Topic Wiki

Editor’s note: I know enough about this topic to be dangerous, but I’m not a true expert so please feel free to add to or edit anything in this wiki that will improve it. The FAQs contain many oversimplifications but that is intentional to make the information relatable to the audience. Thanks!

Frequently Asked Questions

What are blockchains and bitcoins and what is the difference?
A blockchain is the fundamental element in a crypto currency system. A blockchain is an accounting ledger. Each block contains a bunch of journal entries (i.e. a chronological record of transactions) that gets encrypted (by miners) but can be downloaded and read by anyone on the network. Why the blockchain ledger is secure and how we can vouch for its integrity is a slightly more advanced topic.

An accounting ledger typically keeps track of money, and a blockchain is no different. But the only type of money that it can accurately track is digital money that lives on the blockchain network. So dollars, euros, etc are out. The digital money that lives on the blockchain is called a crypto currency, and the most well-known one at this time is Bitcoin.

Currently there are a few major blockchain networks: the Bitcoin Network, the Ethereum Network, and the Litecoin Network. Each one has its own currency, which are Bitcoin, Ether, and Litecoin, respectively.

I’m just a simple DDFer and not an accountant + cryptographer + hacker all at the same time. Can you make this a little simpler to understand?
Let’s try an analogy. There is a certain website called Dansdeals.com and it has quite a following. Some of the followers are just users/readers but others are more active and produce value for the website. When they provide value, they earn currency for their work – called “EQP” and “HT”. So we have something we will call the Dansdeals Blockchain Network that is simply a record keeper of various ongoing deals and it issues a native currency that is fractionable (10,000 EQP = 1 HT). This is similar to the Blockchain network recording financial transactions and issuing bitcoins. The ones who work for the network (miners) earn bitcoins and everyone else needs to buy it to participate.

The analogy improves if you imagine that the Dansdeals website visitors have to pay a small amount, let’s say 5 EQP, in order to access a deal or a code that is recorded on the network. If the website has 30,000 followers who love deals, but only 1,000 active members who earn EQP, then you can see that there is a need for a marketplace to be created where you can buy EQP for later use.

Of course, websites are not networks, and this analogy is far from perfect. But useful.

How much is a Bitcoin worth
No one knows. A few people are speculating its worth based on the potential that Bitcoin will one day become a major world currency that people use in their daily lives. Most people though are speculating its worth based on what the next new investor will pay them for it (google “Greater Fool Investing”).

Even if a crypto currency becomes dominant, who says it will be Bitcoin? Maybe it will be Schmitcoin?
This is completely possible. Bitcoin and Ether are the most likely at this point, but their long term survival is not at all guaranteed.

So why all the fuss about Bitcoin? Shouldn’t we wait for Schmitcoin and its cousins to come out?
You could, but you don’t want to ignore how hard it is to start up a network from scratch. It may be that as little as one person can create rival code to compete with the existing digital currencies and blockchains, but one person is not a network. You need a lot of highly technical and motivated people to join you and also to invest their time, energy, and money in making that network run. It’s a highly specialized group of people, and most of the people who would fit that profile are already tied up with an existing network. So it’s not impossible, especially in the long-term, but even if it does happen it would be unlikely to pop up overnight and so Vegas odds for Bitcoin are way shorter.

Let’s go back to the Dansdeals analogy. Imagine that Dansdeals is not the only such website, and there are other websites in existence that provide similar services. For the sake of the analogy let’s call them MMS and OMAAT. They too have big enough followings to survive independently, and even though each one offers a slightly different flavor that differentiates them, anyone on one of the networks could also get their most important needs met on one of the other networks. In this analogy, do you think it’s worth collecting EQP/HT or not? After all, Schmansdeals.com could open up one day and all the business could move there.

The argument for the difficulty of starting up a rival blockchain network is much stronger than in the analogy (especially if we start to include “smart contracts” in the discussion), but the basic idea that you need a critical mass of follows to be successful and compete with existing rivals is the same.

« Last edited by yuneeq on December 25, 2017, 01:05:21 AM »

Author Topic: BitCoin Master Thread  (Read 347586 times)

Offline ExGingi

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Nov 2015
  • Posts: 15633
  • Total likes: 7723
  • DansDeals.com Hat Tips 19
    • View Profile
  • Location: 770
  • Programs: בשורת הגאולה. From Exile to Redemption. GIYF. AAdvantage Executive Platinum®
Re: BitCoin Master Thread
« Reply #1740 on: June 07, 2021, 07:47:44 PM »
Coinbase quietly listed Doge yesterday, in case anyone is interested

Coinbase finally sent me a docusign to open an account (it's been quite a while since I applied for it - business account).
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline ExGingi

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Nov 2015
  • Posts: 15633
  • Total likes: 7723
  • DansDeals.com Hat Tips 19
    • View Profile
  • Location: 770
  • Programs: בשורת הגאולה. From Exile to Redemption. GIYF. AAdvantage Executive Platinum®
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline jaywhy

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Sep 2012
  • Posts: 3768
  • Total likes: 68
  • DansDeals.com Hat Tips 7
    • View Profile
Re: BitCoin Master Thread
« Reply #1742 on: June 07, 2021, 10:12:59 PM »

So the hackers were sophisticated enough to hack critical infrastructure but dumb enough to use a hosted wallet in NC to keep their bitcoin?  :o
LOL

Offline Lurker

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jul 2019
  • Posts: 5054
  • Total likes: 6390
  • DansDeals.com Hat Tips 2
    • View Profile
  • Location: As always, silence is NOT an admission of agreement on DDF. It just means that people lack the stamina to keep on arguing with made up "facts", illogical arguments, deceiving statements, nasty and degrading comments, and fuzzy math. - @yelped
Re: BitCoin Master Thread
« Reply #1743 on: June 08, 2021, 11:46:02 AM »
Today's playlist is brought to you by Limbo: how low can we go? Currently playing Way Down We Go by Kaleo.

Special for True Story Tuesday, now playing  Friends In Low Places by Garth Brooks.
Failing at maintaining Lurker status.

Offline ExGingi

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Nov 2015
  • Posts: 15633
  • Total likes: 7723
  • DansDeals.com Hat Tips 19
    • View Profile
  • Location: 770
  • Programs: בשורת הגאולה. From Exile to Redemption. GIYF. AAdvantage Executive Platinum®
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline AsherO

  • Global Moderator
  • Dansdeals Lifetime 30K Presidential Platinum Elite
  • **********
  • Join Date: May 2008
  • Posts: 30535
  • Total likes: 7832
  • DansDeals.com Hat Tips 79
    • View Profile
  • Location: NYC
Re: BitCoin Master Thread
« Reply #1745 on: June 13, 2021, 06:56:26 PM »
100% of Likes will be donated to support our brothers and sisters in Eretz Yisrael

Offline yuneeq

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jan 2013
  • Posts: 8611
  • Total likes: 4000
  • DansDeals.com Hat Tips 10
  • Gender: Male
    • View Profile
  • Location: NJ
Re: BitCoin Master Thread
« Reply #1746 on: June 13, 2021, 07:22:25 PM »
Great idea, so when crypto implodes these people won’t have the financial means to retire...

Allocating max 5% in crypto as a long term hold is actually a very smart way to invest in crypto
Visibly Jewish

Offline WonderingYid

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Jun 2021
  • Posts: 1536
  • Total likes: 294
  • DansDeals.com Hat Tips 3
    • View Profile
  • Location: New York
Re: BitCoin Master Thread
« Reply #1747 on: June 13, 2021, 11:54:58 PM »
WOW. And here we thought that bitcoin is not traceable...
Its traceable. You just don't know who owns it.

Offline aygart

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: May 2008
  • Posts: 17404
  • Total likes: 14342
  • DansDeals.com Hat Tips 14
    • View Profile
    • Lower Watt Energy Brokers
  • Programs: www.lowerwatt.com
Feelings don't care about your facts

Offline Dan

  • Administrator
  • Dansdeals Lifetime 50K Diamond Elite
  • **********
  • Join Date: May 2008
  • Posts: 67601
  • Total likes: 16913
  • DansDeals.com Hat Tips 16442
  • Gender: Male
    • View Profile
  • Location: CLE
  • Programs: UA GS, AA EXP, DL Dirt, Hyatt Glob, Fairmont Lifetime Plat, DD Diamond, Blocked By @NeriaKraus
Re: BitCoin Master Thread
« Reply #1749 on: August 09, 2021, 02:56:44 PM »
Finally dipped my toes into crypto buying 5 ETH at $1,850 a month ago.
Do I HODL or sell now? :P

Feels like a slot machine. If only I got in when this thread was started.  :-[
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline yos9694

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2012
  • Posts: 1903
  • Total likes: 899
  • DansDeals.com Hat Tips 6
  • Gender: Male
    • View Profile
Re: BitCoin Master Thread
« Reply #1750 on: August 09, 2021, 03:09:07 PM »
Finally dipped my toes into crypto buying 5 ETH at $1,850 a month ago.
Do I HODL or sell now? :P

Feels like a slot machine. If only I got in when this thread was started.  :-[

You know the answer... no one knows. A few years ago I would have (and did) bet that ETH would become the gold standard- BTC was a great learning experiment but it is unscaleable and expensive to transact- but it's not what I'd say now. BTC has artificial support from its name recognition and loyalists, and a whole bunch of other alt coins could be more promising than ETH.

I think ETH's rise in market share is due to hopes and dreams pinned on the 2.0 upgrades. That may play out for a while (or forever if it lives up to promises). You could see $10k per ETH or $100 by year end. It's a double bet, because as the market cools/heats up everyone moves together.

Offline springles

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2010
  • Posts: 1977
  • Total likes: 44
  • DansDeals.com Hat Tips 6
    • View Profile
Re: BitCoin Master Thread
« Reply #1751 on: August 09, 2021, 03:30:42 PM »
You know the answer... no one knows. A few years ago I would have (and did) bet that ETH would become the gold standard- BTC was a great learning experiment but it is unscaleable and expensive to transact- but it's not what I'd say now. BTC has artificial support from its name recognition and loyalists, and a whole bunch of other alt coins could be more promising than ETH.

I think ETH's rise in market share is due to hopes and dreams pinned on the 2.0 upgrades. That may play out for a while (or forever if it lives up to promises). You could see $10k per ETH or $100 by year end. It's a double bet, because as the market cools/heats up everyone moves together.
I don't think there's much of a chance of either of those 2  by year end. The most optimistic predictions I've seen are 6-8k by end of year. The reasonable floor for the next 6 months is probably ~$1000.
I do agree that it's anyone's guess where in that range we land and I totally agree that unless 2.0 delivers on its promises then we will see another coin overtake eth within a couple years.

Offline CountValentine

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Mar 2013
  • Posts: 15792
  • Total likes: 7320
  • DansDeals.com Hat Tips -1
  • Gender: Female
    • View Profile
  • Location: Poland - Exiled
  • Programs: DAOTYA, DDF Level 3, 5K Lounge
Re: BitCoin Master Thread
« Reply #1752 on: August 09, 2021, 04:05:48 PM »
If only I got in when this thread was started.  :-[
Just like any pyramid scheme.  :)
Only on DDF does 24/6 mean 24/5/half/half

Offline Dan

  • Administrator
  • Dansdeals Lifetime 50K Diamond Elite
  • **********
  • Join Date: May 2008
  • Posts: 67601
  • Total likes: 16913
  • DansDeals.com Hat Tips 16442
  • Gender: Male
    • View Profile
  • Location: CLE
  • Programs: UA GS, AA EXP, DL Dirt, Hyatt Glob, Fairmont Lifetime Plat, DD Diamond, Blocked By @NeriaKraus
Re: BitCoin Master Thread
« Reply #1753 on: August 09, 2021, 04:22:09 PM »
Just like any pyramid scheme.  :)
Please not the usual pyramid etc rants.
;D

To be fair, pyramids require "investors" to sell product to move up. Not seeing that here.
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline SuperFlyer

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jul 2009
  • Posts: 9351
  • Total likes: 414
  • DansDeals.com Hat Tips 0
    • View Profile
Re: BitCoin Master Thread
« Reply #1754 on: August 09, 2021, 04:43:25 PM »
;D

To be fair, pyramids require "investors" to sell product to move up. Not seeing that here.
I said this because some of the American symptoms include amongst other: "tipping the waiter after he broke someone's ribs instead of serving him some", "calling any network  or multi level marketing a pyramid scheme, and therefore a scam"

On a less positive note: I was advised to buy bitcoin when it was holding at $1, but I didn't fully grasp why it was different than the many payment systems available at the time.
And no, I would not have been multi millionaire, as I would have sold them long long ago, not believing they would reach that high.

Offline SuperFlyer

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jul 2009
  • Posts: 9351
  • Total likes: 414
  • DansDeals.com Hat Tips 0
    • View Profile
Re: BitCoin Master Thread
« Reply #1755 on: August 09, 2021, 04:50:27 PM »
;D

To be fair, pyramids require "investors" to sell product to move up. Not seeing that here.

In most countries that have an issue with multi level, it is  measured by the following: when there is no product involved and/or it is more profitable finding a sub-seller than selling the product it's called an illegal pyramid.
« Last Edit: August 09, 2021, 04:55:49 PM by SuperFlyer »

Offline SuperFlyer

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jul 2009
  • Posts: 9351
  • Total likes: 414
  • DansDeals.com Hat Tips 0
    • View Profile
Re: BitCoin Master Thread
« Reply #1756 on: August 09, 2021, 04:51:40 PM »
A new thread on the subject of mining.
https://forums.dansdeals.com/index.php?topic=126128.0

Offline Dan

  • Administrator
  • Dansdeals Lifetime 50K Diamond Elite
  • **********
  • Join Date: May 2008
  • Posts: 67601
  • Total likes: 16913
  • DansDeals.com Hat Tips 16442
  • Gender: Male
    • View Profile
  • Location: CLE
  • Programs: UA GS, AA EXP, DL Dirt, Hyatt Glob, Fairmont Lifetime Plat, DD Diamond, Blocked By @NeriaKraus
Re: BitCoin Master Thread
« Reply #1757 on: August 09, 2021, 04:57:10 PM »
In most countries that have an issue with multi level, it is  measured by the following: when there is no product involved and/or it is more profitable finding a sub-seller than selling the product it's called an illegal pyramid.

Sure. But the point is I don't need to go out and find more suckers to make my own crypto more valuable.
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline SuperFlyer

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jul 2009
  • Posts: 9351
  • Total likes: 414
  • DansDeals.com Hat Tips 0
    • View Profile
Re: BitCoin Master Thread
« Reply #1758 on: August 09, 2021, 04:58:35 PM »
Sure. But the point is I don't need to go out and find more suckers to make my own crypto more valuable.
That's how most of them start.
If people don't invest, the value stays nada.

Offline yos9694

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2012
  • Posts: 1903
  • Total likes: 899
  • DansDeals.com Hat Tips 6
  • Gender: Male
    • View Profile
Re: BitCoin Master Thread
« Reply #1759 on: August 09, 2021, 08:18:40 PM »
Sure. But the point is I don't need to go out and find more suckers to make my own crypto more valuable.

Not exactly true. You're getting into Eth very late so the network of coinholders is more matured, but early on in any coin's history shilling for it is very much part of the job. If you don't shill for your coin it's a much bigger risk to hold, because getting more sub-buyers is the only way to create adoption and value. You may get lucky doing nothing but its only because other people are shilling