The Bitcoin (crypto) Beginner's Guide

Discussion of all things crypto and blockchain.
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SilverDoge
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The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Thu Sep 21, 2017

For anyone interested in getting started in crypto, here is an on-boarding thread. While there are several threads already in existence, I will use this one to point to for anyone looking for answers about the pros and cons of bitcoin and crypto. For me, the first question is the most important. Why should anyone voluntarily get into such a volatile asset (currency) class?

Must watch. The speech ends at 21 min mark, and the Q & A begins. I recommend listening to it all, especially the first question. Andreas begins to answer the important question on the history of money, and why use bitcoin?

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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Thu Sep 21, 2017

While bitcoin price isn't the tool I like to use to interest people in the technology, there is no doubt that the price is what helps to drive new users in, creates more news articles, buzz, search inquiries, etc. Simply buying and holding bitcoin has been a profitable endeavor and I believe that will continue to be the case. However, it is volatile due to it being new, and a small market relative to other national currencies. It is also "unsanctioned" by governments and therefore can be manipulated much easier than other currencies. That said, below is the USD snapshot price* of bitcoin on a quarterly basis from July 2010 to present.

What gives bitcoin value? Click here for a compilation thread:
http://www.bullionstacker.com/viewtopic.php?f=108&t=15864&p=559619#p559619

Bitcoin & crypto enable triple-entry accounting. The value is trust [HatTip - Bucketeer]:
https://hackernoon.com/why-everyone-missed-the-most-important-invention-in-the-last-500-years-c90b0151c169

Q3 2010: $0.06
Q4 2010: $0.10
Q1 2011: $0.31
Q2 2011: $0.73
Q3 2011: $14.27
Q4 2011: $4.57
Q1 2012: $6.18
Q2 2012: $4.88
Q3 2012: $6.66
Q4 2012: $12.57
Q1 2013: $13.96
Q2 2013: $133.76
Q3 2013: $ 76.08
Q4 2013: $125.94
Q1 2014: $881.66
Q2 2014: $421.91
Q3 2014: $623.87
Q4 2014: $353.31
Q1 2015: $280.71
Q2 2015: $243.13
Q3 2015: $279.54
Q4 2015: $244.31
Q1 2016: $443
Q2 2016: $420
Q3 2016: $661
Q4 2016: $613
Q1 2017: $997
Q2 2017: $1,089
Q3 2017: $2,460
Q4 2017: $4,309
Q1 2018: $13,657
Q2 2018: $6,711
Q3 2018: $6,340
Q4 2018: TBD on 01OCT18

* All prices taken from https://www.coindesk.com/price/

"Bitcoin is a test of democracy" - Andreas on 19NOV17:
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Fri Sep 22, 2017

This is the most popular website for checking crypto prices (CMC): https://coinmarketcap.com/

Once there, you can search your favorite crypto, search by biggest gainers or losers, most volume, etc. When you click an individual crypto, you can see where it is traded by clicking on the "Markets" tab. It will show the price of that coin being traded on different exchanges. Prices may be close or might vary wildly based on numerous factors. For example you might see a coin being traded on a Korean exchange at a 25% premium or discount based on geo-political factors or government crackdowns.

It is wise to have exchange accounts established at more than just one exchange in order to get the best price possible for the coin you might want to acquire. Volume is also important. You might see a coin being traded at a 20% discount on a certain exchange, but if there is very low volume you may have to wait days/weeks or longer to get an order filled.

At the top of the CMC website you'll see Market Cap, 24h volume, and BTC dominance. Market Cap is the total market capitalization of all crypto listed on the website. This was once as high as $177 billion in early September 2017, and started off in 2017 at about $18 billion. In early 2018 it has gone over $700 billion. The 24h volume is the total amount of crypto being traded in the last 24 hours (the markets don't close), and BTC dominance is the percent of bitcoin market cap, divided by the entire crypto market cap. As early as the beginning of 2017, this dominance was over 85%. and in June of 2017 it went under 40%. To start 2018 it has been near the 35-33% range.

This is another good website for checking prices: https://onchainfx.com/

The reason this second website is good is that it extrapolates true value. A coin like KMD or IOTA already has 100% of its supply in circulation so you know it won't be diluted at all from future coins (and KMD is actually deflationary). You can easily see what the supply will be in 2050, and not just today. A coin like ADA only has 57% of its supply issued (JAN 2018) so there will be another 43% of the supply that will come to market over time. These are things that matter in regards to future value and should be taken into consideration.
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Fri Sep 22, 2017

How does one acquire bitcoin or altcoins? The old fashion way is to earn it by providing a good or service and requesting payment in bitcoin or an alt. If you merely want to buy it though, the process normally means buying bitcoin at an exchange for fiat money. If you then want an alt-coin, you trade your bitcoin for that alt on an exchange where that trading pair exists.

Centralized Exchanges:
Many of these exchanges have referral links. Send a PM to one of our BS members who has an account and request a referral link for the exchange account you want to open. Some like Coinbase will give each person $10 of free BTC. Others will give a percentage of trading fees for anyone you refer who trades on the exchange.

Coinbase: https://www.coinbase.com/ - this is an American exchange following all the rules & regs of the government. The prices are usually a bit higher, but the reliability is there. The ease of use is adequate for new users. All purchases on Coinbase are essentially market orders, meaning you are buying at the market price (plus their markup fees). You can acquire bitcoin, litecoin (LTC), ethereum (ETH) or Bitcoin Cash (BCH) at Coinbase.

GDAX: https://www.gdax.com/ - this is Coinbase's sister website. You can move coin between GDAX and Coinbase easily with no fee. If you want to make a limit order, and try to time a dip in price for your purchase, GDAX is preferred over using the Coinbase interface (there are zero fees for "maker" orders). For first time users I recommend the simplicity of Coinbase, but once you are comfortable, I would then use GDAX for lower fees and limit orders. GDAX & Coinbase are exchanges which accept fiat via a bank account or credit card. The majority of crypto exchanges do NOT accept fiat.
- To link your Coinbase & GDAX account, see this link: https://support.gdax.com/customer/portal/articles/2436705
- On GDAX, one can transfer up to $10k per day between Coinbase/GDAX: https://support.gdax.com/customer/en/portal/articles/2430129-transferring-funds-between-gdax-and-coinbase
- GDAX Withdraw policies: https://support.gdax.com/customer/en/portal/topics/939402-depositing-and-withdrawing-funds/articles?b_id=13522
It currently costs nothing to send BTC from GDAX (not Coinbase) to any external address. If you want to acquire BTC, ETH or LTC on GDAX/Coinbase and then transfer to another exchange (like Binance) to trade for alts:
1) In your Binance account, go to Funds and then the Deposit/Withdraw page where there is a list of currencies.
2) Scroll down to Bitcoin. Across the column to the right are deposit and withdraw buttons. Click on deposit and it will generate a Bitcoin alphanumeric address for you to send to.
3) Copy that address, go to GDAX and in the BTC/USD trading window click on Withdraw, choose BTC Address as the destination.
4) Then you'll get a box where you can paste in the address you copied from Binance and specify how much BTC. Make sure all is correct and click the approval button. There is currently no fee for this transfer.
5) You should see a Success window. Be aware that lately it can take up to a few hours for BTC to arrive from Coinbase/GDAX. [hat tip: Long John}

Binance - https://www.binance.com/ - this is my current favorite exchange for alt-coins. You can't buy bitcoin directly here, but once you have it, you can transfer it into Bittrex and then buy your favorite alts. They have a large selection, and the interface is fairly easy to use.

Bittrex - https://bittrex.com/ - this was my favorite exchange for alt-coins. You can't buy bitcoin directly here, but once you have it, you can transfer it into Bittrex and then buy your favorite alts. They have a large selection, and the interface is fairly easy to use.

KuCoin & HitBTC - https://www.kucoin.com/#/ & https://hitbtc.com/ - I have used both of these and they are okay. Sometimes withdraws can take a long time from HitBTC.

Kraken - https://www.kraken.com/ - I've not used Kraken but you can convert fiat to bitcoin on this exchange as well.

Gemini - https://gemini.com/ - I've not used Gemini but you can convert fiat to bitcoin on this exchange as well.

Poloniex - https://poloniex.com/ - At the start of 2017 Polo was a crowd favorite. It has had problems with lags during heavy trading, and a lack of adding new coins. I haven't used it since late 2017 but it is still popular.

Bitfinex - https://www.bitfinex.com/ - Large volume here, but has barred US customers. Still good to check prices here as this is where a lot of whales trade.

List of all the exchanges here: https://coinmarketcap.com/exchanges/volume/24-hour/

Decentralized Exchanges (DEX):
These exchanges are not run by a company but are decentralized so that you don't need to hold your coin on the exchange to make a trade. These are getting better each month, but currently don't have the same amount of volume that the centralized exchanges do. Once the interfaces are better, and volume increases, these will end up being the preferred style. This is one solution for Chinese citizens who are currently being barred from the big exchanges.

Upcoming DEXs: HALO, Binance Chain (DEX), Loopring, ethfinex?

Bitshares - https://bitshares.org/ Perhaps the largest decentralized exchange, created by Dan Larimer (co-founder of Steemit, EOS as well)

Waves - https://wavesplatform.com/ - Decentralized exchange.

Komodo - https://komodoplatform.com/ - This will be a decentralized ICO platform for launching ICOs

EtherDelta - https://etherdelta.com/ - A decentralized exchange for Ethereum compatible tokens (also called ERC-20 tokens). This interface is not great.

There are many more exchanges, this is just a short list to get you started.

EDIT: Heidi just made a good video with some high points on decentralized exchanges:
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Fri Sep 22, 2017

How or where can one learn about bitcoin and crypto? Chris Coney has a YouTube channel https://www.youtube.com/channel/UCLnQ34ZBSjy2JQjeRudFEDw/videos where he gives daily news about the crypto markets and updates on market moves. He also has a paid Crytpo University - cryptoversity - for new people coming into the space who truly want to understand the why & how of bitcoin and crypto. I highly recommend this course. If you took it, you would likely save yourself the months/years it took for some of us to wrap our heads around this space. I do not make any $$$ referring you there, it is just a top of the line program so I recommend it. He even has a money-back guarantee if you aren't satisfied.

Also, here is a good bitcoin FAQ: https://bitcoin.org/en/faq

Here is the bitcoin wiki page: https://en.bitcoin.it/wiki/Main_Page

The Bitcoin original White Paper: https://bitcoin.org/bitcoin.pdf

Here is a link to CoinDesk's 2017 "State of the Blockchain" report that is 170 pages long, full of good data and analytics:
https://media.coindesk.com/uploads/research/state-of-blockchain/2017/q4/sob2017q4-2018.pdf

https://www.cryptoversity.com/
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Fri Sep 22, 2017

How do you store your bitcoin or crypto?

If you just bought your first bitcoin on Coinbase, you can store it there. They have both "hot wallets" and "vault wallets". The normal wallet is more liquid, and the vault wallet takes up to 24-48 hours to withdraw - as they say the coin is in cold storage (completely offline). Bottom line though is that when you store your crypto with a company, exchange or entity, where you do NOT control the private keys or passphrases protecting the private keys, you technically don't own or control your bitcoin. It is the same as fiat money at your bank. It's yours in their database, but until you withdraw it, it isn't technically even your money.

I like to use wallets that store multiple coins. The below wallets are reported to work well.

EDIT: as of 09FEB18 - if you want to spend your bitcoin with any merchant that is using BitPay as a payment service (like APMEX does) you need to spend your bitcoin from a wallet that is compatible, such as: BitPay, CoPay, Mycellium, AirBitz, Electrum, or Bitcoin Core Wallet.
See here for details: https://support.bitpay.com/hc/en-us/articles/115005701523

BitPay - https://bitpay.com/wallet

Eidoo - https://eidoo.io/

Jaxx - https://jaxx.io/

Exodus - https://www.exodus.io/

MyEtherwallet (MEW) - https://www.myetherwallet.com/ This is the popular Ethereum based wallet for ERC-20 tokens. You can use a hardware wallet in conjunction with MEW for extra security.
Instructions for MEW setup: https://medium.com/@paulymakk/crypto-101-mew-aeffe1f95b95

Once you have a few thousand $$$ in crypto, you really need to upgrade to a hardware wallet. You can easily move funds from your hardware wallet to Jaxx or Exodus in order to spend coin (if you desire), but you don't want to keep all your wealth in an online wallet. Cold storage, via a hardware wallet, is the preferred method.

Hardware wallets:

Ledger (either the Nano s, or ledger blue) - https://www.ledgerwallet.com/ The ledger nano s is probably the best value on the market. It looks like a USB, is easy to use, and does its job well. It is MEW compatible. I don't own one (yet) but I do have a ledger blue ordered to me and awaiting shipping.

Trezor - https://trezor.io/ - I own a Trezor and am satisfied with it. It is compatible with MEW and easy to use. This is my preferred device currently.

KeepKey - https://www.keepkey.com/ - I own a KeepKey and am satisfied with it. It isn't MEW compatible though. The interface is sleek.

You can shop and compare the different hardware wallets here: https://www.cryptohwwallet.com/

Why do you need a hardware wallet or separate computer for your crypto? See this quick hacker file:
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Fri Sep 22, 2017

Bitcoin is already too expensive, and I can't afford to buy a whole bitcoin.

That is not a problem. There will only ever be 21 million bitcoins. In 10 years, simply owning a single bitcoin will be an accomplishment that few can easily achieve. Bitcoin is divisible into 100 million smaller parts, with the smallest unit of measure being called a Satoshi (or sats) which is named after the bitcoin inventor (who is still unknown), Satoshi Nakamoto. Sometimes you might hear people say they bought an alt-coin for 57k sats or some other number. They are pricing the alt-coin in bitcoin (instead of dollars). In this instance, 57k sats = 0.00057000 bitcoin. It is easier to say 57k sats than to say 0.00057 bitcoin. At today's prices, that 57k sat purchase is just over $2. Bottom line is that you can buy $50 or $100 of bitcoin. You don't need to acquire a whole bitcoin when just starting out. Or you can buy a whole LTC, ETH, QRL or another alt-coin of your choice.

Here is a helpful chart that shows the breakdown:
https://spectrocoin.com/en/faqs/bitcoins/is-bitcoin-divisible.html

How is bitcoin different, a 2 part piece:
Part 1: https://medium.com/@markjeftovic/this-time-is-different-part-i-what-bitcoin-isnt-eb9f645239b1

Part 2: https://medium.com/@markjeftovic/this-time-is-different-part-2-what-bitcoin-really-is-ae58c69b3bf0
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Fri Sep 22, 2017

What about those staking coins where a person can earn more coin just by holding?

Bitcoin is a Proof of Work (PoW) coin that involves miners who run expensive specialized computers (ASICs) to update and verify the ledger and to receive the 12.5 bitcoin (currently) block reward every 10 minutes. Because the miners incentives don't always align with users, developers, exchanges, and other stakeholders, there can be in-fighting in the community about how to proceed - hence the battle over bigger block-size, throughput, scalability, etc. This is how we got Bitcoin Cash and Segwit2x. Some people want bitcoin to be a currency, others want it to be more of a store of value.

Proof of Stake (PoS) coins allow users (instead of miners) to hold their coin in a wallet, and secure the network and stake coin. This also saves a ton of electricity because it doesn't require specialized computing power. A simple computer can stake a coin. So coins like PIVX, HYP, QTUM, QRL (Q3 2018), TX, and others allow users to stake the coin and receive rewards in proportion to how much coin they own. This aligns incentives within the community, in a better way than the PoW system. Miners care about profits, and have fixed costs they must pay - so they sell their coin regardless of market price in order to continue operations. PoS doesn't have this problem.

The downside of PoS is that it requires a computer on and running 24/7 if you want to stake the maximum amount. Therefore instead of keeping your coin in a hardware wallet, you need to have it in a downloaded wallet of that respective coin. This is less secure than a hardware wallet. I use a staking only computer for this task, and don't surf the web or do anything else on that computer, just staking, in order to be as secure as possible.

Here would be the theoretic steps one would go through when downloading a PoS coin like HYP, for example:
1) After you download the HYP wallet from the official webstie, the first thing to do is encrypt it. Go to Settings --> Encrypt Wallet.
2) Put in a strong password and don't forget it. You lose that, and you can't recover your coin. So write it down, and store securely.
3) You only need to create a wallet.dat backup file AFTER you have deposited coin into your wallet. So after you have deposited HYP, go to File --> Backup Wallet. You should create a new backup after every time you add more coin into your wallet. Also, you should use a new receiving address each time you input new coin into your wallet.
4) This backup will create a wallet.dat file that you can save on a USB off your computer. This way, if your computer crashes, you can upload a new HYP wallet onto another device, save your wallet.dat file in the appropriate place, unlock your wallet with your encryption phrase, and you're back to good.
5) To find where you would upload your wallet.dat file to (from your USB stick), type into your search bar: %appdata% and hit enter. You will then see a HYP folder. Click on that and you will see the wallet.dat file. So if you ever needed to upload a new HYP wallet to a new device, you would simply download the wallet to that new device, delete the existing wallet.dat file (which would be empty if it is a new wallet) and upload your previously saved wallet.dat file from your USB and let the wallet sync - and you're good.
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Fri Sep 22, 2017

PoW and PoS are not the only two type of blockchain consensus protocols. There are others like Proof of Authority used by VeChain (VET) or another called the Delegated Byzantine Fault Tolerance (dBFT), used by NEO. While I won't get technical with the details here, the bottom line is that NEO holders earn GAS. The coins only need to be associated with your private key in your wallet to earn that GAS. It is NOT required that you actively stake NEO on a computer 24/7 to earn the GAS. It happens automatically once you've transferred the NEO into your wallet. This system is similar to PoS, but more convenient for the user who doesn't want to keep a computer constantly running, and it keeps the coin more secure than PoS style coins sitting in your home computer too.

This is a good time to also mention that although we use terminology like coin being "in your wallet" that technically isn't true. All the coin exists on the blockchain itself. Your private key merely unlocks your access (ownership) of the coin to give you the ability to spend / send it where you desire.

If you want to read further about dBFT or PoA, see...
https://medium.com/@vechainofficial/defining-the-vechainthor-blockchain-consensus-proof-of-authority-8cf3f51a5fa0
https://themerkle.com/what-is-delegated-byzantine-fault-tolerance/
https://cryptoinsider.com/byzantine-fault-tolerance-blockchain-systems/
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Fri Sep 22, 2017

Where can I go to find daily news about the crypto world:

CoinDesk: https://www.coindesk.com/

CoinTelegraph: https://www.cointelegraph.com/

CryptoPanic: https://cryptopanic.com/ (only for the truly hardcore who want up to date by the minute)

There are also some good YouTube guys out there with news updates.

I already mentioned Chris Coney: https://www.youtube.com/channel/UCLnQ34ZBSjy2JQjeRudFEDw/videos

BoxMining is also good: https://www.youtube.com/channel/UCxODjeUwZHk3p-7TU-IsDOA/videos

And Andreas of course: https://www.youtube.com/user/aantonop/videos
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Fri Sep 22, 2017

I'm too late to enter, bitcoin is a bubble.

In a bubble compared to what? Bitcoin is an alternative currency. Only 21 million will ever exist, and several million of those are probably already forever lost. It is not a mandated currency, it is a voluntary one. When I watch the price of bitcoin (in USD fiat terms) increase, what I'm really seeing is the fall of the other competing fiat currencies like the USD, euro, yen, etc. These fiat currencies are falling hard compared to the better alternative - bitcoin.

Previous bubbles in the stock markets or real estate have obvious benchmarks to compare against both historically, year over year, and against other markets. Stocks have Price/Earnings ratios, dividends, and other metrics where prices are based on future earnings. Real estate has both rent value equivalents, replacement value level (construction), and Price/Annual Income. If you are paying 15 times your annual salary for a house, it is historically WAY overpriced. These metrics tell us if/when a bubble is forming.

Money & currency are different. They are arguably always in a bubble, because their usage is based on confidence in the underlying system and network. Some would argue that bitcoin/crypto uniquely fit the valuation definition using Metcalfes Law: https://en.wikipedia.org/wiki/Metcalfe%27s_law There is no price/earnings because there are no earnings. Now some cryptos will have earnings (DBET), but currencies like bitcoin will not. Bitcoin's value is simply derived from the amount which other people are willing to trade other currencies for it. So if there is a party willing to give $3k or $15k for a single bitcoin, then that will establish a market price. One could argue it is irrational to pay "x" price for 1 bitcoin, but that is a theoretical and subjective opinion. If bitcoin is a superior currency in theory and reality (and it is), why not acquire it with depreciating fiat that can be printed to infinity? The smart play is to acquire as much of the best currency as possible as cheaply as possible.

Here are some fun visuals:

Our debt is now over $20 trillion.
Debt.png
Debt.png (796.47 KiB) Viewed 7546 times

This picture was taken from this website: http://demonocracy.info/infographics/usa/us_debt/us_debt.html

Another visual from June 2017, bitcoin compared to other fiats: https://cointelegraph.com/news/how-bitcoin-does-versus-gold-fiat-and-all-worlds-money

Visualization of all the bitcoin nodes (over 9,000): https://bitnodes.21.co/

Visualization of bitcoin transactions in real time (size of the bubble reflects the amount of BTC): http://bitcoin.interaqt.nl/
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Re: The Bitcoin (crypto) Beginner's Guide

Postby silverpv » Fri Sep 22, 2017

Eggcellent.. I'll repost and credit ya

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Re: The Bitcoin (crypto) Beginner's Guide

Postby Long John » Fri Sep 22, 2017

SilverDoge wrote:I'm too late to enter, bitcoin is a bubble.

That's a good one. I remember back in March or April, when I had decided I couldn't keep arguing from a position of ignorance, I would buy some Bitcoin once it dropped below $1000, as it was surely bound to do. It couldn't possibly stay above $1000, could it? Eventually I bought some (with Travis' help) in the area of $1100 or $1200, feeling I was vastly overpaying. Today of course, even in the midst of a deep dip, it is 3X that and has been as high as 4X. So it's all relative, and perception changes over time.

But for those intimidated by the price of Bitcoin, remember that most purchases and trades are in fractions of a BTC. Buy a 1/10th of a BTC on Coinbase to start. Or even try it out on paper, a dry run, before deciding to plunge in for real. A fun exercise is to pretend you're rich and buying 100 BTC, say for $350,000 at the current price. That's just walking-around money for a mogul like you. What's that worth tomorrow? Next week? Did you gain $50K? Lose $25K? Is this game for you?

This thread is a great idea. There is invaluable information in the other threads, but you have to wade through a lot of other stuff, not so useful to a beginner, to find it.

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Re: The Bitcoin (crypto) Beginner's Guide

Postby Brick's » Sat Sep 23, 2017

OK, I know this is from Agora's Daily Reckoning but Rickards seems to bring up some good points. I'm not trying to hijack the thread but this should be something beginners should be aware of, IMHO.

It reminds me greatly of the takeover of the "organic" label by big agi and the government (USDA) from the regional control of the organic label by those who were directly involved in the industry on a literally local basis. While I was not a member of the "organic" administration at the time, I was very politically active and an involved member who spoke out on loosing control to the elite. And that is exactly what happened.

From the below, I fear the same to happen to cryptocurrencies:

That being JPMorgan, Wells Fargo, State Street, SWIFT, Cisco, Accenture, the London Stock Exchange and Mitsubishi UFJ Financial have announced they plan on a joint effort to develop an open-source blockchain as a uniform standard for all blockchain applications.

That the Uniform Law Commission, proposes model laws intended for adoption in all fifty states, has released its latest proposal called the “Uniform Regulation of Virtual Currency Businesses Act.” The new law will not only provide a regulatory scheme for state regulators, but will also be a platform for litigation by private plaintiffs and class action lawyers seeking recourse against real or imagined abuses by digital coin exchanges and facilities. Once litigation begins, anonymity is the first casualty.

Additional developments include: On August 1, 2017, the SEC announced “Guidance on Regulation of Initial Coin Offerings,” the first step toward requiring fundraising through blockchain-based tokens to register with the government.

On August 1, 2017, the World Economic Forum, host body to the Davos conference of global super-elites, published a paper entitled “Four reasons to question the hype around blockchain.”

On August 7, 2017, China announced they will begin using blockchain to collect taxes and issue “electronic invoices” to citizens there.

Perhaps most portentously, the International Monetary Fund (IMF) has weighed in. In a special report dated June 2017, the IMF had this to say about blockchain:

“Distributed ledger technology (DLT), in particular, could spur change in the financial sector. …. DLT can be categorized as “permissionless” or “permissioned” depending on who can participate in the consensus-driven validation process. Permissionless DLTs allow anyone to read, transact on, and participate in the validation process. These open schemes (that underlie Bitcoin, for instance) could be very disruptive if successfully implemented. By contrast, in permissioned DLTs, the validation process is controlled by a pre-selected group of participants (“consortium”) or managed by one organization (“fully-private”), and thus serve more as a common communications platform.” (emphasis added).

IMF releases require expert translation because they are never written in plain English, and the real meaning is always hidden between the lines. But, the thrust of this report language is clear. The IMF favors “permissioned” systems over “open schemes.” The IMF also favors control by a “pre-selected group of participants” or “one organization,” rather than allowing “anyone” to participate.

This paper should be viewed as the first step in the IMF’s plan to migrate its existing form of world money, the special drawing right or SDR, onto a DLT platform controlled by the IMF. In time, all other forms of money would be banned.

All taken from: https://dailyreckoning.com/global-elite ... currencies

As I have stated several times, I am for the decentralization and devolution of the State and International Corporations' centralization of power and money so am very much for getting money out of their control. But, will they let it happen? It seems they will let the initial start ups do a wild west initial gamble but now that it is proving itself a very potential reality, it appears they plan to take it over and control it.
"If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent," Credited to Goebbles.

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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Sat Sep 23, 2017

Brick's wrote:“Distributed ledger technology (DLT), in particular, could spur change in the financial sector. …. DLT can be categorized as “permissionless” or “permissioned” depending on who can participate in the consensus-driven validation process. Permissionless DLTs allow anyone to read, transact on, and participate in the validation process. These open schemes (that underlie Bitcoin, for instance) could be very disruptive if successfully implemented. By contrast, in permissioned DLTs, the validation process is controlled by a pre-selected group of participants (“consortium”) or managed by one organization (“fully-private”), and thus serve more as a common communications platform.” (emphasis added).

The IMF favors “permissioned” systems over “open schemes.” The IMF also favors control by a “pre-selected group of participants” or “one organization,” rather than allowing “anyone” to participate.

This paper should be viewed as the first step in the IMF’s plan to migrate its existing form of world money, the special drawing right or SDR, onto a DLT platform controlled by the IMF. In time, all other forms of money would be banned.


I've read Rickards book The Death of Money where he predicts the IMF will have this SDR currency (potentially "backed" by gold that each country who is part of the SDR owns) as the final solution to the death of the dollar. IIRC, he noted that the global community was waiting on China to get their gold holdings up so they could be a larger part of this SDR, but this point in the future could happen soon.

There are so many points to unpack here. First there is a big difference between public blockchains (Bitcoin) and private/permissioned/consortium blockchains (Ripple). Just because something is called a cryptocurrency or a blockchain project does NOT mean it has the same protocols and features. For a decent read on the difference, see here: https://www.ibm.com/blogs/blockchain/2017/05/the-difference-between-public-and-private-blockchain/

Here is the original Bitcoin White Paper as well: https://bitcoin.org/bitcoin.pdf

This is the first sentence from the abstract of the Bitcoin paper: "A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution." That was and is the point of bitcoin. Of course the IMF, JPMorgan, and the consortium of banks are against it, and now that bitcoin hasn't gone away after 8 years, they want to hijack the technology, replace bitcoin with their "permissioned" crypto in order to suit their evil ends. It is no surprise that the IMF favors "permissioned" systems over free and trustless systems. By the way, I've already predicted this would eventually happen at some point in the future, and the reason we need to be ahead of the elites, banksters, and corrupt politicians who do not have the US citizen's best interest in mind. If you want to read that, see here: http://www.bullionstacker.com/viewtopic.php?f=108&t=15864&p=542459&hilit=revelations#p542459

The bottom line is this, one day the dollar and fiat currencies will implode upon themselves. Do we want to trust the same people who have lied to us for years, stole the wealth of the country for their own gain via inflation (hidden tax) and debt based, fractionally reserved lent fiat? If anyone wants to trust those hypocrites, then I encourage you to embrace this potential IMF permissioned DLT which will track your every purchase and allow zero anonymity or privacy. With this DLT they will be able to threaten you with taxes, jail, or death for whatever new laws they decide to pass, including purchasing "unapproved" items. We live in a world where people can go to jail for offending others with a facebook post.

If you'd rather live in a world where you have some level of privacy, the freedom to transact peer to peer with any party of your choosing on a global scale without being immediately tracked - yet risk being considered someone acting outside the norm, or perhaps one day even acting outside a new arbitrary law stating you can only use this IMF crypto and all others are illegal - then I welcome you to join me in the quest for liberty and freedom. May we be outlaws against tyranny together.
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Sat Sep 23, 2017

I was scrolling though Andreas' twitter feed, and just saw that he has recently uploaded a video playlist for bitcoin beginners. So here you go:

https://www.youtube.com/playlist?list=PLPQwGV1aLnTuN6kdNWlElfr2tzigB9Nnj
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Sat Sep 23, 2017

Brick's wrote:This paper should be viewed as the first step in the IMF’s plan to migrate its existing form of world money, the special drawing right or SDR, onto a DLT platform controlled by the IMF. In time, all other forms of money would be banned.


Can governments stop bitcoin and cryptocurrencies? I agree with Ameer about centralized exchanges, and we will see volume slowly moved to the DEXs (decentralized exchanges). While it won't be without pain, and a decrease in fiat price (temporarily), the blockchain can't be stopped, only outlawed [by corrupt governments].

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Re: The Bitcoin (crypto) Beginner's Guide

Postby bankmining » Sat Sep 23, 2017

Just wanted to say thanks for this thread. You've put out a LOT of good info/links here. :thumbup:

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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Sat Sep 23, 2017

So where can I actually use or spend my bitcoin?

This is one that hasn't concerned me quite yet, as I'm still in the accumulation phase of crypto. That said, I have traded my crypto for goods and services before. I've bought thousands of dollars of silver from bullion dealers using crypto, I've purchased items from overstock.com and other retailers using crypto. This is a bit of a chicken and egg problem. Vendors don't want to go through the "trouble" of adopting a new payment system if customers aren't demanding it. Customers aren't using crypto because vendors aren't offering it as a payment method. This is always a problem for new payment systems and takes time. Usually we see the smaller companies adopting first as they look to garner a competitive edge over the big players who don't need to adopt to customer desires because they already have the larger market share.

Additionally, Gresham's Law holds that bad money is spent before good money. Meaning I spend my depreciating fiat before I part with my bitcoin that is increasing in value relative to fiat currencies. These are small obstacles to overcome, and people will want to spend their bitcoin, especially after locking in gains. I should also mention that it doesn't matter if a vendor immediately converts their crypto to fiat upon a purchase. It is still helping the overall crypto adoption and network. Eventually, the smart vendors will choose to keep a portion of their holdings in crypto and assume a bit of currency risk for the potential rewards (assuming their margins aren't ultra-tight).

So getting to the original question - how to spend bitcoin. There are companies that exist and some coming on board that are allowing users to load bitcoin onto a type of credit card to spend wherever Visa is accepted.

Here are two articles comparing different bitcoin card services to include Xapo, BitPay, Wirex, Shift, CryptoPay and more. These lists don't even including upcoming projects like Monaco and TenX.

https://cointelegraph.com/news/6-cards-battle-for-bitcoin-supremacy-bitcoin-debit-card-comparison-test

https://99bitcoins.com/bitcoin-debit-card-compared-reviewed/

EDIT: as of 09FEB18 - if you want to spend your bitcoin with any merchant that is using BitPay as a payment service (like APMEX does) you need to spend your bitcoin from a wallet that is compatible, such as: BitPay, CoPay, Mycellium, AirBitz, Electrum, or Bitcoin Core Wallet.
See here for details: https://support.bitpay.com/hc/en-us/articles/115005701523

Other goods and services?
As of DEC 2017, you can search on Craigslist and filter for vendors/merchants/sellers accepting crypto.
https://www.craigslist.org/about/sites
List search - https://99bitcoins.com/who-accepts-bitcoins-payment-companies-stores-take-bitcoins/

Book a flight with BTC:
Expedia - https://www.expedia.com/Checkout/BitcoinTermsAndConditions
CheapAir - https://www.cheapair.com/blog/travel-news/book-your-flights-on-cheapair-with-bitcoin-virtual-currency/

Shop on Amazon with Purse.io - https://purse.io/shop
Computer & electronics at Newegg - https://promotions.newegg.com/nepro/16-6277/index.html
Giftcards using Dash - https://www.bitcart.io/
Overstock.com accepts bitcoin
Get your Hot Sauce - https://www.pexpeppers.com/
Search hundreds of vendors that take not just bitcoin, but multiple cryptos using coinpayments.net - https://www.coinpayments.net/store-directory-allpage-1

Buy Precious Metals with bitcoin - https://www.jmbullion.com/
APMEX just began to support bitcoin as well (DEC 2017) - https://www.apmex.com/faq/bitcoin#do-you-accept-bitcoin

Finally, it makes sense that a Lambo dealership would begin to accept bitcoin (Teslas too) - https://themerkle.com/buy-a-lamborghini-with-bitcoin-in-newport-beach/
Last edited by SilverDoge on Fri Feb 09, 2018, edited 3 times in total.
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Re: The Bitcoin (crypto) Beginner's Guide

Postby SilverDoge » Sat Sep 23, 2017

Bitcoin seems really cool, but what if I want to get into one of these new ICOs (Initial Coin Offerings)? Where do I begin to research those?

ICO's are the riskiest part of this business. They were particularly bad in China with consumers getting ripped off left and right. Hence the government crackdown. While the SEC hasn't outlawed ICOs for US investors (yet), they have given some guidance based on the potential for crypto coins to be considered securities based on the Howey test. If you want to explore this further, see here: https://cryptoinsider.com/sec-verdict-ico-howey-test/

Many crypto companies are forming in Singapore, Panama, Hong Kong, or Switzerland, or many other places more free from regulations than the "land of the free" - USA. These ICOs are often restricting US customers from participating so that they won't be hit by the SEC after the fact even though they've incorporated in a different country. The US believes they can penalize foreign corporations, merely for US investors participating. Crazy, I know. That being said, if you still desire to get into the ICO space here are a few websites to research upcoming ICOs:

ICO Alert - https://www.icoalert.com/ - this one has paid reports where they analyze the upcoming ICO.

Smith & Crown - https://www.smithandcrown.com/icos/

ICO Tracker - https://icotracker.net/

This is an ICO Resource List by Coinbase - https://www.coindesk.com/the-ultimate-list-of-resources-for-researching-and-launching-icos/

Bottom line is there are way too many ICOs to keep track of, and the majority will likely end up losing money. Tread carefully.
Last edited by SilverDoge on Sun Sep 24, 2017, edited 1 time in total.
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