The BitForex case

When Crypto Exchange Ranks analysed the stock BitForex stock exchange platform in a detailed blog post on 16 July, this caused a sensation.

All sorts of evidence had accumulated to accuse Bitcoin formula of Wash Trading

For example, the Singapore-based exchange has risen from 70th to 12th place on CoinMarketCap’s list of the world’s highest-volume exchanges in just a few weeks. With a trading volume of 227 million US dollars, Bitcoin formula is on a par with renowned exchanges such as Kraken and Kucoin: https://www.onlinebetrug.net/en/bitcoin-formula/

But let’s take a look at the other inconsistencies at BitForex. The number of BitForex Twitter followers is almost 2,000, while Telegram has 73,000. This big difference suggests that Bitforex worked with bots at Telegram. BitForex also claims to be licensed in the EU on Twitter. However, there is no evidence to support this thesis. On the project’s website, the company states that it is registered in the Seychelles and only works with independent teams in certain countries.

BitForex also made bold allegations that they had 1.8 million users, bringing 15,000 more to the platform every day.

However, Crypto Exchange Ranks said:

“We see that the number of UU [Unique Users] of BitForex is 29,000. In return, Kucoin has 889,000 individual users. Kraken has 666,000 UU. Kucoin’s number of UUs is 30 times higher than BitForex’s, the number of UUs of Kraken is 23 times higher.”

It takes a certain amount of caution and skepticism before you entrust yourself to an Exchange. A possible way for ranking platforms to prevent regulation and at the same time protect investors from fraudsters would be to include as much information as possible in the ranking. In this way, the grievances could become obvious and speak for themselves.

The US authority CFTC has already addressed the problem of price manipulation – the investigations are ongoing.

What happens when all Bitcoin are mined?

“According to the agreement, the first transaction in a block is a special transaction that creates a new coin that becomes the property of the block producer. This creates an incentive for nodes to support the network. This creates an opportunity to distribute and circulate coins for the first time as there is no central authority to do so.

The continuous addition of a constant amount of new coins is analogous to gold mining, where an effort is made to bring gold into circulation. In our case, the effort is the time and electricity consumed by the computing power.

Satoshi writes in the Bitcoin loophole White Paper:

The incentive can also be financed by Bitcoin loophole transaction fees, says onlinebetrug. If the output value of a transaction is less than its input value, the difference is a transaction fee added to the incentive value of the block containing the transaction. Once a pre-determined number of coins have entered circulation, the incentive can swing completely to transaction fees and be completely exempt from inflation”.

By this Nakamoto means that the miners will continue to receive a reward for securing the network even if the Coinbase transaction ceases. As time goes on and Coinbase decreases, transaction fees become more and more important.

The End Game

So Bitcoin’s “End Game” is that the Coinbase is completely eliminated. The reward for the miners then consists exclusively of the transaction costs. It is impossible to determine these transaction fees today. However, we can make some assumptions:

Since the space in a block is finite, broadcasters have to pay a fee for their transactions. The amount of this fee depends on how many other transactions are waiting for confirmation from the miners. If you are in a hurry with your transaction, you can pay a higher transaction fee. This gives the miner a greater incentive. This creates an auction market in which the broadcasters bet for the place in the block chain.

If too few transactions take place, mining may become unprofitable for the miners. In this case, they would probably switch off their hardware or use a different crypto currency. So there is a balance between the hash rate on the network, Bitcoin’s rate and the number of transactions on the network.