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Tech CEPS Bitcoin Mechanics Primer

subotai

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https://www.theverge.com/2017/7/29/...xchange-takedown-mt-gox-theft-law-enforcement

BTC-e website taken down as owner is being investigated for money laundering

official BTC-e response to users:



now I am in NO way, shape, or form saying that ALL OF BITCOIN is related to MONEY LAUNDERING and CRIMINAL enterprises...

..just like 95% of it...

quote of the article IMO

“Exchanges will go one of two ways,” Sirer says. “Either they will clean their act, by first shopping for the most lenient jurisdictions and complying with relevant KYC/AML laws, or they'll go ‘fully underground,’ and operate with no rules, behind Tor and other anonymous communication technologies. The most colorful drama ahead will involve exchanges, such as Bitfinex, that operate in the gray zone, where they seem to neither comply with relevant laws nor go fully underground.”

this is an important time for BTC, a fork in the road so to speak. It is clearly impossible to have it be ignored by governments at this point, there is no more flying under the radar and getting away with avoiding financial regulations.

how Ive felt about Bitcoin for the past 2 years

 
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musique

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What an excellent and easy to follow guide! Very thorough and covers most aspects. Awesome links as well ...Thanks tonnes for sharing =D
 

Cheshire_Kat

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I had absolutely no idea this thread existed or I would simply referred to this one.
An awful lot of good advice and links! :)
 

thujone

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thanks for the positive feedback, and for stickying the thread whoever that was :) gotta protect ya neck dealing with Bitcoin, lots of scams and schemes in the cryptocurrency badlands
 

CFC

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Oh it was definitely worth a sticky :) Thanks for taking the time to write it all up and provide links.
 

Chris42393

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I have a question, not sure if i missed it, but.. say i want to buy something for 100$ and i purchase 100$ of bit coin, will i have to worry about the market fluctuating, going up or down? Can i just but 100$ without it moving?
 

SharedHalucination

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firesale on XMR. Dont miss out on the profits:) Its all about the tech. Grabbing couple more LTC on this dip also.
 

Xorkoth

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I'm currently in a mode where I'm not thinking about crypto at all. It's been too disappointing, and I'm not throwing more than the $3500 into it that I've already put in. I'm thinking I'll look again in a year... I do have a good friend who is really into it still

I have a question, not sure if i missed it, but.. say i want to buy something for 100$ and i purchase 100$ of bit coin, will i have to worry about the market fluctuating, going up or down? Can i just but 100$ without it moving?

It'll move with the market. But if you're buying it and immediately using it to buy something, the fluctuation will be very tiny. If you're holding onto it for a while, it might change substantially. I'm hoping in 1-2 years, things will be back on track.
 

SharedHalucination

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3500 is more than I have invested so far. Started @ $1500 and slowly buying coins that I see a future for on dips. I also use crypto as a currency. After this summer the market will take off again, I think.
 

jpgrdnr

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So can I outsource a project to a network and pay for it? Say I have some data encrypted or want to render stuff out is it feasible vs. just renting some rack gear? Or am I completely off base to what crypto-currency is?---NOPE!

Ah I see, you get paid to rent out clock cycles for being in the transaction network. That's pretty crazy.
 
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thegreenhand

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Excellent writeup @thujone

What are your thoughts on other coins, like monero for example? Do you think other coins will eventually dominate over bitcoin?

I know i listened to a podcast about something called hedera hashgraph once. Don't really know what it is though
 

thujone

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Excellent writeup @thujone

thanks :)

What are your thoughts on other coins, like monero for example? Do you think other coins will eventually dominate over bitcoin?

Monero has a compelling use case (anonymous transactions) and a passionate community so I think it will survive. Bitcoin probably won't be unseated anytime soon due to its proven robustness and mind share.

The main hurdle for Bitcoin has been the low Maximum transaction rate but this problem is addressed by the Lightning Network, which increases the rate by allowing transactions to occur off-chain.

Instead of other coins rising above Bitcoin, the Bitcoin blockchain could stay on top by serving as a trusted substrate for emerging fintech that makes use of off-chain transactions. The reason this would be preferred over specialty coins is because settlement in Bitcoin is more dependable than settlement in some niche specialty coin that may have more price volatility to contend with.

I know i listened to a podcast about something called hedera hashgraph once. Don't really know what it is though

It's Proof-of-Stake (PoS) like Ethereum*, not Proof-of-Work (PoW) like Bitcoin and Monero are. It solves problems Lightning Network already solves for Bitcoin so I don't see a compelling reason to use it myself, but it might find success in a niche.

In general, I think cryptocurrencies based on Proof of Work algorithms will continue to be the most trusted as currencies because they tend to be the most auditable and democratic. Ethereum's main selling point is "smart contracts" and Hedera is also promoting itself as an identity provider and other non-currency uses.

*correction: Ethereum is planning a move to PoS but currently using PoW
 
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thegreenhand

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thanks :)



Monero has a compelling use case (anonymous transactions) and a passionate community so I think it will survive. Bitcoin probably won't be unseated anytime soon due to its proven robustness and mind share.

The main hurdle for Bitcoin has been the low Maximum transaction rate but this problem is addressed by the Lightning Network, which increases the rate by allowing transactions to occur off-chain.

Instead of other coins rising above Bitcoin, the Bitcoin blockchain could stay on top by serving as a trusted substrate for emerging fintech that makes use of off-chain transactions. The reason this would be preferred over specialty coins is because settlement in Bitcoin is more dependable than settlement in some niche specialty coin that may have more price volatility to contend with.



It's Proof-of-Stake (PoS) like Ethereum, not Proof-of-Work (PoW) like Bitcoin and Monero are. It solves problems Lightning Network already solves for Bitcoin so I don't see a compelling reason to use it myself, but it might find success in a niche.

In general, I think cryptocurrencies based on Proof of Work algorithms will continue to be the most trusted as currencies because they tend to be the most auditable and democratic. Ethereum's main selling point is "smart contracts" and Hedera is also promoting itself as an identity provider and other non-currency uses.
Ok yeah after looking into Proof of work vs stake I can see why work is likely a more popular option.

another question for you if you don’t mind. Let’s say I have some BTC in an electrum wallet but I didn’t follow all the best protocol when setting it up. Would creating a new paper wallet (the right way) remove some of the risks or am I still vulnerable since the coin is coming from a potentially (though not likely) exposed wallet?
 
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