Here’s why you really should own at least some bitcoin ...

Subredditstats are bullish too :)

Subredditstats are bullish too :) submitted by InvestWise89 to Bitcoin [link] [comments]

Bitcoin is antifragile, criticism should be welcome

I'm very disappointed when I start a thread that seems to question Bitcoin and I get downvoted (like this one: https://www.reddit.com/Bitcoin/comments/g90nlg/at_what_rate_can_mining_productivity_keep/ ). I'm a hodler, I think Bitcoin is the best kind of money that ever existed. It's just how money should be, its supply can't be manipulated by anyone, transactions can't be stopped by anyone, it's infinitely divisible, it's fungible, inflation is negligible. It's a fucking masterpiece.
And it's antifragile. Every time a government meddles with its citizens with capital controls, every time a bank freezes your account or makes transactions expensive and slow, every time you lose 3% converting currencies, every time a central bank increases its money supply, every time a government bailouts some grasshopper by devaluing your hard-earned money, Bitcoin grows stronger. None of that unfair bullshit can happen in Bitcoin.
So why when I make a legit question I'm just being downvoted? Is Bitcoin just a get rich quick scheme for you? Is this reddit just a place to post stupid memes and talk about today's price or a place to have actual discussions with others that care about Bitcoin long term?
submitted by VSAlpha to Bitcoin [link] [comments]

CNBC all confused about what is happening to Bitcoin

CNBC all confused about what is happening to Bitcoin submitted by AliBongo88 to Bitcoin [link] [comments]

There currently isn't enough Bitcoin for every Reddit user on to own more than 0.066 of one ($262.90 worth at time of writing). Reddit users alone could collectively make Bitcoin the most scarce and sought after store of value in the world with a relatively small investment.

submitted by LeeWallis to Bitcoin [link] [comments]

My best attempt to simplify the math of a 10 million dollar Bitcoin [1₿=10million]

🤖₿ So 21 million #bitcoins will ever exist, unlike the dollar that is infinitely printed, which is why it loses value. A #bitcoin is infinitely divisible so no matter how expensive 1 coin gets, infinite fractions of it can be purchased and used. You don't have to buy 1 coin. It's value is the money and things of value behind it÷the number of bitcoins that exist. There are 36 million millionaires in the world today, so by the time every 1 of them try to grab a full bitcoin when it becomes a must have investment, there won't be enough for all of them. That easily pushes 1 coin past 1 million dollars in value when they try to grab a whole coin. Then there are 260 trillion in global #stock markets through #stocks and #derivatives, or what others call #institutionalmoney. The the first US #exchanges are opening to bitcoin and #cryptocurrencies this summer. Once bitcoin is allowed to be traded for stocks, which is only a matter of time now with the #stockmarket opening to the #cryptocurrency markets already, that makes that 260 trillion open to be put behind bitcoin. When that starts to happen; 260 trillion divided by 21 million #bitcoins, puts #1bitcoin over 10 million dollars a coin, or 12 million a coin to be exact. This will likely happen in our lifetimes with everything happening now. That makes every dollar invested even at an 11k price, to be worth 1k$ in possibly 10 years at this rate. ₿🤖
There's more to it like the halvings; about every 4 years the distribution of bitcoin going out gets cut in half. The first 4 years 10.5 million bitcoins went out and the demand and use was small so the price was cheap. From less than a penny cheap in 2009, to over 1000$ in 2013 after it first halved. After that from 2013 through 2016 with only 5.25 million bitcoins were being mined/made; then it halved again in 2016 for a second time & the price ran up to 20k a coin because the supply got cut in half to only 2.125 million bitcoins being created with higher demand and use cases. This is where we are now until summer 2020 when the 3rd halving will happen. After that, the next halving will only have 1.05125 million new #bitcoins getting created until 2024, with 10 trillion in value of institutional markets opening up to it. The potential for the next halving with the halved new coin supply, plus increased demand and use cases is anywhere from 100k to 500k in the short term by late 2020 or early 2021, then another 80+% drop as usual. But in short, at the current prices you're in a good position to be fine after the next correction/drop that'll come after the upcoming halving skyrockets the price. I for one won't stop accumulating till we break 20k again, aka the last all time high. My golden rule is to never buy during new all time high prices, and thankfully we're still under it. So learn about it now and stack up before we break 20k again, because after we do the growth will be stupid fast.
Calculated plug ins for 1 million and 10 million
submitted by BuyBitcoinWhileItsLo to Bitcoin [link] [comments]

I live in Australia. We have 10x less people than the US and represent 0.3% of the worlds population. There will never be enough BTC for every Aussie to own a single coin.

Edit: Bitcoin in almost infinitely divisible, but I hope this post paints a mental picture of the scarcity and value proposition of this beast.
Edit2: Adding a reply to how this matters re price:
This is meant to demonstrate how rare 1 Bitcoin is.
Let me try and explain why it matters for price:
Sellers are simply persons, companies, exchanges etc that invested in Bitcoin earlier and are now cashing out. Some are short term speculators cutting their losses after fomo'ing in at the peak and some are maybe long term holders taking profit. Or maybe a bit of both, you might have a long term holder cashing out because they feel the price is going lower...my point is that this is really all just noise in the long term. Youre either building or youre not.
Then you will have good news, bad news, governments telling you this will be the next reserve currency, or bluffing that they can/intend to outlaw Bitcoin and everything in between influencing speculators. Again, its just noise.
What matters is that say after all the noise there are net 10,000 genuine long term beleivers/builders still buying precious Bitcoin in 2019. That means that every now and then, they use their fiat to buy a little more Bitcoin. Even if no more long term builders/buyers join the fray over the next 8 years, the supply of new coins will be 75% less and the net long term demand roughly the same = higher price. This is the Bitcoin policy that attracts builders (or should i coin the term buidlers).
If history repeats though, we will have a lot more new long term beleivers join Bitcoin once then next wave (after the sellers are exhausted) occurs.
Do I make sense? Someone proove me wrong I guess?
Now, where are those sinks?
submitted by agent_kaleido to Bitcoin [link] [comments]

We are averaging 2,000 new subs daily.

We just celebrated the 350,000 mark 5 days ago and today we are over 360,000. Nice to see this sub and the Bitcoin community in general growing this big and this fast.
If you are one of those many just coming in, welcome! I'm sure you'll find this place very interesting, fun and informative. We are here to help you to better understand what Bitcoin is and and how it works, and for ourselves to keep learning. This is my welcome post for newbies:
When you come asking when is a good time to buy, the answer is: Buy now, always Hodl in FUD times (Bitcoin has "died" many times, but Moneybadger don't care, buy the dips and never panic-sell, stuff like: "China ban Bitcoin...again!" will keep happening again and again.
Here's Bitcoin's response to Jamie Dimon. Stick to the real Bitcoin through all the 'forks' and 'splits' that accomplish nothing but new mediocre, unsafe and centralized altcoins, strengthen/immunize Bitcoin and give you free altcoins to buy more Bitcoin.
All Central Powers look silly trying to control or ban it. Learn from history and listen to this absolute Boss. There will never be enough Bitcoin for every existing millionaire to own just ONE SINGLE BITCOIN, Total number of millionaires (in USD value) worldwide is around 33 million. Get one while you still can.
Also relax, you are actually an early adopter if you start investing today, mentally prepare yourself for healthy and expected market volatility/dips/corrections/"crashes" (check out this amazing 'Corrections Trends Perspective') and remember all this regarding Bitcoin investment:
Never try to time the market. Dollar cost average by buying what you can afford to lose every week.
It is always a good time to buy Bitcoin if you are hodling long term and not just for day trading, so this is a great strategy. Remember that Bitcoin has practically been up most of the time, and the road to the moon is paved with minor corrections (Bitcoin is never really "down" when you zoom-out).
Everybody parroting: "The bitcoin bubble is about to pop" since 2009, don't know that bitcoin is a decentralized system with mathematically fixed, deflatioary and limited supply currency and its growth is exponential.
So is not farfetched to say that it will be at 100,000 by 2020, since it came from less than $1 to $5,000 in less than 10 years, and it hasn't even hit the bottom part of the exponential 'S-Curve' of adoption. Check out this great 2017 MIT study: "The Cryptocurrency Market Is Growing Exponentially". Patience pays, don't listen to the "Expert Analysts on MSM".
Bitcoin is a Moneybadger that get's stronger and immunized with every new attack and this broad picture of its price since infancy (1 year candles on a logarithmic scale) shows Bitcoin growth is not in a "bubble" right now. Learn the difference between Inflation (dollar) and Deflation (Bitcoin) and just take a look at the fiat >20 trillion (and growing fast) debt clock to get a visual shock of unlimited fiat supply (vs limited Bitcoin/Gold supply).
Bitcoin has outperformed every other currency, commodity, stock and asset since its inception in 2009: "2017: Bitcoin Beats Stocks, Bonds, And Gold, Again”. Bitcoin, the Moneybadger, is the first unseizable store of value in human history, unlike gold, equities, or fiat, it can't be confiscated if stored correctly. How banks think blockchain will disrupt their industry.
Also, remember its fixed, limited supply of 21 million coins ever, there are just ~4.5 million (~20%) bitcoins left to be mined till 2140 and the production will keep decreasing ("halving") every 4 years till then. So, remember this and don't wait for the Bitcoin "bubble" to burst or for the price to drop significantly again, because you could be waiting forever:
“The best time to buy bitcoin was a few years ago, the second best time is always now”.
Don't be -- this guy
Here is a good start:
"Introduction to Bitcoin" - Andreas Antonopoulos
Playlists on Andreas own YT channel
Check out this great articles:
"What Gave Bitcoin Its Value?"
"How do Bitcoins have value?"
"Yes, Cryptocurrencies are Valuable"
ELI5: BITCOIN
How to buy Bitcoin?
Where to buy Bitcoin list
Excellent "Crypto 101" by stos313)
Where to use Bitcoin list by Bitcoin-Yoda
Starter Guide "Bitcoin Complete And Ultimate Guide".
Who accepts Bitcoin? List of Companies, Stores, Shops.
Bitcoin is a worldwide-distributed decentralized peer-to-peer censorship-resistant trustless and permissionless deflationary system/currency (see Blockchain technology) backed by mathematics, open source code, cryptography and the most powerful and secure decentralized computational network on the planet, orders of magnitude more powerful than google and government combined. There is a limit of 21 million bitcoins (divisible in smaller units). "Backed by Government" money is not backed by anything and is infinitely printed at will by Central Banks. Bitcoin is limited and decentralized.
Receive and transfer money, from cents (micropayments) to thousands:
And that’s just as currency, Bitcoin has many more uses and applications.
Edit: Fixed some non-working links and added new ones.
submitted by readish to Bitcoin [link] [comments]

Bitcoin - The Magic of Mining

submitted by someguitarplayer to Economics [link] [comments]

Why Bitcoin and all crypto-currencies will continue to plummet

When Bitcoin first started to gain some traction, what were the selling points? The first was that it was useful; the block-chain technology offered a currency that was infinitely divisible, decentralized, and open source. Although the Bitcoin nay-sayers have attacked some of these merits, I don’t think this is where the problem lies. Bitcoin and block-chain technology is clearly very innovative and useful.
However, besides being useful, the other crucial selling point of Bitcoin is its scarcity. A currency is utterly worthless if it can be created or counterfeited at will. Bitcoin seemed to easily answer this problem by setting a hard limit on the number of possible Bitcoins to ever exist – 21 million. As these Bitcoins are “mined”, the mining process becomes more difficult and more time consuming, meaning the rate at which new Bitcoin comes into existence slows
asymptotically. Additionally, considering that all Bitcoin is stored digitally, there is an increasing amount of the currency that is stored on hard drives that are either inaccessible or destroyed. In other words, we will reach a point where the amount of usable bitcoin in circulation actually decreases. Then it seems as though Bitcoin has the problem of scarcity solved, right? After all, it can’t be counterfeited and no more than 21 million can ever be created! Well, it depends.
Let’s take a quick detour into simple economics. Let’s say you are looking to buy some peanut butter. You find the peanut butter aisle and see a couple of different brands. You see a jar of Skippy peanut butter priced at $4 and an equally sized jar of Jif for $5. In your mind, peanut butter is peanut butter, so you go with the less expensive Skippy brand. In this case, Skippy and Jif are considered substitutes. Furthermore, in your mind, they are perfect substitutes, meaning you will always choose the cheaper one regardless of how much cheaper it is. But what if everyone considered Skippy and Jiff to be perfect substitutes? Well, it should be pretty obvious that in this case, Skippy peanut butter would be flying off the shelves and not a single jar of Jif would be sold (assuming sufficient Skippy brand was in stock, of course). How would the manufacturers respond to this situation? Well, if Skippy was smart, they would raise the price until the price was only one penny less than that of Jif. They would still ensure that only Skippy brand butter was bought, and they would maximize their profit per jar sold. But Jif, being equally smart, would try to adopt the same strategy and always attempt to beat the price of Skippy by a penny. This perfectly competitive behavior would ultimately result in each firm producing and selling peanut butter at the same price- competitive equilibrium. The important lesson is that perfect substitutes will have identical prices, and any change in one price would mean an identical change in the other.
So how does this knowledge of substitutes and perfect substitutes apply to crypto-currency? It should be fairly obvious by now that I mean to show that Bitcoin has near-perfect substitutes. Of course, Bitcoin, Bitcoin Cash, Ethereum, and Litecoin are not identical. There are differences in fees, payment processing times, and infrastructure among these most popular currencies. In fact, even the prices of each coin are staggeringly different. How then, can I argue that these coins are perfect substitutes, or even substitutes at all?
First, we must acknowledge the fact that the vast majority of crypto-currency investors are very poorly informed when it comes to the technical aspects of any given coin. The vast majority of investors also do not even intend to use their crypto-currencies as currency, but instead are holding these currencies as a speculative venture. In other words, the difficult-to-understand technical differences between these coins don’t even exist for the majority of investors.
But if these coins are perfect substitutes in the eyes of investors, why are the prices so drastically different? Didn’t I just explain that perfect substitutes have identical prices? Well, in one sense, the prices are very different. The price of bitcoin is close to $4000 and Ethereum is hovering around $35. This would seem to indicate that Ethereum and Bitcoin are very different. But we have to remember that we are talking about digital, infinitely divisible, scale-independent items. These aren’t like jars of peanut butter. The important thing is that any movements made in the price of Bitcoin are mirrored, to scale, in the price of Ethereum, Bitcoin cash, and Litecoin among other coins. This can be seen at almost any time in the Coinbase App, where the price history charts for any established coin appear to move identically 95% of the time. This symmetry in price indicates that the vast majority of crypto investors view these coins as nearly identical, perfect substitutes.
So what’s the big deal? What’s wrong with having substitutes? Well, having perfect substitutes for Bitcoin defeats, entirely, the purpose of artificial scarcity. There may only be 21 million Bitcoins that can ever exist, but there is absolutely no bound on the number of identical crypto-coins that can exist. Saying Bitcoin is valuable because it is scarce is like saying Skippy peanut butter is extraordinarily valuable because the company will only ever make 21 million jars, even though a different company with the identical recipe continues production. Skippy peanut butter really isn’t scarce, and neither is Bitcoin.
New crypto-currencies pop up like daisies because there is an ability to make an immense profit from an ICO. But where does that money come from? In almost all certainty, this money is largely coming from money invested in other coins. In other words, it is money that is being moved from one coin to another as opposed to brand new investment. This is important. The amount of money being invested into crypto currencies exploded during Bitcoin’s rise to $20,000, but has since tapered off. At this point, especially when the prices of all crypto-currencies are falling, new investment is extremely hard to come by. Every day, there is less money and more coins (perfect substitutes) to invest it in. This means the prices of all coins will continue to fall, barring some extraordinary increase to crypto investment. But even with an increase to crypto investment, new coins will continue to be created, and speculative investment will continue to be split further and further.
There is no reason to think this trend will change. This will continue until nearly all speculative investment in crypto currency is withdrawn or lost. After the dust settles, this will ultimately result in coins with different prices (much lower than current values) according to infrastructure and usefulness. All coins that have no real infrastructure or use as a currency will reach $0, and all crypto investment will be focused on a few, easily purchasable, easily usable coins.
But we still have a long way to fall. The fact that the prices of the most popular crypto-currencies essentially mirror one another despite important technical differences between each coin indicates that the vast majority of remaining crypto investment is speculative as opposed to real investment. The bubble is still popping.
submitted by Drax_lem_sklounst to CryptoCurrency [link] [comments]

What happens to bitcoin when each share cost too much for the layman?

You'll have to excuse me because I'm not versed in economy. But I was just wondering, as I spent most of my bitcoins I was thinking about when the next time I could afford more would be. Well, soon. But they will cost more. I bought a few coins when they were 30$, under the impression that I was just going to use them where a merchant wouldn't take any other forms of currency and be done. Well, now they are almost at 50$. What if in a year I will need to spend 200$ a coin. To me that's not even economically viable. I have other more immediate and relative uses of my usd. Will prices of goods drop, will prices of bitcoin eventually stop growing, or will bitcoin become an obscure underground currency for the wealthy, black markets, and early buyers? I guess what I'm asking is, what's next?
submitted by DEVi4TION to Bitcoin [link] [comments]

What are Bitcoin and Other Cryptocurrencies Backed By?

Bitcoin was created back in 2009 and became the first cryptocurrency ever designed. Cryptocurrencies have become increasingly popular in the last few years as they offer an efficient and decentralized way of transferring money.
Cryptocurrencies have always been an alternative to banks and fiat money. But why do they have any value at all and who dictates what they are worth? The value of Bitcoin is really calculated through supply and demand. The digital asset itself is backed by nothing more than perhaps the blockchain ledger.
Every single cryptocurrency uses a blockchain ledger, a system that records transactions between two or more parties in a verifiable and permanent way. This certainly adds value to Bitcoin and cryptocurrencies. However, it is not what determines their price.
Why Things Have Value
Why does anything have any value at all? It has mostly because of supply and demand. Traditional currencies, for instance, are only backed by the government that issued them. Digital money, like Bitcoin, is not backed or linked to any physical reserves like gold and can certainly lose value due to different factors.
Cryptocurrencies have value because they require ‘work’ to exist. Cryptocurrencies are maintained thanks to the mining process, a process in which transactions are verified by different people. This process requires a certain amount of work, electricity, and money.
Key Factors That Affect The Value of Cryptocurrencies
Since most cryptocurrencies are not physically backed by anything, their value is determined through supply and demand based on a few important factors. One of the biggest advantages of cryptocurrencies is scarcity. The supply of most cryptocurrencies is fixed, and, unlike traditional currencies, no one can issue more than the maximum limit. This means that cryptocurrencies are deflationary by nature.
Another key factor that benefits cryptocurrencies is divisibility. Any cryptocurrency can be divided into smaller units. A simple change in Bitcoin’s code could allow the digital asset to be divided into infinitely smaller units at any time.
Additionally, transferring cryptocurrencies can be extremely fast and cheap compared to traditional methods. Fees are somewhat fixed no matter the amount you send, which means that theoretically you could send 1 million Bitcoins to someone and pay only a few dollars in fees (or even less).
In a way, one could say that Bitcoin and cryptocurrencies are backed by the public’s faith in them as they have realized that the current monetary system is not as robust as one might think.
Why Are Cryptocurrencies so Volatile Then?
In comparison to traditional currencies and even stocks, cryptocurrencies are far more volatile, meaning that the current price of any given crypto can change drastically in hours. It’s quite common to see Bitcoin’s price go up or down 5-10% within a few days. In fact, even in periods of low volatility, most cryptocurrencies still experience price moves of up to 1-2%, which is considered extremely high in traditional markets.
The explanation, however, is quite simple. Cryptocurrencies, in general, lack the liquidity that the rest of the markets enjoy. According to statistics from Statista, the average daily turnover in the global foreign exchange market was around $6.5 trillion daily. The cryptocurrency market, on average, sees around $80 billion in daily trading volume, and according to various sources, a lot of the volume is actually fake.
The problem with illiquidity is that someone who wants to sell or buy a huge amount of Bitcoin or any cryptocurrency will simply ‘eat’ all the orders in the order book of the exchange, catapulting the price up or crashing it. That is the only reason why cryptocurrencies, in general, are extremely volatile.
Some Cryptocurrencies Are Actually Backed by Things
There are, however, some cryptocurrencies that are backed by gold, assets, and even fiat money. Tether (USDT) became the most popular cryptocurrency backed by fiat, later known as a ‘stablecoin’.
Stablecoins
A stablecoin is designed to always be worth $1.00 by maintaining 1 dollar in some sort of reserve. The first stablecoin to become widely popular was Tether, however, there was a lot of controversy surrounding it. Most of the criticism came from the fact that Tether Limited was unable to prove they actually have the funds to cover all the Tether issued.
Additionally, on 30 April 2019, Tether Limited’s lawyer actually admitted that each coin is only backed by $0.74 in cash.
Currently, there are over a dozen stablecoins that are backed by fiat, commodities, and even cryptocurrencies. TrueUSD is similar to Tether but it is considered to be one of the most reliable stablecoins currently as the company behind it has been extremely transparent and conducted an independent audit back in March 2019.
A more complex stablecoin is Dai, which is backed by Ethereum and pegged to the dollar. The system behind Dai basically locks Ethereum in a public contract. If the value of Dai distances too far from $1, the system will make use of the contract to stabilize it back. There is, however, a small problem: Dai is not entirely decentralized as the technology behind it is being monitored by the Maker Foundation.
DigixDAO is another stablecoin and it’s backed by bars of actual gold. It is an ERC-20 token created back in 2014. The digital asset is entirely decentralized and autonomous and can in fact be extended to be backed by other precious metals and even physical assets. According to the company, the gold is stored in custodial vaults at the Singapore Safe House, and 1 DGX will always equal 1 gram of gold.
Cryptocurrencies Backed by Assets
Not all cryptocurrencies backed by assets are stablecoins. For instance, the first oil-backed cryptocurrency was introduced by Venezuelan President Nicolas Maduro back in 2017. El Petro, although highly criticized, is supposedly the first cryptocurrency to be backed by oil thanks to the country’s huge oil and mineral reserves.
Petro is, however, not pegged to anything, and its value can increase or decrease at any given time.
Tokenization of Assets
Something that has become quite popular over the last few years is the tokenization of traditional stocks and assets. There are countless blockchain startups tokenizing almost anything to represent ownership.
The tokenization of assets brings numerous benefits like greater liquidity, more transparency, cheaper and faster transactions, and more accessibility. Tokenization itself is quite difficult to regulate, and all tokenization assets have to be compliant with the law, something that issuers struggle to achieve.
Conclusion
While traditional cryptocurrencies are not necessarily backed by anything physical, they still hold a lot of value solely based on supply and demand. This is the case with numerous other assets and even fiat money.
Cryptocurrencies have come a long way and there is a wide variety of them. Stablecoins are the most popular when it comes to asset-backed cryptocurrencies. They serve as an alternative to fiat money and bring a lot of liquidity to the market. There are definitely concerns as people question their stability, however, they have become an important factor in the market.
Additionally, other projects aside from stablecoins have implemented asset-backed cryptocurrencies. There are numerous cryptocurrencies out there backed by precious metals, physical assets, stocks, and even other cryptocurrencies. We are definitely going to see even more in the near future as they bring a lot more security to investors and the crypto space in general.

SwapSpace team is always ready for discussion. You can drop an email with your suggestions and questions to [[email protected]](mailto:[email protected]) Join our social networks: Twitter, Medium, Facebook, Telegram The best rates on https://swapspace.co/
submitted by SwapSpace_co to CryptoTechnology [link] [comments]

Bitcoin Cash to Be Valued at $12,000,000 Each

Enjoy =)
Larry Page = $41 billion
Bill Gates = $86 billion
All Cryptocurrency's = $200 billion
Amazon = $402 billion
Apple = $730 billion
USD in circulation = $1,500 billion
Gold Market Cap = $8,200 billion
Physical Money (notes/coins) = $31,200 billion
Stock Markets = $66,800 billion
All U.S. Money (bank deposits/loans) = $83,000 billion
But why doesn't EVERYBODY just convert ALL of the world's money of the ENTIRE PLANET to paying each other in gold? Gold is a great 'store of value', isn't it? Yes, it sure has value, but because it is inconvenient, hard to transport, slow, not divisible (without a third party), and difficult to keep from being robbed (without a third party), that is why the entire planet does not transact in gold, and hence why Gold's market capitalization is only $8,200 billion.
The only way this is possible, is if gold was more convenient to transact with than everything else, especially VISA. Which is impossible. You can't pay for a $100.37 item on Amazon.com, through the internet, without a third party, in a split second, by using gold.
Bitcoin (whitepaper version), can do 1,000,000 transactions per second CHEAPER than VISA. (It can probably do even more in the future), it's also at the same time a tangible currency (that takes trillions of video cards to create one single uncounterfeitable coin) aka "store of value".
So, for example's sake, let's add up all of the money (listed above), and "flood" the entire planet into using a currency ("store of value"), that is ALSO a payment system in itself BY DESIGN, able to send money to the other side of the planet, instantly, without needing to use ANY kind of outside third party, because the coin ITSELF is the third party IF it is the Whitepaper Version of Bitcoin. But if the witness data (aka transaction signatures) are segregated from the chain, then the coin (economy itself) is no longer ITS' OWN "third party" anymore, but prone to whoever wants to take advantage of the segregated witness data (whether its blockstream, bitcoin core, AXA, miners, or banks, doesn't matter). Because when the chain of digital signatures is no longer part of the blockchain, the incentive to take advantage of the system and introduce a traditional (bankegovernment) "third party" is now profitable/possible to do so. Whereas, originally, without SegWit, anybody who tried to do this would infinitely lose money in trying to do so---aka mining coins was more profitable than trying to do a 51% attack. Hence, with SegWit, we introduce a loop-hole into Bitcoin, allowing double spending of anyone's transactions, reversing anyone's transactions, halting anyone's transactions, freezing anyone's transactions, charge-backs, etc.
Now introduce $191,659 billion (see above) of the world's money to a ONE WORLD CURRENCY, that DOES NOT REQUIRE A THIRD PARTY.
17,912 x $650 current value of Bitcoin (whitepaper version) = $11,642,800 , for one coin.
90% of people who buy Bitcoin don't even know what is "Segwit" or "Blockstream" or "Satoshi" or "Whitepaper". They think it's the 'norm' that it takes hours upon hours (or even days) to get their Bitcoin. They assume that because it's "hard to get", then that is why it is valuable. Upon all of the other reasons. It's all media. It is exactly what BitConnect is doing. The only reason people are buying it, is because everyone is gambling, but are fully convinced that it is "investing". This is why Bitcoin is not going to lose its' value instantly. Nor is it going to skyrocket to an astronomical value like $100,000 instantly. But it will most definitely NOT be used as replacement currency by Walmart, Amazon, Sams Club, Coca Cola, Target, etc, and so on, it goes on FOREVER. All of these companies use VISA.
But what about other coins that already exist with little to no fees, instant transactions and end up having little to no traction and don't look like anyone cares about them??
For example.
These are the top ones I felt like choosing. I can explain every coin on the list. But the entire point, is that for EVERY one of these coins, Bitcoin Cash does it better. Bitcoin Cash has 0-conf (Bitcoin used to have it until the system could not accept anymore transactions and started backlogging transactions---aka full blocks). Bitcoin Cash has scripting functions (aka smart contracts). Bitcoin used to have it when the transaction fees only cost 1-5 cents per block... But no one wants to use the scripting functions anymore when you have to pay $5-$100 for each block.
There is a reason why Satoshi did not design Bitcoin (whitepaper version) like any of the other coins. It is because he already thought about those other designs.
Bitcoin legacy forfeited it's security model (whitepaper version) as soon as it changed protocol to SegWit.
submitted by MartinGandhiKennedy to btc [link] [comments]

10 Reasons Why Bitcoin is Better than Conventional Currency

  1. Theft resistance: Stealing of bitcoins is not possible until the adversary have the private keys (usually kept offline) that are associated with the user wallet. In particular, Bitcoin provides security by design, for instance, unlike with credit cards you dont expose your secret (private key) whenever you make a transaction.
  2. Btc cannot be falsified, dollars well you know When you transfer bitcoins to someone you don't hand over "a bitcoin". You submit a transaction to the network. The network makes sure your address is valid and has the proper value. So there is no risk of counterfeiting because there is nothing to counterfeit.
  3. Durability, Portability, Divisibility, How do you destroy a number? Bitcoins are as durable as the owner makes the keys. If the only copy of the key is on a computer and you throw out the computer, the bitcoins die with the hard drive. If the proper precautions are taken, the keys are as durable as the medium. In order to destroy the network, you would need to eliminate all computers running the software. This includes the computer running in space. It is possible but unlikely.
You can just travel among different countries with millions in Btc, you just have to memorize your private key, here is where btc is much more portable than gold, cash and even bank transfers that can have several limitations.
Without a way to instantly transport gold from person to person, which is impossible without some sort of incredible breakthrough resulting in teleportation, then transportation costs, or the reliance on central vaults to store the gold, remain an issue. then, the gold itself is so useful for much of the technology we rely on today, as well as technology that is being developed, that our gold supply is truly needed for industrial uses. For the first time in history, humans are actually “consuming” gold
Bitcoin is infinitely divisible. Currently, 1 bitcoin can only be broken down into 100,000,000 smaller units, known as satoshis. However, that limit is not set in stone. If, at some point, more than 2,100,000,000,000,000, or 2.1 quadrillion, units of currency are needed, then it would not be difficult to allow the currency to be broken down to another decimal point or two.
  1. It’s borderless. You could go to any country and use it. It is safer to carry bitcoins than to carry cash, especially if you bring a large amount of money or if you’re travelling to a country with higher crime rates. Bitcoin is easy to exchange to major local currencies, if you plan to travel to multiple countries and wish to avoid the hassle of exchanging money.
If the establishment doesn’t accept bitcoin payments, sell your bitcoins (through LocalBitcoins) or withdraw your money from ATMs with the help of payment cards.
  1. It’s not subject to the whims of a government. The supply is constant and the price is determined by free market demand. We can know how many bitcoin will be circulating in ten, twenty or seventy years, for example, are you able you know how many US dollars will be circulating at that moment, or how many of your fiduciary currency will be printed?
  2. Bitcoin transactions are instant. When a bitcoin is sent, the transaction immediately begins to spread through the network. The recipient can see that they have received the transaction instantly, or within a few seconds. Then, once it has been fully confirmed, it would be statistically improbable for it to be invalid. I would say impossible, but that is not completely true. However, after a few confirmations, you are more likely to win the lottery than have a transaction turn out to be invalid.
  3. Secure store of value. This use case is crucial in environments where citizens cannot trust that institutions will be responsible stewards of their hard-earned money. Consider the tragic case of a country like Venezuela, where individuals’ property and savings can be confiscated by authorities through law or inflation. Many Venezuelans are unfortunately unable to access traditional forms of exit such as emigration or stealthily accruing more stable sovereign currencies. With cryptocurrency, more Venezuelans have an alternative: They can opt to purchase or mine a secure store of value that cannot be confiscated or inflated away by their government because they alone control their private keys. (Indeed, cryptocurrencies are especially popular in Venezuela for precisely this reason.)
It is also very useful to send and receive remittances without paying high fees and only with your mobile, without having to go to a money exchanger physically
  1. Smart contracts. For example, let’s say that Alice would like to gift her granddaughter, Erin, with a sum of money upon her 18th birthday. Today, Alice’s option is basically to hire a lawyer to create a trust that will hold the funds and disburse them on the appointed date. Being a technologically-savvy grandmother, however, Alice knows that she can simply program a smart contract to do the same thing without having to employ an intermediary. Alice creates a cryptocurrency wallet for herself and another for her granddaughter Erin. Alice sends the equivalent of $10,000 to her wallet and programs a smart contract. The contract is set up so that on the day of Erin’s birthday—let’s say January 3, 2027—the contract will automatically move the funds from Alice’s wallet directly to Erin’s, where she will have complete control of those funds. Once Alice sets the transaction in motion, she no longer has access to the funds, just as if she had created a trust. (it works also for inheritances)
  2. It’s banking the unbanked. You can bypass the traditional banking system, avoid surveillance, and get rid of hefty fees. Cryptocurrencies remove the need to rely on this trusted third party to make a transaction. In effect, a cryptocurrency replaces a third party like Bank of America or PayPal with the network itself, which is managed by a distributed web of computers all across the world. This means that Alice can make a payment online directly to Bob whenever and wherever she wants, without needing to introduce another party which may be cumbersome or expensive. This also means that people without access to banking services can now take part in digital commerce.
Programmers, developers, online teachers, designers and anyone who can do online work can benefit from this bitcoin advantage, especially in poorer countries where most people can not access international bank accounts.
  1. Bitcoin has no risk of credit card fraud or credit card chargebacks, Compared to traditional payment methods, bitcoin is an attractive prospect for business owners, Bitcoin has no risk of credit card fraud or credit card chargebacks,This is a huge problem for the travel industry because the payments are often large.
For example, many European or American online stores block or avoid receiving credit card payments from Africa because of the fraud risks, with bitcoin, online stores could accept purchases from customers from Africa without chargeback risks, both parties win, the Buyers can access the merchandise and sellers can sell without risk.
submitted by raftoni to Bitcoin [link] [comments]

What are Bitcoin and Other Cryptocurrencies Backed By?

Bitcoin was created back in 2009 and became the first cryptocurrency ever designed. Cryptocurrencies have become increasingly popular in the last few years as they offer an efficient and decentralized way of transferring money.
Cryptocurrencies have always been an alternative to banks and fiat money. But why do they have any value at all and who dictates what they are worth? The value of Bitcoin is really calculated through supply and demand. The digital asset itself is backed by nothing more than perhaps the blockchain ledger.
Every single cryptocurrency uses a blockchain ledger, a system that records transactions between two or more parties in a verifiable and permanent way. This certainly adds value to Bitcoin and cryptocurrencies. However, it is not what determines their price.
Why Things Have Value
Why does anything have any value at all? It has mostly because of supply and demand. Traditional currencies, for instance, are only backed by the government that issued them. Digital money, like Bitcoin, is not backed or linked to any physical reserves like gold and can certainly lose value due to different factors.
Cryptocurrencies have value because they require ‘work’ to exist. Cryptocurrencies are maintained thanks to the mining process, a process in which transactions are verified by different people. This process requires a certain amount of work, electricity, and money.
Key Factors That Affect The Value of Cryptocurrencies
Since most cryptocurrencies are not physically backed by anything, their value is determined through supply and demand based on a few important factors. One of the biggest advantages of cryptocurrencies is scarcity. The supply of most cryptocurrencies is fixed, and, unlike traditional currencies, no one can issue more than the maximum limit. This means that cryptocurrencies are deflationary by nature.
Another key factor that benefits cryptocurrencies is divisibility. Any cryptocurrency can be divided into smaller units. A simple change in Bitcoin’s code could allow the digital asset to be divided into infinitely smaller units at any time.
Additionally, transferring cryptocurrencies can be extremely fast and cheap compared to traditional methods. Fees are somewhat fixed no matter the amount you send, which means that theoretically you could send 1 million Bitcoins to someone and pay only a few dollars in fees (or even less).
In a way, one could say that Bitcoin and cryptocurrencies are backed by the public’s faith in them as they have realized that the current monetary system is not as robust as one might think.
Why Are Cryptocurrencies so Volatile Then?
In comparison to traditional currencies and even stocks, cryptocurrencies are far more volatile, meaning that the current price of any given crypto can change drastically in hours. It’s quite common to see Bitcoin’s price go up or down 5-10% within a few days. In fact, even in periods of low volatility, most cryptocurrencies still experience price moves of up to 1-2%, which is considered extremely high in traditional markets.
The explanation, however, is quite simple. Cryptocurrencies, in general, lack the liquidity that the rest of the markets enjoy. According to statistics from Statista, the average daily turnover in the global foreign exchange market was around $6.5 trillion daily. The cryptocurrency market, on average, sees around $80 billion in daily trading volume, and according to various sources, a lot of the volume is actually fake.
The problem with illiquidity is that someone who wants to sell or buy a huge amount of Bitcoin or any cryptocurrency will simply ‘eat’ all the orders in the order book of the exchange, catapulting the price up or crashing it. That is the only reason why cryptocurrencies, in general, are extremely volatile.
Some Cryptocurrencies Are Actually Backed by Things
There are, however, some cryptocurrencies that are backed by gold, assets, and even fiat money. Tether (USDT) became the most popular cryptocurrency backed by fiat, later known as a ‘stablecoin’.
Stablecoins
A stablecoin is designed to always be worth $1.00 by maintaining 1 dollar in some sort of reserve. The first stablecoin to become widely popular was Tether, however, there was a lot of controversy surrounding it. Most of the criticism came from the fact that Tether Limited was unable to prove they actually have the funds to cover all the Tether issued.
Additionally, on 30 April 2019, Tether Limited’s lawyer actually admitted that each coin is only backed by $0.74 in cash.
Currently, there are over a dozen stablecoins that are backed by fiat, commodities, and even cryptocurrencies. TrueUSD is similar to Tether but it is considered to be one of the most reliable stablecoins currently as the company behind it has been extremely transparent and conducted an independent audit back in March 2019.
A more complex stablecoin is Dai, which is backed by Ethereum and pegged to the dollar. The system behind Dai basically locks Ethereum in a public contract. If the value of Dai distances too far from $1, the system will make use of the contract to stabilize it back. There is, however, a small problem: Dai is not entirely decentralized as the technology behind it is being monitored by the Maker Foundation.
DigixDAO is another stablecoin and it’s backed by bars of actual gold. It is an ERC-20 token created back in 2014. The digital asset is entirely decentralized and autonomous and can in fact be extended to be backed by other precious metals and even physical assets. According to the company, the gold is stored in custodial vaults at the Singapore Safe House, and 1 DGX will always equal 1 gram of gold.
Cryptocurrencies Backed by Assets
Not all cryptocurrencies backed by assets are stablecoins. For instance, the first oil-backed cryptocurrency was introduced by Venezuelan President Nicolas Maduro back in 2017. El Petro, although highly criticized, is supposedly the first cryptocurrency to be backed by oil thanks to the country’s huge oil and mineral reserves.
Petro is, however, not pegged to anything, and its value can increase or decrease at any given time.
Tokenization of Assets
Something that has become quite popular over the last few years is the tokenization of traditional stocks and assets. There are countless blockchain startups tokenizing almost anything to represent ownership.
The tokenization of assets brings numerous benefits like greater liquidity, more transparency, cheaper and faster transactions, and more accessibility. Tokenization itself is quite difficult to regulate, and all tokenization assets have to be compliant with the law, something that issuers struggle to achieve.
Conclusion
While traditional cryptocurrencies are not necessarily backed by anything physical, they still hold a lot of value solely based on supply and demand. This is the case with numerous other assets and even fiat money.
Cryptocurrencies have come a long way and there is a wide variety of them. Stablecoins are the most popular when it comes to asset-backed cryptocurrencies. They serve as an alternative to fiat money and bring a lot of liquidity to the market. There are definitely concerns as people question their stability, however, they have become an important factor in the market.
Additionally, other projects aside from stablecoins have implemented asset-backed cryptocurrencies. There are numerous cryptocurrencies out there backed by precious metals, physical assets, stocks, and even other cryptocurrencies. We are definitely going to see even more in the near future as they bring a lot more security to investors and the crypto space in general.

SwapSpace team is always ready for discussion. You can drop an email with your suggestions and questions to [[email protected]](mailto:[email protected]) Join our social networks: Twitter, Medium, Facebook, Telegram The best rates on https://swapspace.co/
submitted by SwapSpace_co to CoinBase [link] [comments]

Coin split?

When a stock's value goes up so much that it becomes out of reach to casual investors, the company will perform a stock split, assigning all holders of the stock some multiple of their current shares in an effort to drop the price of each individual share. For example, in a 3-for-1 stock split, every share that is owned gets tripled, so that those who are holding 100 shares are granted 200 more shares for a total of 300 shares. The effect of this maneuver is that the price would fall to 1/3rd its current value while the value of shares held does not change at all.
Is a coin split possible?
I know, of course, that Dash is infinitely divisible. But right now, a $3 cup of coffee costs 0.002 Dash, which isn't easy or pleasurable to communicate.
I also know there are names for particular divisions of Dash - i.e. that $3 cup of coffee is really just 2 "mDash" - but then we have the problem of brand identification. What is an mDash? Is that like Dash in the way Bitcoin Cash is like Bitcoin?
The only potential flaws I see in this is the possibly odd effects it could have on exchanges. If the "wallet" you see in your exchange account isn't actually a representation of what is on the blockchain, but instead your "wallet" is an entry in the exchange's own private database, then this could cause problems.
However, we should give this serious consideration. I like Dash because the development team and community are focused on making it a medium of exchange. If each Dash is worth $2000 (or, I think, more) then it will be very difficult to talk transactions in Dash.
Thoughts?
submitted by cultfitnews to dashpay [link] [comments]

What are Bitcoin and Other Cryptocurrencies Backed By?

Bitcoin was created back in 2009 and became the first cryptocurrency ever designed. Cryptocurrencies have become increasingly popular in the last few years as they offer an efficient and decentralized way of transferring money.
Cryptocurrencies have always been an alternative to banks and fiat money. But why do they have any value at all and who dictates what they are worth? The value of Bitcoin is really calculated through supply and demand. The digital asset itself is backed by nothing more than perhaps the blockchain ledger.
Every single cryptocurrency uses a blockchain ledger, a system that records transactions between two or more parties in a verifiable and permanent way. This certainly adds value to Bitcoin and cryptocurrencies. However, it is not what determines their price.
Why Things Have Value
Why does anything have any value at all? It has mostly because of supply and demand. Traditional currencies, for instance, are only backed by the government that issued them. Digital money, like Bitcoin, is not backed or linked to any physical reserves like gold and can certainly lose value due to different factors.
Cryptocurrencies have value because they require ‘work’ to exist. Cryptocurrencies are maintained thanks to the mining process, a process in which transactions are verified by different people. This process requires a certain amount of work, electricity, and money.
Key Factors That Affect The Value of Cryptocurrencies
Since most cryptocurrencies are not physically backed by anything, their value is determined through supply and demand based on a few important factors. One of the biggest advantages of cryptocurrencies is scarcity. The supply of most cryptocurrencies is fixed, and, unlike traditional currencies, no one can issue more than the maximum limit. This means that cryptocurrencies are deflationary by nature.
Another key factor that benefits cryptocurrencies is divisibility. Any cryptocurrency can be divided into smaller units. A simple change in Bitcoin’s code could allow the digital asset to be divided into infinitely smaller units at any time.
Additionally, transferring cryptocurrencies can be extremely fast and cheap compared to traditional methods. Fees are somewhat fixed no matter the amount you send, which means that theoretically you could send 1 million Bitcoins to someone and pay only a few dollars in fees (or even less).
In a way, one could say that Bitcoin and cryptocurrencies are backed by the public’s faith in them as they have realized that the current monetary system is not as robust as one might think.
Why Are Cryptocurrencies so Volatile Then?
In comparison to traditional currencies and even stocks, cryptocurrencies are far more volatile, meaning that the current price of any given crypto can change drastically in hours. It’s quite common to see Bitcoin’s price go up or down 5-10% within a few days. In fact, even in periods of low volatility, most cryptocurrencies still experience price moves of up to 1-2%, which is considered extremely high in traditional markets.
The explanation, however, is quite simple. Cryptocurrencies, in general, lack the liquidity that the rest of the markets enjoy. According to statistics from Statista, the average daily turnover in the global foreign exchange market was around $6.5 trillion daily. The cryptocurrency market, on average, sees around $80 billion in daily trading volume, and according to various sources, a lot of the volume is actually fake.
The problem with illiquidity is that someone who wants to sell or buy a huge amount of Bitcoin or any cryptocurrency will simply ‘eat’ all the orders in the order book of the exchange, catapulting the price up or crashing it. That is the only reason why cryptocurrencies, in general, are extremely volatile.
Some Cryptocurrencies Are Actually Backed by Things
There are, however, some cryptocurrencies that are backed by gold, assets, and even fiat money. Tether (USDT) became the most popular cryptocurrency backed by fiat, later known as a ‘stablecoin’.
Stablecoins
A stablecoin is designed to always be worth $1.00 by maintaining 1 dollar in some sort of reserve. The first stablecoin to become widely popular was Tether, however, there was a lot of controversy surrounding it. Most of the criticism came from the fact that Tether Limited was unable to prove they actually have the funds to cover all the Tether issued.
Additionally, on 30 April 2019, Tether Limited’s lawyer actually admitted that each coin is only backed by $0.74 in cash.
Currently, there are over a dozen stablecoins that are backed by fiat, commodities, and even cryptocurrencies. TrueUSD is similar to Tether but it is considered to be one of the most reliable stablecoins currently as the company behind it has been extremely transparent and conducted an independent audit back in March 2019.
A more complex stablecoin is Dai, which is backed by Ethereum and pegged to the dollar. The system behind Dai basically locks Ethereum in a public contract. If the value of Dai distances too far from $1, the system will make use of the contract to stabilize it back. There is, however, a small problem: Dai is not entirely decentralized as the technology behind it is being monitored by the Maker Foundation.
DigixDAO is another stablecoin and it’s backed by bars of actual gold. It is an ERC-20 token created back in 2014. The digital asset is entirely decentralized and autonomous and can in fact be extended to be backed by other precious metals and even physical assets. According to the company, the gold is stored in custodial vaults at the Singapore Safe House, and 1 DGX will always equal 1 gram of gold.
Cryptocurrencies Backed by Assets
Not all cryptocurrencies backed by assets are stablecoins. For instance, the first oil-backed cryptocurrency was introduced by Venezuelan President Nicolas Maduro back in 2017. El Petro, although highly criticized, is supposedly the first cryptocurrency to be backed by oil thanks to the country’s huge oil and mineral reserves.
Petro is, however, not pegged to anything, and its value can increase or decrease at any given time.
Tokenization of Assets
Something that has become quite popular over the last few years is the tokenization of traditional stocks and assets. There are countless blockchain startups tokenizing almost anything to represent ownership.
The tokenization of assets brings numerous benefits like greater liquidity, more transparency, cheaper and faster transactions, and more accessibility. Tokenization itself is quite difficult to regulate, and all tokenization assets have to be compliant with the law, something that issuers struggle to achieve.
Conclusion
While traditional cryptocurrencies are not necessarily backed by anything physical, they still hold a lot of value solely based on supply and demand. This is the case with numerous other assets and even fiat money.
Cryptocurrencies have come a long way and there is a wide variety of them. Stablecoins are the most popular when it comes to asset-backed cryptocurrencies. They serve as an alternative to fiat money and bring a lot of liquidity to the market. There are definitely concerns as people question their stability, however, they have become an important factor in the market.
Additionally, other projects aside from stablecoins have implemented asset-backed cryptocurrencies. There are numerous cryptocurrencies out there backed by precious metals, physical assets, stocks, and even other cryptocurrencies. We are definitely going to see even more in the near future as they bring a lot more security to investors and the crypto space in general.

SwapSpace team is always ready for discussion. You can drop an email with your suggestions and questions to [[email protected]](mailto:[email protected]) Join our social networks: Twitter, Medium, Facebook, Telegram The best rates on https://swapspace.co/
submitted by SwapSpace_co to CryptoCurrencyTrading [link] [comments]

Biased Sunday Preaching: Why I believe in Bitcoin

Biased Sunday Preaching: Bitcoin

If you pay attention to the Noel Prize winner in Economy Paul Krugman, you will have been warned about bitcoin.
There is a bubble that we should talk about -- a Ponzi scheme where people are rewarded.
The US ended up being the world's reserve currency for reasons highly related to politics and economy. It benefitted the most from post-WWII industrialization, maintained power over oil resources (though in other countries), and initially had its dollar tied to gold. The 1944 Bretton Woods Accord was signed by 44 countries, and gave $35 for an ounce of gold. Thirty years later and Nixon unlinked gold and the dollar.
The late 20th century saw a massive movement of manufacturing from the US to China, to exploit cheap labor. Our standard of living changes are very tied to that. The hourly wage of Americans is high compared to most of the world.
But things don't always last. There's this theory called the Strauss-Howe generational theory, which outlines an archetype of generations, described by four cycles: High, Awakening, Unraveling, Crisis. The idea is basically this: when things are bad, people work to improve them, so things get better; when things are good, people ignore them, so things get worse. I've seen the thing over and over in social groups: small groups are tight-knit and personal, so they grow; large groups become faceless and restrictive, so they shrink if they can't figure out how to create the small group dynamics. I digress.
Yes, this relates to economics, as it is about philosophical principles that drive economies, and how people work on improving value or ignoring that.

Tulip Mania

The question is, what creates monetary value?
The answer is, trust. Sometimes the complete lack of trust in each other.
There's an apocryphal story about how tulip bulbs were were sold for ten times the annual income of a skilled craftsmen, in the the Dutch commerce. The point of the story is that people became crazed about something that has low value. And that at some point people stopped buying tulips, thereby collapsing its price. Obviously a ridiculous story on its face, because tulips don't last and aren't a currency, and the value created was because people wanted the tulips for social reasons.
What's backing the US dollar? If hyperinflation were to happen due to a new war or major economic collapse, your dollars would be worthless. Even putting those dollars into a banking account today, depending on your banking account, it's hard to say whether you would have equivalent buying power in a few decades. Those dollars would have lost value due to inflation. Some argue that inflatable currencies are a Ponzi scheme, with the hidden tax of inflation behind them.

What are you talking about?

Cryptocurrency.
I'm leading into talking about cryptocurrency. Bitcoin. Ethereum. And plenty others.
I'm a firm believer that Bitcoin will retain -- and increase -- in value over the next several decades. There will be other competitors that may gain in more value, but they will be service specific.
I have several reasons for this.
1) All governments will inflate their currency, thereby losing value to those who are invested in them. Inflation is the hidden tax on us all. There is not only a nothing tangible thing behind that piece of paper or zeros and ones on a computer, but there isn't even a limited supply. Dollars come out of thin air, at a whim. The world has limited resources, but unlimited possible dollars.
2) Bitcoin is limited, therefore rare. Whether it is under or overvalued currently, I think it is a long term solution. It still allows for growth, as those computer bytes are nearly infinitely divisible. And other cryptos can allow for secondary currencies.
3) The younger generations will increasingly invest in crypto, and out of classical investment models. We will continue to see less money going from stocks to new crypto businesses that incorporate these as their models.
4) Crypto is global. It is not tied to a specific country, therefore, for many of the large cryptocurrencies, we are all in this together. If a country has problems with its currency, it will affect crypto value. But I would rather a a global hedge over a local, volatile hedge.
5) New models will result from this. Business. Political. Sociel. Technological. Distributed, decentralized models will be very robust long term.

What now?

Don't go and spend your entire bank account on crypto. Just. Don't. It's volatile, and you will get emotional, leading to stupid decisions. But do spend a small portion of it to get into this space. This is a long investment, unless you are using it to buy something tangible, such as from your local tech shop.
But watch the space. There are models here that will become increasingly important.
If you do hanker for buying bitcoin, I recommend coinbase or bitstamp.
They say that a bubble exists only when people don't recognize that something is a bubble.
The question that we have to answer is this: will the US retain global dominance, and how do we react to that answer?
submitted by TheMysteriousFizzyJ to WayOfTheBern [link] [comments]

What are Bitcoin and Other Cryptocurrencies Backed By?

Bitcoin was created back in 2009 and became the first cryptocurrency ever designed. Cryptocurrencies have become increasingly popular in the last few years as they offer an efficient and decentralized way of transferring money.
Cryptocurrencies have always been an alternative to banks and fiat money. But why do they have any value at all and who dictates what they are worth? The value of Bitcoin is really calculated through supply and demand. The digital asset itself is backed by nothing more than perhaps the blockchain ledger.
Every single cryptocurrency uses a blockchain ledger, a system that records transactions between two or more parties in a verifiable and permanent way. This certainly adds value to Bitcoin and cryptocurrencies. However, it is not what determines their price.
Why Things Have Value
Why does anything have any value at all? It has mostly because of supply and demand. Traditional currencies, for instance, are only backed by the government that issued them. Digital money, like Bitcoin, is not backed or linked to any physical reserves like gold and can certainly lose value due to different factors.
Cryptocurrencies have value because they require ‘work’ to exist. Cryptocurrencies are maintained thanks to the mining process, a process in which transactions are verified by different people. This process requires a certain amount of work, electricity, and money.
Key Factors That Affect The Value of Cryptocurrencies
Since most cryptocurrencies are not physically backed by anything, their value is determined through supply and demand based on a few important factors. One of the biggest advantages of cryptocurrencies is scarcity. The supply of most cryptocurrencies is fixed, and, unlike traditional currencies, no one can issue more than the maximum limit. This means that cryptocurrencies are deflationary by nature.
Another key factor that benefits cryptocurrencies is divisibility. Any cryptocurrency can be divided into smaller units. A simple change in Bitcoin’s code could allow the digital asset to be divided into infinitely smaller units at any time.
Additionally, transferring cryptocurrencies can be extremely fast and cheap compared to traditional methods. Fees are somewhat fixed no matter the amount you send, which means that theoretically you could send 1 million Bitcoins to someone and pay only a few dollars in fees (or even less).
In a way, one could say that Bitcoin and cryptocurrencies are backed by the public’s faith in them as they have realized that the current monetary system is not as robust as one might think.
Why Are Cryptocurrencies so Volatile Then?
In comparison to traditional currencies and even stocks, cryptocurrencies are far more volatile, meaning that the current price of any given crypto can change drastically in hours. It’s quite common to see Bitcoin’s price go up or down 5-10% within a few days. In fact, even in periods of low volatility, most cryptocurrencies still experience price moves of up to 1-2%, which is considered extremely high in traditional markets.
The explanation, however, is quite simple. Cryptocurrencies, in general, lack the liquidity that the rest of the markets enjoy. According to statistics from Statista, the average daily turnover in the global foreign exchange market was around $6.5 trillion daily. The cryptocurrency market, on average, sees around $80 billion in daily trading volume, and according to various sources, a lot of the volume is actually fake.
The problem with illiquidity is that someone who wants to sell or buy a huge amount of Bitcoin or any cryptocurrency will simply ‘eat’ all the orders in the order book of the exchange, catapulting the price up or crashing it. That is the only reason why cryptocurrencies, in general, are extremely volatile.
Some Cryptocurrencies Are Actually Backed by Things
There are, however, some cryptocurrencies that are backed by gold, assets, and even fiat money. Tether (USDT) became the most popular cryptocurrency backed by fiat, later known as a ‘stablecoin’.
Stablecoins
A stablecoin is designed to always be worth $1.00 by maintaining 1 dollar in some sort of reserve. The first stablecoin to become widely popular was Tether, however, there was a lot of controversy surrounding it. Most of the criticism came from the fact that Tether Limited was unable to prove they actually have the funds to cover all the Tether issued.
Additionally, on 30 April 2019, Tether Limited’s lawyer actually admitted that each coin is only backed by $0.74 in cash.
Currently, there are over a dozen stablecoins that are backed by fiat, commodities, and even cryptocurrencies. TrueUSD is similar to Tether but it is considered to be one of the most reliable stablecoins currently as the company behind it has been extremely transparent and conducted an independent audit back in March 2019.
A more complex stablecoin is Dai, which is backed by Ethereum and pegged to the dollar. The system behind Dai basically locks Ethereum in a public contract. If the value of Dai distances too far from $1, the system will make use of the contract to stabilize it back. There is, however, a small problem: Dai is not entirely decentralized as the technology behind it is being monitored by the Maker Foundation.
DigixDAO is another stablecoin and it’s backed by bars of actual gold. It is an ERC-20 token created back in 2014. The digital asset is entirely decentralized and autonomous and can in fact be extended to be backed by other precious metals and even physical assets. According to the company, the gold is stored in custodial vaults at the Singapore Safe House, and 1 DGX will always equal 1 gram of gold.
Cryptocurrencies Backed by Assets
Not all cryptocurrencies backed by assets are stablecoins. For instance, the first oil-backed cryptocurrency was introduced by Venezuelan President Nicolas Maduro back in 2017. El Petro, although highly criticized, is supposedly the first cryptocurrency to be backed by oil thanks to the country’s huge oil and mineral reserves.
Petro is, however, not pegged to anything, and its value can increase or decrease at any given time.
Tokenization of Assets
Something that has become quite popular over the last few years is the tokenization of traditional stocks and assets. There are countless blockchain startups tokenizing almost anything to represent ownership.
The tokenization of assets brings numerous benefits like greater liquidity, more transparency, cheaper and faster transactions, and more accessibility. Tokenization itself is quite difficult to regulate, and all tokenization assets have to be compliant with the law, something that issuers struggle to achieve.
Conclusion
While traditional cryptocurrencies are not necessarily backed by anything physical, they still hold a lot of value solely based on supply and demand. This is the case with numerous other assets and even fiat money.
Cryptocurrencies have come a long way and there is a wide variety of them. Stablecoins are the most popular when it comes to asset-backed cryptocurrencies. They serve as an alternative to fiat money and bring a lot of liquidity to the market. There are definitely concerns as people question their stability, however, they have become an important factor in the market.
Additionally, other projects aside from stablecoins have implemented asset-backed cryptocurrencies. There are numerous cryptocurrencies out there backed by precious metals, physical assets, stocks, and even other cryptocurrencies. We are definitely going to see even more in the near future as they bring a lot more security to investors and the crypto space in general.

SwapSpace team is always ready for discussion. You can drop an email with your suggestions and questions to [[email protected]](mailto:[email protected]) Join our social networks: Twitter, Medium, Facebook, Telegram The best rates on https://swapspace.co/
submitted by SwapSpace_co to CoinTelegraph [link] [comments]

What are Bitcoin and Other Cryptocurrencies Backed By?

Bitcoin was created back in 2009 and became the first cryptocurrency ever designed. Cryptocurrencies have become increasingly popular in the last few years as they offer an efficient and decentralized way of transferring money.
Cryptocurrencies have always been an alternative to banks and fiat money. But why do they have any value at all and who dictates what they are worth? The value of Bitcoin is really calculated through supply and demand. The digital asset itself is backed by nothing more than perhaps the blockchain ledger.
Every single cryptocurrency uses a blockchain ledger, a system that records transactions between two or more parties in a verifiable and permanent way. This certainly adds value to Bitcoin and cryptocurrencies. However, it is not what determines their price.
Why Things Have Value
Why does anything have any value at all? It has mostly because of supply and demand. Traditional currencies, for instance, are only backed by the government that issued them. Digital money, like Bitcoin, is not backed or linked to any physical reserves like gold and can certainly lose value due to different factors.
Cryptocurrencies have value because they require ‘work’ to exist. Cryptocurrencies are maintained thanks to the mining process, a process in which transactions are verified by different people. This process requires a certain amount of work, electricity, and money.
Key Factors That Affect The Value of Cryptocurrencies
Since most cryptocurrencies are not physically backed by anything, their value is determined through supply and demand based on a few important factors. One of the biggest advantages of cryptocurrencies is scarcity. The supply of most cryptocurrencies is fixed, and, unlike traditional currencies, no one can issue more than the maximum limit. This means that cryptocurrencies are deflationary by nature.
Another key factor that benefits cryptocurrencies is divisibility. Any cryptocurrency can be divided into smaller units. A simple change in Bitcoin’s code could allow the digital asset to be divided into infinitely smaller units at any time.
Additionally, transferring cryptocurrencies can be extremely fast and cheap compared to traditional methods. Fees are somewhat fixed no matter the amount you send, which means that theoretically you could send 1 million Bitcoins to someone and pay only a few dollars in fees (or even less).
In a way, one could say that Bitcoin and cryptocurrencies are backed by the public’s faith in them as they have realized that the current monetary system is not as robust as one might think.
Why Are Cryptocurrencies so Volatile Then?
In comparison to traditional currencies and even stocks, cryptocurrencies are far more volatile, meaning that the current price of any given crypto can change drastically in hours. It’s quite common to see Bitcoin’s price go up or down 5-10% within a few days. In fact, even in periods of low volatility, most cryptocurrencies still experience price moves of up to 1-2%, which is considered extremely high in traditional markets.
The explanation, however, is quite simple. Cryptocurrencies, in general, lack the liquidity that the rest of the markets enjoy. According to statistics from Statista, the average daily turnover in the global foreign exchange market was around $6.5 trillion daily. The cryptocurrency market, on average, sees around $80 billion in daily trading volume, and according to various sources, a lot of the volume is actually fake.
The problem with illiquidity is that someone who wants to sell or buy a huge amount of Bitcoin or any cryptocurrency will simply ‘eat’ all the orders in the order book of the exchange, catapulting the price up or crashing it. That is the only reason why cryptocurrencies, in general, are extremely volatile.
Some Cryptocurrencies Are Actually Backed by Things
There are, however, some cryptocurrencies that are backed by gold, assets, and even fiat money. Tether (USDT) became the most popular cryptocurrency backed by fiat, later known as a ‘stablecoin’.
Stablecoins
A stablecoin is designed to always be worth $1.00 by maintaining 1 dollar in some sort of reserve. The first stablecoin to become widely popular was Tether, however, there was a lot of controversy surrounding it. Most of the criticism came from the fact that Tether Limited was unable to prove they actually have the funds to cover all the Tether issued.
Additionally, on 30 April 2019, Tether Limited’s lawyer actually admitted that each coin is only backed by $0.74 in cash.
Currently, there are over a dozen stablecoins that are backed by fiat, commodities, and even cryptocurrencies. TrueUSD is similar to Tether but it is considered to be one of the most reliable stablecoins currently as the company behind it has been extremely transparent and conducted an independent audit back in March 2019.
A more complex stablecoin is Dai, which is backed by Ethereum and pegged to the dollar. The system behind Dai basically locks Ethereum in a public contract. If the value of Dai distances too far from $1, the system will make use of the contract to stabilize it back. There is, however, a small problem: Dai is not entirely decentralized as the technology behind it is being monitored by the Maker Foundation.
DigixDAO is another stablecoin and it’s backed by bars of actual gold. It is an ERC-20 token created back in 2014. The digital asset is entirely decentralized and autonomous and can in fact be extended to be backed by other precious metals and even physical assets. According to the company, the gold is stored in custodial vaults at the Singapore Safe House, and 1 DGX will always equal 1 gram of gold.
Cryptocurrencies Backed by Assets
Not all cryptocurrencies backed by assets are stablecoins. For instance, the first oil-backed cryptocurrency was introduced by Venezuelan President Nicolas Maduro back in 2017. El Petro, although highly criticized, is supposedly the first cryptocurrency to be backed by oil thanks to the country’s huge oil and mineral reserves.
Petro is, however, not pegged to anything, and its value can increase or decrease at any given time.
Tokenization of Assets
Something that has become quite popular over the last few years is the tokenization of traditional stocks and assets. There are countless blockchain startups tokenizing almost anything to represent ownership.
The tokenization of assets brings numerous benefits like greater liquidity, more transparency, cheaper and faster transactions, and more accessibility. Tokenization itself is quite difficult to regulate, and all tokenization assets have to be compliant with the law, something that issuers struggle to achieve.
Conclusion
While traditional cryptocurrencies are not necessarily backed by anything physical, they still hold a lot of value solely based on supply and demand. This is the case with numerous other assets and even fiat money.
Cryptocurrencies have come a long way and there is a wide variety of them. Stablecoins are the most popular when it comes to asset-backed cryptocurrencies. They serve as an alternative to fiat money and bring a lot of liquidity to the market. There are definitely concerns as people question their stability, however, they have become an important factor in the market.
Additionally, other projects aside from stablecoins have implemented asset-backed cryptocurrencies. There are numerous cryptocurrencies out there backed by precious metals, physical assets, stocks, and even other cryptocurrencies. We are definitely going to see even more in the near future as they bring a lot more security to investors and the crypto space in general.

SwapSpace team is always ready for discussion. You can drop an email with your suggestions and questions to [[email protected]](mailto:[email protected]) Join our social networks: Twitter, Medium, Facebook, Telegram The best rates on https://swapspace.co/
submitted by SwapSpace_co to CryptoMarkets [link] [comments]

What are Bitcoin and Other Cryptocurrencies Backed By?

Bitcoin was created back in 2009 and became the first cryptocurrency ever designed. Cryptocurrencies have become increasingly popular in the last few years as they offer an efficient and decentralized way of transferring money.
Cryptocurrencies have always been an alternative to banks and fiat money. But why do they have any value at all and who dictates what they are worth? The value of Bitcoin is really calculated through supply and demand. The digital asset itself is backed by nothing more than perhaps the blockchain ledger.
Every single cryptocurrency uses a blockchain ledger, a system that records transactions between two or more parties in a verifiable and permanent way. This certainly adds value to Bitcoin and cryptocurrencies. However, it is not what determines their price.

Why Things Have Value

Why does anything have any value at all? It has mostly because of supply and demand. Traditional currencies, for instance, are only backed by the government that issued them. Digital money, like Bitcoin, is not backed or linked to any physical reserves like gold and can certainly lose value due to different factors.
Cryptocurrencies have value because they require ‘work’ to exist. Cryptocurrencies are maintained thanks to the mining process, a process in which transactions are verified by different people. This process requires a certain amount of work, electricity, and money.

Key Factors That Affect The Value of Cryptocurrencies

Since most cryptocurrencies are not physically backed by anything, their value is determined through supply and demand based on a few important factors. One of the biggest advantages of cryptocurrencies is scarcity. The supply of most cryptocurrencies is fixed, and, unlike traditional currencies, no one can issue more than the maximum limit. This means that cryptocurrencies are deflationary by nature.
Another key factor that benefits cryptocurrencies is divisibility. Any cryptocurrency can be divided into smaller units. A simple change in Bitcoin’s code could allow the digital asset to be divided into infinitely smaller units at any time.
Additionally, transferring cryptocurrencies can be extremely fast and cheap compared to traditional methods. Fees are somewhat fixed no matter the amount you send, which means that theoretically you could send 1 million Bitcoins to someone and pay only a few dollars in fees (or even less).
In a way, one could say that Bitcoin and cryptocurrencies are backed by the public’s faith in them as they have realized that the current monetary system is not as robust as one might think.

Why Are Cryptocurrencies so Volatile Then?

In comparison to traditional currencies and even stocks, cryptocurrencies are far more volatile, meaning that the current price of any given crypto can change drastically in hours. It’s quite common to see Bitcoin’s price go up or down 5-10% within a few days. In fact, even in periods of low volatility, most cryptocurrencies still experience price moves of up to 1-2%, which is considered extremely high in traditional markets.
The explanation, however, is quite simple. Cryptocurrencies, in general, lack the liquidity that the rest of the markets enjoy. According to statistics from Statista, the average daily turnover in the global foreign exchange market was around $6.5 trillion daily. The cryptocurrency market, on average, sees around $80 billion in daily trading volume, and according to various sources, a lot of the volume is actually fake.
The problem with illiquidity is that someone who wants to sell or buy a huge amount of Bitcoin or any cryptocurrency will simply ‘eat’ all the orders in the order book of the exchange, catapulting the price up or crashing it. That is the only reason why cryptocurrencies, in general, are extremely volatile.

Some Cryptocurrencies Are Actually Backed by Things

There are, however, some cryptocurrencies that are backed by gold, assets, and even fiat money. Tether (USDT) became the most popular cryptocurrency backed by fiat, later known as a ‘stablecoin’.

Stablecoins

A stablecoin is designed to always be worth $1.00 by maintaining 1 dollar in some sort of reserve. The first stablecoin to become widely popular was Tether, however, there was a lot of controversy surrounding it. Most of the criticism came from the fact that Tether Limited was unable to prove they actually have the funds to cover all the Tether issued.
Additionally, on 30 April 2019, Tether Limited’s lawyer actually admitted that each coin is only backed by $0.74 in cash.
Currently, there are over a dozen stablecoins that are backed by fiat, commodities, and even cryptocurrencies. TrueUSD is similar to Tether but it is considered to be one of the most reliable stablecoins currently as the company behind it has been extremely transparent and conducted an independent audit back in March 2019.
A more complex stablecoin is Dai, which is backed by Ethereum and pegged to the dollar. The system behind Dai basically locks Ethereum in a public contract. If the value of Dai distances too far from $1, the system will make use of the contract to stabilize it back. There is, however, a small problem: Dai is not entirely decentralized as the technology behind it is being monitored by the Maker Foundation.
DigixDAO is another stablecoin and it’s backed by bars of actual gold. It is an ERC-20 token created back in 2014. The digital asset is entirely decentralized and autonomous and can in fact be extended to be backed by other precious metals and even physical assets. According to the company, the gold is stored in custodial vaults at the Singapore Safe House, and 1 DGX will always equal 1 gram of gold.

Cryptocurrencies Backed by Assets

Not all cryptocurrencies backed by assets are stablecoins. For instance, the first oil-backed cryptocurrency was introduced by Venezuelan President Nicolas Maduro back in 2017. El Petro, although highly criticized, is supposedly the first cryptocurrency to be backed by oil thanks to the country’s huge oil and mineral reserves.
Petro is, however, not pegged to anything, and its value can increase or decrease at any given time.

Tokenization of Assets

Something that has become quite popular over the last few years is the tokenization of traditional stocks and assets. There are countless blockchain startups tokenizing almost anything to represent ownership.
The tokenization of assets brings numerous benefits like greater liquidity, more transparency, cheaper and faster transactions, and more accessibility. Tokenization itself is quite difficult to regulate, and all tokenization assets have to be compliant with the law, something that issuers struggle to achieve.

Conclusion

While traditional cryptocurrencies are not necessarily backed by anything physical, they still hold a lot of value solely based on supply and demand. This is the case with numerous other assets and even fiat money.
Cryptocurrencies have come a long way and there is a wide variety of them. Stablecoins are the most popular when it comes to asset-backed cryptocurrencies. They serve as an alternative to fiat money and bring a lot of liquidity to the market. There are definitely concerns as people question their stability, however, they have become an important factor in the market.
Additionally, other projects aside from stablecoins have implemented asset-backed cryptocurrencies. There are numerous cryptocurrencies out there backed by precious metals, physical assets, stocks, and even other cryptocurrencies. We are definitely going to see even more in the near future as they bring a lot more security to investors and the crypto space in general.

SwapSpace team is always ready for discussion. You can drop an email with your suggestions and questions to [[email protected]](mailto:[email protected]) Join our social networks: Twitter, Medium, Facebook The best rates on https://swapspace.co/
submitted by SwapSpace_co to SwapSpace [link] [comments]

Intergalactic Money: The deep impact of a self-evolving infinitely-scalable general-purpose realtime unforkable public blockchain federation

Intergalactic Money: The deep impact of a self-evolving infinitely-scalable general-purpose realtime unforkable public blockchain federation
Prologue: This article is a strategic response to the following crypto-related papers published in 2017: 1. “An (Institutional) Investor’s Take on Cryptoassets” by John Pfeffer of Pfeffer Capital and 2. “Plasma: Scalable Autonomous Smart Contracts” by Joseph Poon of Lightning Network and Vitalik Buterin of Ethereum Foundation.
John Pfeffer in his paper titled “An (Institutional) Investor’s Take on Cryptoassets” claims that “scaling solutions for blockchains in particular and decentralized networks including (implied) DAG-based networks such as PoS, Sharding, etc. are bullish for adoption and users/consumers but bearish for token value/investors. Even without those technology shifts, the cost of using decentralized protocols is deflationary, since the cost of processing power, storage and bandwidth are deflationary.” Farther he states “ It’s a mistake to compare monopoly network effects of Facebook or other centralized platforms to blockchain protocols because blockchain protocols can be forked to a functionally identical blockchain with the same history and users up to the moment if a parent chain persists in being arbitrarily expensive to use(i.e. rent-seeking). Like TCP/IP but unlike Facebook, blockchain protocols are open-source software that anyone can copy or fork freely.” Add regulatory pressures on bitcoin and public permissionless currency and its negative impact.

https://preview.redd.it/zjyhwcacmml11.jpg?width=636&format=pjpg&auto=webp&s=ea21ea7e6957cb39dfbb57fa3193e5805578d38d

It’s obvious from his statements; John is not aware of latest R&D projects focused on improving decentralized networks and advances in decentralized protocols especially “Unforkable Realtime Blockchains” such as Algorand, Bitlattice and Orch.Network based on Recursive STARKs and FHE/SHE. He is also ignorant of the fact that there are several projects working on self-evolving censor-proof quantum safe protocols such as Orch Network (token symbol: ORC and URL: https://orch.network/). These protocols have adopted a continuous development strategy while getting ready for next paradigm shifts in technology e.g. practical quantum computing and quantum internet. He also does not understand that a futuristic protocol token with infinite-divisibility integrated with a hybrid quantum-classical computational infrastructure can easily counteract and neutralize the deflationary nature of its own tokens and its limited supply hardcap making it infinitely scalable and elastic.
While I agree with his following statement: “A non-sovereign, non-fiat, trustless, censorship-resistant cryptoasset would be a far better alternative for most foreign currency international reserves. IMF SDRs are already a synthetic store of value, so could also be easily and sensibly replaced by such a cryptoasset.”, this necessarily does not make BTC the right candidate for several reasons: 1. BTC is not a self-improving self-evolvable fully censorship-resistant cryptoasset which is a must for it to qualify as a viable reserve asset and appeal to long-term institutional and high networth investors.
Bitcoins miners are mostly corporate entities having large investments in ASIC-based mining equipments. It’s not impossible to corner 51% mining power by a centralized resourceful entity compromising double spending protection and other trustless security measures built-in. So BTC is not truly decentralized. 2. The underlying hash algorithm and encryption protocol of BTC known as SHA-256 can be broken by multi-qubit quantum circuits and quantum computers under active development in labs across the world. So BTC is not future-proof and its very existence is threatened unless its core developers continuously modify and improve its underlying security model and technology. 3. Bitcoin is not infinitely-divisible that’s it’s not only upwardly non-scalable, the same is true for its downward scalability. In fact BTC has only 8 decimal places known as Satoshis(1 satoshi = 0.00000001 BTC)
Futuristic protocol tokens such as infinitely scalable minerless Orch(ORC) should be more attractive to long-term investors looking for an alternative non-sovereign, non-fiat, and trustless, censorship-resistant privacy preserving high-velocity cryptoasset.
In their paper titled “Plasma: Scalable Autonomous Smart Contracts” Joseph Poon and Vitalik Buterin defines their proposal as “Plasma is a proposed framework for incentivized and enforced execution of ‘smart contracts’ which is scalable to a significant amount of state updates per second (potentially billions) enabling the blockchain to be able to represent a significant amount of decentralized financial applications worldwide.” Now first thing is it’s not clear what do they mean by “Autonomous Smart Contracts” and what specifically autonomous component in Plasma it refers to. For example, an autonomous weapon would set the target and hit it on its own without any humans in the loop or an autonomous self-driving car would drive down to a destination point without any human navigating it.
Now contrary to their claims, their off-chain and second-layer scaling solution with Ethereum(ETH) as the root blockchain is neither censor-proof nor truly scalable as this requires state-channel based masternodes/validators. So it’s not a feasible solution at all as trust issues will crop up at every moment.
Moreover, Scalable Multi-Party Computation is feasible only in a platform that guarantees functional encryption i.e. query, exchange and computation between encrypted objects, data and entities which is possible only via recursive STARKs and Lattice-based FHE(Fully Homomorphic Encryption). A second-layer protocol like Plasma does not have the capability of providing functional encryption to all distributed anonymous parties having zero mutual trusts.
There is a repeated effort to push some dangerous products under a guise of advanced blockchains and decentralized platforms. For instance, hidden external oracles and corporate entity-controlled decentralized platforms. Blockchain applications live in their own digital realm, totally orthogonal to the real world and environment we live in. Be it decentralized application or a smart contract, their reach is limited to the space they can control. Any use case projection in our reality eventually confronts the following hard fact: how can an app efficiently and securely interact with the physical world? Now hidden external oracles like that of oraclize.it and hardware pythias are being marketed as the solutions to this problem. But (IMHO) internal encrypted entities of Orch (ORC) platform known as Degents having access to cryptographically reliable external software/hardware sensors-actors will transparently and securely interact with the external world/environment.
Only minerless future-proof general-purpose decentralized networks such as Orch(ORC) designed from scratch as an MPC(Multiparty Computation) platform can deliver truly scalable MPC solutions flawlessly and reliably to millions of consumers simultaneously without compromising on security and trustlessness.
The far reaching impact of a self-evolving infinitely-scalable general-purpose realtime unforkable public blockchain with built-in quantum safe privacy and multicompute features will be immeasurable and profound.
It would transform the whole universe of blockchain and decentralized networks inlcuding all blockchain-based and blockchainfree platforms such as DAG-based and DHT-based platforms e.g. IOTA, Nano and Holochain.
Orch Network (native token symbol: ORC and URL: https://orch.network) will enable and power following dapps and user-cases:

  1. Privacy-preserving Infinitely-divisible Hypercurrency and Confidential Global Payment System with integrated encrypted decentralized chat service
  2. Unmanned Decentralized Cryptoasset Exchanges
  3. Large-scale Federated IoT Networks
  4. Decentralized DNS Clusters
  5. Anonymous trading of Tokenized Financial Assets and Derivatives Contracts
  6. Automated Hedge Funds
  7. Crypto darkpools
  8. Temporal Insurance Products
  9. Global Supply chain and unmanned cargo ships and drones
  10. Realtime Encrypted Video Communication capable Anonymous Web Infrastructure
  11. High-velocity Non-sovereign Reserve Asset
  12. Near-Perfect Coin Mixer
  13. Decentralized Marketplace App
  14. Transparent Robust Stable Coins
  15. Decentralized P2P Storage of functionally encrypted data
  16. Permissionless ICO Platforms
  17. Decentralized and Encrypted Facebook, gmail, Twitter and google-like search/answer engines
  18. Decentralized CDNs
  19. Customizable Decentralized Governance System for blockchains and dapps
Another important thing that will boost the price and value of Orch Network token ORC is its integrated Turing Incomplete cyber contract protocol running Turing Incomplete cyber contracts written in Crackcity(a Turing Incomplete language derived from Crack and Simplicity) that runs on top of Crack Machine(s). Crack machines are Orch’s blockchain virtual machines.
Ethereum’s main deficiency and Achilles’ heel is its Turing Complete smart contract programming language Solidity.

  1. Turing-complete languages are fundamentally inappropriate for writing “smart contracts” — because such languages are inherently undecidable, which makes it impossible to know what a “smart contract” will do before running it.
(2) We should learn from Wall Street’s existing DSLs (domain-specific languages) for financial products and smart contracts, based on declarative and functional languages such as Ocaml and Haskell — instead of doing what the Web 2.0 programmers” behind Solidity did, and what Peter Todd is also apparently embarking upon: ie, ignoring the lessons that Wall Street has already learned, and “reinventing the wheel”, using less-suitable languages such as C++ and JavaScript-like languages (Solidity), simply because they seem “easier” for the “masses” to use.
(3) We should also consider using specification languages (to say what a contract does) along with implementation languages (saying how it should do it) — because specifications are higher-level and easier for people to read than implementations which are lower-level meant for machines to run — and also because ecosystems of specification/implementation language pairs (such as Coq/Ocaml) support formal reasoning and verification tools which could be used to mathematically prove that a smart contract’s implementation is “correct” (ie, it satisfies its specification) before even running it.
Turing-complete languages lead to “undecidable” programs (ie, you cannot figure out what you do until after you run them)
One hint: recall that Gödel’s incompleteness theorem proved that any mathematical system which is (Turing)-complete, must also be inconsistent incomplete [hat tip] — that is, in any such system, it must be possible to formulate propositions which are undecidable within that system.
This is related to things like the Halting Problem.
And by the way, Ethereum’s concept of “gas” is not a real solution to the Halting Problem: Yes, running out of “gas” means that the machine will “stop” eventually, but this naïve approach does not overcome the more fundamental problems regarding undecidability of programs written using a Turing-complete language.
The take-away is that:
When using any Turing-complete language, it will always be possible for someone (eg, the DAO hacker, or some crook like Bernie Madoff, or some well-meaning but clueless dev from slock.it) to formulate a “smart contract” whose meaning cannot be determined in advance by merely inspecting the code: ie, it will always be possible to write a smart contract whose meaning can only be determined after running the code.
Take a moment to contemplate the full, deep (and horrifying) implications of all this.
Some of the greatest mathematicians and computer scientists of the 20th century already discovered and definitively proved (much to the consternation most of their less-sophisticated (naïve) colleagues — who nevertheless eventually were forced to come around and begrudgingly agree with them) that: Given a “smart contract” written in a Turing-complete language, it is impossible to determine the semantics / behavior of that “smart contract” in advance, by mere inspection — either by a human, or even by a machine such as a theorem prover or formal reasoning tool (because such tools unfortunately only work on more-restricted languages, not on Turing-complete languages — for info on such more-restricted languages, see further below on “constructivism” and “intuitionistic logic”).
The horrifying conclusion is that: the only way to determine the semantics / behavior of a “smart contract” is “after-the-fact” — ie, by actually running it on some machine (eg, the notorious EVM) — and waiting to see what happens (eg, waiting for a hacker to “steal” tens of millions of dollars — simply because he understood the semantics / behavior of the code better than the developers did.
Last but not the least, increasing regulatory pressures on Bitcoin, Ethereum and other permissionless public cryptocurrencies/cryptotokens will impact their prices negatively in the medium to long-term.
The need for a hyperfast private zero-knowledge proof cryptocurrency that keeps payer-payee and payment data private and secure along with a decentralized scalable multicomputation platform can’t be overemphasized.
submitted by OrchNetwork to u/OrchNetwork [link] [comments]

Guys, 1 micro bitcoin is now about a penny. Now that’s mind blown

That just hit me. It’s intimidating to see a huge price but commerce will happen at the milli and micro bitcoin scale, and bitcoin is infinitely divisible (with network consensus)
submitted by blockchaindrummer to Bitcoin [link] [comments]

Bitcoin Price Pumping! Get Ready for Infinite Money Printing! [Unbelievable] Bitcoin HUGE CRASH NEXT~ OR $16-20K?!-LIVE Crypto Trading Analysis & BTC Cryptocurrency Price News Is Bitcoin divisible... and if so, how? Bitcoin Price Eyeing $7K After Fed Says it Has ‘Infinite Cash’  Democrats Propose ‘Digital Dollar’ “BITCOIN PRICE POTENTIAL INFINITE” THE MOON… BTC AGAINST ...

Bitcoins are divisible into satoshis (1 bitcoin = 100,000,000 satoshis), which means the smallest amount that a bitcoin can be divided into is 1 satoshi = 0.00000001 bitcoin. Using the mid-price of that range – $10,000 – as the base price, I am effectively saying that bitcoin has been stuck in a 40% ($4,000) range. ... it is almost infinitely divisible, yet in ... The satoshi to bitcoin ratio needed for dollar parity under these conditions is 100,000,000:1. It may be no coincidence that bitcoin/dollar parity occurred in February, 2011 - just over three years after Bitcoin’s first release. Conversely, bitcoin valuations in the thousands of dollars starting in 2017 have led, in part, to non-stop cries of “overvaluation” and “bubble.” Robert Breedlove, CEO and CIO of Parallax Digital, argues that only two things in the universe are absolutely scarce – time and bitcoin. Until the invention of bitcoin, Breedlove says that gold had been the best monetary technology to transfer the value of time, but it is imperfect because it isn't absolutely scarce. Bitcoin's absolute scarcity, on the other hand, makes it the perfect ... You’ve probably heard a so-called expert say something like this before: only the rich would likely buy bitcoin because the price of each one is over X dollars. Conversely, anyone who is deeply familiar with bitcoin or other cryptocurrencies would understand how this statement demonstrates a very clear misunderstanding of how the technology works.

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Bitcoin Price Pumping! Get Ready for Infinite Money Printing! [Unbelievable]

In a tweet following the news, PlanB, the creator of Bitcoin’s stock-to-flow price model, described the Fed’s actions as the central bank going “full Zimbabwe.” Bitcoine has been Blocked by The Chinese Government. BitCoin Is Not a limited resource. It is infinitely divisible and therefore infinitely expandable. Is the Bitcoin (BTC) price potentially setting up for a huge crash or a rise to $16-20K, in my opinion?! Let's discuss this live today and some cryptocurrency trading technical analysis (TA ... At one hundred millionth of a Bitcoin, a Satoshi is the smallest unit Bitcoin is divisible into. If bitcoin price hits $1 million, then a satoshi will be the equivalent of one cent. However, one ... Bitcoin is very divisible... up to 8 decimal places! What this short explainer video and learn more about Bitcoin. This video was sponsored by Swiss Bank In Your Pocket which is an offline wallet ...

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