What a year it has been for Bitcoin. We saw a meteoric rise in price and an influx of new users. To say the least, it has been an exciting year for everyone involved.
The rapid growth of Bitcoin has also presented some interesting challenges. Up until recently, bitcoin transactions were fast, cheap, and reliable. Bitcoin blocks had sufficient capacity to confirm the majority of transactions going through the network. Now we're facing a situation where the number of transactions far exceeds capacity that Bitcoin can handle. The result is slow, expensive, and unreliable transactions. At the time of writing, a normal transaction would cost about $25 USD in fees to have a good chance of being confirmed quickly.
This is certainly problematic for BitcoinGet's promise of fast payouts. Under current conditions, the amount in fees would be higher than most payout amounts themselves. The volatility in network traffic also makes it hard to estimate when transactions will get confirmed. As a result, we have decided to delay payouts until the network traffic tapers off to a point where it becomes feasible to transact again.
The good news is that we are already working on a long-term solution to ensure that our users are paid out in a timely manner. The solution will involve providing an option to get paid in alternative cryptocurrencies, such as Ethereum and Litecoin. We will have more details for you once we launch this feature, which will be within the next two weeks. We appreciate your patience, and rest assured that we are doing everything we can to restore fast, daily payouts.
As 2016 comes to an end, we want to take a moment to reflect on an incredible year for Bitcoin and BitcoinGet.
Bitcoin's price rallied in a big way as it has roughly doubled since the beginning of this year. The price sits at $860 at the time of writing—the highest it has been in nearly three years. Bitcoin vastly outperformed every other currency in 2016, and there is good reason for it. Increasing restrictions on sovereign currencies in countries like China, and the currency crises witnessed in India and Venezuela have played major roles in driving demand for bitcoin. Many have come to realize the positive aspects of bitcoin as a decentralized and safe digital asset, immune to national monetary policies.
With the increased demand for bitcoin came more people looking ways to earn bitcoin, and we were thrilled that BitcoinGet was ready to help. We saw our daily active users grow by about 50% in 2016—much of that growth coming from users in emerging countries. Our daily payouts continued to roll out reliably as our users can attest to. Meanwhile, we introduced new, higher-paying tasks available to anyone from all over the world. CoinRebates also saw a successful first year, processing almost 3000 rebates since its launch in July 2015. We have big plans for BitcoinGet and CoinRebates in 2017 and hope that you will be part of our growth in the new year.
As a holiday gift, we are giving away free bits to our users! Before the new year, send us a PM/DM on Facebook or Twitter mentioning this blog post, along with your bitcoin address registered on BitcoinGet or CoinRebates, and we will credit your account with 200 bits.
Last week, the bitcoin network was the target of a spam attack causing massive transaction delays. The attacker flooded the network with transactions that were small in value but large in data size, quickly filling up blocks and creating a backlog of unconfirmed transactions. At the peak, more than 80,000 transactions were waiting to be mined into a block.
As our users had witnessed, one of our payments was unconfirmed for five days. Similar to the transactions used in the spam attack, our payments are usually sent to multiple addresses at once and require relatively large block allocations. We didn't realize an attack was happening at the time of issuing payment and attached the default miner's fee of 100 bits. As a result, our transaction was buried with all the spam transactions. In the past, we were able to get away with paying the tiny fee and still have transactions confirmed quickly since blocks were rarely filled. As bitcoin adoption increases and the risk of more spam attacks loom, the importance of including a reasonable fee is highlighted. We attached a higher fee with our most recent payment and it was included in the next block.
We are excited to announce the launch of CoinRebates, a new service that allows you to earn "cash back" in bitcoins from your favorite online stores. Choose from over 300 stores and easily receive anywhere from 1% to 20% of your purchase as a bitcoin rebate. If there is a store that you cannot find (other than Amazon), please let us know and we'll do our best to get it added.
For a limited time, BitcoinGet users earn an additional 2000 bits for completing their first purchase! Once you have received the rebate for your purchase, simply contact us or message us on Facebook with your bitcoin address and we'll get the bits credited to you.
The team at BitcoinGet is working hard to make it easy for you to earn bitcoins. Over the past few months, we have been working on a new service that will let you to earn cash back for your online purchases in the form of bitcoin payments. We have partnered with over 300 online retailers, many of which you may already be doing some of your shopping with, to offer you anywhere from 1% to 20% of your purchase back in bitcoins.
Currently, we are looking for some people interested in beta testing with us. During the beta period, anyone who completes a purchase through our service will receive an a bonus of 5000 bits. To receive an invite, just send us a message on Facebook.
Just a quick update. We've added a wide variety of offers, so definitely check out the offers section if you haven't done so recently. There should be something for everyone. For those of you who enjoy watching videos, you'll be delighted to find some videos in there as well.
We want to take this time to thank our loyal users. As always, feel free to stop by our Facebook page if you have any feedback or if you just want to say hi!
Starting about a year ago and through the rest of 2013, bitcoin was one of the most buzzed about topics on the internet. It was during this time that we saw the price of BTC surge over US$1000. Since then, bitcoin seemed to have fallen out of the public eye, and the price has fallen as well. However, while out of the spotlight, bitcoin has made significant progress towards mainstream acceptance and may be poised for another breakthrough.
One of the major barriers to bitcoin adoption is the lack of acceptance among merchants. Over the past several months, we have seen several big companies including Dell, Expedia and Newegg, start accepting the digital currency. Last week, Paypal announced a partnership with Coinbase that will allow merchants to immediately start accepting bitcoin through its subsidiary Braintree. Support from these companies is paramount in lending legitimacy to bitcoin.
The largely positive reactions from the US government have also provided bitcoin with a safer image. The government's decision to auction off the bitcoins it seized from Silk Road has been viewed as a vote of confidence in bitcoin. The Federal Reserve has recognized bitcoin's potential as a boon for global commerce. Last week, TeraExchange received approval to launch its bitcoin derivatives platform, making it the first US-regulated financial product tied to bitcoin.
While these recent developments are not particularly exciting, they are important for laying the groundwork for widespread adoption and a potentially sustainable increase in BTC price.
We saw Bitcoin prices skyrocket a few months ago, followed by a bit of a tumble, yet prices remain much higher than they were prior to the initial jump. Many may be wondering what they should do with their stash. Should you hold? Should you sell?
Our feeling is kind of neither. If everyone holds onto their bitcoins, waiting for a good time to cash in, that could be very bad for the currency. It could stagnate and then eventually be followed by a sudden crash as it becomes essentially useless. We'd like to see Bitcoin become a legitimate currency, and the only way to do that is to SPEND IT.
We aren't saying you should spend your whole stash in one go, but spend it when you can. Companies need to be shown that there's a significant number of people who want to buy their goods and services using Bitcoin. Big retailers can see that prices are still quite volatile, and this may discourage them from wanting to accept Bitcoin at this point in time, so it's up to holders of the currency to show them it's worth the risk. Plus, using Bitcoin for commerce can help keep the flow steady and may stabilize prices, reducing the risk of accepting the currency in retailers' eyes.
The good news on this front is major e-retailer Overstock.com will start accepting Bitcoin later this year. Support this move and support Bitcoin! This is a great opportunity to show other major retailers that Bitcoin is for real. If there's something you need to buy, buy it on Overstock.com using bitcoins and then replenish your supply afterward. This way, you lose very little and do great medium-to-long-term good for the currency and its holders. This may seem like a bit of trouble, but ultimately it will be good for the market price of your stash.
Happy Bitcoin Black Friday! We're happy to announce that, starting with our next payment, the minimum amount needed for payout will be lowered from 100 µBTC to 60 µBTC. Hopefully this will make it easier for our new users to feel the excitement of earning their first bitcoins.
For all of our users, consider supporting our Bitcoin merchants while getting some great deals on Bitcoin Black Friday. For more information about this awesome event, click here.
You've probably heard about the rising price of Bitcoin and wondered "What's going on?" The simple answer is that there's been a spike in interest, specifically from Chinese investors. China now accounts for about a third of daily Bitcoin transactions and hosts the biggest Bitcoin exchange in the world.
So is it a bubble? There's no way to know, but if the intent of the big new investors is to speculate, i.e., make money off short-term fluctuations, which certainly could be the case, then it's possible we'll see Bitcoin come crashing back down again at any sign of a price falter be it a day or a year from now. The only way we'll see Bitcoin stabilize long term is if a larger proportion of investors hold it not with intent to speculate, but rather with intent to use it as a functional currency.
There have been some good signs of late on this front, from the Bitcoin ATM in Vancouver to China's search engine giant Baidu accepting Bitcoin for its firewall service. The importance of this cannot be understated: China has a massive internet market, and if we see other major Chinese internet companies mimic Baidu's move to accept Bitcoin, it may spur just the kind of heavy adoption Bitcoin advocates have been hoping for since its inception, which could in turn result in greater adoption around the world. Whether this will happen remains to be seen, but as of right now, we at BitcoinGet are feeling cautiously optimistic about the current price rise. There are more fluctuations on the horizon, but if adopters can manage to weather the speculation storm, the future is bright.