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 163260 times)

Offline SuperFlyer

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Re: BitCoin Master Thread
« Reply #480 on: December 12, 2017, 04:25:54 PM »
I bought a little last week, almost up 4x already.
4x ?
If you didn't touch it is not possible.

Offline Emkay

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Re: BitCoin Master Thread
« Reply #481 on: December 12, 2017, 04:27:52 PM »
4x ?
If you didn't touch it is not possible.
Why? Could have bought at $95, now around 375 on some exchanges.

Offline SuperFlyer

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Re: BitCoin Master Thread
« Reply #482 on: December 12, 2017, 04:28:56 PM »
Why? Could have bought at $95, now around 375 on some exchanges.
Which currency?

Online yuneeq

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Re: BitCoin Master Thread
« Reply #483 on: December 12, 2017, 04:29:51 PM »

Offline SuperFlyer

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Re: BitCoin Master Thread
« Reply #484 on: December 12, 2017, 04:31:06 PM »
Of course USD, but which crypto did you buy?

Offline henche

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Re: BitCoin Master Thread
« Reply #485 on: December 12, 2017, 04:31:36 PM »
I bought a little last week, almost up 4x already.

how much

Offline Emkay

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Re: BitCoin Master Thread
« Reply #486 on: December 12, 2017, 04:31:47 PM »
Of course USD, but which crypto did you buy?
He quoted you about LTC.

Offline ludmila

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Re: BitCoin Master Thread
« Reply #487 on: December 13, 2017, 10:50:55 PM »
On the hourly charts , a possible head and shoulders pattern which if broken can have a very accelerated drop and possibly the beginning of the end.


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Offline henche

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Re: BitCoin Master Thread
« Reply #488 on: December 13, 2017, 11:49:13 PM »
On the hourly charts , a possible head and shoulders pattern which if broken can have a very accelerated drop and possibly the beginning of the end.


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

What does dis mean?

Offline Shmulie

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Re: BitCoin Master Thread
« Reply #489 on: December 14, 2017, 12:28:03 AM »
is anyone able to open an account with bitfinex?

Offline Shauly101

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Re: BitCoin Master Thread
« Reply #490 on: December 17, 2017, 12:12:29 AM »
does anyone have experience where to buy XRP/Ripple with USD?

also where do you keep your coins?

Offline Emkay

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Re: BitCoin Master Thread
« Reply #491 on: December 17, 2017, 05:20:01 AM »
What does dis mean?
Zero
is anyone able to open an account with bitfinex?
I did. Just don't write your address if in the states.
does anyone have experience where to buy XRP/Ripple with USD?

also where do you keep your coins?
Bitfinex, Bitstamp, Kraken

Offline hide4

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Re: BitCoin Master Thread
« Reply #492 on: December 17, 2017, 07:19:11 AM »
Bitfinex, Bitstamp, Kraken
Do all marketplaces require ID?

Offline Emkay

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Re: BitCoin Master Thread
« Reply #493 on: December 17, 2017, 07:21:22 AM »
Do all marketplaces require ID?
Not to trade. Funding or withdrawing are often different.

Offline Mikeoracle

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Re: BitCoin Master Thread
« Reply #494 on: December 17, 2017, 08:38:12 PM »
Spotted.... :o

Offline Mordyk

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Re: BitCoin Master Thread
« Reply #495 on: December 17, 2017, 10:26:50 PM »
Spotted.... :o
When they say making money off bitcoin... this is definitely one way to make money
#TYH

Offline aygart

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Re: BitCoin Master Thread
« Reply #496 on: December 18, 2017, 12:37:45 AM »
Feelings don't care about your facts

Offline ludmila

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Re: BitCoin Master Thread
« Reply #497 on: December 18, 2017, 01:06:12 AM »
On the daily and weekly chart , a possible hanging man forming on bitcoin, litecoin and ethereum , which can be the end of this bubble.


https://www.tradingview.com/x/iUdI24Nv/

https://www.tradingview.com/x/rhWnZI0Q/

https://www.tradingview.com/x/C2UJ8OYi/
« Last Edit: December 18, 2017, 01:11:02 AM by ludmila »
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Re: BitCoin Master Thread
« Reply #498 on: December 18, 2017, 10:57:50 AM »
A good article on ethereum amd why it is more worthwhile to pay attention to than bitcoin in the long run. Obviously, I like it because it aligns with my viewpoint but at a minimum its educational. If not for ICOs, ETH would possibly already be worth much more than BTC

https://www.cbinsights.com/research/what-is-ethereum/?utm_source=CB+Insights+Newsletter&utm_campaign=61618494f5-MonNL_11_28_2017&utm_medium=email&utm_term=0_9dc0513989-61618494f5-88608573
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Offline Brian93

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Re: BitCoin Master Thread
« Reply #499 on: December 18, 2017, 11:51:27 AM »
A good article on ethereum amd why it is more worthwhile to pay attention to than bitcoin in the long run. Obviously, I like it because it aligns with my viewpoint but at a minimum its educational. If not for ICOs, ETH would possibly already be worth much more than BTC

https://www.cbinsights.com/research/what-is-ethereum/?utm_source=CB+Insights+Newsletter&utm_campaign=61618494f5-MonNL_11_28_2017&utm_medium=email&utm_term=0_9dc0513989-61618494f5-88608573
You may be interested in cardano also then