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 148668 times)

Offline Mordyk

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Re: BitCoin Master Thread
« Reply #540 on: December 20, 2017, 11:09:58 PM »
Is anyone here really buying ? I added to my shorts in the futures market, when this fantasy became worth more than 15 ounces of Gold , it'll be crazy not to short , plus all sentiment indicators and technicals showing it started.
hourly chart
https://www.tradingview.com/x/uQptWZsa/
Where are you shorting it? Also technicals dont work for such unnatural growth. It's more for look back at stocks that have been trading for ages

Offline ludmila

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Re: BitCoin Master Thread
« Reply #541 on: December 21, 2017, 02:49:55 AM »
Where are you shorting it? Also technicals dont work for such unnatural growth. It's more for look back at stocks that have been trading for ages
I agree with you, and no one can be 100% correct in predicting the top of the biggest mania of our times, it can even double from here and wipe all the shorts out, i entered my shorts at the right price and my stop is at break even.
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Offline aygart

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Re: BitCoin Master Thread
« Reply #542 on: December 21, 2017, 09:29:53 AM »
I agree with you, and no one can be 100% correct in predicting the top of the biggest mania of our times, it can even double from here and wipe all the shorts out, i entered my shorts at the right price and my stop is at break even.
Stops are not even close to foolproof.
Feelings don't care about your facts

Offline Sport

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Offline ludmila

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Re: BitCoin Master Thread
« Reply #544 on: December 21, 2017, 01:26:05 PM »
Stops are not even close to foolproof.
Correct again,not foolproof, I just took a calculated risk following signals I use, today is the 5th day down in a row, will see how it plays out.
I was the Best,still the Best, and will always be the Best.
Pele Good,Maradona Better, George Best.

Offline yuneeq

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Re: BitCoin Master Thread
« Reply #545 on: December 21, 2017, 06:09:37 PM »
Blockbuster changes name to Blockchainbuster, surges 10 million percent, acquires Netflix and Google.

Offline Moshke

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Re: BitCoin Master Thread
« Reply #546 on: December 21, 2017, 07:55:32 PM »
Bitcoin litecoin all dropping

Offline Mordyk

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Re: BitCoin Master Thread
« Reply #547 on: December 21, 2017, 10:06:12 PM »
where can i buy bitcoin besides coinbase? i want it to post immediately

Offline yuneeq

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Re: BitCoin Master Thread
« Reply #548 on: December 21, 2017, 10:12:39 PM »
Bitcoin litecoin all dropping

Big sell off in every crypto right now
BTC now in the 13's.
https://www.worldcoinindex.com/

Offline ChaimMoskowitz

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Re: BitCoin Master Thread
« Reply #549 on: December 21, 2017, 10:16:51 PM »
Big sell off in every crypto right now
BTC now in the 13's.
https://www.worldcoinindex.com/
Who wants try and catch the knife?
I just found a new supply of forks!

Offline shlonx

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Re: BitCoin Master Thread
« Reply #550 on: December 21, 2017, 10:21:01 PM »
@Mordyk Gemini
Brevity may be the soul of wit, but floridity is its spirit.

Offline yuneeq

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Re: BitCoin Master Thread
« Reply #551 on: December 21, 2017, 10:24:26 PM »
where can i buy bitcoin besides coinbase? i want it to post immediately

Coinbase will lock you in at the current price but unless you have money on the exchange the coins will be locked for about a week.

Offline Mordyk

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Re: BitCoin Master Thread
« Reply #552 on: December 21, 2017, 10:26:17 PM »
Coinbase will lock you in at the current price but unless you have money on the exchange the coins will be locked for about a week.
I wanted to buy ripple.  Which can only be bought with settled bitcoins or litecoins

Offline yuneeq

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Re: BitCoin Master Thread
« Reply #553 on: December 21, 2017, 10:33:40 PM »
I wanted to buy ripple.  Which can only be bought with settled bitcoins or litecoins

True that just making sure

Offline ludmila

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Re: BitCoin Master Thread
« Reply #554 on: December 22, 2017, 12:43:13 AM »
Who wants try and catch the knife?
I have been short from 5000 points higher,  the drop will be much faster and more vicious than the parabolic rise, many will lose everything if they do not get out , others are buying now thinking they missed the initial move and this gives them a chance to jump on the train again. I will stay short for now and see how fast the down trend will accelerate.

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I was the Best,still the Best, and will always be the Best.
Pele Good,Maradona Better, George Best.