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 347452 times)

Offline henche

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2011
  • Posts: 4183
  • Total likes: 447
  • DansDeals.com Hat Tips 0
    • View Profile
Re: BitCoin Master Thread
« Reply #380 on: December 05, 2017, 11:04:45 PM »
In the old days, there was a saying by Jesse Livermore--when your barber and the shoe shine boy start giving stock tips, that is the time to sell everything. This past week, I was asked what I think of Bitcoin by people who never traded or invested in stocks ,fx,futures etc.   The parabolic rise is by all the late comers buying like crazy at these prices, currently $12270  see weekly chart as of now below, up  OVER $6000 in 3 weeks, worth 10 gold ounces each  ???  The CME and I think CBOT will start offering futures soon, then the hedgies will  buy it big first to newer highs to get more suckers in and then reverse and short it till it is almost worthless. And all the late buyers will become insolvent. IMHO

https://www.tradingview.com/x/TAa5mLi1/

So you're saying we should get in quick so we cam make money before the bust

Offline ludmila

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Aug 2012
  • Posts: 5147
  • Total likes: 271
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: IND
  • Programs: Hilton Diamond,Marriott Platinum,SPG Platinum.
Re: BitCoin Master Thread
« Reply #381 on: December 05, 2017, 11:39:13 PM »
So you're saying we should get in quick so we cam make money before the bust
No, the easy money was already made, I am just watching this madness from the side :)
I was the Best,still the Best, and will always be the Best.
Pele Good,Maradona Better, George Best.

Offline ah giten

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Oct 2015
  • Posts: 1977
  • Total likes: 391
  • DansDeals.com Hat Tips 6
    • View Profile
Re: BitCoin Master Thread
« Reply #382 on: December 06, 2017, 01:37:50 AM »
Gemini is worth checking out also, and you will need a bittrex account if you want to trade something other than the big 2
coinbase lets you buy with credit card, no need to wait for the money to clear. and yes the 4% in charges will be back. A; credit card points. B; Bitcion rises faster than 4% in 4 days
(vs Gemini lets you trade while the deposit still pending)

Offline shlonx

  • Dansdeals Gold Elite
  • ***
  • Join Date: May 2015
  • Posts: 188
  • Total likes: 32
  • DansDeals.com Hat Tips 0
    • View Profile
Re: BitCoin Master Thread
« Reply #383 on: December 06, 2017, 01:47:47 AM »
Coinbase has crazy limits on how much you can spend, though. After the first $300 on the CC, you have to wait a loooong time until you could buy another decent amount. I could've made thousands already if not for Coinbase's limits (wanted to buy a whole coin a few weeks ago, when it dropped to $5500, but couldn't due to the limits).
Brevity may be the soul of wit, but floridity is its spirit.

Offline ah giten

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Oct 2015
  • Posts: 1977
  • Total likes: 391
  • DansDeals.com Hat Tips 6
    • View Profile
Re: BitCoin Master Thread
« Reply #384 on: December 06, 2017, 02:03:20 AM »
Coinbase has crazy limits on how much you can spend, though. After the first $300 on the CC, you have to wait a loooong time until you could buy another decent amount. I could've made thousands already if not for Coinbase's limits (wanted to buy a whole coin a few weeks ago, when it dropped to $5500, but couldn't due to the limits).
my start was $300 per week
and after spending $775 it goes up
not sure what it depends. did you verify your identity?

Offline hachover

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Feb 2016
  • Posts: 516
  • Total likes: 102
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: Sector ZZ9 Plural Z Alpha
Re: BitCoin Master Thread
« Reply #385 on: December 06, 2017, 07:39:50 AM »
(wanted to buy a whole coin a few weeks ago, when it dropped to $5500, but couldn't due to the limits).

Why not buy a whole Satoshi or two? They are still priced at less than a penny each. No need to buy 100 million of them at once
I'm an optimist; but only because life isn't going to give me any other good choices.

Offline Emkay

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Dec 2012
  • Posts: 14295
  • Total likes: 376
  • DansDeals.com Hat Tips 35
    • View Profile
  • Location: Where I ought to be
Re: BitCoin Master Thread
« Reply #386 on: December 06, 2017, 07:45:47 AM »
Coinbase has crazy limits on how much you can spend, though. After the first $300 on the CC, you have to wait a loooong time until you could buy another decent amount. I could've made thousands already if not for Coinbase's limits (wanted to buy a whole coin a few weeks ago, when it dropped to $5500, but couldn't due to the limits).
Should have sent a wire.

Offline henche

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2011
  • Posts: 4183
  • Total likes: 447
  • DansDeals.com Hat Tips 0
    • View Profile
Re: BitCoin Master Thread
« Reply #387 on: December 06, 2017, 10:48:55 AM »
Yeah, me too. I wanted to buy more Japanese Yen, but the bank said I could only but 200 dollars worth. Oh well.

Totally a viable currency if you can't even buy it.

Offline aygart

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: May 2008
  • Posts: 17397
  • Total likes: 14336
  • DansDeals.com Hat Tips 14
    • View Profile
    • Lower Watt Energy Brokers
  • Programs: www.lowerwatt.com
Re: BitCoin Master Thread
« Reply #388 on: December 06, 2017, 11:52:27 AM »
Yeah, me too. I wanted to buy more Japanese Yen, but the bank said I could only but 200 dollars worth. Oh well.

Totally a viable currency if you can't even buy it.
He could have funded his account in ways other that a CC and done it. The issue was his funding the account.
Feelings don't care about your facts

Offline aygart

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: May 2008
  • Posts: 17397
  • Total likes: 14336
  • DansDeals.com Hat Tips 14
    • View Profile
    • Lower Watt Energy Brokers
  • Programs: www.lowerwatt.com
Re: BitCoin Master Thread
« Reply #389 on: December 06, 2017, 11:53:02 AM »
coinbase lets you buy with credit card, no need to wait for the money to clear. and yes the 4% in charges will be back. A; credit card points. B; Bitcion rises faster than 4% in 4 days
(vs Gemini lets you trade while the deposit still pending)
And what happens when it goes down instead of up?
Feelings don't care about your facts

Offline hachover

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Feb 2016
  • Posts: 516
  • Total likes: 102
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: Sector ZZ9 Plural Z Alpha
Re: BitCoin Master Thread
« Reply #390 on: December 06, 2017, 04:02:24 PM »
Finally broke $12k

Crossed $13K today. About time.
I'm an optimist; but only because life isn't going to give me any other good choices.

Offline Mikeoracle

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2008
  • Posts: 2037
  • Total likes: 68
  • DansDeals.com Hat Tips 4
  • Gender: Male
    • View Profile
  • Location: NJ
Re: BitCoin Master Thread
« Reply #391 on: December 06, 2017, 06:08:36 PM »
Finally broke $12k
finally broke 14k...

Offline hachover

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Feb 2016
  • Posts: 516
  • Total likes: 102
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: Sector ZZ9 Plural Z Alpha
Re: BitCoin Master Thread
« Reply #392 on: December 06, 2017, 08:39:29 PM »
15 by morning. Wont be surprised if 20k happens before the year ends.

There will be an end to this but I dont think it will be soon
I'm an optimist; but only because life isn't going to give me any other good choices.

Offline ludmila

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Aug 2012
  • Posts: 5147
  • Total likes: 271
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: IND
  • Programs: Hilton Diamond,Marriott Platinum,SPG Platinum.
Re: BitCoin Master Thread
« Reply #393 on: December 06, 2017, 11:08:23 PM »
15 by morning. Wont be surprised if 20k happens before the year ends.

There will be an end to this but I dont think it will be soon
Now , all positive news that are pushing it higher
Bank of America may be looking into cryptocurrency exchange services for its corporate clients – or at least keeping its options open should they become interested.
https://www.coindesk.com/bank-of-america-outlines-cryptocurrency-exchange-system-in-patent-award/

Bitcoin Up $2k on Day as Market Nears $400 Billion

https://www.coindesk.com/bitcoin-2k-24-hours-crypto-market-nears-400-billion/
I was the Best,still the Best, and will always be the Best.
Pele Good,Maradona Better, George Best.

Offline ah giten

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Oct 2015
  • Posts: 1977
  • Total likes: 391
  • DansDeals.com Hat Tips 6
    • View Profile
Re: BitCoin Master Thread
« Reply #394 on: December 07, 2017, 12:47:14 AM »
And what happens when it goes down instead of up?
brilliant question
+1000

Offline henche

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2011
  • Posts: 4183
  • Total likes: 447
  • DansDeals.com Hat Tips 0
    • View Profile
Re: BitCoin Master Thread
« Reply #395 on: December 07, 2017, 12:52:52 AM »
The reason it is going up is that people are adopting it as their currency and are trading in their worthless dollars.  So it isn't going to go down,  just keep going up.

Offline Mikeoracle

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Aug 2008
  • Posts: 2037
  • Total likes: 68
  • DansDeals.com Hat Tips 4
  • Gender: Male
    • View Profile
  • Location: NJ
Re: BitCoin Master Thread
« Reply #396 on: December 07, 2017, 07:01:27 AM »
finally broke 14k...
finally broke $15k...

Offline Dan

  • Administrator
  • Dansdeals Lifetime 50K Diamond Elite
  • **********
  • Join Date: May 2008
  • Posts: 67599
  • Total likes: 16912
  • 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 #397 on: December 07, 2017, 08:42:49 AM »
Are we almost at the end?
Are these backed by the value of 3D Android 4.4.2 KitKat tablets?
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 hachover

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Feb 2016
  • Posts: 516
  • Total likes: 102
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: Sector ZZ9 Plural Z Alpha
Re: BitCoin Master Thread
« Reply #398 on: December 07, 2017, 10:20:22 AM »
Are we almost at the end?
Are these backed by the value of 3D Android 4.4.2 KitKat tablets?

I don't think we are. I think the majority of BTC is owned by people who are members of what is almost a quasi-religion, and they will continue to hold onto their coin because they want it to become a valid currency. Then you have an enormous amount of VC or similar investors, and they know the potential boost that can come after a futures market is established. Definitely would not do anything to jeopardize or spook the futures market too soon. To top it off, although there is enormous bitcoin mania and everyone down to the barber and shoeshiner are talking about it, most are still unable to get their hands on any, so there is still an enormous amount of new money on the sidelines that wants to come in. Logic tells me there is a lot more runway before anyone pulls back on the yoke.
I'm an optimist; but only because life isn't going to give me any other good choices.

Offline Dan

  • Administrator
  • Dansdeals Lifetime 50K Diamond Elite
  • **********
  • Join Date: May 2008
  • Posts: 67599
  • Total likes: 16912
  • 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 #399 on: December 07, 2017, 10:21:18 AM »
Logic says people will claim their profits and the market will crash.
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.