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 347555 times)

Offline Freddie

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Re: BitCoin Master Thread
« Reply #880 on: February 01, 2018, 11:04:16 PM »
Is this the big one, Elizabeth!!! @Freddie

I'm coming to join you!

Offline ludmila

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Re: BitCoin Master Thread
« Reply #881 on: February 01, 2018, 11:07:39 PM »
Back up the Brinks truck.  :)
It was a classic parabolic move, buyers will always say this time is different, it never is, the funny and sad thing is my brother was one of those who bought quite a bit between $15000-$19000 all because his friends were buying.
I was the Best,still the Best, and will always be the Best.
Pele Good,Maradona Better, George Best.

Offline Yitzshpitz

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Re: BitCoin Master Thread
« Reply #882 on: February 01, 2018, 11:15:24 PM »
It was a classic parabolic move, buyers will always say this time is different, it never is, the funny and sad thing is my brother was one of those who bought quite a bit between $15000-$19000 all because his friends were buying.

I really hope he doesn’t sell now...you have to give it more than a month. It can (and will) go back up very quickly too.

Offline Sport

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Re: BitCoin Master Thread
« Reply #883 on: February 01, 2018, 11:16:08 PM »
I really hope he doesn’t sell now...you have to give it more than a month. It can (and will) go back up very quickly too.
He should double down now, its at a bargain, real value.

Offline eli232

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Re: BitCoin Master Thread
« Reply #884 on: February 01, 2018, 11:17:03 PM »
If BTC goes under $6000 i'm buying 2

Offline ludmila

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Re: BitCoin Master Thread
« Reply #885 on: February 01, 2018, 11:22:38 PM »
He should double down now, its at a bargain, real value.
The funny part is I shorted the futures very close to the highs, while he was buying at the same time, he did not take my advise. I have no idea how low it can go, so Ill keep lowering my trailing stop.
I was the Best,still the Best, and will always be the Best.
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Offline Sport

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Re: BitCoin Master Thread
« Reply #886 on: February 01, 2018, 11:26:31 PM »
The funny part is I shorted the futures very close to the highs, while he was buying at the same time, he did not take my advise. I have no idea how low it can go, so Ill keep lowering my trailing stop.
I'm curious, is he as knowledgeable as you are regarding stocks?

Offline ChaimMoskowitz

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Re: BitCoin Master Thread
« Reply #887 on: February 01, 2018, 11:32:31 PM »
It was a classic parabolic move, buyers will always say this time is different, it never is, the funny and sad thing is my brother was one of those who bought quite a bit between $15000-$19000 all because his friends were buying.
FOMO
My daughters boyfriends all bought into this scam. I tried to warn them but just like the young grasshoppers here you can't teach them anything.  :)
I just found a new supply of forks!

Offline ludmila

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Re: BitCoin Master Thread
« Reply #888 on: February 02, 2018, 01:05:57 AM »
I'm curious, is he as knowledgeable as you are regarding stocks?
No, he is a regular mutual fund and 401k investor, he did real good following my recommendations for many years , but this time he told me that I do not know enough about crypto, and his friends were making a killing.
I was the Best,still the Best, and will always be the Best.
Pele Good,Maradona Better, George Best.

Offline ludmila

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Re: BitCoin Master Thread
« Reply #889 on: February 02, 2018, 01:08:50 AM »
FOMO
My daughters boyfriends all bought into this scam. I tried to warn them but just like the young grasshoppers here you can't teach them anything.  :)
Well said.
« Last Edit: February 02, 2018, 01:12:33 AM by ludmila »
I was the Best,still the Best, and will always be the Best.
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Offline henche

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Re: BitCoin Master Thread
« Reply #890 on: February 02, 2018, 01:11:12 AM »
FOMO
My daughters boyfriends all bought into this scam. I tried to warn them but just like the young grasshoppers here you can't teach them anything.  :)

In a few months when they're laughing to the bank when BTC is 100k a coin, you're gonna rue that you didn't buy in at 20k

Offline ludmila

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Re: BitCoin Master Thread
« Reply #891 on: February 02, 2018, 01:24:05 AM »
In a few months when they're laughing to the bank when BTC is 100k a coin, you're gonna rue that you didn't buy in at 20k
Here comes a lower low, $8400, someone mentioned to me today that Coinbase told him from now on credit card purchases -though I think they have a weekly limit on this-will be treated as Cash Advance purchases , so less people buying with credit cards, and more panicky sellers who bought at much higher prices, each big drop will have newer sellers who bought at a higher price .
« Last Edit: February 02, 2018, 01:52:30 AM by ludmila »
I was the Best,still the Best, and will always be the Best.
Pele Good,Maradona Better, George Best.

Offline henche

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Re: BitCoin Master Thread
« Reply #892 on: February 02, 2018, 01:44:00 AM »
@Dan  Bitcoin is on sale for more than 50% off. Lowest ever this year on Amazon. DDMS post? HT Henche?

Offline ChaimMoskowitz

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Re: BitCoin Master Thread
« Reply #893 on: February 02, 2018, 06:57:57 AM »
In a few months when they're laughing to the bank when BTC is 100k a coin, you're gonna rue that you didn't buy in at 20k
I will explain to them about the broken clock but they wont get that either.
I just found a new supply of forks!

Offline ChaimMoskowitz

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Re: BitCoin Master Thread
« Reply #894 on: February 02, 2018, 03:00:03 PM »
How are the bulls doing?  :)
@yuneeq
I just found a new supply of forks!

Offline Sport

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Re: BitCoin Master Thread
« Reply #895 on: February 02, 2018, 03:00:59 PM »
How are the bulls doing?  :)
@yuneeq
It's an opurtunity.

Offline ChaimMoskowitz

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Re: BitCoin Master Thread
« Reply #896 on: February 02, 2018, 03:12:49 PM »
It's an opurtunity.
I am bad at catching a falling knife so I will sit it out.
I just found a new supply of forks!

Offline Dan

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Re: BitCoin Master Thread
« Reply #897 on: February 02, 2018, 05:29:13 PM »
It's an opurtunity.
To make or lose money?
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 ChaimMoskowitz

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I just found a new supply of forks!

Online yuneeq

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Re: BitCoin Master Thread
« Reply #899 on: February 04, 2018, 11:41:25 AM »
Right now the total market cap for crypto is about $400b according to CoinMarketCap.com.
If you believe it’s all a bubble, where do you think the market cap will be in x months? Anyone interested in making bets?
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