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 347574 times)

Offline chayal101

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Re: BitCoin Master Thread
« Reply #1420 on: February 07, 2021, 04:48:36 PM »
Go Doge! I invested 3k worth for $150 last night . It's up $50 l. DH decided we shouldn't invest in crypto over shabbos, so by Friday we'll sell and start again. Anyone else thought about crypto running on shabbos & if that would stop you from investing?
Chaya L.

Offline myi

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Re: BitCoin Master Thread
« Reply #1421 on: February 07, 2021, 04:51:38 PM »
Go Doge! I invested 3k worth for $150 last night . It's up $50 l. DH decided we shouldn't invest in crypto over shabbos, so by Friday we'll sell and start again. Anyone else thought about crypto running on shabbos & if that would stop you from investing?
  Great profit to be made here with DOGE!
 
 Remember my first $30 that I bought at 008.

 Huge risk but great profits.
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Offline chayal101

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Re: BitCoin Master Thread
« Reply #1422 on: February 07, 2021, 04:52:53 PM »
  Great profit to be made here with DOGE!
 
 Remember my first $30 that I bought at 008.

 Huge risk but great profits.
Nothing BIG...But it's fun... I don't get if Elon Musk is joking or serious about it when he tweets Doge...
Chaya L.

Offline myi

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Re: BitCoin Master Thread
« Reply #1423 on: February 07, 2021, 04:53:52 PM »
IMHO - with 8 years of following crypto markets and being involved in DOGE since its launch - $0.10 seems incredibly unreasonably high and nearly impossible. It would have a higher market cap than Ripple at that level. Whoever is coordinating the pump and dump will dump by then.

So are you still 100% in? I set up 4 sell orders at different prices each for 25% of my holding to avoid missing out completely. One went through last night at 0.075. I'm way past a free ride at this point but I'd hate to still be holding onto any of this when it goes back to 0.001 again.
Didn't sell last time around, thinking to unload now at a decent Profit?
 These Cryptocurrency are insane.
 Never sure when to sell with these.
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Re: BitCoin Master Thread
« Reply #1424 on: February 07, 2021, 04:54:29 PM »
Nothing BIG...But it's fun... I don't get if Elon Musk is joking or serious about it when he tweets Doge...
Richest Guy in the world tweets about it, of course he's going to create hype.
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Re: BitCoin Master Thread
« Reply #1425 on: February 07, 2021, 05:00:24 PM »
Ethereum got stuck at $1600, sold it before shabbos for $1700. When I see it moving upwards again maybe I'll re-invest...
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Re: BitCoin Master Thread
« Reply #1426 on: February 07, 2021, 05:39:02 PM »
IMHO - with 8 years of following crypto markets and being involved in DOGE since its launch - $0.10 seems incredibly unreasonably high and nearly impossible. It would have a higher market cap than Ripple at that level. Whoever is coordinating the pump and dump will dump by then.
I may be wrong, but I see it if it lands at $0.10, the hype will be even greater.
Chaya L.

Offline mlight

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Re: BitCoin Master Thread
« Reply #1427 on: February 07, 2021, 05:54:08 PM »
What is the best platform to buy doge on?

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Re: BitCoin Master Thread
« Reply #1428 on: February 07, 2021, 10:34:12 PM »
What is the best platform to buy doge on?
Im currently using robinhood, seems to work fine for me.
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Re: BitCoin Master Thread
« Reply #1430 on: February 08, 2021, 08:37:17 AM »
Geppetto strikes again.
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Re: BitCoin Master Thread
« Reply #1431 on: February 08, 2021, 09:09:04 AM »
Geppetto strikes again.

Seems like he's most successful at "fake it 'till you make it". TSLA not making any money in the car business, but might make money on BTC until they can actually make money in the car business.
I've been waiting over 5 years with bated breath for someone to say that!
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Re: BitCoin Master Thread
« Reply #1432 on: February 08, 2021, 09:27:42 AM »
Seems like he's most successful at "fake it 'till you make it". TSLA not making any money in the car business, but might make money on BTC until they can actually make money in the car business.

He's The World's Greatest Showman. Better than Trump. He stocks up on an asset, then hypes it, essentially printing his own money. He's like Madoff, but coloring inside the lines.
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Re: BitCoin Master Thread
« Reply #1433 on: February 08, 2021, 11:49:16 AM »
I may be wrong, but I see it if it lands at $0.10, the hype will be even greater.

You may very well be right. I sold out of doge already because I didn't believe the pump could be sustained but it has. It will certainly come crashing down in the near future but no telling how long or how high the current pump will last.

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Re: BitCoin Master Thread
« Reply #1434 on: February 08, 2021, 12:15:08 PM »
You may very well be right. I sold out of doge already because I didn't believe the pump could be sustained but it has. It will certainly come crashing down in the near future but no telling how long or how high the current pump will last.

When Geppetto sells, doge will die.
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Re: BitCoin Master Thread
« Reply #1435 on: February 08, 2021, 01:32:20 PM »
When Geppetto sells, doge will die.

He's silly though and maybe silly enough to announce that Dogecoin will be an accepted payment method for Tesla just for fun - which will strengthen the pump. Honestly that's one of the scenarios that I can imagine seeing the price go up as high as $.25 before smart money starts to relieve the drooling masses of their money.

Offline jaywhy

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Re: BitCoin Master Thread
« Reply #1436 on: February 11, 2021, 12:52:23 PM »
Is Tesla the straw that breaks the camels back for institutional/corporate cash allocation to btc?
Time will tell. My gut says yes.

Offline AsherO

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Re: BitCoin Master Thread
« Reply #1437 on: February 11, 2021, 12:56:59 PM »
Is Tesla the straw that breaks the camels back for institutional/corporate cash allocation to btc?
Time will tell. My gut says yes.

Can regular corporations handle the fluctuation risks?
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Re: BitCoin Master Thread
« Reply #1438 on: February 11, 2021, 12:58:51 PM »
Can regular corporations handle the fluctuation risks?
The real question should be can regular corporations handle the inflationary risk of of the Fed's money printer ;)

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Re: BitCoin Master Thread
« Reply #1439 on: February 11, 2021, 01:09:30 PM »
The real question should be can regular corporations handle the inflationary risk of of the Fed's money printer ;)

Bottom line is their financials are in USDs. If they’re looking to hedge against inflation BTC might not be their best bet.
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