Everything is "impossible" until it isn't. Blockchain will be no different. I would be shocked if no one is working on the "key" to solving it.
What do you think about such cryptocurrencies as bitcoin?
- Thread starter Radiowave
- Start date
Wouldn't swear to it, but think that blockchain is simply a way of maintaining data across multiple computers. Thus, in theory, everything is in the open and it becomes harder to alter. Think there was a case where the blockchain split and everything got shut down until it was fixed.
The security is from public key encryption. At the risk of taking coal to New Castle, public key encryption is based on the difficulty of determining prime numbers. The beauty of public key encryption is that you can share one key the public portion, use it encrypt the information, and use the other, secret key, to decrypt. No, you can't use the known public key to decrypt thanks to one-way mathematical functions (no, I do not have a good handle on that, but it sounds good, doesn't it). Note that it isn't impossible for a computer to break the key, but a good strong one would take to the heat death of the universe.
E-Commerce uses RSA public keys generated on the fly. This secures data between the user and the retailer. These are one-time keys that are tossed when the user logs off the site. I think, but again won't swear to it, that E-Commerce uses 256 bit keys now. With current tech, it might take longer than the universe has been around to crack.
Bitcoin uses 256 bit keys - I think. As far as us in the general public know, that's still secure. But if a mathematician developed a method of calculating all prime numbers other than by brute force, then all bets are off. The same if quantum computing becomes a thing, since that would be some serious paralleling of computational power.
BTW, if you've noticed, web sites are moving to encryption to preserve the exchange of user name and password between the user and the host computer. This is usually* indicated by https instead of http in the URL. B&B uses https.
*Just because it says https doesn't mean it's encrypted. Some web browsers warn of that now. Also look for the nice padlock symbol in most browsers that indicate it's encrypted.
shavefan
I’m not a fan
Thanks for the info!
Cryptocurrencies are just a new blanket on an old horse.
Google "Company Script" and go from there.
Private currencies are created for 1 of 2 reasons: Real currencies are in limited supply and a need to perform
non-barter transactions is need. Or (as in the case of the modern cryptocurrencies) a desire to conduct transactions outside of government control/knowledge.
If the Dark Web were to stop using cryptocurrencies for the purchase of drugs, drug related equipment or illegal firearms/firearms parts, the value of the cryptocurrencies would plummet. Due to modern computers, the purchaser of those above items can no longer use money transfers, credit cards, government currencies, dummy accounts (google "Panama Papers") so a "new" (or rather old, going back to pre-Roman times) currency method was developed.
There is a reason just about every civilization developed regulated coinage. Cryptocurrencies are unprotected, unregulated, and everyone takes the word of the programmers that they are "safe". These are the same programmers who are overseeing credit card security, social network security, medical record security.... AND are more than likely involved in nefarious activities.
My advice would be to just step away.
Have a Great One!
Google "Company Script" and go from there.
Private currencies are created for 1 of 2 reasons: Real currencies are in limited supply and a need to perform
non-barter transactions is need. Or (as in the case of the modern cryptocurrencies) a desire to conduct transactions outside of government control/knowledge.
If the Dark Web were to stop using cryptocurrencies for the purchase of drugs, drug related equipment or illegal firearms/firearms parts, the value of the cryptocurrencies would plummet. Due to modern computers, the purchaser of those above items can no longer use money transfers, credit cards, government currencies, dummy accounts (google "Panama Papers") so a "new" (or rather old, going back to pre-Roman times) currency method was developed.
There is a reason just about every civilization developed regulated coinage. Cryptocurrencies are unprotected, unregulated, and everyone takes the word of the programmers that they are "safe". These are the same programmers who are overseeing credit card security, social network security, medical record security.... AND are more than likely involved in nefarious activities.
My advice would be to just step away.
Have a Great One!
rbscebu
Girls call me Makaluod
In 2012 I read about BTC and liked the concept so I put 5% of my then net worth (money I could afford to loose) into BTC. Over time BTC increased in value by 300% so I then withdrew double my original "investment". Since then, I have been a hodler of the BTC balance of my original "investment". That BTC balance now represents almost 50% of my net worth which is enough to keep in my current lifestyle until I'm 103yo.
Putting what you can afford to loose into investments is a pretty good limit. There are a fair few disaster stories around BitCoin but to be fair many disasters have taken place in the various stock markets as well.
I'm guessing I'm like many people and just have a passing awareness of crypto currency. Based on this very thin knowledge I figured it would all be shut down as it seems like there would be issues with income tax etc.
Sometimes folk get in on something early . . Is now still early? . . . I don't know.
Not my thing, or at least until I understand it.
I'm guessing I'm like many people and just have a passing awareness of crypto currency. Based on this very thin knowledge I figured it would all be shut down as it seems like there would be issues with income tax etc.
Sometimes folk get in on something early . . Is now still early? . . . I don't know.
Not my thing, or at least until I understand it.
rbscebu
Girls call me Makaluod
I know many say only invest what you are willing to loose. I prefer to say only invest what you believe you will not need. I don't trade BTC or any other crypto currency.
Before putting any of my hard-earned into BTC I spent quite some time reading and learning about it. BTC is not so hard to understand once you get your thinking around it. Probably the newest thing to learn was self security - you are responsible for securing your assests.
As for taxation, my main finances are based in Singapore which has no capital gains tax and they do not tax you on your worldwide income, unlike the USA and Eritrea, the only countries that do.
Be that as it may and not withstanding the forgoing, putting money into crypto currency should only be done if you have a reasonable understanding of what it is all about and the risk involved. The same should be said for any investment.
Bitcoin is so untethered to "money" as defined by the various "states" around the world I am concerned about its long term value. And other crypto-currencies could displace it. It works with today's computational constraints, but what happens if their is a breakthrough in calculation speed which throws a wrench into things.
There is an interesting story about the big stone coins on a remote Pacific Island. Where inhabits agreed that these large stones were currency.
en.wikipedia.org
There is an interesting story about the big stone coins on a remote Pacific Island. Where inhabits agreed that these large stones were currency.
Rai stones - Wikipedia
rbscebu
Girls call me Makaluod
Most people who bought BTC and held it for 10 years before selling have made a tidy profit. This is not saying that the same will happen over the next 10 years.
You cannot even start a Blockchain based crypto without going through the NSA. There is no such thing as safe. This is yet another in the long list of financial scams cooked up by the he same people who brought you centralized banking. Buy food, land and ammo.
Did we really bump a thread that hasn’t had a post in over a year just to argue?
Come on people. Get ahold of yourselves.
Come on people. Get ahold of yourselves.
Bitcoins are essentially just tulips all over again. A bubble. I would think that’s quite obvious. Whatever you do, please never take on debt or other significant risks to ‘invest’ in it. It will implode some day, that’s certain.
Nevertheless I do not think bitcoins are entirely without underlying vaiue. I would be willng to bet a lot of money that the vast majority of bitcoin transactions are criminal money laundering, and that for most criminals the real value of a bitcoin is probably at least triple whatever they pay for it (or if they lose two thirds of their money they probably would still consider it a very good deal). So I think there is sound reason to expect bitcoin values to reach a pretty high level of overvaluation before the whole thing collapses. It’s not only speculation that is driving the prices up.
I used to work for a well known financial institution that had a very successful money transfer product. I was involved in reviewing the product for compliance and reputational risk and we discovered that 80% of all global transactions had Colombia as the fund transfer destination. To my employer’s great credit they shut down that whole business worldwide the next day, regardless of how profitable it was. The reputational risk far outweighed any possible financial considerations for them. Just shows you, though, what can go on with some of these financial products, and with bitcoin this activity would all be invisible and unknowable.
Nevertheless I do not think bitcoins are entirely without underlying vaiue. I would be willng to bet a lot of money that the vast majority of bitcoin transactions are criminal money laundering, and that for most criminals the real value of a bitcoin is probably at least triple whatever they pay for it (or if they lose two thirds of their money they probably would still consider it a very good deal). So I think there is sound reason to expect bitcoin values to reach a pretty high level of overvaluation before the whole thing collapses. It’s not only speculation that is driving the prices up.
I used to work for a well known financial institution that had a very successful money transfer product. I was involved in reviewing the product for compliance and reputational risk and we discovered that 80% of all global transactions had Colombia as the fund transfer destination. To my employer’s great credit they shut down that whole business worldwide the next day, regardless of how profitable it was. The reputational risk far outweighed any possible financial considerations for them. Just shows you, though, what can go on with some of these financial products, and with bitcoin this activity would all be invisible and unknowable.
We’ll try this one more time. I’ve deleted some posts here to get this back on the topic of cryptowhatevers. If you can’t comment here without going off topic on some vaccine, government conspiracy, tin foil hat, you don’t know what i know, I lift more weights than you, …rant… then don’t post here, or anywhere else for that matter.
Cryptocurrencies are an interesting financial class. But cryptos raise so many questions that it is hard to consider them as money or as an investment, even though they have some of those characteristics.
As a substitute, one could consider investing in an intermediary company like Coinbase ($COIN) that should profit by providing the infrastructure. But $COIN does not have much barrier against competitors and I believe some of the big banks like JP Morgan ($JPM) are now getting into digital currency.
"DeFi" or decentralized finance was a hot topic on CNBC sometime last year, not sure what they are focused on now. IMO this is a hard area to invest in as it requires a lot of research. But even if one is agnostic on crypto there is a smaller group of people who are true believers (vs the atheists) which makes it interesting to watch. Where an agnostic is tempted to jump on the band wagon and ride it a short distance to enjoy the thrill of the ride.
As a substitute, one could consider investing in an intermediary company like Coinbase ($COIN) that should profit by providing the infrastructure. But $COIN does not have much barrier against competitors and I believe some of the big banks like JP Morgan ($JPM) are now getting into digital currency.
"DeFi" or decentralized finance was a hot topic on CNBC sometime last year, not sure what they are focused on now. IMO this is a hard area to invest in as it requires a lot of research. But even if one is agnostic on crypto there is a smaller group of people who are true believers (vs the atheists) which makes it interesting to watch. Where an agnostic is tempted to jump on the band wagon and ride it a short distance to enjoy the thrill of the ride.
I'm not a financial genius, more of a financial moron, but Warren Buffet, who has made more money than I could spend, said this about Bitcoin:
Bitcoin has no intrinsic value. In a sense that's no different to the dollar, or any other fiat currency - except for one, crucial thing: you have to pay taxes in dollars.
Since everybody has to earn dollars to pay their taxes the dollar becomes the medium of exchange for the national economy and therefore its value reflects the strength of the national economy. Although dollars are just pieces of paper or numbers in a spreadsheet (which allows the govt to do some nifty things like creating new money whenever it needs to) the value of the dollar is backed by something real.
The value of bitcoin isn't pegged to anything in the real world except demand for bitcoin. When you buy bitcoin what you're specifically doing is placing a bet on an expected future level of demand.
That is a very nebulous thing to invest in because it's not really something you can analyse and predict. It doesn't mean some people won't get lucky, at least some of the time, but it does make it very high risk.
Since everybody has to earn dollars to pay their taxes the dollar becomes the medium of exchange for the national economy and therefore its value reflects the strength of the national economy. Although dollars are just pieces of paper or numbers in a spreadsheet (which allows the govt to do some nifty things like creating new money whenever it needs to) the value of the dollar is backed by something real.
The value of bitcoin isn't pegged to anything in the real world except demand for bitcoin. When you buy bitcoin what you're specifically doing is placing a bet on an expected future level of demand.
That is a very nebulous thing to invest in because it's not really something you can analyse and predict. It doesn't mean some people won't get lucky, at least some of the time, but it does make it very high risk.
rbscebu
Girls call me Makaluod
@McBlade, very well expressed. I am also a firm believer that it is very risky to invest in BTC or any other cryptocurrency to try and get-rich-quick.
I bought most of my BTC in early 2013 and still hold 80% of that initial purchase. That purchase represented just a few shall percent of my then net worth. I bought it because I liked the concept behind it, not for profit.
Yes, I have been one of the lucky ones. No one really knows what is going to happen with cryptocurrencies in the future.
I bought most of my BTC in early 2013 and still hold 80% of that initial purchase. That purchase represented just a few shall percent of my then net worth. I bought it because I liked the concept behind it, not for profit.
Yes, I have been one of the lucky ones. No one really knows what is going to happen with cryptocurrencies in the future.
I am also concerned about its dependency on an open Internet. One does not need to wear a tinfoil hat to wonder what the future Internet will look like as it evolves for security, speed, or autonomy reasons. Will the bitcoin protocol and application servers keep up? There was a protocol enhancement called TapRoot rolled out last year, but I think it was more for batching transactions to make them more efficient, not a more significant change. Will the bitcoin protocols/networks still exist decades from now? Will the underpinning math problems still be computationally difficult?
A paranoid person will remember the Gold Reserve Act of 1934 and wonder about the future evolution of money. Bitcoin transactions could be legislated, firewalled, blackholed, ... out of existence if governing authorities decree.
I'm strong believer that crypto is a solution still in search of a problem. Coins are fun and shiny, but they're not a long-term solution to any major societal problems - just like NFTs, the concept is fascinating and holds real potential for some day in the future, but we haven't quite figured out what that value really is.
