATE KEY

This is your private key which is used to spend your funds.  Should anyone other than yourself access this key, they have full rights to your account and funds and can transfer as they please so beware.

ENCRYPTED KEY

This is your Encrypted key which derives from your Private key and can only be decrypted using your passphrase.

PUBLIC ADDRESS

This is the key you use publicly to recieve deposits into your NEON wallet.  This is the only key that can be shared safely.

How to buy NEO

So now that you have a NEON wallet and you understand the basics of NEO and GAS you have decided to purchase some NEO.  First simply register an account with easycrypto.com.au and get verified, then follow the prompts as shown below.

 

Use the drop down arrow and select NEO, enter the amount of AUD you wish to use for the purchase and click BUY NOW.

 

Add your NEO public wallet address and click Next Step.

 

Select payment method, we will use POLiPAY for this example

 

Review order and when you are happy click the Pay with POLi button, login to your internet banking to pay and you are done!

Popular opinion

 

NEO is a Proof of Stake token which means if you hold your NEO in a specific wallet, for example the official NEON wallet (https://neonwallet.com/) you will earn extra subsidiary tokens called GAS.  GAS is similar to Ether on the Ethereum blockchain, which is used to pay for transaction fees on the network.

NEO is sometimes referred to as China’s Ethereum as it bares many similarities to the juggernaut and second largest market cap blockchain technology project, Ethereum run by Vitalik Buterin.

 

 

Going from an ATL (all time low) of $0.105357 AUD in Oct 21, 2016 to an ATH (all time high) of $286.91 AUD in Jan 15, 2018 NEO has definitely made investors some money along the way and produced what some would call a cult following.  With the current price at the time of writing this article at $12.89 you can see how many people still think there is still money to be made investing in NEO given all the technology we have mentioned within this article.

https://coinmarketcap.com/currencies/neo/

 

The outlook in 2020

2020 is a year of optimism for Chinese blockchain companies and their cryptocurrency market.  NEO being the leading crypto project in China is at the forefront of this positivity.  The Chinese Government have been making positive comments about blockchain and crypto lately, which is why traders have begun to keep a closer eye on Chinese projects and the potential in the country.

Here are some features NEO encompasses:

 

Digital assets

  • Neo supports a multitude of digital assets within its core infrastructure
  • The ability to create, register, trade and transfer digital assets at one’s own prerogative

Digital Certificate

  • Trust is built within the public blockchain comprising of digital certificates which provide complete legal protection for the totality of NEO’s digital assets

Transaction Mechanism

  • NEO provides the capability of peer to peer trustless transactions of digital assets
  • Cryptocurrencies and digital assets can be harmonized and exchanged without the necessity of using an exchange

Smart Contract

  • NeoVM comprises of unlimited scalability, sharding, finality, large certainty and support concurrent operation smart contracts

Multi-language Development

  • Java, C# and Python are some of the programming languages supported by NeoContract
  • Due to having multiple supported programming languages the NEO platform encourages and assists developers to expeditiously construct smart contracts without having to learn the tedious prerequisites of another programming language

NEO VM

  • NEO’s virtual machine better known as NeoVM nurtures superior start-up times comprising of rapid execution
  • NeoVM is a lightweight stack-based virtual machine
  • Deterministic tree type technology the likes of what you might see in gaming tech trees etc enables NEO to provide endless scalability

dBFT

  • NEO utilizes consensus nodes via the Byzantine Fault Tolerance Algorithm to establish conclusiveness of all transactions
  • Keeping its conclusiveness of transactions at all times on the condition that the Byzantine fault arises on no more than one third of the nodes

Cross-Chain Interoperability Protocol

  • Neo provides cross-chain asset swaps
  • Cross-chain distributed transaction protocols
  • Atomic asset swaps
  • Interchangeable operation of smart contracts on multiple chains with a very high level of consistency

Anti-quantum Crisis

  • Neo provides lattice cryptography which establishes avoidance of quantum crisis by means of signing and encryption utilizing Turing encryption and decryption into the (SVP) or Shortest Vector Problem. Currently no quantum computers can crack this puzzle.

 

NEO – Frequently Asked Questions (FAQ)

Q. In a nutshell, what is the NEO project and blockchain?
A. The NEO project is similar to Ethereum, in that it is used to create digital assets with the ability to create smart contracts, called NeoContracts.

Q. What is the difference between Neo tokens and Neo Gas?
A. Neo tokens are representative of shares within the Neo ecosystem. Neo holders are given the right to to vote and receive dividends in the form of Neo Gas. Gas is used as fees to run NeoContracts on the Neo network.

Q. What is Antshares and how does it relate to Neo?
A. Neo began life as Antshares and rebranded to Neo in 2017.

Q. Where was Neo developed?
A. Neo was developed in China, being the largest blockchain project in the country.

Q. What year was Neo created?
A. Neo was created in 2014 as Antshares.

Q. What is unique about Neo?
A. Neo is working to tie together physical identity with digital identity via the blockchain.


Who Buys Bitcoin in Australia?

How to buy Bitcoin in Australia

Statistics on buying Bitcoin internationally and locally

Stuart Butler | 2019

Where can I buy bitcoin in Australia?

There are many exchanges in Australia where you can purchase Bitcoin.  Some are slow and cumbersome to verify with also some are very complicated.  Easycrypto.com.au is the fastest most user friendly onramp for buying Bitcoin and other cryptocurrencies in Australia.

Who buys Bitcoin in Australia and why?

There is a range of people buying Bitcoin in Australia for a range of reasons but first let’s look at the global statistics:

  • 9% of the total world’s population owns Bitcoin.
  • 18% of 18 to 34 year olds own Bitcoin
  • 12% aged 35 to 44 year olds own Bitcoin
  • 4% for 45 to 54 year olds
  • 4% for 55 to 64 year olds
  • 65+ year olds coming in at a mere 1%

So looking at this data we can see Bitcoin is definitely a younger person’s game but also the more savvy mature audience is still prone to dabbling in and understanding the fantastic benefits to this new technology.

Now let’s take a look at where in Australia people who buy Bitcoin reside

  • 29% are from New South Wales (NSW)
  • 27% reside in Victoria (VIC)
  • 24% live in Queensland (QLD)
  • 8% are in Western Australia (WA)
  • 6% are from South Australia (SA)
  • 3% live in the Australian Capital Territory (ACT)
  • 2% reside in the Northern Territory (NT)
  • And just 1% of Australia’s Bitcoin owners live in Tasmania (TAS)

Interesting isn’t it?  Now delving deeper…

Of all the Australian Bitcoin holders, what percentage of Alt Coins do they own?

  • Ethereum 17%
  • Litecoin 9%
  • Monero 6%
  • Dash 5%
  • Dogecoin 5%
  • Any other of thousands of Alt Coins 8%


Sell Bitcoin Australia

Sell Bitcoin in Australia

 

A quick guide on selling your Bitcoin.

Stuart Butler | 2020

So the time has come to sell some of your precious Bitcoin? This would mean you have your own digital wallet or are using an exchange wallet to hold your Bitcoin.  Either way, you have made the decision to sell back to Australian Dollar (AUD) and you want a fast yet effective means of liquidating your position (Selling). 

Great,  Now you can ask yourself some questions…

 

Why am I selling now?  Do I need the money?  Have I made a profit?  What if Bitcoin keeps going up?

All these questions would be swirling around in your head and they all require answers to help you make the correct decision.  Maybe you want to purchase a new car, or maybe you have to put the money towards a house deposit.  All these things are great reasons to sell.  On the other hand, if you are selling to jump out then back in on a dip I recommend you proceed with caution and think things through thoroughly. 

 

Sure picking a nice peak on the daily or 4 hour chart and selling then getting back in on a trough or dip seems easy on paper, but if it was this easy we would all be well off.  The ebbs and flows of a market are  more predictable for a seasoned trader and even so they are really only as good as their last trade.

 

Your best bet is to remain disciplined and focused on what you are trying to achieve.  Before purchasing Bitcoin, and definitely before selling it, set yourself clear and precise price targets in Australian Dollars. Back them up with reasons so that you are more likely to pull the trigger, and sell when the price hits these targets.  So you might say to yourself: ‘I entered the market purchasing one Bitcoin at $10,000 USD.  My target for selling is $15,000 USD.  This will help me achieve my overarching goal of a house deposit (becoming more expensive in Australia), or sell $5,000 which is half my initial investment back lowering my risk exposure.’

Then once the trigger price reaches $15,000 you sell and execute your plan with discipline and a precise vision.

 

If Bitcoin starts to take off again and exceeds $15,000 and you get FOMO (Fear of Missing out); have a plan to re-enter and a price you are happy to pay.  Keep half your initial investment of $5,000 and go back in with $10,000.  If however it drops, you could also look to re-enter for a much cheaper price which is excellent news.  Remember the words of Warren Buffet which is also applicable to the Cryptocurrency market.  “The Stockmarket is a device for transferring money from the impatient to the patient“. 

These are just examples of ways to trade with discipline and things to consider before selling your Bitcoin.  After all Bitcoin is only going to become more rare as time goes on.

Things you will require before selling Bitcoin in Australia:

  1. An account with a reputable Australian crypto exchange for example Easy Crypto
  2. The Australian bank account details (in your name) of the account you want to sell into.
  3. You will require your photo identification if you have not signed up or been verified with a selling exchange. This is usually achieved by taking a selfie while holding a hand written note and your ID card for most exchanges.  Here is an example of what may be required:

  1. On creating an account you will in most cases be required to provide your Bank details so when you go to sell you will see the following:

  1. You will then need to acknowledge your order by clicking confirm as shown below:

  1. Once you have confirmed the amount it will then generally provide you with a Bitcoin or other cryptocurrency deposit address and a QR Scan code. Simply deposit the desired amount of Bitcoin to the given address and follow the status of the order on your account page or via emails.

 

It is a fairly simple process to sell and can be done almost as quick as buying crypto.  I have simply used Easy Crypto as an example to provide you with some screenshots, as you will more than likely come across similar pages among other reputable Australian exchanges. 

So effectively the exchange waits to see the deposit enter into the exchange wallet and then automatically creates a bank transfer directly to your provided Australian bank account.  From that point on you will more than likely receive a receipt from your chosen exchange via email.  Expect deposit times to vary depending on your bank etc but from here on out the transfer speed is like any other transfer from bank to bank.  If you are with the same bank expect it pretty much instantaneous and if not expect it deposited within 1-2 business days.

Selling Bitcoin and Cryptocurrency in Australia is becoming far more efficient, user friendly and timely.  The aim of the industry as a whole is to make buying and selling Bitcoin streamlined and instantaneous coupled with high level security and absolute confidence.  We can see a future where with the click of a button you can buy and sell Bitcoin and other cryptocurrencies person to person instantly regardless of age, technical abilities, distance and borders.

Sell Bitcoin Australia – FAQ’s

Q. How much Bitcoin can I sell in Australia?

A. There is usually a lifetime limit to selling, which is outlined on the exchange.  This will depend on your level of verification.  Easy Crypto allows a maximum of $10,000 AUD to be sold daily and this is similar across most exchanges.

Q. What are the tax implications when I sell Bitcoin in Australia?

A. When buying and selling any Cryptocurrency in Australia you must understand your tax obligations with the Australian Tax Office.  In general, every AUD to Crypto, Crypto to AUD and Crypto to Crypto trade is a tax ‘event’.  Contact a crypto friendly accountant (such as Darcy Financial) to discuss your personal situation before selling.

Q. How long does it take to receive my AUD after I sell Bitcoin in Australia?

A. It is all dependent on Australian bank processing times.  This can range from almost instant (in the case of NPP type payments) through to 3 business days.  The exchange will keep you in the loop via email.

Q. Can I cash out to my partners Australian account?

A. Contact Easy Crypto via email to discuss this.

Q. Why is the sell price higher than the buy price?

A. Selling Bitcoin in Australia (and across the world) always follows the same principle, that is there is a buying and selling market.  Buyers will set a buying price and sellers a selling price.  To buy, your buying price must match the sellers price.  The difference between these two prices is called ‘the spread’.  So in order to sell instantly, you must lower your sell price down to the buy price to match up with a buyer.  Once this occurs your order immediately processes.  This is all done by the exchange automatically and you don’t have to worry about it.


Bitcoin Growth

Physical Bitcoin BTC coins next to seedling in soil

Bitcoin Growth Over the Past 11 Years

2008 was the year of Bitcoins inception in which the early pioneers like the unknown person or persons named Satoshi Nakamoto started implementing the new technology.  

Initially Bitcoin didn't take off, but once people started to see it's many use cases and potential it started becoming a force within a few years. Bitcoin, over the years since has had many highs and lows. Like any new emerging speculative market there has been some major setbacks, but Bitcoins recovery and battle-scarred endurance was there for all to see. In late 2017 when Bitcoin really started to make a rocket like move past all old all-time highs we saw google trend searches also skyrocket and Bitcoin became a real household name.

Bitcoin BTC price over 2019 2020 predictions graph coin market cap

Come around to 2020, it is reported that 4.7% of Australians have used Bitcoin exchanges like Easy Crypto Australia to buy Bitcoin. By looking back the last 11 years of Bitcoin, it feels safe to say that the number of Australians buying Bitcoin will only to continue to increase. 

 


Bitcoin logo on rocket ship with purple space back ground

How Much Bitcoin Growth Can Expect in 2020?

At its peak, Bitcoins market cap grew to a staggering $320 Billion dollars and that is only Bitcoin not including the whole cryptocurrency market. $320 Billion is an absolute motza; Let's compare that to the global stock market. The market cap of the global stock market was an incredible $70 Trillion Dollars. If we break that down mathematically Bitcoins market cap was a mere 0.005% of the global stock market's market cap. 😮

Earth from space with connected data points representing blockchain cryptocurrency


The potential for Bitcoin growth given the ever-increasing adoption of Bitcoin and cryptocurrencies in relation to the total global market cap is what drives many long term investors to throw their hard-earned cash into Bitcoin.  Even if we see 0.020% of the entire global market cap funnel into Bitcoin it will make Bitcoins market cap balloon to a staggering $1.28 Trillion dollars with an estimated single unit Bitcoin price of $80,000 USD.  This could easily be dwarfed however with some experts looking at a price closer to $1 million per Bitcoin in years to come.

Bitcoin Australia How to buy Bitcoin in Australia with flag and BTC coin with blue back ground

How to Buy Bitcoin in Australia

Many Australians hear about Bitcoins potential as an international currency or digital store of value and immediately decide to buy Bitcoin. Actually doing so, on the other hand, can not always be easy.

That is where we, Easy Crypto Australia can help. 😎

Easy Crypto Australia is your best choice to buy Bitcoin in Australia with Australian dollars for three key reasons:

  • We typically have the best Bitcoin (BTC) prices in Australia
  • You can glide through our automated verification and purchasing process and buy or sell Bitcoin in minutes after signing up.
  • Our ordering process was built to be used by someone who is brand new to the Bitcoin world, so you won't have any trouble getting started.

 

Australian Dollars AUD plus Easy Crypto equals thumbs up

How to Buy Bitcoin in Australia through Easy Crypto

Your first step is to create a free Easy Crypto Account, which you can do in 30 seconds here: https://www.easycrypto.com.au/

Once you have created your account, your next step is to get it verified. Across the world, it is the standard on Bitcoin exchanges to verify your identity, and this is no different in Australia. All Australian Bitcoin exchanges are required to comply to local Australian laws surrounding the sales of Bitcoin and another cryptocurrency - but don't worry - Your verification can be completed in minutes!

Now that your verification is complete, it's time to buy your Bitcoin! 🏆

To see our full guide on how to buy Bitcoin using Easy Crypto Australia, click here. You shouldn't need our guide though, our system is very easy!


Fastest, Safest and Easiest way to Buy Bitcoin Australia - Easy Crypto

Bitcoin logo and Australian flag floating over Syden operah house buy Bitcoin AU

Fastest, Safest and Easiest Way To Buy Bitcoin Australia

I often get people asking us how can they can get involved in Bitcoin or what is the best way they can buy Bitcoin Australia for under $100. 

In this guide, I will walk you through everything from setting up your own Bitcoin wallet to how to buy Bitcoin Australia and beyond. 🚀

I will try to keep it short, sharp and simple.  All recommendations within this guide for Bitcoin wallets or exchanges to use are simply examples.  Do your own research to find out what best suits you, but this is the combination I use to buy, sell and store Bitcoin in Australia.

Exodus Bitcoin Wallet screenshot AUD

Before You Buy Bitcoin Australia You Need a Place to Store it!

The first thing you will need to do is set up somewhere for your Bitcoin to go once you do purchase it.  Getting a digital Bitcoin wallet setup is your first step, as without a Bitcoin address you have nowhere to keep your Bitcoin. 

A Bitcoin wallet is the Bitcoin equivalent of your Australian bank account for your AUD.

Bitcoin wallets come in all shapes and sizes, and this will act as your centre of gravity when it comes to your interactions with the Bitcoin world. You receive Bitcoin to this wallet and you send Bitcoin from this wallet, and some cryptocurrency wallets even allow you to store over 200 cryptocurrencies in the one program! (as can be seen above)

There are many safe and easy Bitcoin Bitcoins on the market (and many unsafe and hard wallets!) but I personally like to use a Bitcoin wallet called Exodus. You can get Exodus from www.Exodus.io, and you can have a desktop version or a mobile version - or both!

Downloading Exodus Bitcoin wallet guide

For the sake of this guide let's choose the desktop version. Keep in mind that you can set up the Exodus bitcoin wallet on both your phone and computer and sync them to the same account. 

The GIF above will show you how to navigate the Exodus website to download and install your new Bitcoin wallet.

Exodus Wallet Australia AUD Buy Bitcoin

Once Exodus completes its download, just click on the installer and Exodus setup will begin. You will not need to create an account or even provide your name - your Bitcoin wallet is already created! ⚡

Now we can move onto the next step - Buy Bitcoin Australia and have BTC sent to your Exodus Bitcoin wallet in minutes! Make sure to keep your Exodus Bitcoin wallet open for this stage as it will prove to be important in the ordering process.

Easy Crypto Australia banner logo

Next Step: How to Buy Bitcoin Easily and Safely in Australia

The first step to Buy Bitcoin in Australia is to sign up to a Bitcoin exchange or Broker and get a verified account.

Luckily you won't have to look any further, as you've already found Australia's easiest and safest Bitcoin exchange! 🤠

Easy Crypto Australia review

Your first move is to head to the Easy Crypto Australia website where you can create your free trading account. 

  • Once your account is created and verified, you're 100% in the green to buy Bitcoin and make your first order.
  • You can buy Bitcoin and have it delivered to your personal wallet in less than 3 minutes.
  • If you don't have a wallet already, simply click 'I don't have a wallet' when making an order and Easy Crypto will create one and send it to your email.

Our interface is very easy to navigate so you shouldn't run into any walls, but for a guide on how to buy Bitcoin in Australia with Easy Crypto, follow the GIF below. :)

buy bitcoin Australia easy crypto AUS gif of home page exchange widget BTC

I used Easy Crypto Australia to Buy Bitcoin - Now What?

Now that you have used Easy Crypto to buy Bitcoin in Australia, your next move is to decide what you want to do with your new-found BTC.

You have several decent options, ranging from money-making, diversification and using Bitcoin as an actual currency.

  • Use your Bitcoin to buy other things in Australia or abroad.
  • Get into Bitcoin day trading, where you buy bitcoin when it's price is low and sell your Bitcoin when its price is high.
  • Diversify your cryptocurrency investments by exchanging some of your Bitcoin into another promising cryptocurrency.
  • Put some of your Bitcoin in your Bitcoin wallet on your phone and get the mates to do the same. Start making bets and paying your mates with Bitcoin.
  • Use your Bitcoin to donate to charities.
  • Buy Bitcoin in Australia for your friends and family