Bitcoin / Cryptocurrency

[ManrisFrack]

Here is a video that helps explain why I am in crypto. I think of it as a rebellious act.

So one thing I don't understand about cryptos that have finite supply...

What happens to the security of the coin when no one is validating new blocks? My understanding is that mining is basically crunching the numbers to validate the transaction chain with Bitcoin being the reward for successfully doing that. If the Bitcoin reward goes away (and according to this guy the last Bitcoin will be mined about 2040) why would anyone devote computing power to securing the block chain? Without that security why would anyone trust Bitcoin after the last coin is mined?

 

[SigSweet]

Feel free to share your knowledge here. Do you currently use a form a Crypto? Where have you purchased it?

Yea Bitcoin only at this point purchase my first bitcoins 2015, used eth, eos, monero around 2017/ 2018 then shifted all my efforts and holding to strictly bitcoin

I run a few miners, currently operate 2 of the largest liquidity providing nodes for the lightning network

I use an OTC desk for cash purchases at this point, have used usual KYC onramps in the past, coinbase, cashapp & non-kyc BISQ network.

 

[SigSweet]

Anyone. Where are you storing your coins?? Hardware wallets vs software wallets. What about Doge?

Cold Storage (offline) - get a coldcard by coinkite

& dont bother with doge

 

[SigSweet]

So one thing I don't understand about cryptos that have finite supply...

What happens to the security of the coin when no one is validating new blocks? My understanding is that mining is basically crunching the numbers to validate the transaction chain with Bitcoin being the reward for successfully doing that. If the Bitcoin reward goes away (and according to this guy the last Bitcoin will be mined about 2040) why would anyone devote computing power to securing the block chain? Without that security why would anyone trust Bitcoin after the last coin is mined?

You pay to make transactions so there is still a fee reward for miners processing transactions, as well difficulty adjusts accordingly

 

[SigSweet]

You can open an account with Coinbase. Then link your bank. transfer in some money but when you are ready to buy, open COINBASE PRO
make your purchase there. (cheaper fees). Most other exchanges won't deal with NY Residents thanks to NY Regulations.
ONce you have an amount, whether it be 50 or 100 or 1000 everyone will tell you not to leave it on the exchange and transfer to a wallet. That is a personal choice. Every time you move it around there is a slight fee of a couple of dollars or more.
I will tell you now that it will take a few days for everything to settle.
WeBull SofI and Gemini also take NY Residents.
When I started all of this I watched YouTubers explaining Crypto for a month or two.
I own BTC Etherium Litecoin Cardano and several others
Cardano is my next largest holding. It is very hot now at $1.20 and I am hoping that it goes to around 40 bucks this year.
None of this is financial advice, I'm answering a post.

Becareful using coinbase - they report everything to IRS, this year returns ask if you made interest so you will need to report that as well

 

[SigSweet]

I have said many times that I am of the utmost ignorant in regards to this Bitcoin thingy.

I am not really in the mood to learn either, not sure if I am smart enough to understand it all.

My only real question is what happens if and when the internet fails?

Does all the value and worth disappear like a fart on a windy day?

The entire internet would have to go out globally including the TOR network if this happened there are other problems

And bitcoins can be exchanged without the internet via opendimes or wallets

 

[SigSweet]

I was lying in bed and the idea hit me. Instead of giving my grandkids a 20 in their birthday cards, I will give them $20 in Bitcoin.
I Bought 1000 worth in Feb and then transferred 20 worth to 10 paper wallets. They will get the paper wallet and not have a clue.
On the day I bought Bitcoin's value was $43500
This means that $20 dollars of Bitcoin is 0.00045977 BTC. Today that is already worth $24.80.
The youngest is 2 and the oldest 18 year old twins. It is cool to talk bitcoin and other investments with them.

​

Is your paper wallet the seed or the just the private key, if it is the private key only u need to send the full amount in the transaction or you will lose the funds sent the the change address.

 

[SigSweet]

I bought some on coinbase and paypal. Paypal only has four major coins, but its pretty secure .There's money to be made there , but your going to have to pick your exit point. If I can make 20- 25% on my money,I cash and buy gold or silver. Some of the coins are crazy you can make double or triple in no time. But as sure as God made rain, its not going to last. Especially once I heard some of the hedge funds are in. they can make prices rise and fall and make money shorting the coin .

Bitcoin is competition for gold as a hedge for inflation, you wouldn't want to move back to PMs

Also paypal doesnt allow you to self custody your bitcoin which is part of its use case so be careful there

 

[holdover]

Gold was here before animals, It will be here long after. All paper currencies fail . Digital will fail also. Crypto's Short term you can make money, especially if you know what your doing . Next year something far better may emerge and Bit coins could be almost worthless .

 

[SigSweet]

Gold was here before animals, It will be here long after. All paper currencies fail . Digital will fail also. Crypto's Short term you can make money, especially if you know what your doing . Next year something far better may emerge and Bit coins could be almost worthless .

If you needed to barter for gold how would you validate its authenticity?
Is it liquid if you did need to convert it to USD or CNY haha
Do you physically hold it, how much space does it take up and how much does it cost to keep it secure?
Easy to smuggle if you needed ?

I really cannot think of any benefit of gold over bitcoin

 

[holdover]

[QUOTE="SigSweet,
If you needed to barter for gold how would you validate its authenticity?

Government assayed coinage. or have it assayed if you needed to.

Is it liquid if you did need to convert it to USD or CNY haha

Extremely liquid world wide. gold is accepted in every country in the world


Do you physically hold it, how much space does it take up and how much does it cost to keep it secure?
Easy to smuggle if you needed ?

Yes. You can put 1/2 a million into a shoebox , costs nothing to store it yourself. Very easy to smuggle as it is very small .

I really cannot think of any benefit of gold over bitcoin.

How about life span? How about I dont need a computer or electricity to buy something? Gold has survived throughout history as a store of value bitcoin has not . It costs 8-900 dollars to mine an ounce of gold. time is spent machinery is purchased , It derives its cost from how much it costs to take it out of the ground .Bitcoin? Digital mineing , or pretend mining . Gold has always kept its value against a falling currency . In every case! thoughout history. Gold is truly anonymous. I can sell you 1 oz of gold for cash or goods and nobody knows about it. Bit coin requires multiple partys to confirm and send it .

You can make money with cryptos , but dont get married to it. (shes a whore) This is all a speculative bubble . Money isnt easy money is hard. That lesson will be learned all over again sometime in the future when this thing crashes and burns .

""It will be as if a millions of voices cried out in terror at once then suddenly silenced"" -Obe Wan Kenobie

 

[SigSweet]

[QUOTE="SigSweet,
If you needed to barter for gold how would you validate its authenticity?

Government assayed coinage. or have it assayed if you needed to.
Its expensive and takes time to verify gold, I can validate my bitcoin holdings and transactions instantly via the blockchain

Is it liquid if you did need to convert it to USD or CNY haha

Extremely liquid world wide. gold is accepted in every country in the world
Bitcoin is accepted globally or can be exchanged to government denominated currency almost instantly with low exchange fees. If going to other countries it might be hard to fly with significant amounts of gold.

Do you physically hold it, how much space does it take up and how much does it cost to keep it secure?
Easy to smuggle if you needed ?

Yes. You can put 1/2 a million into a shoebox , costs nothing to store it yourself. Very easy to smuggle as it is very small .
I can memorize my seed phrase or write down and hide. Dont have to worry about someone breaking in when im not home and stealing a 500k shoebox

I really cannot think of any benefit of gold over bitcoin.

How about life span? How about I dont need a computer or electricity to buy something? Gold has survived throughout history as a store of value bitcoin has not . It costs 8-900 dollars to mine an ounce of gold. time is spent machinery is purchased , It derives its cost from how much it costs to take it out of the ground .Bitcoin? Digital mineing , or pretend mining . Gold has always kept its value against a falling currency . In every case! thoughout history. Gold is truly anonymous. I can sell you 1 oz of gold for cash or goods and nobody knows about it. Bit coin requires multiple partys to confirm and send it .

The reward for bitcoin mining is also what secures the network, meaning to change the blockchain you would have to have 51% of computing power. Bitcoin mining is becoming a load balancing service similar to a battery on the power grid as well. Or using what would be flared gas to operate generators. There is similar cost value to gold mining.

You can make money with cryptos , but dont get married to it. (shes a whore) This is all a speculative bubble . Money isnt easy money is hard. That lesson will be learned all over again sometime in the future when this thing crashes and burns .

The goal isnt to make money, its to protect my wealth from inflation of the dollar. Look at Venezuela, they are now one of the largest countries in terms of bitcoin usage...

""It will be as if a millions of voices cried out in terror at once then suddenly silenced"" -Obe Wan Kenobie

 

[GOPerfect]

If you needed to barter for gold how would you validate its authenticity?
Is it liquid if you did need to convert it to USD or CNY haha
Do you physically hold it, how much space does it take up and how much does it cost to keep it secure?
Easy to smuggle if you needed ?

I really cannot think of any benefit of gold over bitcoin

Gold is real.

 

[holdover]

[QUOTE="SigSweet,
If you needed to barter for gold how would you validate its authenticity?

Government assayed coinage. or have it assayed if you needed to.
Its expensive and takes time to verify gold, I can validate my bitcoin holdings and transactions instantly via the blockchain


No there is no cost at all in most cases. In a shit hit the fan sceneiaro there could be some concern of course, but Cryptos would almost be useless in a SHTF case.


Is it liquid if you did need to convert it to USD or CNY haha

Extremely liquid world wide. gold is accepted in every country in the world


Bitcoin is accepted globally or can be exchanged to government denominated currency almost instantly with low exchange fees. If going to other countries it might be hard to fly with significant amounts of gold.


There are no exchange ""fees"" into different currencys . I can buy a South African krugerand or Austrian philharmonic for a few dollars less than an american eagle. Yes, flying might be hard .

Do you physically hold it, how much space does it take up and how much does it cost to keep it secure?
Easy to smuggle if you needed ?

Yes. You can put 1/2 a million into a shoebox , costs nothing to store it yourself. Very easy to smuggle as it is very small .

I can memorize my seed phrase or write down and hide. Dont have to worry about someone breaking in when im not home and stealing a 500k shoebox.

But do you worry about someone stealing your e wallet or crypto on an account? I have a 1 ton safe concreted into the basement. so Your going to have to work pretty hard and hope I dont come home , where upon your torso wouldn't be found , and no police called. The police have no clue the missing yutes were ever at my house.

I really cannot think of any benefit of gold over bitcoin.

How about life span? How about I dont need a computer or electricity to buy something? Gold has survived throughout history as a store of value bitcoin has not . It costs 8-900 dollars to mine an ounce of gold. time is spent machinery is purchased , It derives its cost from how much it costs to take it out of the ground .Bitcoin? Digital mineing , or pretend mining . Gold has always kept its value against a falling currency . In every case! thoughout history. Gold is truly anonymous. I can sell you 1 oz of gold for cash or goods and nobody knows about it. Bit coin requires multiple partys to confirm and send it .

The reward for bitcoin mining is also what secures the network, meaning to change the blockchain you would have to have 51% of computing power. Bitcoin mining is becoming a load balancing service similar to a battery on the power grid as well. Or using what would be flared gas to operate generators. There is similar cost value to gold mining.

You can make money with cryptos , but dont get married to it. (shes a whore) This is all a speculative bubble . Money isnt easy money is hard. That lesson will be learned all over again sometime in the future when this thing crashes and burns .

The goal isnt to make money, its to protect my wealth from inflation of the dollar. Look at Venezuela, they are now one of the largest countries in terms of bitcoin usage...

Sure they have no currency, but the US dollar is still top dog there. Im sure gold and silver is still an accepted form of payment under the conditions also.

The volatility in bitcoin right now makes it a bad choice for exchange, but a great choice for making money. in 2017 Bitcoin fell from 20K to 3K rapidly. If you were a business that accepts bitcoin and you needed to buy inventory for your business with it , you just took a major hit , that could break you. Now if you were a speculator , you stood to make a huge profit when it hit 20K a year or so later. Nice! and anyone that had bit coins recently , made a killing (like my brother who bought for 800 bucks,fucker ) So I beg to differ on the fact that you can buy it for making money, Like now for instance, everything undershoots and over shoots , Bitcoin has to retrace back a bit which is where you want to buy. Hell if gold and silver were that volatile I could have retired on the swings .Gold /silver is pretty stable . the purchasing power of metals have never really changed . once the dollar was taken off the gold/silver standard is where you see the price go a little crazy


You do what you want, its your money. this thing has not been around 20 years yet. Im not going to bet the farm on it when I just use gold . I see a chance to make a little money with it , But I know I could lose everything at some point.

 

[SigSweet]

Gold is real.

Its like the argument of horse vs car, when you understand the advantages and how/why it works its obvious

 

[SigSweet]

The volatility in bitcoin right now makes it a bad choice for exchange, but a great choice for making money....... Hell if gold and silver were that volatile I could have retired on the swings

So why not make the money now?

 

[BerettaGuy]

You use stake pools for what? I've heard of stake in reference to mining but I'm not sure what that means.

I lend my coins to a Stake Pool that runs the machines that do the calculating on the blockchain and they pay a percentage back to me on the coins they mine. Still not sure how the IRS will take this.

 

[ManrisFrack]

I lend my coins to a Stake Pool that runs the machines that do the calculating on the blockchain and they pay a percentage back to me on the coins they mine. Still not sure how the IRS will take this.

I thought most coins were proof of work, not proof of stake? Maybe that's a question for @SigSweet

 

[GOPerfect]

Its like the argument of horse vs car, when you understand the advantages and how/why it works its obvious

You may be correct. Earlier, I stated my ignorance. Bit coin though is not really real. It can disappear in a nano second.

Question, if you never log on the internet or call someone, can you get your bitcoin? Yeah, I am asking a serious question.

 

[BerettaGuy]

I thought most coins were proof of work, not proof of stake? Maybe that's a question for @SigSweet

Cardano is proof of stake

 

[SigSweet]

You may be correct. Earlier, I stated my ignorance. Bit coin though is not really real. It can disappear in a nano second.

Question, if you never log on the internet or call someone, can you get your bitcoin? Yeah, I am asking a serious question.

Depends, in certain cases you can transfer bitcoin physically without a connection to internet

People get hung up on SHTF situations that like gold.
I used to think like that, but honestly if SHTF and you had no internet or cell service etc a stockpile of ammunition would be better in that situation for bartering and safety and store of value ( my ammo outperformed S&P over 5 year period)
I think gold would be pretty volatile as well in a worst case scenario, if you are using for barter how do you check exchange rate to know you are not short changing yourself, or how do you make smaller denominations if price gets high?

 

[SigSweet]

I thought most coins were proof of work, not proof of stake? Maybe that's a question for @SigSweet

Bitcoin is Proof of work and the only real chain that has significant hash to provide security for large transactions
Some coins are proof of stake, eth is moving that direction as well. there are pros and cons but i believe over time most coins except BTC will trend to 0 as use cases diminish.

 

[ManrisFrack]

Bitcoin is Proof of work and the only real chain that has significant hash to provide security for large transactions
Some coins are proof of stake, eth is moving that direction as well. there are pros and cons but i believe over time most coins except BTC will trend to 0 as use cases diminish.

I've always had the feeling that most coins would die out too. The thing that got me interested in crypto initially was GUN 7 or 8 years ago. Tried to access my wallet a few weeks ago and I can't even get it to work anymore. I don't think BTC will be the only long term survivor though.

The issue with my GUN wallet is exactly why some people don't trust crypto - it needs a base level of technology, infrastructure and support. We've all seen technology become too old to use easily and we see it more and more as time goes on and the pace of advancement increases. Physical assets like gold and ammo don't have that drawback (well, ammo does to the extent that you still need a functioning gun for it to be worth anything). However, if you don't believe that base level will go away while you still need BTC and a store of wealth, it's probably better than metals.

 

[SigSweet]

I've always had the feeling that most coins would die out too. The thing that got me interested in crypto initially was GUN 7 or 8 years ago. Tried to access my wallet a few weeks ago and I can't even get it to work anymore. I don't think BTC will be the only long term survivor though.

The issue with my GUN wallet is exactly why some people don't trust crypto - it needs a base level of technology, infrastructure and support. We've all seen technology become too old to use easily and we see it more and more as time goes on and the pace of advancement increases. Physical assets like gold and ammo don't have that drawback (well, ammo does to the extent that you still need a functioning gun for it to be worth anything). However, if you don't believe that base level will go away while you still need BTC and a store of wealth, it's probably better than metals.

Agree most coins (99%) will trend to 0 over time due to their centralized nature, lack of true use case, & SEC enforcement due to distribution

 

[Robin]

Its like the argument of horse vs car, when you understand the advantages and how/why it works its obvious

Maybe so but any number of techno difficulties can arise, hundreds or thousands of miles away that will render a car useless, and around here anyway, there will be countless horses still available to get you where you want to go.
Robin

 

[spat]

Depends, in certain cases you can transfer bitcoin physically without a connection to internet

People get hung up on SHTF situations that like gold.
I used to think like that, but honestly if SHTF and you had no internet or cell service etc a stockpile of ammunition would be better in that situation for bartering and safety and store of value ( my ammo outperformed S&P over 5 year period)
I think gold would be pretty volatile as well in a worst case scenario, if you are using for barter how do you check exchange rate to know you are not short changing yourself, or how do you make smaller denominations if price gets high?

People forget, in the last SHTF scenario the US government outlawed possession of gold.

"that can't happen here" Wake up buttercup, it happened here before, and that was back when the government was a lot less powerful than it is now.


It might actually be *easier* to spend Crypto than physical gold in a modern collapse.

 

[SigSweet]

Maybe so but any number of techno difficulties can arise, hundreds or thousands of miles away that will render a car useless, and around here anyway, there will be countless horses still available to get you where you want to go.
Robin

Ive had my trunk break down, never thought to myself I should have had a horse

Did go horseback riding as a kid, 2 day journey with camping, one horse tripped and broke its leg, had to be put down, really sad memory

 

[BerettaGuy]

Well, I learned a lesson today! I was transferring bitcoin into wallets for my grandkids. Every time you move it or sell it or buy it there are fees. Depending on the network you are on determines the fees. Ethereal is Very high. Now I was only transferring .00046 Bitcoin. I used the Trust Wallet and their fee was almost 8 dollars. Using Coinbase Pro, their fee was only $1.79 in fiat value. Needless to say I after paying 2 $7.79 dollar fees. I went with Coinbase for the remaining. It is really not much different than Credit Card Fees or ATM fees but they can vary wildly. Note, Coinbase fees are even more than coinbase pro so use pro whenever you can.

 

[Defilade]

Interesting for sure..

Max Keiser: “There’s A Serious Bitcoin Shortage Developing!” | What it Means for Price of Bitcoin – The Phaser

thephaser.com

 

[Clipazine]

Dogecoin.