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Times are changing, technology is advancing, processes and procedures are evolving. It only makes sense that the forms of currency we use and we use it will upgrade as well. You may have heard of Ethereum already, but I suspect that many of you have not. You probably have questions like what is Ethereum? Where do I get it? How do I use it? I have the answers you are looking for. Let’s start with the basics.

What is Ethereum?

Thanks to Vitalik, a University of Waterloo dropout, we have the decentralized cryptocurrency called Ethereum today.

Thanks to Vitalik, a University of Waterloo dropout, we have the decentralized cryptocurrency called Ethereum today.

Ethereum is an innovation in modern technology that takes us to the next level. Think Bitcoin, but larger and more advanced. Ethereum is an open, public computing platform that utilizes blockchain technology to build and run decentralized applications. It is a type of cryptocurrency and the Ethereum currency is called Ether. Ethereum is a decentralized application that is not controlled by any one individual or central entity. Ethereum in the Netherlands is the future, but it is a complex process. Knowledge of chain block technology, as well as other advanced technological applications and systems are required.

Ethereum Mining

How to Mine Ethereum

When done correctly, Ethereum mining can be profitable. Mining hardware is expensive, so it recommended to try pool mining rather than solo mining if you are a beginner. To begin Ethereum mining you will need have Ethereum installed. You can download either the Geth ethereum wallet app for more advanced users or the Mist wallet app for less advanced users. You will also need to download the Ethereum Wallet zip file, extract the file, then you can run the Ethereum app. Once the download is complete, you can embark on the Ethereum mining journey. Download and install a miner then set up a mining pool or join a mining pool. Ethereum uses block chain technology. Keep in mind that alternative online ethereum wallets do exist and can be found here. They are currently very stable and widely used. When mining Ethereum in the Netherlands, the miner will listen for network transaction and put all the valid information into a block. The miner hashes the block with electricity that produces a POW (proof of work) for that block. Once the network accepts the block as valid, it will become part of the block chain. Once completed, the Ethereum miner will receive 5 Ether plus GAS fees.

Graphics cards in an Ethereum mining facility create millions of Ether per day.

Graphics cards in an Ethereum mining facility create millions of Ether per day.

Is Ethereum Mining Worth It?

If done correctly and efficiently, Ethereum mining in the Netherlands can be profitable and worthwhile. Ethereum mining with a CPU is not very profitable, so it really is not worth it. However, because Ethereum mining with a GPU is much faster, a profit can still be made using a GPU. If you do not know how to mine Ethereum correctly, you may end up spending more money on electricity costs than the profit you make; costing you more money and making Ethereum mining worthless to you. You can trade Ethereum for Bitcoin, so Ethereum mining is an excellent way to build your Bitcoin. Because Bitcoin can be sold for cash, you can also make money because of your Ethereum mining adventure.

The price of Ethereum is the main factor in driving mining popularity.

The price of Ethereum is the main factor in driving mining popularity.

Ethereum Smart Contracts

What is an Ethereum smart contract?

An Ethereum smart contract is a computer code that facilitates an exchange. This exchange can be an exchange of money, shares, content, or other property of value. Ethereum smart contracts run on the block chain and run exactly as they were programmed without any outside interferences. They basically determine how money moves. What sets Ethereum apart and above other block chains is that there are no limitations Ethereum gives developers the power to create the options they want without limits. Smart contracts are built using the command line and run on the EVM (Ethereum Virtual Machine).

How to Create an Ethereum Smart Contract

In case you were wondering how smart contracts are developed.

In case you were wondering how smart contracts are developed.

Below is an example of how to create an Ethereum smart contract in an ethereum wallet. There are different types of smart contracts, but this is one of the simplest to perform and to understand.

For a Proof of Existence smart contract you will start by typing “truffle create:contract” on the command line. Next, open “contracts/ProofOfExistence1.sol” in a text editor. It doesn’t matter which one you use. You will then paste the initial version of the code:

pragma solidity ^0.4.2;

// Proof of Existence contract, version 1

contract ProofOfExistence1 {

// state

bytes32 public proof;

// calculate and store the proof for a document

// *transactional function*

function notarize(string document) {

proof = calculateProof(document);


// helper function to get a document’s sha256

// *read-only function*

function calculateProof(string document) constant returns (bytes32) {

return sha256(document);



To deploy your Ethereum smart contract, you will then need to paste this content over the old content:


* migrations/2_deploy_contracts.js:


module.exports = function(deployer) {




// add this line



Once your Ethereum smart contract is deployed, you can send messages to it using function calls. These messages can then be read in a public state. Your function call must include a Promise. To create multiple document proofs, just change the command line from contracts/ProofOfExistence1.sol to contracts/ProofOfExistence2.sol and so on.

Ethereum Price

Like any other type of currency, the price and value of Ethereum changes continuously. Currently, Ethereum in the Netherlands has been on the rise. In fact, recently the Ethereum price has increased drastically by 25%. In one week, the price rose from approximately $10, to a little over $13, then back down to $12.80. The price has currently settled at the $12.40 to $12.80 mark for the last few days. What does that mean for you? That’s $12.80 Ether against the US Dollar. Now, they are speculating the price will remain close to this amount, with no major changes soon.

Surprisingly, the people of the Netherlands are embracing Ethereum. Their government hates it.

Surprisingly, the people of the Netherlands are embracing Ethereum. Their government hates it.

Ethereum in the Netherlands is the latest form of advanced cryptocurrency that utilizes the block chain system. If you are willing to invest a little time and money into Ethereum mining, the potential for your profits are unlimited. This means your profit mining potential is unlimited. The sky is the limit for those that are aware and that make the extra effort to learn new technology, how to use it, and how to optimize their profits and gains. Times are changing and we need to change with them. Ethereum is the future of currency.

Ben and I have blogged for months on end about all the coins to hit the coin-o-sphere in 2014. We have pontificated about what makes a successful coin vs. a scam, crap or snake oil ones. We were happy to discover a group trying to tackle this challenge. Their credo is to look under the hood of these new coins, kick their tires and give them a rating based on their findings.

Crypto Certify is a new service for auditing cryptocurrency by the developers of Stealthcoin and Sonicscrewdriver. They came together to bring some legitimacy back to the Altcoin market. They are proposing a verification system for new and existing coins on 3 levels: Developer, Code & Deployment. In each of these phases, the coins will be screened by the Crypto Certify team and run through some vigorous tests. There is also a launch certification to indicate that new coins are launching directly with their certifications.

We are committed to seeing crypto- currencies thrive as a medium of exchange. To help promote widespread use, we created Crypto Certify – to encourage confidence in crypto-currency markets. – Crypto Certify Developers

Developer level requires a verification that the developers are who they say they are, not an anonymous group from Moldova. This ensures some level of trust between creator and coin holders.

Code level will inspect the base code for bugs and further verify the coin by acknowledging any anticipated pre or post mines. Basically, trying to keep the development team honest in their approach with the coin.

Deployment level is all about testing and building a digital wallet based on the code for the new or existing coins. Verification of coin supply and confirmation times are tested and re-confirmed. If the coin passes, Crypto Certify will add a digital certificate as proof of authenticity to the coin code to ensure that this version of code was reviewed and approved by them.

The launch branding is only for newly minted coins as a way to assure altcoin members that this code is launching with the full backing of the Crypto Certify team.

We really like this concept, thought we will admit that it could take the form of ‘regulation’ in a sense. While, this is a great idea, it would be bad if coins had to some level of certification from this or any group to be ‘viable’. A release of a coin comes with risk and it is the investor or users decision to get involved. The data published from this group serves as an additional and hopefully independent rating system for those new endeavors. Of course, we know how rating systems like Moody’s and the like can eventually be bought and sold, it’s still worth that risk as the intention, so far, seems pure and as of date we need anything we can get!

I have uncovered a few options out there in my search for Bitcoin trading bots.  Some are squarely aimed at the more technically astute traders (those who know Ruby or Python) while there are others who think Ruby is a precious gem and Python is a snake. I am the latter of the two. My goal is to find a Bitcoin trading bot that satisfies a few requirements:

  1. The bot uses trading indicators such as MACD and Stochastic, which I find very compelling in understanding price momentum/change.
  2. The bot allows me to use an API to trade with BTC-E (my preferred altcoin exchange).
  3. The bot is easy to use with good support notes and legitimacy.
  4. I want a variety of trading pair choices besides BTC/USD (e.g. WDC/BTC and LTC/USD)

There are many more Bitcoin trading bots than what I have listed in this article. For the sake of brevity, I am breaking up the article into two parts. Here are the highlights from the first two bots I reviewed.

Butter Bot

This trading bot has a good looking web page specifically designed for someone like me.  Some of their claims seem outlandish (3564% profit in last two years!) and hard to verify but it’s still worth a review. They have a free 7 day trial which was perfect for my needs. I downloaded and installed it as a plugin on my Chrome browser. The interface is extremely easy to use. Most of the major exchanges are available:  Mt. Gox, BTC-E, Bitstamp. Another great feature is the back-testing (or retroactive benchmarking) of your trading parameters. It’s nice to see if your strategy would bear fruit before you implement it.

While I give the site high marks for being user friendly, I was pretty disappointed in my trading supports.  I have been using MACD, Stochastic and ROC indicators in my trading.  Those were not available.  Butter Bot uses only a hybrid of the basic RSI indicator. I back tested BTC over a month’s span, fidgeting with the parameters, but the more I changed the percentages the more I ended up losing. I can’t understand how the bot was calculating the profit/loss without my normal (Stoch, RSI, MACD) indicators as a guide.  I also could use only one trading pair, BTC/USD.  I want more options in my trading in case one currency is flat for a couple days.

Butter Bot’s Price Schedule


I am on the fence about this one.  Support looks like it may be substantial and development could bring new trading pairs and indicators. The price is reasonable for someone who doesn’t know how to build a server and host bot software herself.

BTC Robot

The website feels like an infomercial. It appears they have taken fourteen separate web pages and packed them into one uber-long home page.  There is some info about Bitcoin juxtaposed with lots of fluff.  The site doesn’t mention any of the trading indicators it uses or what exchanges it covers or the trading pairs it allows, which makes me nervous at the $250 price tag for MAC users. I am hesitant to drop any money when all the ‘reviews’ I find out there appear to have been written by the BTC Robot marketing team.  I want to actually see the interface, know if I can backtest my strategies, and know how profits are made. It’s nice to say, “We can make you money,” but they won’t tell you how.

Until I read more or see legitimate reviews, I am going to stay away from this robot.

Downloads as a chrome extension.

BTC- Robot- look how easy it can be!


For those who like free, I found a Chrome extension trading bot for Mt. Gox. I don’t use this exchange but it may suit some of your needs.  Cheers.

If you follow the 200+ cryptocurrencies out there with any regularity you would have heard a couple of new entrants making quite a racket over the last couple weeks, Blackcoin and Darkcoin.
We have written about Blackcoin and are deeply impressed with some projects and capabilities coming down the pike. They raised $15k+ in donations to hire a PR agency and are being included along with Bitcoin with Coinkite‘s payment processing service starting on June 1st. This along with their intense efforts of chasing ecommerce business transactions leads me to believe that it’s current valuation at the time of writing (.0002) is cheap.Very cheap.

Darkcoin is another coin that has been making some waves over the last couple days. I watched it go from .0069 to .0175 in 24 hours. The growth/ pump on this was insane. Just when I thought there would be a mass sell off, the coin continued to rise, kinda like those days in November 2014 when Litecoin went from $11 to $40. Darkcoin is aiming to be the anonymous version of Bitcoin. It’s recent release of Darksend, an anonymous transaction feature, is truly securing this coin as Bitcoin’s 2nd in command. Wallets no longer indicate balances and 3rd parties cannot trace your transaction history. It is all nicely screened within Darksend’s technology. While this is great for privacy folks, Libertarians and drug dealers, this could hamper mass adoption and acceptance by Big Brother governments who want to know what the proletariats are up to. Maybe Darkcoin’s barrier to entry in the mainstream will push it down to the recesses of the Darkweb where it will flourish among marginalized societies?

Darkcoin’s value rise from 5-14-5-15

I know investors and miners love new crypto’s as they are highly speculative and can make you a lot of money in a relatively short amount of time but it’s time to separate the fools gold from the real thing. I personally hate most of the 2014 crypto births and consider the bulk of them bastard children but Blackcoin and Darkcoin have the attention of Altcoin Fever (Disclosure – we own both). They are doing some things right with new features (Darksend, POS, interest on coins held) that further legitimize cryptos in general. Bitcoin has basically done all the hard work for future cryptos and brought the reality of virtual currency to the world. Many have long speculated what will eventually replace Bitcoin. I think we have 2 strong candidates in Darkcoin and Blackcoin.

To get you started, here is the beginning of our glossary of cryptocurrency terms. If you are new to the crypto lingo, this will help make sense of things so you can impress your relatives at Thanksgiving. Also these terms will kick ass on your next blind date.


The blockchain is a shared public ledger showing the entire transaction history of a respective coin. If a cryptocurrency is based on Bitcoin (and they all are except Ripple), then it has its own blockchain. Picture a long receipt for every transaction that was ever performed. In this way, addresses can calculate their spendable balance and transactions can be verified (which prevents the ‘double-spend’ to be mentioned below). The integrity and the chronological order of the blockchain are enforced with cryptography. This automated work is done by Miners. For the most part, you never have to worry about this but it is nice to look at if you want to verify that an amount was received by you or to check a balance at a known address on someone’s webpage. The blockchain is a dream come true for law enforcement. (Of course they haven’t caught on to this little fact yet, but give them time. They are too busy attacking the idea of crypto right now.) It shows all transactions and the sending and receiving addresses. If you ever want to know where funds are, it is all available and freely accessible. The blockchain only shows the address, not your name or IP, so some folks think it’s anonymous. It’s not. It can be if you know how to make it so, but that comes later in your training (and with another post on this site). Remind your friends that it’s pseudo-anonymous, not truly anonymous.


Mining is a distributed consensus system that is used to confirm waiting transactions by including them in the blockchain. It enforces a chronological order in the blockchain, protects the neutrality of the network, and allows different computers to agree on the state of the system. To be confirmed, transactions must be packed in a block that fits very strict cryptographic rules that are verified by the network. These rules prevent previous blocks from being modified because doing so would invalidate all following blocks. Mining also creates the equivalent of a competitive lottery that prevents any individual from easily adding new blocks consecutively in the block chain. This way, no individual can control what is included in the blockchain or replace parts of the blockchain to roll back their own spends. The other half of mining is the creation and discovery of blocks to make a single unit of the coin. This coin can then be spliced and distributed within the network. It all happens automatically; the coin’s own internal protocol limits its growth so it doesn’t grow too fast (this is the “difficulty” you hear about from time to time).

Private Key

Your private key is a private address that is paired with your public key. Private keys allow you to spend your coins or take them out of your wallet for using. The private key looks very similar to a public key but it’s slightly longer. You can get your public key from a private key but you CANNOT get a private key from a public key. Which is precisely the point. Keep this sucker secret. It is the key to the balance of the address. Whoever holds the private key owns the value of the address.

Public Key

Public key (AKA “address” or “public address”) is like the bank account for your personal digital currency. It is where you store your coins. If you have multiple types of coins, you must have a separate wallet for each type. A wallet is a collection of public keys. So a wallet can contain one public key or one hundred. How much you decide to put in each is up to you and there is no cost. An example of a Bitcoin public key : 13CVcPgM2pcKw8h8qaum6BHm8YT66RRawU. Anyone can send you coins or you can transfer coins to other addresses as long as you have the private key.

Paper Wallet

(AKA “cold storage,” also referred to as an “off-line wallet.”) A paper wallet is a physical piece of paper you print out that stores your altcoins in a secure, off-line environment. Paper wallets are inherently impervious to hacking and other forms of internet theft but vulnerable to acts of nature (fire and flood), burglary, and human error (simply losing your wallet). Basically all a paper wallet contains is a printed public key and private key for a respective address. The data is NOT stored on a computer. Often a paper wallet has a QR code of the public and private keys to make it easy when you need to get the key values on your computer or phone — you just scan the paper instead of manually typing the keys out. Think about securing your paper wallet in a safety deposit box or a safe.


The price of a coin is the value assigned by the market of users (just like gold, but not the USD). The value that is assigned is the price buyers are willing to pay and sellers are willing to accept. A currency can grow its price in many ways: by supporting an increasing array of tools and software designated for it, by merchants’ willingness to accept it, by ease of use, by some really great marketing. Oh, and the capabilities of the coin help too! Each coin has published characteristics that make it unique so be sure to look them up. Crappier coins often rely on marketing alone (I’m looking at you Dogecoin!). The price of a coin can be as cheap as one Satoshi selling for thousandths of a cent USD all the way to thousands of USD for a 1.0 unit of the currency. A Satoshi is the smallest atomic size of a cryptocoin – 0.00000001. It’s really small. As of this writing, a Dogecoin is 0.00000072 the value of 1 BTC ($681 USD). Oh yeah, the abundance of the coin is really important in the price. BTC will only have 22 million coins issued while DOGE will have billions. I think the quote goes like this: “When everyone can get it, nobody wants it.”

BitPay and Coinbase are the two biggest names in Bitcoin payments. In some ways they act like a Bitcoin Paypal but in others, they go way beyond that. What is the difference between BitPay and Coinbase? What follows is info from their websites as well as what others are saying on Reddit and Bitcoin forums.


BitPay – BitPay is the first (and largest) Bitcoin payment processing service. Merchants can use this service to accept Bitcoin for goods and services. Over 20,000 businesses around the world use Bitpay to process Bitcoin payments. BitPay also just announced an API for payroll taxes which allows W2 employees’ salaries to be paid fully/partly in Bitcoin.

Coinbase – Coinbay is perhaps the best way in the US to purchase Bitcoin directly through your bank. This consumer service allows you to link a bank account and purchase BTC directly, or convert your BTC to dollars and deposit those funds in your bank. Its simplicity (my mother could use it) and smart phone apps have catapulted its client base to 600k+ 1.3M+ users and climbing. Coinbase also has its own merchant services.


  • Merchant services such as payment buttons (very customizable)
  • 20k + merchants
  • Bitcoin payroll services
  • Invoicing capabilities
  • Issues refunds but as credits only
  • Application process required to begin
  • Cannot do subscription services
  • Monthly fee with 3 tiers ($30, $300 or $3000 levels) with no transaction fees
  • Quickbooks integration
  • Very robust set of features for highly customized use
  • e-Commerce plugins (open source)


  • Merchant services such as payment buttons
  • [UPDATE as of May 30th, 2014] Offers a Developer Platform where anyone can create apps on top of the API (and over 5,000 users have done so) WOW!
  • Robust and well documented API for integrating Bitcoin into your payment systems
  • Invoicing capabilities
  • Can do subscription services
  • No transaction fees until you convert $1M + Bitcoin to local currency, then 1%
  • Service works beautifully with Coinbase’s 600k + customers
  • [UPDATE as of May 30th, 2014] Coinbase has 1.3M users and over 31,000 merchants making them the largest bitcoin payment processor by number of clients. Again, WOW!
  • Buy Bitcoin directly (consumer service)
  • On-line wallet + Vault wallet (consumer service)
  • Issues refunds cleanly
  • Easy checkout interface
  • Won the Overstock.com deal to sell BTC on their site
  • [UPDATE] During the month of May 2014, Coinbase closed a deal to support DISH Network (a 27 Billion dollar company). This is the largest company in the world to support and accept BTC from it’s customers. This is a huge step in the right direction from this US Bitcoin company.

BitPay vs Coinbase

Net net, Coinbase has an eloquent and very scalable solution. With the addition of it’s consumer wallets, the new Vault product and it’s merchant services, it’s a stronger solution.

We have written about Bitpay and Coinbase. As a refresher, these are both Bitcoin payment processing companies. Up until a few days ago, I thought these were the only players in the space so I was pleasantly surprised when Ben told me about Coinkite and their unique approach to payment processing. Thanks Ben for this post idea.

Coinkite is a Bitcoin payment processor solution similar to aforementioned Bitpay and Coinbase.  But where those two enterprises leave off,  Coinkite jumps in and does so spectacularly. [I should add that from time to time Ben and I are asked to review coins and services related to the cryptocurrency world. This is not one of those times and we will let you know when this occurs.  Meanwhile this article is a 100% pure interested party article.]

It’s a Bitcoin Processor and…

At its core, Coinkite allows merchants to accept digital currencies for goods and services. This is the bread and butter of Bitpay and Coinbase. But Coinkite goes a step further. Instead of only processing Bitcoin, they also accept Litecoin and they are adding altcoin newcomer Blackcoin to the platform on June 1, 2014. We just wrote about Blackcoin and the exciting things their developers have going on.

There is a Debit Card?

In addition, Coinkite provides a crypto debit card and an online wallet service. Merchants and consumers can take advantage of the Coinkite debit card, a much anticipated feature in this burgeoning world.  The Coinkite debit card is your portable non-digital wallet. Users can accept Bitcoin from friends and family. Merchants can use their debit card as a fast and easy way to accept quick payment from their Bitcoin paying customers. Debit cards are going to allow the non-virtual money users to adopt our ways. Plus this feature is going to allow all the iPhone users (read Why Android is better for Bitcoin) the opportunity to spend their BTC away from their computers.

And an Exchange?

A very cool feature of this solution is the exchange component. I can go to my BTC accepting coffee shop and actually buy a Bitcoin directly using their POS terminal. How cool is that? No complicated biometrics needed like some Bitcoin ATMs– just a simple, straightforward transaction.

Summing it Up:  Coinkite

  • Acts as a cryptocurrency payment processor as well as on-line wallet service and debit card provider.
  • Accepts multiple cryptocurrencies such as Bitcoin, Litecoin, and Blackcoin (more can and will be added– Dogecoin or Kittehcoin?).
  • Costs $29 monthly to run POS with 0% transaction fee.  Even cheaper pricing tiers are available.
  • Is based in Canada with all servers residing in our neighbor to the North.
  • Features both exchange and retail modes. Buy Bitcoin directly at a Coinkite merchant locations.
  • Coming soon: inter-cryptocurrency exchange. Sell your Litecoin for Bitcoin and vice versa.


Darkcoin has been brewing for a while but just recently it has really soared in value. I’m investing in this coin because I like the anonymous feature called DarkSend.  DarkSend allows you to send coins which have been mixed with other users’ Darkcoins, thereby cloaking the receivership of the coins.  This was an idea we discussed in Altcoin Fever months ago but someone had the brains and the tech to actually put it into production.
Darkcoin also boasts some sophisticated hashing algorithms… http://www.darkcoin.io/

While Ben isn’t as impressed with the eleven hashing algorithms (blake, bmw, groestl, jh, keccak, skein, luffa, cubehash, shavite, simd, echo) used in the design, he is impressed with the implementation of the DarkSend protocol.  Ben thinks this is a huge missing piece to the Bitcoin puzzle.  As we know, Bitcoin transactions aren’t anonymous and activity can be fully tracked but a big change is on the horizon with this new concept. The ability to move value into this coin and have its ownership fully hidden from view is a desirable feature for a number of reasons.

We therefore predict a friendlier stance on Bitcoin and its clones by governments and regulators and predictably higher levels of resistance to this coin’s capabilities once politicians and regulators come to understand its impact.  We also predict that this feature will be replicated by other coins if the code is open sourced. (At the time of writing, we aren’t sure of that but we will update as information comes in from our dear readers, who are passionate about providing information. Thank you.)

Link to the Darkcoin whitepaper

Link to the Darksend PDF

Take a look at the value of this coin over the last seven days. It went from .00126700 to .00500000 with current volume of around 1500 BTC. I expect some retracement to occur. There is no way it can sustain this climb and folks are going to take their profits soon. Scouring the forums and twitter, I see that many are pointing to the final release of DarkSend as the reason for the strong moves. Still my conspiratorial engine is working in overdrive. This is the era we live in for altcoin investing. It seems there is never enough information available to the public while all the good investors have inside information on releases to make better educated investing choices. I invested in Darkcoin on a fluke and while I made a bit on that investment…well, if only I had known more!!



Blackcoin is part of a new direction in altcoins– PoW/PoS (Proof of Work/Proof of Stake) hybrids. This coin is not 100% pre-mined (readers pointed out my error) and coin holders earn about 1% per year based on those holdings.  One of our readers tipped us off to this coin. We did some research, latched onto this coin, and purchased some for our stash.


Code: BC

Type: Scrypt (not pre-mined- corrected)

Circulation: ~75 million (unconfirmed)

Transaction Time: 10 seconds

Value: $0.17 (click here for most accurate value)

Exchanges: Cryptsy, Mintpal (and many other second tier exchanges- click for a complete list)

Website: http://www.blackcoin.co/

Normally, we tend to dismiss the 2014 altcoins because they lack unique features, but Benjamin did his research and the more he read, the more he liked. The coin has had quite a ride this past week.

Ben also discovered the Blackcoin Pool. We like this concept. It’s new, it works, and and it’s different. Basically, you can mine any SHA or Scrypt coin you like and when you do, the pool pays out in BC (Blackcoin) only, NOT Bitcoin or Litecoin. You connect your miner and it will select the most profitable coin to mine for you, then convert your shares to BC and you are set.

So these things happen:

  1. Auto selects the most profitable coin for you so you don’t need to register with 18 mining pools (like I do).
  2. Creates constant sell pressure on the BC coin, so the Pump and Dump trend isn’t so much evident here. (You don’t have to wait for a payout and then sell your coins on the exchange you prefer.)
  3. Forces users into the coin and creates constant buy pressure if they want to get out.
  4. BONUS: BC will be listed as an option in CoinKite on June 1.
  5. BONUS: The development team is releasing real usable software to the community, fueled by robust rewards (bounties) for those developers.


  • No 51% attack
  • Eco-friendly since it is pre-mined
  • Blackcoin Card– portal wallet  (for Windows only currently)
  • Low inflation rate
  • Coinkite is accepting this altcoin June 1, 2014


  • 2014 Altcoin class and its relative newness has hurt lots of other coins. There’s not much of a history for this coin to prove it has staying power, so it’s a big gamble at this point.

 Good, Bad or Ugly?

Good. Benjamin and I are really bullish on this coin at the moment. It is bringing to market a unique way to distribute the coin and there are bounties for getting merchants on board. The Blackcoin pool is another unique method of instilling Blackcoin adoption in its miners and creating a constant buy (corrected) pressure.

The other day Ben noticed something odd.  Someone placed a 1.3 billion coin order for Kittehcoin at 5 satoshi. Why on earth would someone be buying 1 billion MEOW (we think it was for 63 BTC)?


Ben and I are investors in Kittehcoin, having more than 1 million between us, but I couldn’t fathom having 1/25th of the entire Meow circulation.

Who owns this address? Batman? K7b4ELrbcsiSiiyqoqVCN9TizpvrnRL9zQ

A couple of questions come to mind:

  • Is someone preparing for a 51% attack? Can you do that by simple OWNING the coin? MEOW isn’t POS; it’s POW!
  • Is someone trying to goad the system for a huge pump and dump scam?
  • Does someone know something about the future of this coin that we don’t?

Ben proposes this idea. He thinks that someone is stocking up prior to releasing an application or tool for the coin. It is VERY easy for the coin to go up in value logarithmically and the return on the (highly risky) investment would prove spectacular. In fact, it’s a proposal that he has been making to developers to some time now.

I reached out to one of the core creators of the coin for his input but he has yet to respond.  Hoping he can update us in the comments section if he has info.