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 347302 times)

Offline henche

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Re: BitCoin Master Thread
« Reply #1160 on: November 24, 2018, 10:00:51 PM »
Bitcoin - Stick A Fork In It - It's Done

Tl dr; crypto stinks. But if the price goes up, it will be good again

Offline Yitzshpitz

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Re: BitCoin Master Thread
« Reply #1161 on: November 24, 2018, 10:12:15 PM »
The sad thing about those writing these articles , is they show up after the fact, he would have been credible if he wrote this article $3000 higher.

People who claim to forsaw the downfall and destruction of bitcoin can take credit when it is actually dead, not when it has retraced to levels it has retraced to historically. Also lets see some of the articles from early 2017 amd 2015.

Offline ludmila

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Re: BitCoin Master Thread
« Reply #1162 on: November 24, 2018, 10:12:37 PM »
Tl dr; crypto stinks. But if the price goes up, it will be good again
I know someone who bought at $800 , good amount, rode it to $20000 and did not sell, as the saying goes, bulls make money, bears make money, pigs get slaughtered.
I was the Best,still the Best, and will always be the Best.
Pele Good,Maradona Better, George Best.

Offline ChaimMoskowitz

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Re: BitCoin Master Thread
« Reply #1163 on: November 24, 2018, 10:13:33 PM »
People who claim to forsaw the downfall and destruction of bitcoin can take credit when it is actually dead, not when it has retraced to levels it has retraced to historically. Also lets see some of the articles from early 2017 amd 2015.
Some have called it a SCAM from day one and never budged.
I just found a new supply of forks!

Offline Emkay

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Re: BitCoin Master Thread
« Reply #1164 on: November 25, 2018, 01:10:51 AM »
Some have called it a SCAM from day one and never budged.
Some didn't know the definition of scam since day one.
And they apparently still don't.

Offline ChaimMoskowitz

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Re: BitCoin Master Thread
« Reply #1165 on: November 25, 2018, 07:22:50 AM »
Some didn't know the definition of scam since day one.
And they apparently still don't.
You can say that again!!!
I just found a new supply of forks!

Offline Happyguy

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Re: BitCoin Master Thread
« Reply #1166 on: November 25, 2018, 07:52:36 AM »
Has anyone heard of InitativeQ? They say its going to take over BitCoin. initiativeq.com Do you really think this can take off? PM me for a referral link

Offline grodnoking

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Re: BitCoin Master Thread
« Reply #1167 on: November 25, 2018, 08:00:05 AM »
Has anyone heard of InitativeQ? They say its going to take over BitCoin. initiativeq.com Do you really think this can take off? PM me for a referral link
Backed by full faith and credit of... A random stranger.
I'm not who you think I am.

Offline ExGingi

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Re: BitCoin Master Thread
« Reply #1168 on: November 25, 2018, 08:08:12 AM »
Backed by full faith and credit of... A random stranger.
-1

Not backed by anything or anyone.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline Emkay

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Re: BitCoin Master Thread
« Reply #1169 on: November 25, 2018, 02:11:08 PM »
You can say that again!!!
Would be pointless, you didn't get it the first half a dozen times.

Offline ChaimMoskowitz

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Re: BitCoin Master Thread
« Reply #1170 on: November 25, 2018, 02:18:20 PM »
Would be pointless, you didn't get it the first half a dozen times.
I get it. Now if you would only see the light.  :)
I just found a new supply of forks!

Offline aro123

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Re: BitCoin Master Thread
« Reply #1171 on: December 07, 2018, 11:57:36 AM »
can't wait to see the after Xmas sale

Offline ChaimMoskowitz

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Re: BitCoin Master Thread
« Reply #1172 on: December 07, 2018, 12:14:47 PM »
can't wait to see the after Xmas sale
LOL
Just don't call it a SCAM SALE!!!
I just found a new supply of forks!

Offline Lou Bob

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Re: BitCoin Master Thread
« Reply #1173 on: December 07, 2018, 12:59:29 PM »
LOL
Just don't call it a SCAM SALE!!!
I think there are more than 1 fat lady that are gonna sing this time.
Always use an Amex, you'll thank me one day.

Offline ChaimMoskowitz

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Re: BitCoin Master Thread
« Reply #1174 on: December 07, 2018, 01:16:24 PM »
I think there are more than 1 fat lady that are gonna sing this time.
Nigerian?  :)
I just found a new supply of forks!

Offline aro123

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Offline Moshe123

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Re: BitCoin Master Thread
« Reply #1176 on: December 17, 2018, 06:09:54 PM »
We are almost at the end.

Offline ChaimMoskowitz

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Re: BitCoin Master Thread
« Reply #1177 on: December 17, 2018, 06:16:05 PM »
We are almost at the end.
Should I give the fat lady a call?  :)
I just found a new supply of forks!

Offline ExGingi

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Re: BitCoin Master Thread
« Reply #1178 on: December 17, 2018, 06:16:36 PM »
We are almost at the end.

I think there are more than 1 fat lady that are gonna sing this time.

It's down almost 80% this year


Or in a better visual:


But for people that bought under $1,000 it's still up significantly. It will be over when those people (not only this guy) capitulate.
« Last Edit: December 17, 2018, 06:19:49 PM by ExGingi »
I've been waiting over 5 years with bated breath for someone to say that!
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Offline ChaimMoskowitz

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Re: BitCoin Master Thread
« Reply #1179 on: December 17, 2018, 06:35:27 PM »
Lets assume they go bankrupt. What are their assets worth?  :)
I just found a new supply of forks!