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 148669 times)

Offline ChaimMoskowitz

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jun 2014
  • Posts: 6672
  • Total likes: 1078
  • DansDeals.com Hat Tips 1
  • Gender: Female
    • View Profile
Re: BitCoin Master Thread
« Reply #870 on: February 01, 2018, 12:23:09 PM »
y'all see this? People be manipulating the price yo, using fake dollers yo.

Remember all that financial regulation you're trying to escape? Yeah, there's pretty reasons for most of it.
First you claim it is a scam and now fraud. What's next?  :)
I just found a new supply of forks!

Offline jj1000

  • Administrator
  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • **********
  • Join Date: Jun 2008
  • Posts: 11468
  • Total likes: 1919
  • DansDeals.com Hat Tips 8015
    • View Profile
  • Location: The value of a forum such as this one is not in that one can post a question and receive an answer, but in that the question has most likely been asked before, and the answer is available to him that will but only use the search function.
  • Programs: 1. Search on google. 2. Search in the right board of DDF with a general word or two. 3. Read the wiki. 4. Read the thread. 5. Ask away.
Re: BitCoin Master Thread
« Reply #871 on: February 01, 2018, 12:23:49 PM »
First you claim it is a scam and now fraud. What's next?  :)
Scheme!
See my 5 step program to your left <--

(Real signature under my location)

Offline henche

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: May 2011
  • Posts: 3899
  • Total likes: 434
  • DansDeals.com Hat Tips 0
    • View Profile
Re: BitCoin Master Thread
« Reply #872 on: February 01, 2018, 12:43:43 PM »
First you claim it is a scam and now fraud. What's next?  :)

Release the memo, and we'll find out.

Offline ChaimMoskowitz

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jun 2014
  • Posts: 6672
  • Total likes: 1078
  • DansDeals.com Hat Tips 1
  • Gender: Female
    • View Profile
Re: BitCoin Master Thread
« Reply #873 on: February 01, 2018, 01:50:44 PM »
Release the memo, and we'll find out.
#releaseBTC
I just found a new supply of forks!

Offline Moshe123

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Sep 2012
  • Posts: 5182
  • Total likes: 297
  • DansDeals.com Hat Tips 1
  • Gender: Male
    • View Profile
  • Location: Spring Valley
  • Programs: Lost
Re: BitCoin Master Thread
« Reply #874 on: February 01, 2018, 05:15:06 PM »
Falling into the toilet today. Great this scam should end.

Online ExGingi

  • Dansdeals Lifetime 10K Presidential Platinum Elite
  • *******
  • Join Date: Nov 2015
  • Posts: 10293
  • Total likes: 2980
  • DansDeals.com Hat Tips 14
    • View Profile
  • Location: 770
Re: BitCoin Master Thread
« Reply #875 on: February 01, 2018, 06:17:51 PM »
Speechless.

I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline ChaimMoskowitz

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jun 2014
  • Posts: 6672
  • Total likes: 1078
  • DansDeals.com Hat Tips 1
  • Gender: Female
    • View Profile
Re: BitCoin Master Thread
« Reply #876 on: February 01, 2018, 08:06:46 PM »
Is this the big one, Elizabeth!!! @Freddie
I just found a new supply of forks!

Offline Moshe123

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Sep 2012
  • Posts: 5182
  • Total likes: 297
  • DansDeals.com Hat Tips 1
  • Gender: Male
    • View Profile
  • Location: Spring Valley
  • Programs: Lost
Re: BitCoin Master Thread
« Reply #877 on: February 01, 2018, 09:46:51 PM »
We're almost at the end.

Offline ludmila

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Aug 2012
  • Posts: 5164
  • Total likes: 269
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: IND
  • Programs: Hilton Diamond,Marriott Platinum,SPG Platinum.
Re: BitCoin Master Thread
« Reply #878 on: February 01, 2018, 10:47:56 PM »
BTC  chart  ,     LTC,ETH,XRP Charts look the same

 downtrend continues if BTC breaks 9000 then  much lower fast


https://www.tradingview.com/x/NCOpfmqA/
BTC broke below 8700-9000 , currently 8550 , I am tempted to cover my short, but I think an accelerated down move is underway, ill hold on the short position and lower the trailing stop to 12500.
I was the Best,still the Best, and will always be the Best.
Pele Good,Maradona Better, George Best.

Offline ChaimMoskowitz

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Jun 2014
  • Posts: 6672
  • Total likes: 1078
  • DansDeals.com Hat Tips 1
  • Gender: Female
    • View Profile
Re: BitCoin Master Thread
« Reply #879 on: February 01, 2018, 10:52:57 PM »
BTC broke below 8700-9000 , currently 8550 , I am tempted to cover my short, but I think an accelerated down move is underway, ill hold on the short position and lower the trailing stop to 12500.
Back up the Brinks truck.  :)
I just found a new supply of forks!

Offline Freddie

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Apr 2013
  • Posts: 3109
  • Total likes: 272
  • DansDeals.com Hat Tips 1
    • View Profile
  • Location: Pittsburgh
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

  • Dansdeals Lifetime Presidential Platinum Elite
  • *********
  • Join Date: Aug 2012
  • Posts: 5164
  • Total likes: 269
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: IND
  • Programs: Hilton Diamond,Marriott Platinum,SPG Platinum.
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

  • Dansdeals Platinum Elite + Lifetime Silver Elite
  • *****
  • Join Date: Oct 2014
  • Posts: 642
  • Total likes: 41
  • DansDeals.com Hat Tips 0
    • View Profile
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

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Dec 2013
  • Posts: 2311
  • Total likes: 84
  • DansDeals.com Hat Tips 1
    • View Profile
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

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Nov 2015
  • Posts: 294
  • Total likes: 2
  • DansDeals.com Hat Tips 0
  • Gender: Male
    • View Profile
  • Location: Brooklyn
Re: BitCoin Master Thread
« Reply #884 on: February 01, 2018, 11:17:03 PM »
If BTC goes under $6000 i'm buying 2