It’s kind of interesting to see how quickly things catch on in this life. whether it be a new phrase kids are saying, a new way of wearing clothes, or a revolutionary piece of technology that opens up a whole new world of possibility. Regardless of what it is, people are eager for new ideas. Ideas that will further life as we know. Everyone is part of the ever advancing thing that we call life. Everyone is eager to grab on and hopefully take a little bit for themselves. That’s the great things about advancements in technology or in any industry for that matter. The second something is release, there’s always people who will want to take it and advance it or use it to create something else. When you really think about it. Advancement creates opportunity. Bitcoin is probably one of the most revolutionary things that we have had in a remarkably long time. It’s changing the currency game in an incredible way. Right now, everyone is grabbing onto the coat tails, trying to further it, and make something of their own. Which is a real treat to see. The People over at 21 Inc. are really doing some wonderful work.

 

21 Inc.’s Mining Chip

2015 might be the year of the Bitcoin start-up. The record-holder for the most well-financed Bitcoin company in history, 21 Inc.’s $116 million venture capital treasure chest is now starting to bear fruit. Which is always a great thing for any company achieve. Yesterday, 21 Inc. has released plans for their new and revolutionary Bitcoin mining chip called the 21 BitShare, according to the Wall Street Journal. If you’re unfamiliar with bitcoin mining, i’ll tell you what it is.  Bitcoin mining is the processing of transactions in the digital currency system, in which the records of current Bitcoin transactions, known as a blocks, are added to the record of past transactions, known as the block chain. Bitcoin mining happens on the CPUs of individual computers, with more cores and greater speed resulting in greater profitability. After that, the system became dominated by multi-graphics card systems, then field-programmable gate arrays and finally application-specific integrated circuits, in the attempt to find more hashes with less electrical power usage. It has become hard for prospective new miners to start. This adjustable difficulty is intentionally created to prevent inflation. To get around that problem, individuals often work in mining pools. So what is a mining chip and how does it effect the bitcoin world?

21’s vision was not to just  “build a chip”, but create a “full technology stack around the chip” that would include reference devices, data sheets, a cloud backend and software protocols.The 21 Bitcoin Computer itself features a command line interface and Python 3 library, a 128 GB SD card and a suite of pre-configured software designed to work with the bitcoin blockchain. But, using these building blocks, the company is encouraging users to dream up cool and new things. That’s exactly what people have been doing. The amount of things people have conjured up so far is quite incredible

 

21’s Mining Chip: The Results

. Noted bitcoin advocate, Andreas Antonopoulos has built  an experimental Wi-Fi captive portal that accepts bitcoin payments for Wi-Fi minutes. The bitcoin world has previously made attempts to share Wi-Fi with bitcoin payments. While one firm we looked at set up as a bitcoin payment option alongside traditional payments at public hotspots, the other took a different approach and employed networks of Wi-Fi providers incentivised with bitcoin. 21 Inc’s device allows a different method again – potentially allowing anyone to sell their Wi-Fi. Just take moment and think about that. They took a service that is costly and held in contempt by mostly large corporations, and made it accessible to the public in a new and exciting way.

Justin Guy, developed a system which  harnesses the 21BC to sell retweets on Twitter. Additionally, a developer going by the username “21JD21″ has created a Reddit-like link-sharing site built with the 21BC that charges users to post links, comment and up-vote or down-vote. BitLink, as the project is called, pays out to whoever posted the link or comment being voted on, thus giving greater rewards to the most active posts. Other projects have previously sought to monetise social media, for example, with a Bitly alternative that rewards users in bitcoin. Called Cred, the application encourages readers to share content through specialised links that generate rewards – effectively, the application inserts its own advertisements into the user experience. This is huge if you really think about it. So many people is today’s world rely heavily on social media as a platform for them to grow their business. Some are even making quite the profit by using things like social media sites already. This could propel the online business world forward greatly.

Joe Pickrell is testing the 21 Bitcoin Computer (21BC) for different novel use cases involving human genomes. One project aims to predict phenotypes (which can include your physical characteristics and health, among other things) and/or probabilities of contracting a certain disease from a specific type of text file (VCF) containing a gene sequence. Pickrell explains on his GitHub page that the tool requires a genome sequence in a VCF file and allows users to predict phenotypes of the person to whom the genome belongs. Specifically, this command line tool pulls a phenotype prediction model from an external server in exchange for bitcoin and then returns the prediction. There you have it. Bitcoin is even in some weird way effecting the field of medicine.

21’s Mining Chip: The Mobility

Another aspect of this new revolutionary technology that is definitely noteworthy is the fact that the chip is primarily for smartphones. In this company model, consumer devices like smartphones will be mining Bitcoin silently in the background while receiving small distributions from a managed pool of bitcoin earnings. This evolving vision of the future leads to a new “infinite stream of digital currency,” creating a growth of micro-transactions. This model will facilitate a new form of digital commerce and inter-connectivity that the current traditional financial system can only dream of. To be able to see the technological advancements that have taken place in the last 10 years alone is mind boggling. Everything we mentioned above can be done from the comfort of your toilet seat.

 

How do You Tax Bitcoin?

I think one of the toughest challenges that bitcoin is currently facing is maintaining it’s uniqueness. It came of the market as this incredibly revolutionary technology, claiming that it was completely different from conventional currency. Regardless of all the claims that were made, people are still people. Meaning they are going to want to attach accountability to something of this magnitude. Which is completely understandable. Bitcoin is advancing quickly and influencing many. The Big question now is “How do you tax Bitcoin?” Approximately 15 million bitcoins have been issued so far, and they are currently valued at about $430 each.. The algorithm is designed to generate 21 million bitcoins, and experts anticipate that the last bitcoin will be issued sometime between 2110 and 2140. Bitcoin is designed to be used as a currency, though some hold it as an investment. The difficulty is that governments have taken a variety of positions on the nature of bitcoin for tax purposes. Some countries, including those in Europe, have classified bitcoin as a currency for consumption tax purposes, meaning that the various value-added taxes do not apply to bitcoin exchanges, while others, such as Australia, have not. Similarly, the U.K. sees bitcoin as foreign currency for income tax purposes, while the U.S. regards it as property.

By refusing not classify bitcoin as a currency for income tax purposes, tax authorities effectively treat bitcoins as any other property. Meaning that those who buy items with bitcoins must report any gain on the transaction associated with a change in its value. That is, it is treated like an investment, regardless of how the owner actually uses it. It is as if they sold their bitcoins for cash and then used that cash to make a purchase. If the bitcoin has gone down in value, taxpayers might not be able to deduct the losses, because they could be considered personal. Thus, anyone using bitcoin as a currency has to keep track of each bitcoin’s cost so that he can accurately calculate gain or loss. It doesn’t even necessarily sound like a legitimate system. I think the governments just wanted something in place to feel control.

It’s a really unfortunate thing when you see the governments of the world try and take something that is a product of the people and bend it to their will. I don’t see this as the only issue bitcoin will face. Bitcoin is changing the game and that’s bound to upset a few people. You can definitely expect to many more issues arise in the future.  Check our resources page for a list of trusted companies, which have received 4 stars or better. Check Our Reviews page for more insight into trusted companies. Check our site for other  Financial Planning reviews. its great place to become more knowledgeable about the world of finance, and will shed some light on some of the scams out there.