Bitcoin Magazine: Bitcoin News, Articles, Charts, and Guides
Betting On Bitcoin? A Look At Some Large Overstock Option ...
Overstock.com CEO Sees Bitcoin Sales Rising More Than ...
Overstock’s Founder Bets on Blockchain, Not Bedsheets - WSJ
Still Early Days Boys -- News Article on Overstock.com/Bitcoin Shows How Skeptical People Are
Yahoo!Finance published an article on how Overstock was the first major retailer to accept Bitcoin and other crypto currencies as a form of payment. Below are the top comments from users. The quotes show how the public is still extremely skeptical about crypto currencies and don't appreciate how blockchain tech brings to the table. Still early days boys so load up! https://finance.yahoo.com/news/overstock-deals-bitcoins-wild-price-swings-145542616.html Steve: Bitcoin is only worth what someone else is willing to pay. Intrinsic value =$0.00. Bitcoins are this decade's Beanie Babies. WiseGuy: Bitcoin and other so-called "crypto" currencies are good for money launderers, tax evaders, criminal cartels etc. Enjoy your stash until the whole thing explodes. oliver: What is a Bitcoin investor ? Bitcoin is pure Speculation and is used widely to transfer money out where are restrictions see China, Russia, Venezuela, India where 80% are traded. The rest are speculants, not investors, who hopped on this train. No serious investor sees Bitcoin as an investment. MJS: Bad Idea. Like saying i'll accept tulips for payment. UBanIdiot: Bitcoin is a fraud underpinned by fairy dust and greedy dreams. Someday all will know it as -itcoin, preceded by Sh-. GaryD: Currencies were invented as way for man to trade goods using a predictable measure of value. If you don't know what your currency will be worth in terms of goods and services from day to day, that currency is useless and will collapse. Bitcoin will collapse, it's just a question of when. JC: Caribbean currencies of third world dictatorships don't fluctuate as wildly as bitcoin. Its why it will never be mainstream or widely accepted as a primary financial tool except for speculators in America.
You've probably been hearing a lot about Bitcoin recently and are wondering what's the big deal? Most of your questions should be answered by the resources below but if you have additional questions feel free to ask them in the comments. It all started with the release of the release of Satoshi Nakamoto's whitepaper however that will probably go over the head of most readers so we recommend the following videos for a good starting point for understanding how bitcoin works and a little about its long term potential:
Limited Supply - There will only ever be 21,000,000 bitcoins created and they are issued in a predictable fashion, you can view the inflation schedule here. Once they are all issued Bitcoin will be truly deflationary. The halving countdown can be found here.
Open source - Bitcoin code is fully auditable. You can read the source code yourself here.
Accountable - The public ledger is transparent, all transactions are seen by everyone.
Decentralized - Bitcoin is globally distributed across thousands of nodes with no single point of failure and as such can't be shut down similar to how Bittorrent works. You can even run a node on a Raspberry Pi.
Censorship resistant - No one can prevent you from interacting with the bitcoin network and no one can censor, alter or block transactions that they disagree with, see Operation Chokepoint.
Push system - There are no chargebacks in bitcoin because only the person who owns the address where the bitcoins reside has the authority to move them.
Low fee scaling - On chain transaction fees depend on network demand and how much priority you wish to assign to the transaction. Most wallets calculate on chain fees automatically but you can view current fees here and mempool activity here. On chain fees may rise occasionally due to network demand, however instant micropayments that do not require confirmations are happening via the Lightning Network, a second layer scaling solution currently rolling out on the Bitcoin mainnet.
Borderless - No country can stop it from going in/out, even in areas currently unserved by traditional banking as the ledger is globally distributed.
Portable - Bitcoins are digital so they are easier to move than cash or gold. They can even be transported by simply memorizing a string of words for wallet recovery (while cool this method is generally not recommended due to potential for insecure key generation by inexperienced users. Hardware wallets are the preferred method for new users due to ease of use and additional security).
Bitcoin.org and BuyBitcoinWorldwide.com are helpful sites for beginners. You can buy or sell any amount of bitcoin (even just a few dollars worth) and there are several easy methods to purchase bitcoin with cash, credit card or bank transfer. Some of the more popular resources are below, also check out the bitcoinity exchange resources for a larger list of options for purchases.
Here is a listing of local ATMs. If you would like your paycheck automatically converted to bitcoin use Bitwage. Note: Bitcoins are valued at whatever market price people are willing to pay for them in balancing act of supply vs demand. Unlike traditional markets, bitcoin markets operate 24 hours per day, 365 days per year. Preev is a useful site that that shows how much various denominations of bitcoin are worth in different currencies. Alternatively you can just Google "1 bitcoin in (your local currency)".
Securing your bitcoins
With bitcoin you can "Be your own bank" and personally secure your bitcoins OR you can use third party companies aka "Bitcoin banks" which will hold the bitcoins for you.
If you prefer to "Be your own bank" and have direct control over your coins without having to use a trusted third party, then you will need to create your own wallet and keep it secure. If you want easy and secure storage without having to learn computer security best practices, then a hardware wallet such as the Trezor, Ledger or ColdCard is recommended. Alternatively there are many software wallet options to choose from here depending on your use case.
If you prefer to let third party "Bitcoin banks" manage your coins, try Gemini but be aware you may not be in control of your private keys in which case you would have to ask permission to access your funds and be exposed to third party risk.
Note: For increased security, use Two Factor Authentication (2FA) everywhere it is offered, including email! 2FA requires a second confirmation code to access your account making it much harder for thieves to gain access. Google Authenticator and Authy are the two most popular 2FA services, download links are below. Make sure you create backups of your 2FA codes.
As mentioned above, Bitcoin is decentralized, which by definition means there is no official website or Twitter handle or spokesperson or CEO. However, all money attracts thieves. This combination unfortunately results in scammers running official sounding names or pretending to be an authority on YouTube or social media. Many scammers throughout the years have claimed to be the inventor of Bitcoin. Websites like bitcoin(dot)com and the btc subreddit are active scams. Almost all altcoins (shitcoins) are marketed heavily with big promises but are really just designed to separate you from your bitcoin. So be careful: any resource, including all linked in this document, may in the future turn evil. Don't trust, verify. Also as they say in our community "Not your keys, not your coins".
Where can I spend bitcoins?
Check out spendabit or bitcoin directory for millions of merchant options. Also you can spend bitcoin anywhere visa is accepted with bitcoin debit cards such as the CashApp card. Some other useful site are listed below.
Mining bitcoins can be a fun learning experience, but be aware that you will most likely operate at a loss. Newcomers are often advised to stay away from mining unless they are only interested in it as a hobby similar to folding at home. If you want to learn more about mining you can read more here. Still have mining questions? The crew at /BitcoinMining would be happy to help you out. If you want to contribute to the bitcoin network by hosting the blockchain and propagating transactions you can run a full node using this setup guide. If you would prefer to keep it simple there are several good options. You can view the global node distribution here.
Just like any other form of money, you can also earn bitcoins by being paid to do a job.
You can also earn bitcoins by participating as a market maker on JoinMarket by allowing users to perform CoinJoin transactions with your bitcoins for a small fee (requires you to already have some bitcoins.
The following is a short list of ongoing projects that might be worth taking a look at if you are interested in current development in the bitcoin space.
One Bitcoin is quite large (hundreds of £/$/€) so people often deal in smaller units. The most common subunits are listed below:
one bitcoin is equal to 100 million satoshis
1,000 per bitcoin
used as default unit in recent Electrum wallet releases
1,000,000 per bitcoin
colloquial "slang" term for microbitcoin (μBTC)
100,000,000 per bitcoin
smallest unit in bitcoin, named after the inventor
For example, assuming an arbitrary exchange rate of $10000 for one Bitcoin, a $10 meal would equal:
For more information check out the Bitcoin units wiki. Still have questions? Feel free to ask in the comments below or stick around for our weekly Mentor Monday thread. If you decide to post a question in /Bitcoin, please use the search bar to see if it has been answered before, and remember to follow the community rules outlined on the sidebar to receive a better response. The mods are busy helping manage our community so please do not message them unless you notice problems with the functionality of the subreddit. Note: This is a community created FAQ. If you notice anything missing from the FAQ or that requires clarification you can edit it here and it will be included in the next revision pending approval. Welcome to the Bitcoin community and the new decentralized economy!
It’s pretty clear why “Ravencoin is Soaring” in case you missed it...
Aside from RVN devs killing it like a boss...It wasn’t until recently that Patrick Byrne publicly stated that RVN would be used by TZero (which those who have followed the project already knew to be true) but in the OSTK Earnings Call and in recent Interviews he clearly calls out Ravencoin to be utilized by many of the Medici Ventures companies including TZero. Overstock March 18 Earnings Call: https://www.google.com/amp/s/seekingalpha.com/amp/article/4249577-overstock-com-inc-ostk-ceo-patrick-byrne-q4-2018-results-earnings-call-transcript Excerpt of Ravencoin- Patrick Byrne Thank you. Ravencoin is an open-source project towards which Medici Ventures has been especially supportive by contributing labor and mining. The mining of this coin has spread faster than any coin in history. It's 14 months old, the community is very active. We've been supportive of this open-source movement. And although we only own a single-digit percentage of the coins, -- of Ravencoin, it's not just the value of the coins that we find attractive, it is the elegance and robustness of the Raven protocol for digital assets going forward. Next, Raven has a role to play in a number of these Medici companies. It's been designed and developed as the perfect protocol for digital assets, has significant advantages over both Bitcoin and Ethereum. I think, you'll be hearing very significant news about Ravencoin shortly, perhaps as early as this week. It plays a role in the number of the companies in which we're involved, like you're seeing in front of you here. If you know the business model of consensus, one could say that Medici Ventures is like has a similar business model but where consensus is purist about using ether, we are not purist about using Ravencoin but there are four or five companies in there, at least, that look like they will be making use of Ravencoin. And Interview where he talks about Ravencoin and TZero; “Patrick Byrne Discusses Security Token Future, TZERO Updates, Ravencoin, More” https://thetokenist.io/patrick-byrne-discusses-security-token-future-tzero-updates-ravencoin-more/ Excerpt from article: “We have twenty different blockchain companies within Medici Ventures — what we are doing, where possible, is leveraging and integrating Ravencoin into these different projects. So for example, we’re invested in an Israeli company that’s doing a blockchain supply chain system for wineries. Ravencoin is the preferred solution for that company. We’re in the same process now with tZERO. tZERO is blockchain agnostic, and Ravencoin won’t be the only chain underlying tZERO, but people will be able to issue security tokens on Ravencoin. You may see it emerge in a number of our projects, like ConsenSys did with Ethereum.”
Nasdaq planning to use Ravencoin to launch a security token platform?
So we know Nasdaq is planning on entering the tokenized securities market, but in case you missed it: https://theblockcrypto.com/2018/10/12/nasdaq-is-looking-at-gatecrashing-a-red-hot-industry-with-a-platform-to-issue-tokenized-securities/ In the article there's a relevant quote: "Nasdaq is speaking with a number of firms as part of its efforts, including blockchain startup Symbiont". Here's another article: https://www.livebitcoinnews.com/nasdaq-reportedly-considers-creating-platform-for-cryptocurrency-security-tokens/ "Reports indicate that Nasdaq is pushing through with these plans, holding high-level talks with Symbiont – a blockchain startup focusing on institutional blockchain solutions. According to the inside sources, the proposed Nasdaq platform will both issue and trade cryptocurrency security tokens." What does Symbiont have to do with Ravencoin? Well, follow the trail...here's a news release from Back in mid-2017: https://globenewswire.com/news-release/2017/07/19/1054397/0/en/Medici-Ventures-Announces-Strategic-Investment-in-Symbiont.html "Medici Ventures and Symbiont today announced the completion of a strategic investment in Symbiont by Medici Ventures, a major investor in blockchain technology. As part of the new relationship, the two companies will collaborate on strategic projects involving both Medici Ventures and its parent company, Overstock.com Common Shares (NASDAQ:OSTK) / Series A Preferred (Medici Ventures’ t0 platform : OSTKP) / Series B Preferred (OTCQX:OSTBP)." Now we already know Patrick Byrne/Overstock.com is a big fan of Ravencoin, and has helped fund development: https://www.youtube.com/watch?v=lEaqCdind2Y "Ravencoin, I think it's Bitcoin 3.0"... https://youtu.be/wLUshd-b6Lc?t=75 "Well I'm not really interested in cryptocurrencies per se. Although in general, I guess there's nothing wrong with me saying there is an open-source project of which I'm really letting something big out of the bag here. I'll tell you. But there's an open-source project called Ravencoin, which Overstock has put millions of dollars into teams. We have people contributing to this open-source project. We think this coin actually has quite a future. It's about — it's bitcoin, but a thousand times more energy efficient. And there's other real interesting virtues to it — so Ravencoin. But other than that, I stay out of the cryptocurrency game. I'm building the — we're focusing on applications of this technology and not just betting on coins themselves." We also know they unveiled tZero at the Nasdaq headquarters back in late 2015: https://www.coindesk.com/overstock-unveils-blockchain-trading-platform-to/ Byrne has also talked about tZero partnering with Symbiont "at some point", check page 12 of their earnings call transcript back in March of this year: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NjkwNjMwfENoaWxkSUQ9NDAxMjM0fFR5cGU9MQ==&t=1 "There's all kinds of -- tZero and Symbiont are wonderful partners at some point. So this ecosystem may seem random, but there's a real underlying structure to it." and page 14 with Byrne's comments in Ravencoin: "Next, just so I never mention or could be accused of not mentioning it, I'm going to mention Ravencoin, which is -- put this in the category of Texas Gulf Sulphur. I have now officially publicly mentioned Ravencoin. Don't know what it's worth, I probably should disclose we have over 60 million of these; it's currently trading at $0.03 a piece, so a couple million bucks, nothing to get excited about. Who knows? But it's not our coin it's an open source project, of which we became quite enamored and we threw in several millions of dollars of developers to help it along and such, it's a very interesting project, and that's enough." So are Nasdaq/Symbiont/Medici Ventures/Overstock/tZero/Ravencoin planning something huge behind the scenes? I highly doubt Nasdaq will just sit back and let ICE/New York Stock Exchange have all the fun with Bakkt.
Will there be another 2017-like crypto pump ever gonna happen again? My rant on the future of crypto, ICOs, and 2018
Background I've been getting several messages lately inquiring about my old post from which I borrowed $30k to buy ETH back in May: https://np.reddit.com/ethtradecomments/68oshw/just_borrowed_30k_to_buy_eth_stay_tuned_for_the/ I started typing a long response to someone who asked me whether he thinks there's gonna be another opportunity like ETH in the future (from which I made over 100X returns, buying most between $10 and $100, and cashing out 90% at $1000-$1200)...and I realized I typed so much info that it could be worthwhile to share it with the community. Before I start my rant though... about the loan I had taken out at the time: don't ever invest in more than you're willing to lose. Opportunities will always come, in one way or another. Today is crypto, yesterday was flipping houses, before that was penny and internet stocks. But from a crypto standpoint, opportunities in this field are gonna be more rare. Bitcoin, ETH, and other large caps coins are probably done for for a while -- they'll go up in the long run but I don't think we'll see another new parabolic rise of 1000+% gains for a long while. People switched to ICOs after seeing some of the 3-10X gains, but the wild west of unregulated ICOs is starting to lose steam, mostly due to regulatory barriers. Identifying Fundamental Disruptions I invested in ETH first at $10 and buying all the way up to $100 (the $30k loan got me ETH at $80 each), and while others were selling for 2x flips, I was able to hold it all the way to $1000+. I think this is important to mention in the context of this post because of the necessity to realize the long-term disruption that lays ahead. At the time, I realized that ETH was about to give altcoins/tokens the ability to be speculated on due to their direct utility association in a tech startup's main business mechanism. I firmly believed that ETH should be worth at nearly as much as, if not at least, BTC in market cap because of this. Prior to ETH, it was just Bitcoins and then all clones/shitcoins. ETH gave rise to ICOs and speculative coins that could be assigned potential business value to it, thereby making crypto markets what it is today. Frankly, the entire crypto market owes ETH, and respectfully BTC of course, for what is today. Note though: I rolled the dice big for ETH, but even my $30k investment at the time was only about a quarter of my savings at the time. So again, don't invest in more than you are willing to lose or sleep soundly at night. The Future: Increasing Regulation Anyway, turning to the future. Here's what I think is going to happen. SEC is going shutdown alot of ICOs; they are really cracking down on ICOs claiming to be utilities, even if disguised through airdrops or SAFTs. In fact, just today's WSJ news said SEC issued subpoenas to multiple ICOs and have taken interest in SAFTs for so-called utility tokens. Just like the dot-com bubble, 90%+ of these previous ICOs are gonna tank and fail. We're gonna see a massive correction probably later in 2018, when roadmaps with major expected milestones start missing their deadlines, and a domino effect happens when SEC starts really flexing their muscle and forcing exchanges to go into delisting mode (we already are starting to see this with Bittrex). But a Hidden Opportunity So about looking for another crypto pump opportunity.... When the culling happens, the survivors are gonna be as follows. Look for US-based ICOs that have been SEC-compliant from the outset, or at least making a strong effort to do so. Having a legal advisor or team member will be big this year. Don't be afraid of lockups or holding periods if it's for the purpose of being SEC compliant (signs are mentions of Reg CF, Reg D, Reg S, and Reg A+ offerings... you could google these keywords with their company name to see if they have a filing record in SEC's database). See if these ICOs and team leaders had a successful and profitable business in the past, or at least spun out of a profitable company. Also, there's way too much bullshit with partnerships, many which are fake or with useless no/name companies. Next, a lot of these open ecosystem platforms rely on partner companies to attract customers -- but why would companies join when there are no customers, and vice versa. It's all bullshit and often pump and dump shilling. What you want is a closed ecosystem (think Apple iOS) to help consumers navigate the business model. An open ecosystem where customers have to attach their own crypto wallet, blah blah blah, yay decentralization, yeah... well that's all never gonna see mass adoption (think Linux... some hardcore advocates exist, but what layperson actually wants to operate command lines or deep menus all day long and accidentally break their system with one wrong syntax). Look how successful Coinbase has become by simplifying crap. Too much shit is focused on the crypto side and it's like a foreign language to mainstream customers who won't touch it with a ten foot pole. Look for ICOs that are consumer focused rather just have solely an ICO page. It's particularly appealing if they have a self-directing strategy in the form of a tangible product they can sell to generate data or transactions in their ecosystem, which would naturally attract additional customers/companies into their platform. Examples:
https://www.epigencare.com/ico - Selling a 23andMe-like skincare test to generate skincare profiles, then seeing how product ingredients affect the profiles. Then skincare companies can target their products to customer profiles through their recommendation engine, and present them as personalized solutions in the customer's test report.
https://holo.host/ico/ - Creating a new blockchain 3.0 that allows you store full websites and databases directly on the blockchain (instead of just transaction data), in order to allow decentralized hosting via peer-to-peer internet. They're selling small server boxes or software so you get paid crypto for cloud hosting (and apps and sites needing hosting pay the hosts).
These companies with revolutionary ideas, who are making an effort to be legally compliant and also have a tangible product, are the ones that are gonna survive the mass culling of alts and ICOs later this year. If we ever get our first ICO unicorn (from revenue, not pumped market cap of their token), then it will bring truly mainstream recognition of the crypto markets that will give the traditional stock markets a serious run for their money. I'm not talking about less than 1% of the $70 trillion stock market value of the world -- I'm talking like double digit levels of the entire global stock market. And I bet you it will happen. This is the sorting-out phase of the future -- a shift from old world Wall Street-type money to Silicon Valley. Crypto allows direct investments into technology startups, and tokenization of the actual business transaction mechanism cuts down all the traditional valuation crap dealing with public relations and whatever meta valuation factors. If the business is making sales, then the token is worth something, and that's all that matters. If the business is losing sales, then the token is worth less. Straightforward. When All The Puzzle Pieces Fit Together Two more things to note. First: If ETH successfully pulls off scaling through sharding/raiden and drastically reduces gas fees through proof of stake, then it will be fit for enterprise use. ETH's stress tested blockchain with upgrades will facilitate real world adoption (Most of these ERC20 platforms are currently not fit for real adoption due to high gas fees and low TPS). Otherwise, consider hedging into alternative smart contract-, high volume-, low cost-capable platforms with implementation documentation (e.g., Stellar) to potentially get some good gains. Second: A lot of these current crypto exchanges are not registered ATS's (alternative trading systems) that are permitted to trade securities by the SEC, so they can only trade utilities. But SEC is cracking down on these fake-utilities and are deeming them all securities... that's gonna leave these exchanges in the dust. So we're seeing big companies entering this space, Overstock building tZero, Circle/Goldman Sachs acquiring Polo, Cobinhood, etc. They are prepping for ATS compliance, and when legal tokenized securities become tradeable, they will be traded on these platforms... not hot messes like Binance. And they will be user friendly -- gateways for mainstream to invest directly in the tokenized assets of a company's core business model. It's all culminating to the survival of legit companies, mainstream adoption, and these are your clues. Enjoy trading shitcoins while they last, but don't get caught with your pants down bagholding them. Rant over. TL;DR Look for coins based on fundamentals and legal compliance so they will survive the massive culling in late 2018 when roadmaps don't meet milestone deadlines Edit: Grammar, and Readability
Hey everyone, I was told to post this here instead of /bitcoin because the community is more open to just Bitcoin, and transactions with crypto can be difficult with high fees. As we eagerly await the next bull run, I am curious to know what you plan on using your crypto for. Are you a hodler and plan to keep it that way, or are you someone that wants to eventually use crypto to purchase everything? My coffee business will accept cryptocurrency, assuming I get enough backers for a successful Kickstarter, but I am curious to know what you all use your crypto on now. What types of trusted sites are out there now that accept crypto? I only know of major websites that accept crypto (Overstock for example) but I want a list of others that are more specialized like mine. I see more articles coming out now of being able to buy things with crypto (real estate, vehicles, etc.), but it is hard to determine which are legit and which are just fake news. So, whats out there? https://www.kickstarter.com/projects/blackinkcoffee/black-ink-coffee-company
Some thoughts about the possible Bitcoin Segwit, Bilderberg/AXA/BockStream/Core, In-Q-Tel, CIA connection.
I noticed a lot of people mentioning Bilderberg's connection to AXA and BlockStream, recently with Jeff Berwick's two videos going viral as seen here and here. It has been something I have been trying to warn people of for a while, and if you don't know what Bilderberg is you really need to watch this excellent documentary about it. The current chairman of the Bilderberg steering committee Henri de Castries was also CEO of AXA until he announced retirement in 2016. AXA is one of the main funders of BlockStream and Bitcoin Core development. As one of the biggest insurance companies in the world AXA also benefits from the legacy too-big-to-fail bailout system, and Bitcoin is a threat to their way of life. AXA are also funding technocratic totalitarian smart cities, where they team up with governments for full control. It is not surprising that they would want to get their fingers into Bitcoin. Now lets dig a little deeper. About 6 or 7 years ago, right before Satoshi disappeared, Gavin Andresen was invited to speak at the CIA. He got an invitation directly from In-Q-Tel the CIA's venture capitalist funding arm. Gavin mentions how In-Q-Tel reached directly out to him in this video @ 13sec mark (I am not endorsing the rest of the content of this video). In-Q-Tel basically helps fund and invest in companies that help equip the CIA with the latest information technology and capabilities. You can look on In-Q-Tel's website and see that they publicly invest in many innovative tech companies. Some of these are public, there are no crypto companies listed, but they also at times make private investments as well. Makes you wonder because they were interested enough to phone up Gavin Andresen personally and invite him for a speech, so in my opinion its highly likely they are investing somewhere in this space, and for what ends? We don't know. We do know that certain companies have captured the Core developers, and blocked common sense progress on Bitcoin, and that should be alarming. Further evidence that shows some type of coordination between these groups comes from Peter Thiel who has recently advocated against Bitcoin as a cash system, and instead is pushing it as a settlement system, the same narrative of BlockStream Core. It may also be interesting to know that Peter Thiel has also attended Bilderberg regularly and defends Bilderberg's secretive nature. Thiel also is partnering with In-Q-Tel and the CIA with his company Palantir, which spies on everybody. It is also interesting that at least one other VC funding firm Khosla Ventures invested in BlockStream, and also in the past has helped fund other companies that are working with In-Q-Tel. This was just from some quick research, only scratching the surface. I find these connections somewhat alarming, considering all of the community attacks I have seen going on. Its possible that some groups are trying to strangle and control and co-opt Bitcoin. It would make sense that they might try to force everyone off of the old model by jacking up fees, so users are herded onto something new in a 2nd layer solution that is more easily controlled. I believe segwit allows them to create an open door for trying to encourage Bitcoiners to move into their system, and the high fees is what they hope pushes users through that door. This is probably why we see so many attempts to move away from Satoshi's vision and the whitepaper. Its why we see such a lack of common sense to simply raise the blocksize capacity. Its why we see such draconian censorship, dirty tricks, lies, and diabolical political tactics. Ultimately I don't want to draw any final conclusions, but I feel these facts should be brought to the table for people to decide for themselves.
As we eagerly await the next bull run, I am curious to know what you plan on using your Bitcoins for. Are you a hodler and plan to keep it that way, or are you someone that wants to eventually use Bitcoin to purchase everything? My coffee business will accept cryptocurrency, assuming I get enough backers for a successful Kickstarter, but I am curious to know what you all use your Bitcoin(s) on now. What types of trusted sites are out there now that accept crypto? I only know of major websites that accept crypto (Overstock for example) but I want a list of others that are more specialized like mine. I see more articles coming out now of being able to buy things with crypto (real estate, vehicles, etc.), but it is hard to determine which are legit and which are just fake news. So, whats out there?
10 things you need to know before the opening bell
Stocks crashed this morning after China vowed counter measures against the US over tariffs. China said the US tariffs violate a consensus reached by leaders of two countries and get off the right track of resolving disputes via negotiation.
President Donald Trump tweeted on Wednesday that his Chinese counterpart Xi Jinping was a "great leader" and posed setting up a "personal meeting" to solve escalating protests in Hong Kong. "I know President Xi of China very well. He is a great leader who very much has the respect of his people," Trump said in a tweet on Wednesday evening.
Hundreds of Googlers are urging the company not to bid on a contract with the US Customs and Border Protection that they say would facilitate 'human rights abuses'. The CBP contract— which seeks to "acquire services from a Cloud Services Provider" — has stirred controversy amongst Google's rank-and-file due to the agency's recent handling of migrants at the US southern border, the petition released on Wednesday said.
The world's biggest shipping company just put up a red flag that the trade war is crushing the global economy. "I guess in a way we have been expecting a slowdown all year, and global demand has grown so far, and we expect that to continue to grow 2-3% which is consistent with a slow growing economy and that's what we are planning for," Maersk's CEO said.
Overstock sheds $317 million in market value after its CEO releases a bizarre statement about his involvement with the 'Deep State'. Shares fell by as much as 23% Wednesday, bringing the decline since Monday to 36%.
Bitcoin slumps to two-week low on technical trading, market jitters. The biggest cryptocurrency fell 5.5% in early trade after slumping 7.7% a day earlier, when it dropped under $10,000 for the first time since August 1 and posted its biggest fall since July 16.
Trump lashed out at 'clueless Jay Powell and the Federal Reserve' after recession signal flashes. "We are winning, big time, against China. Companies & jobs are fleeing. Prices to us have not gone up, and in some cases, have come down,"the president wrote on Twitter.
Global stocks are falling after China's announcement. US futures S&P 500 (-0.5%. and the Nasdaq (-0.9%) both slid. European stocks also dropped, with the Dax (-1.6%) down as did Euro Stoxx 50 (-1.2%). Asia closed mixed, the Nikkei 225 (-1.2%), the Shanghai Composite (+0.3) rose as did the Hang Seng (0.8%).
There are some mammoth earnings out today. Chinese e-commerce giant Alibaba has its latest earnings as does Walmart.
There is a raft of data out today. There is lots of retail data out later in the US, with retail sales control group the highlight.
We are the founders of Counterparty, the free and open platform for peer-to-peer finance on Bitcoin. Our names are Robby Dermody, Evan Wagner and Adam Krellenstein. AMA!
About Counterparty: Counterparty creates a free and open marketplace directly on the Bitcoin blockchain, effectively extending Bitcoin's functionality from a peer-to-peer payment network into a full-fledged peer-to-peer financial platform. The platform has been live since January, and it has seen over 100,000 transactions since then. With Counterparty, you can:
Create your own token in less than 30 seconds, which can be used to represent anything (e.g. crowdsales, in-game tokens, voting tokens, and hopefully soon even bonafide securities such as stocks and bonds)
Send or trade your token with others, in a totally peer-to-peer fashion (i.e. with no centralized exchange required)
Issue dividends, as well as utilize binary options and contracts for difference (consult your local laws)
Write and run your own Ethereum-style smart contracts, directly on Bitcoin, to do virtually anything
Recent News: Counterparty has been chosen by Overstock.com to be the platform on which it will build Medici, the world's first SEC-regulated stock market for cryptosecurities. Counterparty also recently announced that it has ported Ethereum's entire smart contracts platform, allowing users to write Turing Complete smart contracts into the Bitcoin blockchain and execute those contracts in a completely decentralized and trustless manner. The Counterparty community has been rapidly growing, with media coverage by Wired, Wall St Journal, VentureBeat, Coindesk, Inside Bitcoins, and more. We are very proud to be a part of the thriving Bitcoin community! Ask Us Anything! Website: http://counterparty.io Web Wallet: https://counterwallet.io GitHub Repositories: https://github.com/CounterpartyXCP/
Hello! Some of you may know me from the Daily Discussion thread here. I am an enthusiastic supporter of Bitcoin and also the author of Hopium Time (formerly Daily Hopium). Hopium Time is my effort to improve morale of the Bitcoin community during the dark times of current bear market we've been enduring. In my posts I make an effort to post good news and show parallels to previous Bitcoin bear markets to provide perspective when things look bleak.
I also like to make predictions. My core prediction is as follows:
The price of ONE BITCOIN will surpass $100,000 USD before May 1, 2021.
To illustrate my conviction on this prediction and to help my favorite charity, The Independence Fund, I have made it into a Bet. I’m calling it my Bitcoin Bet for the Vets (BBV). Please take a look at my post on this. I would really like this to grow into a nice donation to the charity which is very helpful to Veterans and their families. Hopefully some of you guys will pledge to match my Bet.
7/21/18 Revision to bet matching:
I will allow someone who pledges to match my bet to decide what percentage of my donation they will match (minimum of 5%). Please reply directly to the bet thread to make your honor bound irrevocable commitment to donate with me on May 1, 2021. I will include you on my public list of donors. Also, while I have pledged to donate enough to buy one track chair for the Vets even if I win the bet, you as a bet matcher, will be encouraged to do the same, but it is not required.
I will attempt to contact some of the leading Bitcoin bulls in the media (John McAfee, Tom Lee, Tim Draper etc.) and let you know in this thread if they plan to participate in my Bet or not. So you may want to check back on this thread from time to time for a status update.
Imagine the good we could do together if more people got involved. We can show the world how generous the crypto community can be. Good for the Vets and good for bitcoin. Everybody wins!
I recommend the Bitcoin.com Wallet, since it supports Bitpay merchant payments in BCH, it supports both CashAddr & legacy address formats for BCH, and you have the option of creating a BCH wallet without creating a BTC wallet.
I'm not using hyperlinks on the merchant list, because Reddit seems to auto-delete threads with certain banned domains (and I don't know which ones they ban). I'll try to regularly update & maintain the above list, but I'm only going to focus on high profile name businesses, to keep everything to a manageable size.
Why I Think Wanchain Is An Incredible Long-term Investment
DISCLAIMER: I am in no way associated with the Wanchain team. Neither am I a financial advisor, nor is this meant to be financial advice. Whatever follows, just reflects my understanding of the project, and my personal opinion on its future outlook. The objective of this post is to lay out, in simple terms, what Wanchain is, and why I think Wanchain’s native coin, Wancoin, could be one of the best cryptocurrencies to hold, not just through the coming months, but years. So, let’s dive into it! WHAT IS WANCHAIN? Wanchain’s vision is rebuilding financial services. Wanchain is a global financial platform that connects, and exchanges value between different blockchains. Simply put, Wanchain is a ‘decentralized’ version of traditional banks in the current and future financial landscape. WHY DO WE NEED WANCHAIN? We are living in times of a major digital transformation, a time where digital assets are entering the financial ecosystem at an unprecedented rate. As the adoption of digital assets is increasing, we are witnessing an appreciation in the value of these assets. This necessitates the existence of a ‘digital bridge’ to transfer value, in the form of digital currencies and/or assets, between different blockchains. HOW IS WANCHAIN ACHIEVING THIS? Wanchain’s distributed ledger allows:
Cross-Chain Asset Transfer: Asset transfers would be possible across major blockchains, such as Bitcoin and Ethereum, as well as across consortium blockchains developed based on Wanchain protocol. Community developers can create independent services. Any blockchain — private, public, or a consortium chain — can integrate with Wanchain to establish connections between different ledgers and perform low cost inter-ledger asset transfers. The protocol also ensures stability and security of all cross-chain transfers.
Transaction Privacy Protection: Wanchain protocol provides the option to execute private transactions, similar to those provided on privacy coin platforms, based on one-time addresses and ring signatures. Wanchain also allows digital asset holders to remain anonymous on its protocol.
Functional Extensibility: Wanchain protocol allows credit and lending facilities, for businesses and individuals, for different digital currencies. Also, once consortium blockchains are integrated into Wanchain protocol, it also allows the issuance and trading of brand new digital assets.
Complex Application Support: Community developers can develop more complicated applications based on smart contract and universal protocols. The intra-chain and cross-chain connections provide more options for further application development.
WHY I THINK WANCHAIN COULD BE ONE OF THE BEST LONG-TERM HOLDS IN THE COMING YEARS?
Wanchain’s association with Factom gives a deep sense of confidence in what Wanchain can achieve over the coming years. Wanchain was envisioned by the Chinese firm Wanglu Tech, founded by Jack Lu, who was also the Co-founder and CTO of Factom: a blockchain technology firm that has developed ways to use the blockchain to keep records and identities more secure. As of this writing, Factom is valued at about $560 million, has partnerships with several corporations, including Smartrac, Rongdu Technology, iSoftStone, and Netki, and blockchain firms like ShapeShift, Tether, and Synero. Factom’s investors include Fenbushi Capital, Draper Associates, Bill Gates, Stewart Title, Overstock, Harvest Partners, The Department Of Homeland Security, and the Honduran Government. Three of Wanchain’s current team members, and one advisor, David A. Johnston, have previously worked with Factom. It is worth noting here that, as of this writing, Factom’s market capitalization in USD terms has increased more than 43 000% (430x, if you like!) in just over 2 years since it started.
Wanchain = Ethereum + Ripple + Monero + Chainlink, all in one, and in a lot of ways, better! First of all, Wanchain is a hard-fork of Ethereum, but will be Proof-Of-Stake (PoS) implemented (after mainnet launch), allowing it to scale better. Secondly, Wanchain is commonly labelled as the ‘Chinese Ripple’, however, Wanchain is much more decentralized than Ripple, truly representing what a ‘distributed’ super financial market should be like. Thirdly, Wanchain has Monero-style privacy features allowing the generation of new one-time addresses for each transaction, with ring signatures, keeping transactions private, and digital asset holders anonymous. And finally, just like Chainlink uses blockchain middleware to allow smart contracts on various networks to connect with critical external resources and data feeds, Wanchain protocol seamlessly connects blockchain networks together, recording cross-chain and intra-chain transactions.
Wanchain has a stellar team with some of the brightest minds in blockchain technology and cryptography. Wanchain has 23 team members and 11 advisors, ranging across all domains of their business. The team comprises of three PhDs with applied mathematics degrees, and highly experienced software engineers, cryptographers, computer scientists, financial experts and media and community managers. The team has rich commercial expertise and resources in countries such as China, the U.S. and Singapore. The amount of words needed to do justice to the width and depth of experience and competence of Wanchain’s team would turn this blog post into a lengthy article. But the bottom line is, it is rare to find such a strong team in global blockchain projects.
In November 2017, Wanchain formally entered the Blockchain Interoperability Alliance (IOA) with ICON and Aion, with a common goal of promoting interconnectivity between the isolated blockchain networks, through joint research and collaboration. ICON is an interconnecting blockchain network that connects independent blockchains without additional intermediaries. Aion aims to become the common protocol used for these blockchains, enabling more efficient and decentralized systems to be built. This partnership is monumental, and means that Wanchain would be able to utilize synergies outside its ecosystem to be able to achieve its objectives globally.
Wanchain is racing down its roadmap! Theoretical proof for token privacy protection of smart contracts based on one-time addresses and ring signatures was completed in 2016, and the Proof-Of-Concept (PoC) was completed at the beginning of 2017. At the beginning of 2017, Wanchain completed the design of the cross-chain transaction mechanism and the cryptographic technology. Wanchain Alpha was released and tested in October 2017. The Beta platform was released in December 2017, and is still under testing as of this writing. Wanchain mainnet launch, Wanchain 1.0, is scheduled for January 2018, and is going to be just the start of numerous developments to follow.
The extremely high public interest in Wanchain, since its Initial Coin Offering (ICO) in October 2017, reflects investor confidence in the project. The public token sale on 4th October 2017 was one of the quickest ICO sell-outs in the history, being completely sold out in less than a minute. Several investors were unable to contribute to the token sale despite sending their transactions within the first minute of the token sale. Such was the magnitude of demand despite the fact that China, U.S. and South Korea were not allowed to participate in the ICO. Therefore, the unmet demand for Wancoins is enormous, and expected to be in wait when Wancoin trading goes live.
And finally, let us commit the sin of speculation. Wanchain’s market cap at ICO was about $36 million, with a price of $0.34/WAN. Ripple’s market cap, as of this writing, is about $120 billion. If Wanchain manages to capture JUST 10% of Ripple’s market cap, i.e. $12 billion, with a circulating supply of 107 million coins, it would mean a price of about $112, that is about 33 000% increase (330x) from the ICO price in USD. Personally, I think Wanchain could go well beyond that over the coming years. But beware, this is just speculation, not meant to be a quantitative analysis in any way, but just to get a qualitative understanding of what Wanchain’s upside potential is.
To put it in a few words, Wanchain is a very ambitious and potentially disruptive project, aiming to become a super financial market of the world. The project has some of the brightest minds in the business working behind it. Wanchain is solving a real world problem and has an immensely vital use case. I have complete confidence that Wanchain could easily be one of the top 15 cryptocurrencies by market cap by the end of 2018, and it would continue to grow even beyond that. Therefore, I believe holding Wancoins would be a great long-term investment. Full disclosure: I am invested in Wanchain for the long-term, and I plan to buy more when Wancoin trading goes live. Hackernoon blog post:https://hackernoon.com/why-i-think-wanchain-is-an-incredible-long-term-investment-86b9d0d6eb6c
Today I've read the Ravencoin whitepaper and several articles and watched several video's on the project. I like what I've seen so far; launching a new Proof-of-Work coin with a fair launch like Ravencoin has and attracting enough miners is quite impressive. One of the aspects I'm still trying to wrap my head around regarding Ravencoin is the subject of governance and forks. Since it's an open source project, it's up to the community (devs, miners and users) to decide how the project is further developed, similar to how it's done with Bitcoin. From what I read it's mostly developers that are paid by Overstock that are working on the project so far, but as it matures, the development community will likely diversify (if it hasn't already). What I do wonder, is what happens if the network is forked in the future due to a disagreement (e.g. like Bitcoin and Bitcoin Cash over block size, or Ethereum and Ethereum Classic over recovering funds after the DAO hack). Suddenly holding two different currencies (BTC+BCH or ETH+ETC) isn't so bad, but if you're holding a tokenized piece of land, company stocks, fine art or any other similar assets, it raises the question which version of the chain actually holds 'the unique truth'. Is there any documentation or discussion on how a matter like this would be solved, or how it could be prevented?
Bitcoin is the, without doubt, the biggest cryptocurrency. Many major companies around the world are now accepting bitcoin payment for online goods and services (in Denver, you can even use Bitcoin to pay for your parking!) An aggressive campaign led by Coinbase (where $1 million worth of transactions were processed for free) prompted large companies to start accepting bitcoin by using third-party services like Bitpay & Cryptopay. As the trend has been started it appears to be growing, so who accepts Bitcoin? There are some surprising companies and we’ve listed them below. Who accepts Bitcoin? KFC Canada – The world’s largest chicken franchise – KFC, is allowing customers in Canada to pay for “The Bitcoin Bucket” using bitcoins for a limited time. “The Bitcoin Bucket”, a themed container can be purchased for $20 CAD, and is delivered to customers. The digital currency is accepted only via BitPay – an online payment mode and does not encourage customers to pay crypto at the cash counters. Overstock.com – This large online retail store sells electronic products at minimal prices due to excess stock. Overstock.com allows customers to buy using bitcoin. It is the first major retailer to accept bitcoins and other major cryptocurrencies. Subway – Subway in Buenos Aires has begun to accept bitcoin as a payment method. The belief is that accepting bitcoin as a method of payment would increase business. Microsoft – The tech giant Microsoft is enabling users to create a Microsoft account in which the user can deposit Bitcoin. A well-structured process allows users then, to utilize these funds for purchasing movies, games, and apps in Xbox stores and Windows. Reddit – Reddit; a community that provides thousands of your favorite things. It allows you to buy premium features with bitcoins. Virgin Galactic – Bitcoins are taking the place of old conventional currencies at a fast pace. Sir Richard Branson, founder of Virgin Group including Virgin Galactic, Virgin Mobile, Virgin Airline, (and many more) has said that Virgin is accepting bitcoins to reserve tickets for a space travel. Branson feels that Bitcoin is a low-risk option; he has invested in it in the past and encourages others to do so now. Space travel costs 98 bitcoins or 250,000 US Dollars. OkCupid – OkCupid, the world’s most popular dating site has started accepting cryptocurrency. By partnering with Coinbase, OkCupid allow users to subscribe with bitcoin. The costs for a “premium subscription” list called the “A-List”, can be up to 0.10 bitcoins or $10 a month. Namecheap – A domain name registrar and web hosting company with nearly 3 million domains are accepting the digital currency as a method of payment for their services. Namecheap is the first company among numerous domain name registrar companies to accept bitcoins for registering a website, hosting domains, etc. CheapAir.com – Now, you can spend a little of your cryptocurrency on airline reservations, hotel bookings, and car rentals. CheapAir.com, a travel booking site enables customers to purchase both domestic and international flight tickets with bitcoin. It is the only company to accept bitcoin currency for air travel and customers can pay from their Coinbase wallets. Expedia.com – The exclusive online travel booking agency Expedia, has partnered with Coinbase to create a bitcoin payment option. Since June 2014, Expedia users have been able to book their hotels with bitcoins. As of now, Expedia is accepting digital currency only for hotel bookings. Gyft – Gyft, a leading digital gift card retailer offers gift cards in exchange for bitcoin. The association of Gyft with Coinbase ensures that bitcoin payments are made via a Coinbase wallet. Gift cards can be redeemed or used to purchase goods at over 200 retailers. Newegg.com – Popular online computer hardware and electronics retailer now accepts bitcoin as payment. With bitpay as the digital currency processing partner, Newegg expects to see higher sales in certain product categories. Wikipedia – Wikipedia, the free online encyclopedia with more than 4,570,000 articles has established a partnership with Coinbase to accept donations in the form of virtual currency. To provide users with an ease of choosing payment options, Wikipedia’s donation page is now flexible to make one-time or recurring donations using bitcoin. Alza – The biggest and most successful Czech e-retailer store has introduced bitcoin payments for shoppers. In many of its showrooms, bitcoin ATMs are available to facilitate smoother transactions for those paying in bitcoin. It is accepted via BitPay. The Internet Archive – The internet archive provides free access to web documentation such as music, software applications, games, and so on. It has expressed its interest in accepting digital currencies as donations. This nonprofit organization assures its supporters to use bitcoins to enhance its operations and achieve its mission of providing free and secure services to the public. PizzaforCoins – Want pizza? Order now and pay using bitcoins at PizzaforCoins. Any pizza joint including Pizza Hut, Dominos or Papa John’s is available with this service. Order now, enjoy your meal and pay with bitcoins. It also accepts more than 50 other cryptocurrencies. Reeds Jewels, Inc. – At REEDS.com, you can shop exclusive jewelry, watches, and loose diamonds with your bitcoins using a bitcoin wallet like Coinbase. Reeds Jewels has brick-and-mortar stores in 13 states and also offers online shopping. Purchase of loose diamonds is complimented with a free delivery. Shopify Stores – Looking to spend bitcoins? Shopify – an e-commerce platform, helps merchants to sell their commodities through an online platform similar to eBay. Shopify has recognized digital currency and is integrated with BitPay to simplify the payment process. Final thoughts… Many companies are embracing digital currencies by partnering with crypto platforms to transfer digital funds in exchange for goods and services. Though many of the larger companies have started t0 accept bitcoin, so many are still lagging behind and have yet to jump on the band-wagon. The reality is that the future of online shopping is definitely heading towards virtual currencies and the time has come for bitcoin to be a staple payment option when you reach the tills. If you’re not in, you can’t win. The source of this article: CryptoCurrency News https://preview.redd.it/u8ha9x7d70i11.png?width=1280&format=png&auto=webp&s=7b7d3710b06e187e669338c5a496a065a3f7d8d2
https://preview.redd.it/cjx2a1jxe1921.png?width=1120&format=png&auto=webp&s=8db8263317bc1f28e3d8f82d9760dea619c1e6f5 It is hard to believe, but it has been an entire decade since Bitcoin was created and launched into circulation. While many think that Bitcoin, like crypto market itself, is nothing more than a bubble, the truth is that this technology is still very much alive. Not only that, but it keeps growing and developing, with new altcoins appearing all the time. A lot still has to be done for the industry to reach its full potential but the market has grown and matured a considerably since Satoshi’s initial endeavour, and there are the reasons to celebrate. Later in 2018, it became clear that the European Union started to take the lead in crypto market. London Stock Exchange along with other companies decided to participate in the development of exchanges that support security tokens. As a result DX.Exchange is set to become the first regulated tokenized securities exchange. Powered by the NASDAQ exchange protocol this platform will offer several existing securities listed on the NASDAQ, NYSE, Hong Kong Exchange and Tokyo Stock Exchange in a tokenized format. Intercontinental Exchange, the operator of the New York Stock Exchange is planning to launch Bakkt, a federally regulated market which will enable institutions and consumers to buy, store and sell crypto assets. Bakkt recently raised $182.5 million from Microsoft, the Boston Capital Group, and other 10 partners and investors, and aims to bring high levels of trust and transparency to the market. Online retail giant Overstock has announced plans to pay a portion of its annual taxes in Ohio using Bitcoin. Ohio became the first state in US to allow taxes to be paid in Bitcoin, and Overstock became the first major company to take advantage of Ohio’s openness to cryptocurrency. ConsenSys has partnered with computer chip maker AMD and Abu Dhabi-based investment firm Halo Holdings to develop a new cloud computing infrastructure based on blockchain technology. AMD chips have been popular in running blockchain networks, in particular by retail customers looking to mine cryptocurrencies. The China Banking Association, the country’s self-regulatory body for the banking sector, is launching a new blockchain-based platform for trade finance. Over 10 major banks in the region have signed up for the platform, including HSBC (China), Bank of China, China Merchants Bank, China Postal Savings Bank, among others. 21 cryptocurrency exchanges have joined the Japan Virtual Currency Exchange Association, a self-regulatory organization that oversees the crypto sector, aiming to create industry-wide investor safety standards. Currently, Ethereum is the market’s best performing altcoin, as it is trading up over 15% at its current price of $162. Ethereum’s bullish performance over the past several weeks is the result of its upcoming Constantinople upgrade scheduled to occur around January 16th, which will make Ether more efficient. A top executive in the PricewaterhouseCoopers (PWC) crypto division predicts that more institutional players will announce cryptocurrency projects in 2019. Lucre Algorithmic Trading Platform for Cryptocurrencies LUCRE is an exclusive automated trading system for Cryptocurrencies, created to outperform the strategy of just holding Cryptocurrencies. It is developed by a team with 8 years of algorithmic trading experience. Holding a Cryptocurrency hasn’t been the best way to increase your wealth lately. LUCRE algorithm was build on a philosophy - Don’t HODL; Trade! allowing trading both ways long and short. The great appeal of this project is the ability to generate revenues in all market conditions, buying and selling at every perceived opportunity. Even when the market is going south the algorithm attempts to make profit by shorting it. Lucre Trading Algo will be running on a Metatrader trading platform. Token sale participants will get an LCR token which will track the performance of the Algo. The price will be updated regularly to accurately reflect the value of the underlying Crypto assets being traded by the Algo. A participant can trade on the exchanges which will list the LCR token. LCR token will only be sold during the pre sale and Token sale main event. No further tokens will be minted post Token More: https://www.lucretoken.com #Crypto #ICO #LUCRE #LCR #bitcoin #cryptocurrency #btc #tradingcrypto #tokensale
Money should be a good store of value, medium of exchange, and unit of account. There are a lot of barriers preventing bitcoin’s widespread use by the aforementioned criteria, let’s take a look and see how they might be solved.
Lack of Understanding
Bitcoin is complicated and unfamiliar. This is a huge barrier to entry because people distrust what they don’t understand, and ease-of-use and simplicity is what usually sells a new technology. If you have read this series from the beginning though, you may now see some potential upsides to such a drastically different system than what we are used to. Many resisted smartphones for a time (and a few still do). The benefits have to outweigh the costs of adoption, so we may see niche cases being the early adopters (like citizens of Venezuela or remittances payments). Also, when a new complicated technology rolls around, it sometimes takes a generation before it becomes widespread; young people are particularly adept at adopting new tech.
The tendency of bitcoin’s price to change rapidly or unpredictably is what comprises volatility. When you search for bitcoin you may find that most of the results you get (and the discussions happening on forums) are about it’s price. This is understandable, it has seen some crazy moves both up and down over the years facilitating the potential for huge gains (and huge losses). Still, over time the price certainly is increasing. Unless you bought in a single 2 month period in 2013, holding bitcoin for longer than 2 years at any point in its history would land you in a better position than when you started. And, when viewed on a logarithmic scale (used in long-term stock charts), the trend is quite clear: (Bitcoin Price 2012-2018, Logarithmic Scale (bitcoincharts.com)) There is a risk/reward to adopting new tech, and this is no exception. But, my goal is absolutely not to “sell” it to you as an investment by any means.
This is not financial advice. We’re simply looking at the pros and cons of this space, and I encourage everyone to do their own research and come to their own conclusions. Never invest anything you aren’t prepared to lose.
This meteoric rising (and crashing) of the “price” (which, I’ll point out, might just as well be considered an exchange rate) understandably makes it pretty difficult to use bitcoin as a currency. If it moves a few percent in a day, and can move a few hundred percent in a month, purchasing a car or a house could cost you significantly more by the time your finished closing. That’s just not viable, and certainly not a good unit of account. However, I see the volatility in price simply as growing pains. It is the market that dictates the price of bitcoin, quite literally, it’s traded like a stock. This is referred to as speculation (“the purchase of an asset with the hope that it will become more valuable at a future date”). Speculation happens between national currencies already, but they are generally stable in comparison so it’s not lucrative. People are unsure of how this whole bitcoin thing is going to play out. It’s not like anything we’ve ever seen, it’s difficult to understand (and use), and it’s not accepted at every corner store or online business. Many in the space are just here for a quick buck, and they sell it when the price rises to get back “real” money we are used to, that is “stable” in price against other currencies, and can predictably buy goods and services. The way I see it, all of these will concerns diminish in time. Though Amazon or Target don’t yet accept bitcoin, Microsoft and Overstock.com do. Some cities and towns across the world are embracing it a lot more than others. It’s not surprising to see San Francisco accommodating the new technology. But, other cities like Portsmouth in New Hampshire with numerous cafes and shops accepting bitcoin (and “Dash coin”) might surprise you. There are maps available to see where crypto-currencies are accepted at locations near you, and the amount of them are increasing, albeit slowly. It’s a bit of a chicken-and-egg situation, but that hasn’t stopped revolutions from happening before. Consider when cars first came about, roads were dirt and mud which cars didn’t do well with. It took building massive infrastructure before cars could ever become mass-adopted, but we spent the time, money, and effort because we saw the potential advantages. It will be trivial for businesses to accept bitcoin compared with pouring hundreds of millions of dollars in asphalt to connect our world. Other parallels include train tracks, phone lines, electricity lines, communication satellites, etc. Each of these replaced or iterated on previous functional technologies, and required massive upfront costs before the benefits were available. It’s clear now that we made some good choices there but there were doubts at the time. Despite some pretty major setbacks, bitcoin’s trend is up. Interest is growing and more businesses and individuals are actually using it. But due to the trading mentality, the uncertainty with regulations, uncertainty in the technology itself, uncertainty that the price will not drop, and other factors, emotion and greed encourages people to sell in flocks if the price climbs high enough. Furthermore, right now with a large enough stack of money one can influence this market in drastic ways, and cries of manipulation of the price are not unfounded. So-called “whales” can buy and sell huge amounts of coins and the price can jump a bit each time. Coupled with uncertainty in the space, and so many “investors” trying to time the markets, we end up with a pretty volatile landscape where the price is not stable. My argument is that this is diminishing as it gains in popularity, and it is gaining value because its utility is growing (see the network effect”) and the utility itself is slowly becoming more apparent.
Volatility is actually decreasing.
Bitcoin Volatility Over Time(bitvol.info) In the period from 2011 to 2014 bitcoin’s volatility often spikes into the 15% range. But from 2014 to the present, volatility has only just spiked above 7% twice, spending most of it’s time below 5%. Even the large boom and bust in price at the end of 2018 seems tame compared to the early years. The trends show the price going up over time, and volatility going down. The more actual use the coin has (people saving and buying with bitcoin), the percentage of people entering the space to use it the way it was intended increases, the percentage of “stock traders” declines. And as more capital enters the space, the less influence whales have (because the current against which they swim is getting stronger). And as the price stabilizes, traders will become less interested. There is a critical point where this becomes a negative feedback loop. I could be wrong, but the idea is at least founded in reality, and it would solve the unit of account issue if the price could stabilize to within a few percent per year. Similarly, as a store of value, bitcoin becomes more viable in this scenario. This is coupled with the fact that although bitcoin is somewhat inflationary now as the supply is increasing (bitcoins are “discovered” as rewards for mined blocks), the amount of discovered coins are cut in half every few years. This “halving” is logarithmic, meaning eventually the amount of coins discovered is infinitesimally small, and total supply will asymptotically approach 21 million coins (the maximum supply that we will ever see). This model of supply is actually meant to mimic gold because it’s a well-known store of value and monetary device throughout history (though it is not easily divisible, and not as portable as bitcoin). In both bitcoin and gold, mining is more fruitful in the beginning, and as we extract the low-hanging-fruit, mining requires greater effort and yields less return. World population is increasing which leads to bitcoin becoming deflationary in the future if demand continues (the supply won’t increase beyond 21 million). And, I argue that it will become more valuable in time due to the network effect as bitcoin use becomes more widespread (the value of being able to exchange with more people anywhere, any time, and without permission from anyone). This is a positive feedback loop, and shows how bitcoin is deflationary long-term. While deflation is generally considered negative by economists, the main reason is based around debt which isn’t possible in the same way with bitcoin because bitcoins cannot be created out of thin air like fiat currency. The discussion of deflation vs inflation is an important one, and bitcoin’s monetary policy is an outlier compared with national currencies which are typically inflationary. The US dollar for example averaged 3% inflation since the year 1900. That means that over the last 100 years, a dollar has lost over 95% of its purchasing power. You could buy 95% more stuff with $1,000 last century, or, saving $1,000 from 100 years ago would buy you 95% less stuff at present. Put another way, purchasing power is cut in half after about 25 years, a concern for anyone retiring for over 20 years with a fixed retirement sum. Some other national currencies have higher inflation rates, and there are numerous cases of inflationary spirals over the years. A few examples include Germany 1923, Hungary 1945, China 1947, Vietnam 1988, Peru 1990, Yugoslavia 1992, Zimbabwe 2008, and right now in Venezuela 2018. Entire countries of people have lost essentially all of their money, and it keeps happening over and over. A wise man would tell you it’s dangerous to say “it could never happen here”. *UPDATE: Turkey is also now in financial crisis. This is our money with which we hold and exchange value, our earnings, our savings, our livelihoods. Maybe it’s time we had, at least, another option outside of government control. An option that governments can’t destroy through mismanagement. A neutral option that ignores all borders, is open to everyone, and can be accessed anytime from anywhere.
The Fear of “Hacks”
It’s a very real threat to have all your money stolen, if your bank was robbed you are protected by FDIC (in most cases only up to $100,000). The vast majority of coins that have been stolen have come from hackers attacking “exchanges” and getting away with millions. These exchanges are websites where you can trade bitcoin for other crypto-currencies (or “alt-coins”). You can also buy and sell bitcoin on them, and subsequently people end up storing a lot of coins on these exchanges, and the exchanges hold the “private keys” so they can execute trades. Cryptographic private keys are analogous to a key that opens a door, or, a key that locks a message in a box before it is sent to the recipient. In our case the door opened allows you to sign your message and spend coins, and the message is your transaction on the bitcoin network. Anyone with your private keys can spend your coins. Exchanges are a honey pot of thousands of private keys that represent a lot of money. If a hacker can break into the exchange and steal the keys all at once, their work will pay off. This is why any crypto guru will advise you not to store large amounts of coins on exchanges, and rather transfer them in your own wallets where you hold the private keys. The mantra is “your keys, your money; not your keys, NOT YOUR MONEY!” Of course your own computer can be hacked, but you are not as big a target as an exchange which may hold vast sums of money. There are also some pretty safe ways to store your coins if done right. Centralized exchanges are a necessary evil for many people because they facilitate acquiring and trading coins easily. But decentralized exchanges are becoming more common because they allow you to trade while keeping your coins in your control at all times. They need some work and more users, but it’s a promising solution to this problem. Summarizing the above, the big hacks you read about are virtually eliminated if your keys are in your control and you keep them safe.
Transaction fees are generally negligible in a bitcoin transaction, but in many ways “fees” are holding us back. Interestingly, this is a symptom of being in the very early days. Firstly, there is a lot of work on “scaling” crypto-currencies (making fees even lower than they already are and increasing transaction speeds). This is just an engineering problem, and many people are working on solving it in many different ways. Other currencies like NANO or IOTA have different underlying tech and have zero fees and instantaneous transactions. In fact, most fees people encounter aren’t fees from bitcoin transactions; instead, they get hit with fees when exchanging between national currencies and bitcoins. In order to electronically trade USD($), EUR(€), or YEN(¥) with bitcoin, we need to hook into the closed-off for-profit banking network and we need third-parties to do so (and they take their cut). But even these fees could be avoided in time. For example, you can buy bitcoins with cash directly from a person (localbitoins.com). And, it might seem distant, but in the future you may end up receiving bitcoins as your salary, from a friend, or from accepting them in your place of business. Likewise you can spend your bitcoins directly to other bitcoin users. Getting coins directly eliminates all the exchanging and associated fees because once your money is on the bitcoin network, fees will be negligible (especially as these networks evolve).
Right now it’s easier than ever to acquire some bitcoin. People can download “Coinbase” or “Square App” on their smartphone and purchase some using a credit card in a few minutes. Depending on which service you use and how much you want to buy, you may need to send a picture of your license for KYC regulations. However, as I mentioned above, there are risks to storing all your coins on exchanges, especially with large amounts. I always recommend transferring them to a wallet where you control the private keys. But using wallets and storing private keys (and “seeds”) securely, is not as straightforward as we would like. This is a major factor holding back adoption, because if it’s not easy to use, people will consider it too much effort. The next post in this series digs into wallets and storing your coins.
Hello! Some of you may know me from the Daily Discussion thread here. I am an enthusiastic supporter of Bitcoin and also the author of Hopium Time (formerly Daily Hopium). Hopium Time is my effort to improve morale of the Bitcoin community during the dark times of current bear market we've been enduring. In my posts I make an effort to post good news and show parallels to previous Bitcoin bear markets to provide perspective when things look bleak (Edit 5/11/19: Not looking bleak anymore. Time for a bull market! ).
I also like to make predictions. My core prediction is as follows:
The price of ONE BITCOIN will surpass $100,000 USD before May 1, 2021.
To illustrate my conviction on this prediction and to help my favorite charity, The Independence Fund, on July 16, 2018, I made it into a Bet. I call it my Bitcoin Bet for the Vets (BBV). Please take a look at my post (Now archived) on this. I would really like this to grow into a nice donation to the charity which is very helpful to Veterans and their families. Hopefully some of you guys will pledge to match my Bet. You can respond with your official bet pledge right in this thread (since my old thread has been archived).
7/21/18 Revision to bet matching:
I will allow someone who pledges to match my bet to decide what percentage of my donation they will match (minimum of 5%). Please reply directly to the bet thread to make your honor bound irrevocable commitment to donate with me on May 1, 2021. I will include you on my public list of donors. Also, while I have pledged to donate enough to buy one track chair for the Vets even if I win the bet, you as a bet matcher, will be encouraged to do the same, but it is not required.
Unfortunately, so far my efforts to contact some of the leading Bitcoin bulls in the media (John McAfee, Tom Lee, Tim Draper etc.) have mostly failed. Only Tom Lee responded that “If this is for the Vets, I’m in”.
Imagine the good we could do together if more people got involved. We can show the world how generous the crypto community can be. Good for the Vets and good for bitcoin. Everybody wins! Thanks for reading this.
Online retailer Overstock has said it hopes to sell its e-commerce business by February in order to focus on blockchain. The clock is ticking. CEO Patrick Byrne explains the strategy. Overstock.com’s CEO doesn’t care that his blockchain-based trading system is burning through money. He remains a true believer in the technology—and its potential for multibillion-dollar ... Overstock Has a Bitcoin Problem The online retailer's stock price is highly correlated with that of the dominant cryptocurrency In recent weeks, we have given considerable attention to Overstock.com Inc. (OSTK) and its efforts to transform itself from an internet retailer struggling to survive in the shadow of Amazon (AMZN) into the premier player in blockchain technology. Bitcoin Investment Trust (OTCQX: GBTC) announced on May 4th, ... All news about OVERSTOCK.COM, INC. 10/23: OVERSTOCK COM: Announces Free Shipping on Everything, Delivering Permanent Savi.. AQ. 10/22: OVERSTOCK COM: tZERO Announces the Launch of its Retail Broker-Dealer Subsidiar.. AQ. 10/22 : OVERSTOCK COM: Announces Free Shipping on Everything, Delivering Permanent Savi.. AQ. 10/22: Overstock ... News about Overstock.com Inc., including commentary and archival articles published in The New York Times.
Bitcoin: 3Ap1mdG4eCtcMYqNz8bGJDea8iYGVTSqbs Patrick Byrne believes the financial markets are rigged. He hopes to use Bitcoin 2.0 platform, Counterparty, to c... Show notes: http://bit.ly/2FQHZSn A Bit Cryptic Podcast: iTunes: http://apple.co/2TZRP7p Google Play: http://bit.ly/2RS8TP1 Spotify: http://spoti.fi/2OfNHSc ... The CEO of Overstock.com is one of the most outspoken proponents of bitcoin. The more I study bitcoin, and find true VISONARIES like Bill Gates, Richard Bran... Overstock.com CEO Patrick Byrne discusses his outlook for bitcoin and holiday shopping. Overstock.com CEO Patrick Byrne talks with CNN's Zain Asher about the potential strengths of bitcoin during a dollar crisis.