BADcoin is Coming! Guest: Marshall Long - The Bad Crypto ...
BADcoin is Coming! Guest: Marshall Long - The Bad Crypto ...
Bitcoin Price Prediction: down to $12912.90? - BTC to USD ...
marshall long Archives - American Crypto Association
Sovereign cryptocurrency: Marshall Islands to launch world ...
Bitcoin ATM Near Me - View the Locations on the Map
The Decade in Blockchain — 2010 to 2020 in Review
February — The first ever cryptocurrency exchange, Bitcoin Market, is established. The first trade takes place a month later. April — The first public bitcoin trade takes place: 1000BTC traded for $30 at an exchange rate of 0.03USD/1BTC May — The first real-world bitcoin transaction is undertaken by Laszlo Hanyecz, who paid 10000BTC for two Papa John’s pizzas (Approximately $25 USD) June — Bitcoin developer Gavin Andreson creates a faucet offering 5 free BTC to the public July — First notable usage of the word “blockchain” appears on BitcoinTalk forum. Prior to this, it was referred to as ‘Proof-of-Work chain’ July — Bitcoin exchange named Magic The Gathering Online eXchange—also known as Mt. Gox—established August —Bitcoin protocol bug leads to emergency hard fork December — Satoshi Nakamoto ceases communication with the world
January — One-quarter of the eventual total of 21M bitcoins have been generated February — Bitcoin reaches parity for the first time with USD April — Bitcoin reaches parity with EUR and GBP June — WikiLeaks begins accepting Bitcoin donations June — Mt. Gox hacked, resulting in suspension of trading and a precipitous price drop for Bitcoin August — First Bitcoin Improvement Proposal: BIP Purpose and Guidelines October — Litecoin released December — Bitcoin featured as a major plot element in an episode of ‘The Good Wife’ as 9.45 million viewers watch.
May — Bitcoin Magazine, founded by Mihai Alisie and Vitalik Buterin, publishes first issue July — Government of Estonia begins incorporating blockchain into digital ID efforts September — Bitcoin Foundation created October — BitPay reports having over 1,000 merchants accepting bitcoin under its payment processing service November — First Bitcoin halving to 25 BTC per block
February — Reddit begins accepting bitcoins for Gold memberships March — Cyprus government bailout levies bank accounts with over $100k. Flight to Bitcoin results in major price spike. May —Total Bitcoin value surpasses 1 billion USD with 11M Bitcoin in circulation May — The first cryptocurrency market rally and crash takes place. Prices rise from $13 to $220, and then drop to $70 June — First major cryptocurrency theft. 25,000 BTC is stolen from Bitcoin forum founder July — Mastercoin becomes the first project to conduct an ICO August — U.S. Federal Court issues opinion that Bitcoin is a currency or form of money October — The FBI shuts down dark web marketplace Silk Road, confiscating approximately 26,000 bitcoins November — Vitalik Buterin releases the Ethereum White Paper: “A Next-Generation Smart Contract and Decentralized Application Platform” December — The first commit to the Ethereum codebase takes place
January — Vitalik Buterin announces Ethereum at the North American Bitcoin Conference in Miami February — HMRC in the UK classifies Bitcoin as private money March — Newsweek claims Dorian Nakamoto is Bitcoin creator. He is not April — Gavin Wood releases the Ethereum Yellow Paper: “Ethereum: A Secure Decentralised Generalised Transaction Ledger” June — Ethereum Foundation established in Zug, Switzerland June — US Marshals Service auctions off 30,000 Bitcoin confiscated from Silk Road. All are purchased by venture capitalist Tim Draper July — Ethereum token launch raises 31,591 BTC ($18,439,086) over 42 days September — TeraExchange launches first U.S. Commodity Futures Trading Commission approved Bitcoin over-the-counter swap October — ConsenSys is founded by Joe Lubin December — By year’s end, Paypal, Zynga, u/, Expedia, Newegg, Dell, Dish Network, and Microsoft are all accepting Bitcoin for payments
January — Coinbase opens up the first U.S-based cryptocurrency exchange February — Stripe initiates bitcoin payment integration for merchants April — NASDAQ initiates blockchain trial June — NYDFS releases final version of its BitLicense virtual currency regulations July — Ethereum’s first live mainnet release—Frontier—launched. August — Augur, the first token launch on the Ethereum network takes place September — R3 consortium formed with nine financial institutions, increases to over 40 members within six months October — Gemini exchange launches, founded by Tyler and Cameron Winklevoss November — Announcement of first zero knowledge proof, ZK-Snarks December — Linux Foundation establishes Hyperledger project
January — Zcash announced February — HyperLedger project announced by Linux Foundation with thirty founding members March — Second Ethereum mainnet release, Homestead, is rolled out. April — The DAO (decentralized autonomous organization) launches a 28-day crowdsale. After one month, it raises an Ether value of more than US$150M May — Chinese Financial Blockchain Shenzhen Consortium launches with 31 members June — The DAO is attacked with 3.6M of the 11.5M Ether in The DAO redirected to the attacker’s Ethereum account July — The DAO attack results in a hard fork of the Ethereum Blockchain to recover funds. A minority group rejecting the hard fork continues to use the original blockchain renamed Ethereum Classic July — Second Bitcoin halving to 12.5BTC per block mined November — CME Launches Bitcoin Price Index
January — Bitcoin price breaks US$1,000 for the first time in three years February — Enterprise Ethereum Alliance formed with 30 founding members, over 150 members six months later March — Multiple applications for Bitcoin ETFs rejected by the SEC April — Bitcoin is officially recognized as currency by Japan June — EOS begins its year-long ICO, eventually raising $4 billion July — Parity hack exposes weaknesses in multisig wallets August — Bitcoin Cash forks from the Bitcoin Network October — Ethereum releases Byzantium soft fork network upgrade, part one of Metropolis September — China bans ICOs October — Bitcoin price surpasses $5,000 USD for the first time November — Bitcoin price surpasses $10,000 USD for the first time December — Ethereum Dapp Cryptokitties goes viral, pushing the Ethereum network to its limits
January — Ethereum price peaks near $1400 USD March — Google bans all ads pertaining to cryptocurrency March — Twitter bans all ads pertaining to cryptocurrency April — 2018 outpaces 2017 with $6.3 billion raised in token launches in the first four months of the year April — EU government commits $300 million to developing blockchain projects June — The U.S. Securities and Exchange Commission states that Ether is not a security. July — Over 100,000 ERC20 tokens created August — New York Stock Exchange owner announces Bakkt, a federally regulated digital asset exchange October — Bitcoin’s 10th birthday November — VC investment in blockchain tech surpasses $1 billion December — 90% of banks in the US and Europe report exploration of blockchain tech
January — Coinstar machines begin selling cryptocurrency at grocery stores across the US February — Ethereum’s Constantinople hard fork is released, part two of Metropolis April — Bitcoin surpasses 400 million total transactions June — Facebook announces Libra July — United States senate holds hearings titled ‘Examining Regulatory Frameworks for Digital Currencies and Blockchain” August — Ethereum developer dominance reaches 4x that of any other blockchain October — Over 80 million distinct Ethereum addresses have been created September — Santander bank settles both sides of a $20 million bond on Ethereum November — Over 3000 Dapps created. Of them, 2700 are built on Ethereum
Bitcoins Everywhere Jump Force Blackbeard Marshall D Teach One Piece X7054 Wallpaper
Bitcoins Everywhere Jump Force Blackbeard Marshall D Teach One Piece X7054 Wallpaper Staying Private with Bitcoin: Did you know that bitcoin transactions can be tracked, and quite easily, once tied to a piece of information in which involves an identity. This kind of info in which involves an identity is collected from places like bitcoin exchanges, trading platforms, cryptocurrency bank accounts, online bitcoin wallets, and pretty much anything that involves a name or identity, even if it's a virtual one. Once a name is linked with a bitcoin address, it is tied with it forever. That means any future addresses as well, as long as the BTC travels there. Luckily there is a solution to this problem, and the answer is within a bitcoin mixer or bitcoin tumbler. A bitcoin mixer can break the connection which ties an identity to a bitcoin address and any BTC it holds. Once that link is broken by a good mixer, it can never be repaired unless that name is found again to own another bitcoin address. Keep bitcoin transactions and purchases private and secure, use a professional bitcoin mixer for peace of mind and complete anonymization within the bitcoin system, and as always, stay safe.
Bitcoins Everywhere Jump Force Blackbeard Marshall D Teach One Piece X7012 Wallpaper
Bitcoins Everywhere Jump Force Blackbeard Marshall D Teach One Piece X7012 Wallpaper Staying Private with Bitcoin: Did you know that bitcoin transactions can be tracked, and quite easily, once tied to a piece of information in which involves an identity. This kind of info in which involves an identity is collected from places like bitcoin exchanges, trading platforms, cryptocurrency bank accounts, online bitcoin wallets, and pretty much anything that involves a name or identity, even if it's a virtual one. Once a name is linked with a bitcoin address, it is tied with it forever. That means any future addresses as well, as long as the BTC travels there. Luckily there is a solution to this problem, and the answer is within a bitcoin mixer or bitcoin tumbler. A bitcoin mixer can break the connection which ties an identity to a bitcoin address and any BTC it holds. Once that link is broken by a good mixer, it can never be repaired unless that name is found again to own another bitcoin address. Keep bitcoin transactions and purchases private and secure, use a professional bitcoin mixer for peace of mind and complete anonymization within the bitcoin system, and as always, stay safe.
[Reference] Here's a raw list of ~300 retailers that accept BCH via Gyft & eGifter. It's fun to spendl both online & in your neighborhood!
Confused? Scroll to bottom. Gyft.com:
1-800-Baskets.com 1-800-Flowers.com 1-800-PetSupplies.com Adidas Aerie Aeropostale Allposters.com AMC Theatres American Airlines American Eagle American Frame App Store & iTunes Applebee's Aquarium Restaurants Art.com Athleta Babin's Seafood House Bahama Breeze Banana Republic Barnes & Noble Bass Pro Shops Bath & Body Works Bed Bath & Beyond® Belk Best Buy® Big Fish Seafood Bistro Bloomingdale's Boomerang Grille Brenner's Steakhouse Brinker Restaurants Brookstone Bubba Gump Shrimp Buca di Beppo Buffalo Wild Wings Build-A-Bear Workshop Burger King Burlington buybuy BABY® Cabela's Cadillac Bar California Pizza Kitchen Callaway CanvasPop Captain D's Caribou Coffee Casual Male XL Catherines CB2 Champs Sports CharityChoice Charleston's Restaurant Charley's Crab Chart House Chef'd Cheryl's Cookies Chili's Chipotle Christmas Tree Shops® andThat! Claim Jumper Cold Stone Creamery Columbia Sportswear Cost Plus World Market Crate & Barrel Crutchfield D'Angelo Darden Restaurants Dell Delta Air Lines Destination XL Domino's Dunkin' Donuts eBay EXPRESS Fandango Fish Tales Fisherman's Wharf Foot Locker FragranceNet.com Fruit Bouquet GameStop Gap Factory Gap Gilt.com Go Play Golf by Fairway Rewards Golden Nugget Google Play Great American Days Grotto Groupon Hal Smith Restaurant Hallmark Harlow's Food & Fun Hefner Grill Hollie's Flatiron Steakhouse Hollister HomeGoods Hot Topic Hotels.com Hulu IHOP JCPenney Jo-Ann Stores Kemah Boardwalk Kmart Kohl's L.L.Bean La Griglia Lady Foot Locker Landry's Landry's Seafood Lands' End Lane Bryant Legal Sea Foods Levy Restaurants Lighthouse Buffet Lobster Gram Logan's Roadhouse LongHorn Steakhouse Lord and Taylor Louie's Grill & Bar Lowe's Lucille's BBQ Macy's Magazines.com Maggiano's Little Italy Mahogany Steakhouse Mama Roja Kitchen Marshalls McCormick & Schmicks Microsoft Office 365 Home, 1-year subscription Microsoft Office 365 Personal, 1-year subscription Mitchell's Fish Market Morton's Muer Seafood NASCAR.com NFLShop.com Nike Nintendo Nordstrom Nordstrom Rack Old Navy Olive Garden Omaha Steaks On The Border One Kings Lane Overstock.com Panera Bread Papa Gino's Papa John's Pizza Peohe's Petco Pro Am Golf Rainforest Cafe Red Lobster Red Robin Red Sushi Redrock Canyon Grill Regal Cinemas River Crab/BlueWater Inn Rixty Rochester Big & Tall Romano's Macaroni Grill Rosetta Stone TOTALe Royal Caribbean Saks OFF 5TH Saltgrass Steak House San Jose Earthquakes San Luis Resort Sears Sephora Sheetz Shutterfly Simms Steakhouse SiriusXM Southwest Airlines Spa & Wellness by Spa Week SpaFinder Staples Starbucks Steak 'n Shake Stein Mart Steiner Sports Memorabilia StubHub T-Rex T.J.Maxx Target GiftCard TGI Fridays The Cheesecake Factory The Children's Place The Crab House The Flying Dutchman The Garage The Home Depot® The Oceanaire The Popcorn Factory The Red Door Salon & Spa ThinkGeek Toby Keith's Bar & Grill Tony Roma's Torrid Tower of America Uber - INCLUDING Uber Eats (food delivery from your local takeout restaurants!) Ulta Beauty Under Armour® Unleashed by Petco Uno Chicago Grill Upper Crust Pizza Vic and Anthony's Victoria's Secret Walmart Whole Foods Market Willie G's Wine Country Gift Basket Wine Enthusiast Wine.com Xbox LIVE Yak & Yeti Yard House Zappos.com
1-800-Flowers.com Abercrombie & Fitch Acorns Adidas Aerie Aeropostale Alamo Drafthouse AllPosters.com Amazon.com AMC Theaters Amella Caramels American Airlines American Eagle Outfitters American Frame Applebee's Aquarium Restaurants Athleta Babin's Seafood House babyGap Bahama Breeze Banana Republic Bar Toma Barnes & Noble Booksellers Bass Pro Shops Bath & Body Works Bed Bath & Beyond Belk Best Buy® Big Fish Restaurant BJs Restaurants Black Angus Steakhouse Bloomin' Brands Bloomingdale's Bonefish Grill Boscov's Boston Market Boxed Brenner's Steakhouse Bridge Bar Brookstone Bubba Gump Buffalo Wild Wings Build-A-Bear Burger King Burlington Coat Factory buybuy Baby Cabela's Cadillac Bar Cafe Spiaggia California Pizza Kitchen Callaway CanvasPop Captain D's Captain Morgan Club Caribou Coffee Carnival Cruise Lines Carrabbas Italian Grill Casual Male Celebrity Cruises Champs Sports Charity Choice Charleston's Restaurant Charley's Crab Chart House Restaurant Chef'D Children's Music Shop Chili's Chipotle Christmas Tree Shops Cirque du Soleil Claim Jumper Cold Stone Creamery Columbia Sportswear CrossFire Crutchfield CVS/pharmacy D'Angelo Darden Dell Delta Airlines Destination Maternity Destination XL Domino's Pizza Downtown Aquarium Dunkin' Donuts Ebay Express Facebook Game Card Fandango Fish Tales Fisherman's Wharf Fleming's Prime Steakhouse & Wine Bar Foot Locker FragranceNet.com Fulton’s Crab House Fulton’s on the River GameStop Gap Gap Options GCodes® AT&T Prepaid Plans GCodes® Verizon Prepaid Plans Gilt Go Play Golf GoCash GolfThere Googie Burger Great American Days Grotto Groupon Guitar Center Gymboree Hal Smith Restaurant Group Harlow's Hefner Grill Hollie’s Flatiron Steakhouse Hollister HomeGoods HOOCHs Hot Topic Hotels.com Hulu IHOP IMVU IndieFlix iTunes JAGEX Jake Melnick's Corner Tap JCPenney Jiffy Lube Jo-Ann Fabric JumpStart School of Dragons Karma Koin Kemah Boardwalk Kingsisle Pirate Kingsisle Wizard Kmart Kohl's Krispy Kreme La Griglia Landry's Landry's Seafood Lands' End Lane Bryant Legal Sea Foods Lobster Gram Logan's Roadhouse Longhorn Steakhouse Lord & Taylor Louie's Grill & Bar Lowe's Lucille's Smokehouse BBQ Macy's Magazines.com Maggiano's Little Italy Mahogany Prime Steakhouse Mama Roja Mexican Kitchen Marshalls McCormick & Schmick's Microsoft Office 365 Home Microsoft Office 365 Personal MobileLocate Morton's The Steakhouse Muer Seafood Restaurants NASCAR.com Superstore Neopets NetDragon Universal Nike Nintendo eShop Digital Cards Nordstrom Nordstrom Rack O'Charley's Oak Street Beach Food + Drink Old Navy Olive Garden Omaha Steaks On the Border Mexican Grill & Cantina Outback Steakhouse Overstock.com P.C. Richard and Son Panera Bread Papa Gino's Pizzeria Papa John's Peohe's Petco PetSupplies.com Portobello Princess Cruises ProAm Golf Rainforest Cafe ReallyColor Red Lobster Red Robin Red Sushi Redrock Canyon Grill Regal Entertainment Group REI Rixty ROBLOX Rochester Big & Tall Ruby Tuesday Saks OFF 5th Saltgrass Sears Sephora Sheetz Shutterfly Simms Steakhouse Simply Magazine Sirius XM Skype Sling TV Sony Playstation Southwest Airlines Spa and Wellness by Spa Week Spa Finder Spiaggia Stage Stores Staples Steak 'n Shake Stein Mart Steiner Sports Memorabilia Stitch Fix Stockpile StubHub Studio Movie Grill Swap.com T-Rex T.J.Maxx Target Texas Roadhouse TGI Fridays The Cheesecake Factory The Children's Place The Crab House The Flying Dutchman The Garage The Home Depot The Oceanaire ThinkGeek Toby Keith's I Love This Bar & Grill Tony Roma's Torrid Tower of the Americas Tracer Pix Uber - INCLUDING Uber Eats (food delivery from your local takeout restaurants!) Ulta Unlimited eBooks Uno Upper Crust Wood Fired Pizza Vic & Anthony's Vimbly Walmart Wargaming World of Tanks Wargaming World of Warships Whole Foods Willie G's Wine Country Gift Baskets Wine Enthusiast Wine.com Wolfgang Puck Grand Cafe WWE Network XBOX Xbox Live Gold Yak and Yeti Yard House
For those who don't know, Gyft.com & eGifter.com sell gift cards online (Amazon, iTunes, BedBathBeyond, etc., like you see in the revolving rack at the corner convenience store). Both services accept BitcoinCash (via Bitpay). Instead of a plastic card, they send you a "virtual" card (an activation code). So you can buy stuff from all the stores above with BCH (& then replace your BCH so you don't later feel like you spent $500 on diapers :) I scraped and massaged the lists from both services for you because I find it easier to refer to than browsing their sites that make you scroll through logos instead. Many of the retailers are found on both services. Many are unique to one. The superset is probably about 300 (plus thousands of local restaurants that participate with Uber Eats). There's a lot more than Restaurants, Starbucks & Playstore! You'll find Uber, airlines (Southwest, American, Delta), Hotels.com, XBOX, Playstation, Dell, Microsoft Office, Hulu, Ebay, Wine.com, Walmart, Target, Home Depot, CVS Pharmacy, Marshalls, Panera, Nordstrom Rack, Nike, Adidas, Zappo, Foot Locker... You can literally live on BCH now (if only there were a way to pay utilities and rent/mortgage). You can have a super smooth experience buying a card while queuing for the register. When you tap to pay in BitcoinCash (or BTC) from the Gyft app, android prompts you to launch your wallet! The amount, fee, and receiving address is already filled in. Simply take a look to confirm and then slide to pay. In seconds (before the next register is open) the new gift card is in your Gyft app "wallet" and ready to be scanned by the cashier. You can also regift/send the gift card to a friend instead of activating/revealing the card's code. Note that Uber credit is how you pay for Uber Eats, so an Uber gift card can not only get you around town but also bring food to your door from restaurants in your neighborhood. Feel free to paste the lists into the weekly/monthly or any BCH updates, or to categorize it (i should have but I don't know them all). It's not my data obviously. I don't know how often the two services update the lists. (Not sure which are limited to regions. I can confirm that Uber gift card was credited when pasted in the Uber app, in Japan, but wasn't usable for rides in Japan. The balance was perfectly usable later, in USA.)
A while ago I looked into the Blocksize debate and with the information then available and the arguments pushed by Classic, I felt like I saw the light. I joined /btc, installed bitcoin unlimited and later Bitcoin Classic and felt good about it.
My reasoning was very simple: 1) My transactions got stuck from time to time and I got annoyed waiting for confirmations. 2) I believed that just increasing the blocksize would solve the issue, everyone can handle 2MB right? 3) I didn't like the fact that a lot of Core devs were all working for the same company (Blockstream) and at that point I believed the goal of Blockstream was to create a LN with paid subscription, which was mentioned a lot of times on /btc. Trying to force the average user off the blockchain. 4) I didn't like the moderation on /bitcoin.
What I've come to realize in the last week: 1) After reading the arguments by Peter Todd and other core devs in regards of the scaling it makes sense. You can't keep increasing the blocksize, it's the wrong approach. Bitcoin by itself will never be able to handle the amount of transactions Visa can. 2) I like the fact that the Core team took the time to have a meeting with the big miners and some other big players in the market to come up with a consensus that neither side is happy with but both can live with. (that shows that it's a real consensus and not someone bullying the other one in a bad agreement) 3) If you try to read /btc it's always the same, excuse my French, circlejerk. Always boiling down to the same issues they have with Core and Blockstream, instead of trying to focus on something positive. After reading this post about one of the main guys behind Classic, I started to have a bad feeling about it. 4) /btc tries to take pride in the fact that there is no real censorship, try to make 1 post where you something remotely positive about Core (not even related to the issues with Classic) and you'll get downvoted to oblivion, it's just another type of censorship. 5) The fact that one of the Blockstream employees, Mark Friedenbach, didn't like the consensus and was open about it, showed to me at least that there is more going on than just Blockstream trying to push their agenda and that they do have, for now, Bitcoins best interest in mind. 6) There is still room to grow if we can fill those empty blocks being mined and Antpool that only fills to 730kb, that should be more than enough until segwit comes out.
Other reasons why I switched back: 1) Core has a lot more combined programming experience than Classic, I'd rather have a team that has the experience since they will see most potential issues from miles away. Note: Gavin is not an active programmer anymore and so he has nothing to do with Classic code. 2) Some wallets will immediately implement Segwit as soon as it's in production and anyone aware of this will use it to get in the next block. I see a lot of people immediately using this which will decrease the mempool. 3) 1 year is long, I admit, but if you've ever been involved in a complicated software project you know that you need enough time to test and prepare all the clients, make everyone upgrade. There will always be nodes that "forget" or just don't upgrade. 4) Just increasing the blocksize doesn't work, you need an alternative, LN is the only real realistic solution I see. I don't see 16 MB blocks happening. 5) The Classic community is really small actually, but very vocal and negative. Just check the posts on their page, either extremely negative, trying to find some words they can twist from someone to make it seems they are evil, or the other posts are just that they mined a couple of blocks with a very limited amount of support. 6) The Vocal leaders of Classic Olivier, Brian, Marshall, Roger, either don't have any coding experience, don't understand the impact or they are just not people I want to associate with.
TLDR; I'd rather be in a positive community and I believe that the roadmap proposed during the roundtable is the way to go forward.
Community-led Discord AMA Transcript - October 12th, 2018
On October 12, our CEO - Marshall, Director of Product - Patrick, Director of Business Operations - Kristal, and Senior iOS Engineer - Ephraim stopped by the community-led Discord channel to answer your questions. Here’s a transcript of the questions and answers.
meakkineni: Can you give us some Crumbs stats? Like the number of downloads, total amount managed by Crumbs etc
Patrick: Unfortunately cannot go into detail but we are into the thousands of users.
meakkineni: From the jobs postings looks like you are recruiting more people for Crumbs. Can you tell us about some of the exciting new features that are going to be implemented?
Patrick: Expect to see on-demand purchase of crypto bundles, mainnet deposits and withdraws, integration with Metal Pay, and more coins! Over the coming months, we plan to offer lower fees for MTL holders, unlock features, and more!
Abu: Is Crumbs going to include any gamification aspects in the future? How is the marketing strategy for Crumbs differ from pay?
Patrick: Yes, we will add an element of gamification in the future, the current focus is user acquisition Marshall: Yes big surprise coming here, but I'll save that one for later. the marketing strategy will be closely tied together for both apps as they are tied together, and you will see this from a technical and feature perspective as time progresses
On Metal Pay…
red: How come we don't have referrals yet? Are we holding the feature back for some reason?
Ephraim: Referrals is one of the most exciting features we have in the works, because not only is it a technical challenge on both front-end and back-end, but it also introduces a new way to earn Pop. In fact, we’re just about wrapping up and finalizing the details for this feature, while making plans to translate the tech to support even more ways to earn rewards in the app. Something to look out for in version 1.1.0 😏
flumpson: My biggest hurdle in getting people to sign up is that their bank doesn’t work. In my case it was Citi. When will there be router and account number signup for people who aren’t served by plaid?
Ephraim: Currently the app integrates Plaid, a bank-linking SDK that supports over 90% of U.S. banking customers and is used by some of the biggest names in FinTech. We are aware however that online banking is required with your financial institution, and one way around that is routing/account number input. This feature is on our roadmap as a new service that will verify your account via micro-deposit. TLDR; it’s definitely coming!
Mondo: How do you see Metal Pay taking market share from the more popular apps like Venmo and CashApp? What will convince new users to switch over?
Marshall: I really believe through innovation, amazing user experience and specifically the value proposition to users on new behaviors and new technology. Specifically, I believe PoPP and the interactions with crypto to be completely new behaviors that the mass market is yet to be introduced to. Being paid (currency not points) for making a payment? I think this is a new concept and one that Metal owns. What will convince them? This is the hard question. A viral campaign that gets our apps out there, with proper messaging and the right endorsements I believe is key. Finding the viral loop, increasing our K factor (number of invites that every new user brings). When I started this company I recognized that design, user interface, user experience, incentives, and proper information were the biggest holes in cryptocurrency. We are hitting on all of these pieces.
Mondo: “A viral campaign that gets our apps out there, with proper messaging and the right endorsements I believe is key. Finding the viral loop, increasing our K factor (number of invites that every new user brings)" - is there an estimated date for this campaign? I'm sure your community would love to help where possible as well.
Marshall: We are in the process now of smoke testing our campaign strategies, and we will certainly be involving the community as we begin.
biyamin: "I am not okay putting my social security number in [Metal Pay]. Is there another way?"
Ephraim: This is one of mostly heard feedback, and we’re aware of the friction it can cause among new users. However, it is due to our financial partners' requirements, U.S. law, and FDIC insured Cash balance (we create a bank account on behalf of users) that prompt us to ask for SSN during on-boarding. Rest assured, we have a plan in placed to make onboarding as streamlined as possible, especially when SSN no longer serves as a fool-proof means of identity verification, due to recent security breaches by large firms. Finally, we have in our roadmap to allow users onto the Metal platform with limited KYC. Marshall: Yes in the future you will be able to skip over this requirement, however linking in personal information will make you eligible for PoPP (this serves as the anchor), without it you won't be able to access those rewards and some special features like having a bank account with us.
jake_eisenberg11: When will Metal Pay release in New York happen?
Marshall: This is a tough one, it will happen upon one of two things coming to fruition. An exchange partner joins us who has a Bitlicense and will deeply integrate their back-end with us or us acquiring our Money Transmission License for NY and the accompanying Bitlicense (which if this is the case will take at least 1 year). That being said we're shooting for the former obviously, a partner to help us fast track and we've got a few in the pipeline
[A bunch of different people]: When will Metal Pay release in [insert location here]?
Kristal: I can assist with all the WHEN will Metal Pay release in MY STATE or COUNTRY. We have no firm timelines on either, but we are pursuing all states and expanding to Europe/Asia simultaneously… Ditto for Crumbs.
Jan: Quick one - Metal Pay debit cards?
Marshall: VERY SOON, it's next up on our feature roadmap
redruggles5: Really excited about Metal Pay for merchants, particularly micro-business. Are you able to tell us how that will look and where in the timeline that is? Do you have plans to integrate with current bookkeeping software like QuickBooks, plans for accepting credit cards/integration with Pay, etc? The biggest objection I get is in regards to integration with their current system, the ability to accept cards, addition of QR codes or another private way for customers to pay besides their phone number. Lastly, will there be a separate referral system for merchants?
Marshall: We are very excited as well, in terms of merchants we are going to start with the integrations into existing POS. Integrating with QuickBooks and Intuit are a must for crypto record keeping for S/M/L business, we have ambitious plans for this. Referral system for merchants via consumer - YES.
ekasu: Is there a possibility to increase the Metal Pay bank transfer speed (from 1 day or so currently to within the same day like Venmo) to increase competitiveness/attraction?
Marshall: Yes with Instant ACH for US customers, a feature we will be adding and is in the PF board on Jira
Bitcoinbella: Are there any plans for retail stores to use Metal yet?
Marshall: Yes, a big part of our plan of attack here is to launch first with the debit card so we can go anywhere Visa/MC is accepted. The next step is to go after small business with technical integrations through payment partners as well as simple QR codes at the register similar to Wechat/Alipay (China really inspires me). Technical integrations - this means WooCommerce, WordPress, Shopify, Authorize.net, etc, and for physical brick and mortar stores working directly with processors (lots of them see Square as a threat and are much larger, eventually Square will go to cut out interchange and stick it to the credit card companies, many partnership opportunities abound)
jake_eisenberg11: When cannabis merchant service?!?!?!
Marshall: We have pivoted away from high-risk merchants, that being said crypto is like cash and is permission-less. The bank poses no restrictions on what you do with cash withdrawn from the ATM unless you are doing something that could be considered illegal or pose harm to the bank. Very similar to us, replace paper cash with crypto.
ekasu: What is the deadline looking for these features: (a) transfer Metal to erc20 wallet/Metal vault; (b) use Metal Pay with merchants
Marshall: Mainnet deposit/withdrawal early end of this year or January. Metal merchants will kick off with our card integration for consumers, integrations for Merchant will start next year (upon hiring more developers) Glenn very early on built a very cool WordPress plugin for WooCommerce. These integrations for WP, Shopify, etc will come first and most likely early in 2019.
meakkineni: Looking at things so far, I have a feeling that PoPP score implementation has barely started. What is the time frame we are looking for it to go live?
Marshall: PoPP score is implemented just not integrated into the UI, this is a high priority one for us.
Decoder1: There's been talk about making the MTL token more prominent in both Crumbs and MetalPay. Some things which have been mentioned are discounted fee's, moving it to the top of the buy list, unlocking special features and obviously the increased POPP score which has already been confirmed. Are these still in the works or have they been shelved? If so are there any other bonus features Metal are considering?
Marshall: I'm really looking forward to adding these additional features to highlight the special function of MTL inside the Metal ecosystem of apps. Some things that have not been talked about yet are early access on special features for users with a MTL balance, gamified features to unlock surge PoPP, partner integrations and more.
NilesCrane: What will be the utility of the MTL token when other tokens are available to be popped? What will being the 'native currency' for the Metallicus apps involve and why would you expect this to drive the token price higher when other tokens are available in the same network? kt: When will we start to see some other utilities for the MTL token through pay and Crumbs etc, other than the existing PoPP mechanism, and what are they likely to be?
Ephraim: We have a grand vision of how Metal and Pop will play a role in your daily experience on the Metal platform. Although we can’t go into too much detail into the features we have in our roadmap, we can say that MTL token will be an essential part of the Metal platform and overall ecosystem. Earning Pop when making payments is the stepping stone to realizing this vision, as we become the best, most rewarding, and user-friendly payments/crypto platform on the market.
Deaethtofiat: Will Metal's [ticker] still be changing?
Marshall: That [$XMT] is something we want to do upon announcing our mainnet chain.
Tblgu: Did Metal pay a fee for Bittrex relisting?
Kristal: Simple answer is no. We haven't seen any American-based exchanges charging for listings, and we believe the Bittrex re-listing was based entirely on the merits of our company.
marc0o: I know it might take a while until Metal reaches Europe. My favorite and IMO very promising exchange (Lykke) often gets the question whether PayPal can be used to deposit EUR or FIAT in general. Do you think it would be possible and useful to partner up with exchanges to provide FIAT deposits/withdraws?
Marshall: Yes we absolutely do and are talking to top exchanges right now, there are so many exchanges that are crypto/crypto only and we think we make a very nice fit for an integration to be the onramp/offramp, p2p payments, spending and link to the merchant world. This is a critical part of our business model and so far we are seeing HEAVY interest.
lemme: Why is Metal selling so much $MTL from the operational pool for such a low price?
Marshall: Selling and spending are two different things, so I think one of the assumptions is that selling = spending which is not the case. Yes, we are selling MTL to fund our operating bank, but not spending it at the rate that we are selling it. We are doing this because of three reasons: (1) We raised a very small amount last year to build out our apps (which arguably we have delivered) $3m vs most crypto startups raising $20m+ and we have delivered much, much more. (2) We need to demonstrate a full year of burn in the bank account to close the audit. (3) We need to close the audit to retain our money transmission licenses to get all fifty states, Europe as well, in addition to certain features like in app-exchange that we do directly. We're actively growing the company and as soon as we close Series A we will stop selling and focus on accumulating (not only MTL, but certainly as much MTL as we can get our hands on while diversifying).
ekasu: How likely is that more MTL is taken out of the operational pool in the short term, which can decrease the price much more?
Marshall: MTL will be taken out of the operational pool until the successful closing of our financing round which we are in the process of right now
meakkineni: Have you come up with any other significant use cases for MTL apart from BNB style use case in Crumbs and building a better PoPP score?
Marshall: Yes, and you will be hearing more about that as we plan to release an updated paper showcasing the fully decentralized aspects of the chain we are building.
marc0o: I hope I remember it right. A while ago Marshall talked about Metal being a service targeting people that do not have a bank account. Is this still on the roadmap?
Marshall: Yes it is. I know it may not appear that way right now but I firmly believe a good product keeps a narrow execution and a large vision. So the first part of the network and what will eventually become decentralized is starting on the equivalent of testnet or centralized (this is not too different than Bitcoin or Ethereum in the early days). We’re starting with linked bank accounts and moving to keep that as an option that people can skip over and opt to choose a stable coin, all while creating a Metal profile and [obtaining a] PoPP score.
Parker: Would Metal consider doing token buybacks (a la BNB)? Are they even legal in the U.S.? Could doing so make Metal a security?
Marshall: As a company, we will buy different cryptocurrencies at different times depending upon the market situation, buying MTL is something that we will do, as far as any guarantee to x amount being bought back per quarter or percentage of profit, that is most likely indefinitely off the table for a US company.
CryptoSheffield: Do you “own” the PoPP concept?
Marshall: We own trademarks yes, the first mention of media and are working on a provisional patent. This type of thing is very hard to get a patent for even harder to defend right now.
Future: Some people noticed Sid no longer on the website. Has he moved on? If so what's the story there?
Kristal: Sid put together some beautiful designs and helped shape and create the early stages of Metal until it's launch. As we move into the next stage of post-launch, we amicably parted ways with Sid and wish him continued success wherever he goes. As a company, we're on the hunt for a Principal Designer to continue our progress on great design and user interface, to push us into the next phase of our product. Marshall: I'd also like to add design is incredibly important to me and the reason I hired Sid. If you follow my work from my first crypto/fintech startup I've always been a stickler for amazing user experience and design, specifically with Metal I'm going above and beyond and creating what I believe to be a work of art, something that will be on showcase in the Moma in 20 years from now on a design exhibit.
SciGuy: You guys still thinking of launching in Korea? Of all the places, this is where I'm actually going to be paying very close attention. Korea loves crypto.
Marshall: BIG TIME. We want to enter the Korean market ASAP as we know we have quite a few fans there. The goal is to quickly enter the international market by the end of this year. Now that Nebula is working the next hurdles are bank/FI partners, licensing, localization and marketing (its more complicated than that but those are the critical pieces to expansion). Keep in mind we will be allowing anyone in the world to sign up in the future and skip bank while choosing a stablecoin as their "bank" fiat choice. This goes back to the unbanked question. If we just release a crypto wallet and say tada we've banked the unbanked... have we really? I'm serious when I say it. And you can see it in the progression with our products and the vision. Gotta link existing banked citizens along with merchants and unbanked, they all must be in the same ecosystem. Otherwise, the dream can't become a reality.
andrea: I would like to ask about timing. I remember there was a talk about things that could be done before EOY such as new crypto implementing PoPP; debit card, series A round.
Marshall: Yes, I'm happy to say this is all on track. In terms of fundraising round, I believe the missing link for us is demonstrating user growth and b2b client acquisition, something we are working on fiercely right now. One of the things I saw in Dogecoin community that was really awesome was the involvement of the community in viral campaigns (especially for good) such as NascaJosh Wise, Doge for water, Sending the Jamaican bobsled team to the Winter Olympics.
nofomo: Anything you can share about things to look forward to before EOY? Any big partnerships, etc.? From a marketing perspective, are there ways that MTL can showcase or communicate SEC compliance more? Not to flaunt it, but as people scramble out of bad projects/Tether, etc., it might help to get more info out there. When Desk, and can we expect to see USD/MTL pairs?
Marshall: We have quite a few new features coming: PoPP in under ten minutes always, PoPP notifier so you can know if a payment is PoPP eligible, API for other companies (exchanges, cryptos, FIs), adding more cryptos for PoPP funnel, buy functionality, mainnet deposit/withdrawal. Partnerships we have a few big ones in the pipeline 😉 In terms of compliance I think our actions speak louder than words, we operated very differently than 99% of the other companies in the space and focused heavily on compliance in a rapidly evolving landscape. We were chastised initially for keeping the token offering private and to accredited but in the long run this was the correct way to operate and we're seeing that now. Desk/Vault is postponed until next year as we have more than enough to conquer right now on Pay/Crumbs... USD/MTL pairs, soon!!! Not just with us, but on other exchanges we anticipate.
meakkineni: Has any other banks shown interest in Metal lately?
Marshall: Yes, a few big ones, as well as smaller tier 2 banks
meakkineni: Is there any tangible benefit Metal has gained so far by sponsoring Necker Cup?
Marshall: Yes, quite a bit with partners we are in talks with now, in addition to bringing in investors in our next financing round... Not to forget influencers!
cryptoandcannabis: Is there any institutional support for Metal being shown, even in preliminary stages? Now that traditional asset custodians such as Fidelity are in the mix maybe MTL can become a slice of people's crypto asset class
Marshall: We are starting to see interest from the big custodians in the space, very exciting times. Fidelity recently entering has really helped this, in addition, several trust companies are opening up.
On Metal Blockchain…
1Chance: Will [Metal] consider supporting any of the stablecoins?
Marshall: Yes, all of the good ones we will be supporting.
Yannik: Will be some parts of the new Metal Blockchain open source? And based on Stellar?
Marshall: Yes it most certainly will be open source and anyone can connect to our public network. Based on Stellar? Where are you getting this information? 😛
Québécoiserie: Are you working on Metal Blockchain now or has it not started yet?
Marshall: We are in the very beginning phases and testing the assumptions for PoPP on our centralized back-end. Additionally, we are in the process of raising a funding round, The Metal Foundation will be running the open source initiative when we launch it next year.
Decoder1: There is a lot of talk about a Metal blockchain - this sounds exciting but also quite ambitious because it can take years to achieve the fine tuning and security required to develop a new blockchain. Would it be PoW? PoS? Wouldn't it be easier to build a side chain on Ethereum like Loom, or build something on Cosmos SDK to take advantage of existing layer 1 security solutions? If you plan to one day PoPP with other tokens Cosmos might be a good idea. My concern is that with a small team and many things like Desk, Merchant, revamped Vault, new features on the App, Android, new regions, that Metal might be biting off more than it can chew. So if you could elaborate more on these plans that would be great!
Marshall: This is a correct assumption and we are already doing a lot, there is a reason we have put Vault/Desk on hold while we focus on Crumbs and Pay. In terms of the blockchain side, we are staying agnostic and specifically with the consensus mechanism we are looking at lots of options. We will, without a doubt, be leveraging other chains for interoperability. Jae Kwon is a good friend of mine and I think Cosmos has a lot of potential (I'm an investor full disclosure), I also look at the work that has been done with Komodo leveraging the bitcoin blockchain, I find this very interesting as well. The idea here is that this will be a non-profit initiative under The Metal Foundation and not directly intertwined with Metallicus Inc. the private company.
meakkineni: Lately we have been talking more about Metal Blockchain than Metal Merchant. Has the focus shifted?
Marshall: The focus has not shifted, one of the things that did change from the inception of the project until now is that we've decided to stay away from re-inventing POS and merchant software, we feel that it is better to partner with processors than try to replace them ala Square
Sporklin: I did warn I came with a vital question. @Marshall Shoes, you are known in the crypto space for having good taste in clothes. What is on your feet at the moment?
We are among the top 35 Block Producer candidates. EOS.fish is enthusiastic about building the EOS community, educating everyone interested and catalyzing the global rate of adoption. We regularly host meetups of our own yet still go out of our way to attend other worldwide conferences to spread our message and help others meet the innovation of EOS. EOS.fish will be in attendance of the EOS Community Conference in Seoul, South Korea. In Seoul we will be working as a team to welcome new community members, inform interested participants and expand the reach of the EOS platform. It would be a pleasure to meet you and welcome you to our fishie family. The conference duration will run over the course of three days, July 19th to July 21st. Node One will be hosting this conference featuring hospitable accommodation as well as helping potential visitors acquire the legal paperwork and visa to visit. Meet EOS.fish. Our co-founders will be making an appearance at the EOS Community Conference where they hope to meet you and welcome you into the world of EOS. Our founder, Chun Wang, is also the co-founder of the world's largest mining pool, F2Fpool. F2Fpool was started in 2013 and has already mined nearly one million bitcoin, ten million litecoins, and four million ether. Marshall Long, our co-founder, began mining in 2009 and held a significant role in the adoption of Bitcoin and the spread of its success. Marshall is also the CTO of Final Hash, another leading mining pool. We have a lot of expertise and experience in the field of cryptocurrency, facilitating us in informing and growing the EOS community. We have an EOS wallet that you can check out called the Fishlet; a secure, transparent and fast means for you to store and sell your EOS. If you would like to learn more about us, EOS or the future of Blockchain then come meet us at the EOS Community Conference in Seoul, South Korea.
Hello! My name is Mihail Kudryashev, I am a frontend engineer at Platinum. We are a an international STO/IEO/ICO/POST ICO consulting, promotion and fundraising company with huge experience in STO and ICO marketing and best STO blockchain platform in the world! Learn more about it: Platinum.fund Our company gained popularity after launching the world’s number one online university with only practical knowledge on crypto economics. Now you can learn how to create and develop your own ICO and STO, how to market your campaign and make it super successful. Who are cryptocurrency investors? What drives people to invest in cryptocurrency? Read the extract of the UBAI lesson to get all the answers. Introduction to the Investors §2 In 2017, the total cryptocurrency market capitalization was approaching $850B which begs the question: Why are investors turning to cryptocurrencies? A survey by Blockchain Capital indicated that at least 30% of millennials would rather invest in bitcoin than invest in traditional stocks. Cryptocurrency investors, like traditional investors, expect a return at least proportionate to the risk they take. Due to the fundamental lack of regulation, incredible volatility and astronomical relative risk, many cryptocurrency investors expect to earn meteoric returns. Returns in the ranges of multiples from 200% to 1000%. Let us first begin by examining the kinds of people who invest in cryptocurrency, and then let’s see the reasons why each of them is investing in this relatively new market. Types of Investors The “Newbie” Cryptocurrency Investor This investor is just starting out. They probably have not had any significant experience in any form of investing before and bitcoin is their first experience. They have heard about people making incredible returns from cryptocurrency investing, or some aspect of the entire blockchain and crypto revolution attracts them, and they decide they want to invest too. Unfortunately, most of the newbie investors will end up losing their money, primarily because of one specific misconception; they think cryptocurrency investing is an easy way to make huge profits. “ “Types of Investors §2 “Gambler” or “Get Rich Quick” Investor This is the second class of cryptocurrency investor, and is actually not really an investor at all. This type of person is out to make a fortune as fast as possible. They will fall for whatever sweet-sounding scheme they hear. They love ideas that promise to double or triple their investment quickly. Like the Newbie, they do not understand how cryptocurrencies work, and they don’t care. The difference between this kind of investor and the successful individual or professional investor is that the gambler does not care about the management of risk, or about the timing of trades. They place their money on the table, and they hope it will make a good return. They are gambling rather than creating an investment thesis and executing a well-thought out strategy. They might even have an infectious positive attitude, but unfortunately it is not backed by knowledge or the due diligence required to be a successful investor. A good example of this style of thinking, outside of cryptocurrency, is high yield investment plans (HYIPs) that promise to multiply an investors capital by a certain factor. This is not to say that all HYIP programs are scams, but a good number of them are. Most importantly, the investors who flock into such plans have similar characteristics to that of the Get Rich Quick investor in that they will not take the time to learn about the field in which they are investing. They are just looking for fast money and an overnight success. “ “Types of Investors §3 Short Term Traders (Day/Swing Traders) Short term traders must, without a doubt, be the most knowledgeable investors if they are going to succeed at their chosen profession. They have, or they should have, studied the art and science of trading more thoroughly than other people. This is the kind of investor who has taken the time to learn about cryptocurrencies and the markets on which they trade. Short term traders create deliberate and timed strategies in an attempt to profit from fast market movements. Maybe many of the short term traders started off as Newbies, but these are the individuals who took the time and effort to learn about the market. They wanted to know what they were doing. These are the people who survived and thrived to grow into the type of trader that they want to be. Interestingly, the Day Trader does not attach emotion to any given coin. They do not need to believe in the sustainability/whitepapevision/road map, etc. of the project they are buying into at any particular time. They just need to be confident about the direction and timing of the potential price movement of the coin. “ “Types of Investors §4 Long Term Investors/ Hodlers A great majority of successful cryptocurrency investors can be most properly classified as Long Term Investors, or HODLers in true crypto terminology. These are investors who understand quite a bit about cryptocurrency and blockchain technology and believe in the sustainability of the coins in which they are investing. Think of the first few investors who bought bitcoin in the early days and years, when it was still deep under the radar for most people. These are the people who believed in the blockchain and cryptocurrency revolution. They didn’t sell their bitcoin for fast profit, although they had many chances to do so. They knew what they were doing, holding for the long term. These early investors and HODLers enjoyed astronomical growth all the way up to 2016 and 2017. But to be a long-term holder despite all the bad news and negative factors surrounding this brand new asset class, they must have really believed that bitcoin and the blockchain were going to change the world. This belief can only be established through study and research about the blockchain industry and the specific currencies and tokens in which you are going to invest. Follow up and learn more on www.ubai.co!” “Types of Investors §5 Sophisticated/Professional Investors These are experts in cryptocurrency investing. They most likely have a background in other forms of trading and investing, such as in stocks, bonds or options etc. They may also be earning fees by investing or managing money for other people. The Iconomi fund managers are a good example. Each Fund Manager manages an array of digital assets. Investors might choose Iconomi because it offers a platform for the investor to allocate funds to specific fund managers, with the ability to swap between managers instantly if the investor desires to do so. Each fund manager selects a number of coins in which they wish to trade or invest, with specified time horizons, short or long term. Investors can buy into the array of mutually held coins. This allows investors to utilize the knowledge and experience of professional fund managers to trade an allocated pool of capital, hopefully generating returns greater than the individual investor would be able to produce on his own. The fund managers are motivated by the fees and commissions they earn, and perhaps a performance-linked bonus. You can certainly be properly classified as a Sophisticated Investor without any need to be a fund manager for other peoples’ money. But a professional fund manager has the ability to trade with a larger pool of capital, manage complicated risk, and diversify trading strategy to generate various streams of income. “ “Between Countries A particular country’s participation in cryptocurrencies largely has to do with the legal regulations about blockchain projects and crypto currency investment in that jurisdiction. When China banned the use of cryptocurrency, most Chinese nationals had to withdraw their investments. Many other countries have also placed bans on the use or trade of cryptocurrencies. Countries like Japan that have allowed the use of cryptocurrencies have witnessed a significant rise in cryptocurrency investments as a result. Japan and South Korea are home to several high-traffic cryptocurrency exchanges, meaning that a notable proportion of their population is investing in cryptocurrencies. Another way to look at cryptocurrency investment demographics is to look at the bitcoin ATMs present in each country. The United States of America is the leading country, followed by Canada and then the United Kingdom. According to a report by Google trends, the five top countries interested in bitcoin are: South Africa, Slovenia, Nigeria, Colombia and Bolivia. Remember, cryptocurrency demographics can be a little tricky due to the anonymity involved. Many people may be afraid to participate in surveys, especially when their governments have placed legal restrictions on cryptocurrency investing. The main point the research seems to validate is that the demographics of the cryptocurrency investor base is diverse. While the average investor may be a white or Asian male between the ages of 26-30 with at least a university degree, the entire investor base is so much larger than that. Many big investors are likely to be significantly older, and have connections and businesses in the traditional economy as well. “ “Notable Investors in Cryptocurrency While many people have made fortunes from cryptocurrency investing, a handful of them stand out as being particularly remarkable. We will take a more detailed look at some of the biggest investment success stories to see how they did it and learn about their investing strategy. The Winklevoss Twins After being awarded their settlement from the lawsuit against Facebook, the Winklevoss twins decided to invest a significant portion of their money in Bitcoin. They invested $11million of the $65million they received. At that time, the price of a single bitcoin was about $120. This high-risk investment paid off handsomely and they became the first publicly known Bitcoin Billionaires, perhaps owning more than 1% of the total bitcoin in circulation. In an interview with Financial Times in 2016, the twins jointly said that they consider “Bitcoin as potentially the greatest social network because it is designed to transfer value over the internet”. They also pointed out that compared to gold, bitcoin has equal or greater foundational traits of scarcity and portability. “ “Notable Investors in Cryptocurrency §2 Michael Novogratz A self-made billionaire ex-Goldman Sachs investment banker, Novogratz has invested more than 30% of his fortune in cryptocurrency. In 2015, he announced a $500million cryptocurrency hedge fund, including $150million of his own money. Novogratz believes that “the blockchain, the computer code that underpins all cryptocurrencies, will reshape finance, just as the internet reshaped communication”. The investment thesis of Mr. Novogratz is similar to that of the Winklevoss twins. He has taken and maintains a long-term position while he trades in and out of short term moves, based on his fundamental belief in the potential and likely application of the underlying blockchain technology. By starting an investment fund in addition to his other cryptocurrency related ventures, he is demonstrating a strong fundamental grasp of the technology, including its applicability and impact across so many industries. Slide Barry Silbert In December 2014 after the US Marshal’s office seized 50,000 bitcoins from the Silk Road, Barry Silbert purchased just 2,000 of those bitcoins at $350 per coin. A few years later of course, those coins were worth millions of dollars. Barry is the founder and CEO of the Digital Currency Group (DCG) a cryptocurrency investment firm. Barry also made significant profits from Ethereum Classic, purchasing the coin in its very first days. He has invested in over 75 bitcoin related companies, including CoinDesk. As founder of the Digital Currency Group, Barry endeavors to support bitcoin and blockchain companies and accelerate the development of the global financial system. “ “Directly through Exchanges Step One: Register on a reputable cryptocurrency exchange To start investing, you first need to register on a reputable cryptocurrency exchange where you can buy bitcoin and other cryptocurrencies. Binance is a good exchange to use in this lesson. While it may or may not be the best, it is currently the largest, and they provide a very supportive layout and customer service department. You should remember, to buy most altcoins (cryptocurrencies other than bitcoin), you specifically need to use an exchange like Coinbase or Kraken that allows you to convert fiat currency into cryptocurrency. From there, if you want to trade altcoins not listed on that exchange, you will have to transfer your BTC or ETH to a larger exchange like Binance, and buy the altcoin you want, using whichever trading pair that is best suited (BTC and ETH pairs are most common). As we have already explained, if you are buying Bitcoin or any cryptocurrencies, you should invest in a wallet to safely store your coins. It is not advisable to store your BTC or other crypto on the exchanges for too long, due to hacking and other risks. “ “Directly through Exchanges Step Two: Determine your Strategy There are different ways to invest. You need to find a strategy that works for you and your specific set of skills. The value of a cryptocurrency is not defined by a formula or something out a textbook. If everyone was able to calculate the actual value of a share of stock, for example, or a bond, or other tradeable asset, then the price on an open market exchange would never move. Buyers and sellers would know exactly how much the asset is worth, so there would be no reason to sell lower or buy higher than the actual value. You need to come up with your own ideas and strategies to take advantage of market moves. Sometimes you will have a position that is contrary to the general market. Other times you might be trading in agreement with a majority of other market participants. Investors are basically separable into one of two groups of thinkers. Contrarian investors go against the crowd, swimming against the current; Momentum investors ride the wave feeling secure in the majority. Being different can be good or it can be bad. You do not always want to necessarily get caught up in the most crowded trade. “ “Things to keep in Mind Bitcoin Futures We need to mention the bitcoin futures market as another potential way to invest. Toward the close of 2017, Bitcoin started trading on two fully recognized and well-established futures markets; the Chicago Board Options Exchange (CBOE), and the Chicago Mercantile Exchange CME. The key quote from the exchanges was “because the futures can be traded on regulated markets, it will attract investors, making the market liquid, stabilizing prices and it will not suffer from low transaction speeds of Bitcoin Exchanges.” For a risk averse investor, this offers a safer entry into cryptocurrency investing. A futures contract commits its owner to buy or sell the underlying asset, BTC, at a set price, and at a set date in the future. The investor in the futures contract does not actually own the underlying asset, but rather is trading on fluctuations in the price of the asset over a certain timeframe, as specified in the futures contract. “ “Things to keep in Mind §2 Common Pitfalls We cannot conclude this lesson without one more look at the common pitfalls a new cryptocurrency investor should avoid. The problem areas are: -Falling for scams by failing to carry out due diligence. -Relying solely upon self-acclaimed crypto gurus and experts. If you want to trade, you must understand how to read news and charts for yourself. -Too much Greed. Not taking profit when you should. It is better to take a 20% gain, than wait for a 100% gain, only to lose it all in the end. -Lacking an investment strategy or exit plan. -Not sticking to your investment plan or strategy. -Allowing emotions to rule your decisions. Chasing your losses. -Investing what you cannot afford to lose. And finally, some time-tested wisdom from Wall Street: Bulls make money. Bears make money. Pigs get slaughtered every time. (Don’t be greedy!) We cannot overemphasize the risk involved in cryptocurrency investing. The potential to make huge gains over a short period of time does not come without risk. There is no doubt that significant players in the global financial markets are entering the cryptocurrency markets too. We are likely to witness more and more government authorities trying to regulate cryptocurrencies, hopefully to the overall benefit of a healthy market. It seems safe to say we will see cryptocurrencies become more mainstream due to the intense interest from the traditional financial industry and institutional investing community all over the world. What are better ways to successfully invest in cryptocurrencies? Which pitfalls should you avoid? Learn all on successful ICOs and STOs after reading the full lesson: UBAI.co How to start your STO/ICO campaign in 2019? 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Out of curiosity, I wanted to know who the list of signatures were other than just names on a list. I went through each profile and did my best to align them to their known public company. If it's unknown or independent, I listed them as unknown. Notes:
Focus on the vision for Bitcoin, not just its price.
Preamble The purpose of this post is not to discourage enthusiasm over the recent appreciation of Bitcoin. Everyone here is excited, and rightly so. I’ve put this together because I think people are getting a bit caught up in price mania and losing sight of the bigger picture. The ideas I’ve pulled together here are pretty condensed as it is, so unfortunately I have no TLDR. I don't claim to have a prophecy to share, or concrete answers to questions about where Bitcoin will go in the future -- nobody does. But that doesn't mean there's nothing to talk about. I would suggest reading slowly and giving your imagination time to picture or "render" things. There is no other way to grasp Bitcoin. Final preamble: I know there are people in this sub who are here just for the gains -- they freely admit it, and they laugh at how "true believers" will be left holding the bag when they sell. My hope is that those of you who feel this way will have an open mind. You might see things in a new light, who knows? Here we go… The Medium is the Message In the 1960s, a Canadian professor named Marshall McLuhan became widely known for his thorough analysis of the evolution of communication technologies. His central precept was that communication technologies have dramatic effects on populations regardless of the content they carry at any particular moment. The radio, for example, allowed private microphones to broadcast to widely distributed speakers, which enabled the amplification of private viewpoints on a public scale. This had profound effects on society that played out regardless of what particular messages were carried over particular radio frequencies at particular times. McLuhan’s famous aphorism, “The Medium is the Message,” is a distillation of this precept. In point form: 1) each new communication technology changes the environment into which it is introduced; and 2) the net effect of a technology over time is both far more interesting and harder to discern than the effect of any particular use of that technology or phase of its development. In other words, it is harder to see the forest for the trees, but seeing the forest is everything. So: what effect will Bitcoin have on the world over the long run? What is the meaning of Bitcoin? The Roman Model To understand where we might be going, we have to first understand how we got to where we are. In the West, our societies are founded on the Classical traditions which were seeded in Ancient Greece and “scaled” so to speak in Ancient Rome. McLuhan had a lot to say about this from a technological point of view: The development of writing on lightweight media such as papyrus and parchment enabled the externalization of knowledge. Thus, the oral traditions of Ancient Greece were subsumed and replaced by written traditions which were far less lossy and could be refined over time. Writing on lightweight media also enabled the centralized control of vast resources over large distances, which would have been impossible using engraved stone or oral communication. This was perfected by the Romans and thrown into overdrive by Johannes Gutenberg's invention of the printing press around 1450. In its abstract form, the Roman model takes the form of bureaucracy – hierarchical organization -- and this model has underpinned the structuring of society in the West for the past two thousand years. Look up "org chart" on Google Images if you can't picture one. Our societies are comprised of org charts within org charts within org charts -- try the following searches on Google Images: military org chart, bank org chart, government org chart, university org chart. Everything in our society is centralized, bureaucratized, and nested within the context of the nation state which is run by a central bureaucracy called the government, itself divided into departments within departments, orgs within orgs. This is not to say that humans didn't organize hierarchically before ancient Rome -- of course they did, as do apes, dogs, chickens, etc. However, in a social hierarchy such as a tribe, there is a scale limit (Dunbar's number, 150) because each member must know his place and his role as well as the places and roles of all other members. The hierarchy lives inside its members' minds and looks more like a swarm than an org chart. Bitcoin is, of course, this type of network, where each node has full knowledge of the state of the network and participates in it voluntarily. Bureaucracy, on the other hand, is based on the writing down of roles (job descriptions) and makes people interchangeable. There is no limit to scale as long as you map everything out carefully (management). The lifeblood of bureaucracy is the transmission of written forms of information (paper-pushing) from the center to the periphery along defined, linear routes. Each node receives its orders, performs its specialized role, delegates if the role requires it, and then awaits new orders. Privilege and planning are concentrated near the center -- as is risk. These structures are inherently fragile and collapsible. If you undermine a high-value node as happened in the collapse of Lehman Brothers, the whole edifice collapses. The entire global financial system barely withstood the collapse of a single American bank - it is that fragile. Each nation's banking system is likewise a matrix of bureaucracies operating as a single, hierarchical supply chain whose product (the national currency) flows outward from a central node (the central bank) through successively less privileged nodes (investment and commercial banks) down to the level of branches and ATMs. At each level of the banking system, additional product is created and loaned out (credit/debt) using the productfrom the level above as a stake (fractional reserve lending). The banking systems are insulated from competition by governments through the decree that taxes must be paid in national currencies. And to keep the currencies moving, everyone is raised from birth to want more and then given the appearance of more through the creation of more by fiat, meaning by arbitrary decree, without any necessary connection to the creation of new wealth. This is inflation: the steady creation of new money to repay debt and keep the show going. It is a Ponzi scheme by design, and it relies the continued "buying-in" of young people in order to survive. Each national currency has value and utility only by decree and only within that nation's cell in the global mosaic. To move value from one nation to the next requires snaking it through tenuous international pathways, paying entrenched gatekeepers, and exchanging one national currency for another. You have to be somebody to access the banking system. The more somebody you are, the more access you get. It is principally through control of economic access that strong nations bully weaker ones, rich people bully poorer ones. There is tremendous pent up tension in our world as a result. This is where we are. The Center Cannot Hold McLuhan predicted that the advent of the electronic age and the emergence of global communication networks would lead to the dissolution of these centralized, bureaucratic structures from the bottom up. He died before the spread of the Internet but described the end result with crystal clarity in his writings. His vision of an interconnected world, which he called the "Global Village," is here now. Every person has the ability to broadcast information to others in their networks over the Internet. If a transmission is perceived as having sufficient value, the receiving people pass it on, and so on. Above a certain threshold of significance, transmissions are repeated by all people to all other people: this is virality and there is nothing that institutions can do to harness or stop it. The Arab Spring for example brought down an array of national governments in a span of months. Like a rising tide, global communication networks are bringing about an inevitable dissolution of the Roman model all around us: the music industry was upended by Napster; newspapers are being displaced by twitter and blogs; radio stations are being displaced by podcasts; broadcasters are being displaced by Netflix and YouTube; brick-and-mortar stores are being displaced by Amazon and eBay; AirBnb is gobbling up rental supply; traditional transportation services are being displaced by Uber; and now decentralized currencies are coming after centralized ones. Quoting W.B. Yates: “Things fall apart; the center cannot hold; Mere anarchy is loosed upon the world.” It is important to realize that even though the post-Dot-Com networks like Facebook and eBay were more effective than their institutional predecessors, they are still quite fragile since they are centralized. They can be hacked, compromised, back-doored, subpoenaed, or otherwise shut down. In contrast, a truly decentralized network is perfectly flat and impossible to shut down. The music industry could kill Napster by going after Sean Parker, but it cannot touch BitTorrent. True decentralization, at scale, is one of the principal reasons why Bitcoin is secure: whatever it becomes, it cannot be stopped because there is no center to hold, and nothing to attack. At this point, I think it makes sense to explain how Bitcoin works, and why it has value. If those questions can't be answered clearly, there's no basis for thinking Bitcoin will disrupt traditional banking. I do, however, think there are very good answers to those questions which I'll try to present below. Bitcoin and Blockchain Imagine you live in a pre-historic tribe of ten people. As a group, you need to find a way to keep track of who did what work, and in what quantity. In other words, you need an abstract “work unit” that can be traded for work and held for use in future exchanges. You could use shiny rocks or something else similarly rare, but people would still be able to cheat the system: why do actual work if you can simply go on a hunt in the forest and find new rocks? One solution is to create a ledger or list that keeps track of how many rocks each person has. If the ledger is the authority on who has what, people would not be able to inflate their balances by introducing new rocks or other work units from outside the system. The problem is, everyone has to trust the keeper of the ledger. If only one entity maintains the ledger, they ultimately control how much money everyone has (banks). Decentralization is the solution to this problem. You can write down ten copies of the ledger and distribute a copy to each person in the tribe. At the end of the day, everyone could cross-check the transactions that took place with everyone else and a consensus could be formed about who has what without appealing to a central authority. Eventually, the people might realize that the rocks themselves are unnecessary, and that it is actually the ledger that is important. The rocks, like all currencies, are meant to track work. If a ledger is already doing that, the rocks themselves become extraneous. The actual units of currency are the work units on the ledger. And if everyone agrees to use the same ledger, its work units have value. The blockchain is that ledger and Bitcoin is its work unit. Proof of Work In the illustration above we can see that the utility of a blockchain is that it enables distributed peers to prove to each other that they have done work, and to trade their work units freely without appealing to a trusted intermediary. The obvious next question is: what proof do we have that we can trust the Bitcoin blockchain? Bitcoin mining is based on a Proof of Work consensus mechanism. To put this as simply as I can, each and every mining node on the network is competing against the rest of the network to generate a small piece of data that proves it has performed an enormous number of computer operations using a batch of new, valid transactions as an input. The amount of work that it takes to successfully mine Bitcoin is dictated by how much computer power has voluntarily joined the mining network - and this is adjusted dynamically as miners enter and leave the network. Each operation requires a tiny bit of electricity since a computer must perform it, so as the difficulty of the Proof of Work operation scales, so too does the cost of generating it. As of writing, the Bitcoin network is collectively performing about 8,250,000,000,000,000,000 operations per second, and it takes an average of about ten minutes worth of this grind for a single node on the network to successfully produce an acceptable proof of work and add a block of transactions to the blockchain. The winning node is awarded new Bitcoin by including a transaction in its block that credits its own wallet -- now we understand mining. So you want to be a Bitcoin miner? Let's say you have a powerful gaming computer that can perform about 100,000 Bitcoin computer operations per second (a realistic amount by the way). It would have roughly a 1 in 82.5 quintillion chance of mining a block if you were to enter it into the mining race today. If you had a stack of 1000 of these gaming computers your odds of mining a block would improve to roughly 1 in 82.5 quadrillion. A million of them? 1 in 82.5 billion. Etc. Miners use specialize hardware to perform the computer operations, but the point still stands: it takes a staggering amount of computer power and thus a staggering amount of electricity to "get a word in" on the Bitcoin blockchain. But let's say you get lucky and are able to generate a proof of work. That proof of work will be tied inexorably to whatever batch of transactions you are trying to add to the blockchain since those transactions were part of the input of the computer operation. Your transactions must be valid or else the rest of the network would reject your work. You wouldn’t be able to double-spend, create Bitcoin by fiat, or spend from balances that you don’t have the keys for. The network would reject your block. The larger and more distributed the mining network is, the more cost-prohibitive it is to compromise it. In other words: the more people you have checking the ledger from different nations and backgrounds, the harder it is to override the distributed, international consensus. And that is why the Bitcoin blockchain can be trusted. It is audited by the largest computer network ever assembled and requires that an attacker control at least 51% of the network on a sustained basis. The Open Blockchain As more and more people use a blockchain, its units (e.g. Bitcoin) become more valuable. As the price of the base unit increases, it becomes more profitable to mine them at the prevailing level of difficulty, so more miners join the network. As more miners join the network, the level of difficulty increases and thus the robustness and security of the network increases. As the robustness of the network increases, it becomes more secure against attackers, so more users and investors are drawn to it. And so the price of the base unit increases. Which draws in more miners. Etc. The adoption of a blockchain, like the adoption of any currency, is a virtuous circle -- one that Bitcoin has been nurturing successfully for nine years without any existential catastrophes. Bitcoin's heartbeat, the mining of a new block every ten minutes, has not skipped a single beat in nine years. There has not been a successful double-spend in nine years. There has not been a single accounting error in nine years. No balance has been mysteriously wiped off the blockchain in nine years. This track record has been established despite the fact that the blockchain is not protected by a firewall, or an institution, or shielded in a vault. It is not buried underground, or protected by obfuscation. It is out there in the wild of cyberspace for all to see and attack, secured purely by Proof of Work and sheer scale. Bitcoin itself is valuable because it is the only work unit that can be included in a block of this particular, special blockchain: the open, global, transnational, borderless, censorship-resistant, permissionless, leaderless, most well-known, longest-running, and most-well-capitalized blockchain (credit to andreasma for this and many other insights). Because work units on this blockchain are scarce (per the 21-million cap), having the ability to sign for transfers of Bitcoin on the blockchain is a form of real control over scarce resources. This is the pivotal point: to the degree that people around the world adopt and learn to trust the Bitcoin blockchain, its work units will have value. And it is Bitcoin's openness in particular that makes it the prime candidate for filling this role. Any computer on the planet can join the mining swarm at any time, just as anyone can join the network as a user, at any time, from any location. Even the Bitcoin development community is open-source and open to new developers provided they can prove their merits. This is what is meant by The Open Blockchain: the Bitcoin blockchain is accessible everywhere and is open to anyone. It is welcoming. It enables people from different cells in the global mosaic to transact point-to-point, without snaking value through complicated interbank networks, without paying entrenched gatekeepers and intermediaries, and without having to convert from one currency to the next. If a country experiences a currency crisis, Bitcoin is a very real option because it enables people to transfer value out of hot spots and convert it into other currencies. The international monetary system is no match for this technology. Private blockchains are no match either. Bitcoin’s Monetary Policy Bitcoin is commonly referred to as "digital gold" since it is designed to function like a precious metal. The creation of new units follows something like the extraction curve of a natural resource. The issuance of new coins was steep at first but will taper off over time through successive “halvings” of the reward that miners receive for creating new blocks. Eventually, the issuance of new coins will approach an asymptotic limit of 21 million coins. At each "halving", the rate of inflation is effectively cut in half, though it decreases ever so slightly with each new block. The current rate of inflation is about 4%. At the next halving in 2020, the inflation rate will be about 2%. In 2024, 1%. Etc. The world has never before had access to a truly deflationary asset. Even currencies considered deflationary such as the Japanese Yen are not truly deflationary: the government can print an infinite amount even though deflation in Japan has inertia. Gold is not deflationary: new gold is mined every year. Bitcoin will eventually become truly deflationary, meaning the supply of available Bitcoins will contract year over year consistently. How is this possible, if there is no provision to destroy coins in the protocol? There is guaranteed to be a year sometime in the future where more coins are lost due to people losing their keys than new coins are created. It will happen. As the miner reward decreases, years like this will become more common. In the distant future, decades will go by where every year is deflationary, and eventually it will be practically impossible for the supply of Bitcoin to not decrease in a given year. Here is Bitcoin’s golden proposition: because it the first truly deflationary asset, it does not require interest payments or a never-ending influx of greater fools in order to provide a “yield” over the very long run. In the distant future, Bitcoin will have a low but predictable intrinsic expected return approximating its rate of deflation, as long as it remains secure. When you combine Bitcoin's monetary policy with its robustness through distributed Proof of Work on a planetary scale, you end up with the basis for a global reserve asset more effective than anything else humans have ever had a chance to work with, including gold. Gold is modestly inflationary, it cannot be transmitted over a network, and it must be centrally secured and accounted for. Bitcoin has already obsolesced gold as a reserve technology, let alone Ponzi currencies like the dollar - most just don't know it yet. As people come to really understand Bitcoin’s monetary policy, they will flock to it as a safe haven, especially in troubled economies. If we have another 2008, Bitcoin will be very much in play. Bitcoin as Money People argue that Bitcoin's deflationary policy, high fees, and volatility make it ineffective as a medium of exchange. If you can expect a Bitcoin to be more valuable next year, why spend it this year? If it costs $20 in fees to buy a $3 coffee, who will use or accept it? If its value can double in a day, who will set prices in terms of Bitcoin exclusively? The truth is, Bitcoin is not yet ready for mass adoption as a day to day currency or unit of account. Anyone who tells you otherwise is getting ahead of the technology -- but this is temporary. Just as the early Internet could only handle the transfer of simple text-based content but eventually scaled to allow everyone to stream 4k at the same time, so too Bitcoin will scale. The Lightning Network shows promise in this regard. It will enable and incentivize users to stake their Bitcoin on a second layer where payments are negotiated in a trustless manner between parties, instantly, and merely settled periodically on the blockchain. But even with today’s block congestion and high fees, Bitcoin is already cheaper and more efficient for large transfers of value than the banking system, especially internationally. People transfer hundreds of millions of dollars on the blockchain, securely, today. Regarding volatility, we are still in the very early phases of adoption. Something like 10-20 million people own Bitcoin worldwide. Because the supply of Bitcoin cannot inflate to accommodate increased adoption, prices will continue to escalate in logarithmic fits and starts as adoption ramps up exponentially. Look up "adoption curve" on Google. We are still in the very early phases of the ramp-up, but eventually the curve will taper off and approach something like stability. We do not know how this will play out or how long it will take, and there will be serious volatility along the way; but if Bitcoin scales into a robust transnational currency trading on thousands or tens of thousands of exchanges worldwide, it will likely become more stable than most national currencies if not all. Regarding deflation: over time, we will likely see new innovative uses of Bitcoin as a reserve for credit creation. People are clearly willing to operate in systems that use reserve-based lending, and they can work wonderfully: look at what humans accomplished in the 20th century! It is conceivable that Bitcoin could be used as a reserve for distributed, trustless, bank-like networks that issue their own tokens. We may end up using a modestly-inflationary cryptocurrency for day-to-day transactions and investment. There’s no way to know what people will come up with, but they will come up with things. And that is why Bitcoin must stay laser-focused on its role as the de facto reserve currency in the crypto-economy. A Vision Statement for Bitcoin Tying everything together: over the course of thousands of years, we have built our societies around the use of hierarchical principles of organization. These structures centralize control and privilege, but also risk. They are fragile. Too big to fail. The invention and proliferation of the Internet paved the way for the dissolution of these structures, and over the past twenty years we have seen countless examples of entrenched institutions being wiped out by flatter, more effective networks. Now we are seeing the early evolution of global, distributed, cryptographic value storage and transfer networks which will slowly displace traditional banking systems by offering faster, cheaper, more reliable routes, with better systemic risk profiles, infinitely better security, no access controls, and no entrenched monopolistic privileges over money creation. Bitcoin was the first mover in this space and remains the incumbent. It is a global, secure, consensus-based currency that was bootstrapped from the ground up by ordinary people volunteering to participate in its development, mining, and use. It has grown exponentially in size since its inception, to the point where it is now upheld by the largest dedicated computer network in the world. Because it is secured principally by its unmatched scale, it is therefore the most secure accounting system in the world, which in turn makes the entries in its ledger the most trustworthy on the planet. If you can sign for a Bitcoin in the network’s eyes, you own it -- and nobody can stop you from owning it or signing for it. Bitcoin is here, now. It is in the air all around us, accessible over wifi and cellular networks around the globe -- anywhere the Internet touches. The next time you walk down the street, look at the people around you. As they move through the air, displacing it with their bodies, recognize that they are literally wading through the Bitcoin network -- they just don't know it yet. Suggestions for New People 1) Focus first and foremost on the vision and take an interest in the technology. I have a friend who is talking about putting $20k into Bitcoin, yet only a few nights ago he didn't know that Bitcoin isn't a company, or that a block isn't a single transaction. I have another friend who owns a whole Bitcoin but has never initiated a transaction. A co-worker of mine just bought $100 worth of Bitcoin but doesn't know that a wallet is key management software. 2) Bitcoin is an experiment with no precedent. Nobody knows if it will survive, what it will evolve into, or how it will be used. Even with its long-running track record, nobody can say with prophetic certainty that it won't suffer a catastrophic failure of some kind, so put only as much money into Bitcoin as you can afford to lose. I would offer the following as a good rule of thumb: if you have a negative net worth (meaning your debts exceed your assets) be very cautious with Bitcoin, and at the very least do not increase your debt to buy Bitcoin. If you have a positive net worth, do not go negative to buy Bitcoin. Having said all this, do keep in mind that any currency can suffer a catastrophic failure, including the US Dollar. Remember 2008. Don’t fall for illusions of security. We are all sailing in little boats on a big sea. Diversify. 3) If you believe in Bitcoin, try not to obsess over the value of Bitcoin in fiat terms, as tempting as it is. Try to conceptualize its value on the basis of its potential utility in emerging decentralized networks and look for ways to use it in these new emerging ecosystems. Look up OpenBazaar for example - it could be the new eBay without an eBay acting as an intermediary. I strongly believe that owning Bitcoin is exciting because it sets you up to have a stake in this emerging ecosystem. If your aim is to eventually get your value out of Bitcoin in the form of fiat, you’ll be giving up that stake. If you don't care about having a stake and are here just for the gains, that's perfectly fine too. 4) Learn how to take possession of your private keys. If you don't know what that means or how to do it, learn what it means and how to do it. Until you can say with confidence "I alone own my private keys", you do not actually own Bitcoin and you do not have a stake. Someone else owns it for you. It took me two years of owning Bitcoin before I actually clued in and took control of my own, and that is what forced me to take on the Bitcoin learning curve. The good news is, you can too. (Edit: formatting)
With 2017 coming to an end, we wanted to provide the community with some updates regarding what is on the horizon for Blocknet in 2018, but first let’s take a look at what this community has accomplished so far. 2017 was a busy year for Blocknet! With the launch of the new production chain, the Service nodes launch on mainnet, the partnership with VSA to build the Blocknet UI (as well as the UI Reveal) and the implementation of the Community Governance System, it has been a very productive year. This is what was achieved… Blocknet in review 2017:
Service nodes launch on mainnet.
Implementation of the Community Governance System.
Thanks to the quick work of @ftriboix, integration of Ethereum and all ERC20 tokens is now roughly 50% complete!
The DX API, which is being worked on by the DX Tool Team and the Euro Team, is currently 75% complete with many improvements.
The DX UI, which is being developed by VSA Partners is 75% compete.
The DX UI integration, which requires the DX API to be complete, is now expected to be completed in January. This is a slight delay from what was hoped, but we believe it is better to delay a release than to make compromises.
Integration and successful trades of 10 additional verified supported coins. These will be announced soon!
Blocknet Wiki is being worked on by Baron and Philip Marshall which is approximately 50% complete.
A Blocknet DX visual explorer is being worked on by @infinity7592 and is now 25% complete.
API documentation auto-generation is 50% complete and will soon be accessible through a web page.
Coinmarketcap updated to source link to the new Github repo and added a link to Rocket Chat and Telegram. Telegram has seen a 10% growth in members in the past week!
Community representatives have been selected by the community. They are @stormingj and @thebaron.
Multisig accounts still need to be tested. Until reliable functionality can be certain, the community funds will be held in regular accounts. The spending of these funds will still go through a 4-of-7 approval process consisting of Dan(atcsecure), Arlyn(synechist), Michael(michael), Jeff(86b), Hanni(hanniabu), Justice(@stormingj), and Baron(@thebaron).
The community-driven marketing group is taking form with the addition of #marketing-investors, #marketing-users, #marketing-developers, #designers, #video, #events, #pr, #documentation, #support, #support-users, and #support-developers. This separation of groups will help the community better organize initiatives as well as allow for an influx of new members.
What is on the Horizon for Blocknet in 2018? Moving forward into 2018 there are many exciting developments to look forward to:
The beta “soft launch” of the Blocknet DX UI is to be expected in January.
Blocknet DX launch with SPV multi-wallets.
A facelift of the current website in preparation for 2 brand new websites (Blocknet protocol and Blocknet DX sites).
Rocket Chat improvements.
A Blocknet presence at cryptocurrency events, forums and meetings (currently in the planning stages.)
Integration with Ledger Hard wallet.
Blocknet DX TradingView integration.
Arbitrage trading bot library.
DX API enhancements.
DX order book enhancements.
Visual DX explorer: @infinity7592 (Early demo has been shared).
Analytics site (think bfxdata.com, but for the Blocknet DX).
0x integration (addition of Ethereum and all ERC20 tokens to Blocknet DX).
Ethfinex integration (Bitfinex’s order book on Blocknet DX).
Blocknet DX mobile app.
Blocknet DX website.
API documentation web page.
“Offline orders” feature (orders stay live after wallet is closed).
Decentralized leveraged trading (p2p loan swaps locked to longs/shorts).
Decentralized ICO dApp.
Modularisation of core components (network overlay, blockchain router and data transport).
Abstraction of core services into dedicated APIs (service lookup, inter-chain messaging, and decentralized exchange).
An additional 70 coins for the DX are being worked on and are at various stages of integration.
Note 1: Upcoming milestones are subject to change, and some require new ground be broken in crypto, and thus are to be interpreted as intents, not commitments. Development is in an agile manner and so is not to deadlines; Rather, continual progress is to be expected. Note 2: All names are Rocketchat community handles. A very merry Christmas and a happy and prosperous new year to the community! 2018 will be fantastic!
While Bitc0in investing can be intimidating for those just getting their feet wet, there are several tips that newcomers can use to maximize their chances of success. By following the top five tips listed below, investors can boost their chances of meeting their goals. 1) Do Your Homework First and foremost, investors just getting started with Bitcoin need to do their homework. "The more you understand the better off will be," stated Pawel Kuskowski, CEO & co-founder of Coinfirm, a blockchain and regulatory technology firm. He emphasized that "bitcoin offers a unique and rare opportunity, but needs to be treated accordingly." As a result, more than one expert encouraged newcomers to dive into Bitcoin's underlying technology. "If you have any technical bent whatsoever, take 10 minutes to leaf through the original 2008 Satoshi white paper," stated crypto fund manager Jacob Eliosoff. "It's only 8 pages, legible and an inspiring work of genius!" [Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.] Lucas Geiger, founder and CEO of Wireline, offered similar guidance, stating that investors should be sure to have a strong grasp of the blockchain, the distributed ledger system that underlies all digital currencies. "This may seem obvious, but I think the first thing is take time to understand the blockchain," said Geiger. "I say this strongly, because few people will do this." "If you don't have a high level understanding of how a blockchain stores secure data (such as coins), then you are investing in the equivalent of tulip bulbs," he added. Since learning about Bitcoin can take time, newer investors might benefit significantly from working with a mentor, emphasized Adam Nestler, CEO of Kudos, a decentralized protocol for building a fair service economy. "Find a trusted person or resource that you can engage with to ask questions in order to understand the nuances of your investment in a safe environment," he said. Be careful when investing in digital currencies. Shutterstock 2) Proceed With Caution Risk is inherent to investment, and investors should keep in mind that digital currency is in a very early stage of development when compared to similar asset markets like the stock or bond markets. "This is still an extremely high-risk space," emphasized Eliosoff. "Don't invest money you can't afford to lose!" While these considerations can be quite helpful, some experts provided more specific guidance. "Start small, and invest a small portion of your capital," suggested Marshall Swatt, a serial entrepreneur. Tim Enneking, managing director of Crypto Asset Management, offered tips for entering positions. "Don’t chase Bitcoin prices. Decide on a entry point and stick with it," he said. "With Bitcoin, you’re almost always right in terms of foreseeable price action – it’s your timing that might be off. So, be patient, and let the Bitcoin price come to you." Once Bitcoin has reached the right price, Enneking suggested that investors refrain from buying their Bitcoin all at once. Instead, they should "stage in and stage out," meaning they should invest a little at a time, wait for a bit, and then invest some more. Effective diversification can prove highly beneficial. Shutterstock 3) Diversify Effectively Over the last several years, Bitcoin has produced some very impressive gains, and media outlets have developed a steady stream of stories about "Bitcoin millionaires." While these stories might tempt an investor to put all their money in Bitcoin, keep in mind that no investment professional would advise an individual to put all their eggs in one basket. When creating a diversified portfolio, investors could consider altcoins, more traditional assets such as stocks and bonds, or both. The basic idea behind diversification is creating a portfolio where a decline in one component will correspond with an equal gain in another. For example, let's say an investor has a simple portfolio, consisting of equal amounts of Bitcoin, Ether, Litecoin, Ripple and Bitcoin Cash. If one digital currency falls 10%, then ideally, another digital asset will rise by the same amount. Oliver Isaacs, a tech entrepreneur, emphasized that if an investor set up a diversified crypto portfolio and Bitcoin's price suddenly fell to $0, they would still be able to invest because their altcoins would still have value. "Hedge Against Volatility and don’t put all of your eggs in one basket," he stated. "Much like investing in the stock market or FX, you should diversify your funds as a risk management technique." When picking out altcoins to incorporate into portfolios, investors need to be careful, emphasized Robin Bloor, senior VP of strategy & communications for software provider Algebraix Data. "There are a vast number of other active cryptocurrencies (hundreds)," he noted. "Remember that most of them can be thought of as start-ups and most start-ups fail. As a result, conducting thorough due diligence is crucial, stressed Bloor. "You need to research the business model in detail for any coin or token you are considering and then carry out due diligence - in terms of current funding, pedigree of the leadership team, original technology, marketing plans, product plans, product maturity and so on," he stated. Wallets can be a very safe place to hold your digital tokens. Shutterstock 4) Keep Your Coins In Wallets While exchanges are a great place to purchase digital currencies, they may not be the best place to hold such assets. "Don't store coins on an exchange," emphasized Eliosoff. "In Bitcoin's short history many, many exchanges have gotten hacked," he noted. "It's fine to buy on an exchange like Coinbase, but then move your coins into an online wallet like https://blockchain.info/wallet/, a mobile wallet like Jaxx or Coinomi, or create a paper wallet - all free and pretty easy," said Eliosoff. Investors can take further action to manage risk by using both hot wallets (online) and cold wallets (offline), emphasized Matthew Unger, founder and CEO of iComply Investor Services inc. "Just like you keep some cash in your wallet, some in your bank account and perhaps the really valuable stuff in a safe, you need to manage digital currencies in the same way," he stated. Volatility is very common in the crypto markets. Shutterstock 5) Prepare For Volatility The digital currency markets are notoriously volatile, and there are several strategies that investors can use to manage the inevitable price fluctuations. One strategy, diversification, is covered earlier in the article. Another strategy, buy and hold, has been advocated by a great many financial gurus, including legendary investor Warren Buffett. "Buy-&-forget is the right strategy for most investors," stated Eliosoff. "Resist the temptation to make short-term bets, to 'sell at the top', to get in at the cheapest price," he said. "Most people who try this stuff underperform simple buy-&-hold." Gavin Yeung, founder and CEO of digital asset management firm Cryptomover, offered a similar point of view. "We at Cryptomover believes that a passive investment style will outperform active strategies in the long term," he stated. "Not only is passive investing inexpensive and simple, it also lowers trading fees leading to much lower operating expenses." Disclosure: I own some Bitcoin and Ether.
ELI5: How exactly can the US Marshals auction off the Silk Road Bitcoins?
If I understand my Bitcoin, then, as long as you have a strong password and a wallet with good encryption and random private keys, no one can take your Bitcoins. That's a defining feature, right? They can't be seized like money or even like a bank account. So, how exactly will the US Marshals auction off the Bitcoins from the Silk Road? EDIT: Thanks everybody. But there seems to be a lot of "sort of" answers, with no one really sure. Does anybody have a good "here is what happened" kind of explanation.
Good evening everyone. Thank you for coming. Welcome.
It's really a pleasure to be back here at plug-and-play Silicon Valley. I believe this is my fourth or fifth presentation for this particular meetup, which keeps getting bigger and bigger every time.
Every time I come, more members. How many of you RSVP'd for this meetup? Ok, a few people just showed up. I have some good news and some bad news.
The good news is if you just showed up, you're welcome, stay. The bad news is that I drew names from the RSVP list, to give out ten copies of my new book "The Internet of Money". I'm going to have to ask for that one back.
Oh you brought it?! Ok. I thought it was from my stack.
** laughter **
Refunds and returns. So at the end of the show, I'll give out 10 copies. If you're not particularly interested or you already have a copy, just let me know and I'll just call the next name in the lot. If you're not here, you can't get the book so please stay until the end, even if it's very boring.
Ok so how many people here have Bitcoin? Fantastic. And how many people do not yet have Bitcoin? And the difference is the people too shy to raise their hand.
Okay great, the 4 or 5 people who raised your hands who said they do not yet have Bitcoin — remember the faces of the people who do have Bitcoin. And do not leave here tonight without getting them to give you some free Bitcoin. And if they won't, I will. The whole point of this is to help you install a wallet, receive a small amount of Bitcoin so you can do some transactions and try it out for yourselves, and it's always fun, the first time you experience a Bitcoin transaction will be memorable.
Alright. The topic of today's talk is proof-of-work and the monument of immutability. I want to talk specifically about immutability and what that means in this young era of digital currencies, what it means to have a digital system that is unchanging.
Immutability is a tricky concept. First of all because it doesn't really exist. Right? Everything changes. There is no thing in nature that is forever unchangeable — the universe itself, the vacuum, particles, everything changes, nothing is immutable.
So mutability is really more of a philosophical idea, but we use it in practical terms. So what do we mean when we say immutable in practical terms? The way I like to think of it is, if you have a scale of something that's very easy to change – all the way to the hardest thing you can possibly find to change – the most unchangeable thing, the thing that is most difficult to change. Immutability is that side of the scale.
Right, so for practical purposes we'll define the immutability in any sense to be the maximum of that scale, of how hard it is to change something. And on January 3rd 2009, that scale expanded significantly and a new maximum was defined. A new maximum in terms of what it means to be immutable for a digital system.
Nothing is as immutable as Bitcoin. So, Bitcoin defines the end of that scale at the moment. And so it redefines the term immutable. Now that has some interesting implications, including that you can't call the things to the left of that immutable. You can't call them immutable-ish. You can't call them kinda immutable. Right? Immutable-ish is like pregnant-ish.
It only makes sense as the maximum value. Not the maximum minus one. So immutable, once it's redefined, the things below it can't be called immutable anymore.
And so why is Bitcoin immutable? What gives Bitcoin blockchain the characteristics of immutability? What is it that makes it unchangeable? And the first answer that most people go for is the blockchain. The blockchain makes Bitcoin immutable because every block depends on its predecessor creating an unbreakable chain back to the Genesis block and therefore if you change something it would be noticed, therefore it's unchangeable.
And that is the wrong answer. Because it's not really the blockchain that gives Bitcoin its immutability, and that's a really important nuance to understand.
The block chain makes sure that you can't change something without anyone noticing, and in security we call that tamper evident. Meaning that if you change it, it is evident. You can not tamper it, without evidence of your tampering. Tamper evident.
But there's a higher standard security, what we call tamper-proof. And tamper-proof is something that cannot be tampered with. Not just fully visible if it's tampered with, but cannot be tempered with, immutable. And the characteristic that give Bitcoin it's tamperproof capability is not the blockchain. It's proof-of-work.
Proof-of-work is what makes Bitcoin fundamentally immutable and that is a really important concept to understand because a lot of people throwing around words like blockchain and claiming that these things are immutable, even though they don't have a proof-of-work consensus algorithm or any kind of consensus algorithm that gives them immutability.
At best, they offer tamper evidence. Meaning someone will notice, but they are not unchangeable. This distinction is going to become historically important.
Now you may think — historically important, that's a pretty heavy term. Why is it going to become historically important?
Because if Bitcoin continues to work the way it's working today, we are introducing a new concept, which is a form of digital history that is forever.
And if that history last 10 years, that's impressive. If it lasts a hundred, that's astonishing. If it lasts a thousand years, it becomes an enduring monument of immutability, an edifice of immutability, a system of forever history. Unshakable history.
And that is truly a monument of our civilization. And we have to consider the possibility that will happen.
I use the word monument and I want to expand a tiny bit on that and talk about proof-of-work. Proof-of-work was not invented by Satoshi Nakamoto. You can see evidence of proof-of-work systems throughout human civilization. There is some big pointy proof-of-work in Cairo, the pyramids.
There is some big stone proof-of-work in Paris, the Cathedral of Notre Dame. In fact, proof-of-work is something that our civilization does quite often.
Let's think about that for a second, the pyramids serve two purposes — the minor purpose is as a religious artifact, and tomb for the king, but even more interesting purpose is a declaration to every civilization and every human that sees it — behold, this is the measure of the Egyptian civilization.
This is what we can build, this is proof of work, you cannot build this on the cheap. You cannot build this in a civilization that doesn't have abundance resources. You cannot build this unless you can feed 20,000 people to not do anything but this.
You cannot build this unless you can guard it with soldiers. You cannot build this unless you commit resources for decades or centuries. This cannot be built cheap, and the pyramid stand today as a testimate of proof-of-work for the Egyptian civilization.
And anyone, without even understanding what this thing is, riding up in the desert on a camel, going over that hill and seeing a stone monument that's a few hundred feet in the air — looks at that goes — wow!
And wow is an expression of believing the proof of work. Right? Because they immediately and intuitively understands something great built that, and there is no cheap way to do it.
The Cathedral of Notre Dame is the same thing. Marshalling thousands of stonemasons over hundreds of years to build a monument, to the church, a monument of religion. That made people stand in such awe, that they could only even give it divine origin, they could but believe only a religious order to do something like that.
It says behold the church, what we can do. That kind of open expenditure of resources to make a point, is proof-of-work. And we see this again and again in civilization.
But until now we've only seen it in local environments for a specific country, organization, or civilization.
Bitcoin is the first planetary scale, digital monuments of proof-of-work. And to those come later, we will be able to say behold this monument of immutability built over decades. Marvel at its function as well as its elegance.
Because it has function unlike the pyramids and the cathedrals, it serves a purpose, a practical purpose. And that practical purpose is to become a record of history, forever. To become the definitive and authoritative source that cannot be modified. The record of truth that can not lie.
And once a transaction is embedded into the blockchain, the Bitcoin blockchain, and secured by proof-of-work, it becomes incredibly difficult to change.
This is a thing that most people don't understand. So let's break it down a tiny bit, and look at some of the technicals behind it.
But Andreas, what if 51-percent of the miners decide to change it? What if there's a consensus attack? What if well-funded government invests heavily in hashing equipment, in order to go back and change the blockchain?
So one of the interesting things you have to understand is, the difference between changing the past and changing the future.
The consensus algorithm as is it is, determines the future of the blockchain. If you have a majority of the hashing power on the Bitcoin blockchain you can decide what gets recorded in the future.
But you can't so easily change the past. And the reason you can't change the past, is because every node out there is going to still validate every block and is going to demand proof of work. That block still has to carry proof of work and there is only one way that proof of work can be generated — you have to commit energy resources to a particular block.
When you read all these articles in the media and they say about how wasteful Bitcoin is, because Bitcoin is created by burning energy.
They are completely missing the point. Mining doesn't work to create Bitcoin. That is not the purpose of mining. Mining is not used to create Bitcoin. That is the side effect.
And the way I can prove to you it's a side effect is that one day there will be no Bitcoin. No new Bitcoin. Guess what?
There will still be mining, even after the last satoshi is mined, mining continues, it must continue. Because its purpose is not to create Bitcoin. Its purpose is to provide security. Its purpose is to provide validation of all of the transactions and blocks according to the consensus rules. That is the purpose of mining.
And generating Bitcoin is the side effect that serves as the mechanism of reward that creates game theory incentives to make sure that the validation is done right.
Once you understand that and you realize what we're paying for is security, it changes the perspective slightly. But it's much deeper than that, you see, a lot of different consensus algorithms have been proposed. Proof-of-stake is one of them, and many of these algorithms use the native asset to stake into the mining algorithm, into the consensus algorithm.
Meaning, I'm going to commit X amount of my currency in validating the next block, and if I fail to validate it correctly i lose that currency. Right? But if I validated correctly I gained a small feat. And here's the news, proof-of-work is also proof-of-stake, but proof-of-stake is not also proof-of-work. Let me explain that to you for a second because this is a really important point.
When miners commit to a specific block, they're creating a candidate block, they're stuffing in all of your transactions into that block after carefully validating them and then they take that block and they commit to it. By hashing against it, by doing the proof-of-work mining algorithm.
Essentially what they're doing is they're saying I'm going to stake a thousand dollars worth of electricity, or ten thousands of dollars worth of electricity behind the security work I have done. And if I haven't done it right, I lose my electricity stake.
So proof-of-work is proof-of-stake, because what you're staking is the energy investment committed behind the specific block that you're saying I have validated correctly, and to prove that I have validated correctly, I am staking an enormous amount of electricity behind that. Electricity that costs money.
But it's different from proof-of-stake algorithms in other currencies, other digital currencies. And the reason is, is what you're staking is not a native asset, is not something that is intrinsic to the chain, who's value and future is determined by the chain. What you're staking is something extrinsic to the system. You're staking energy, you're staking something that has universal value on this planet.
The value of the currency tomorrow maybe nothing, in which case the value of the stake you made is nothing. But the value of the electricity today, tomorrow, and into the foreseeable future is something. And that means that when you're staking electricity, you're staking something that has value throughout our planet.
Proof-of-work is a lot deeper than we initially realize.
Audience Member:I have a question here.
Let's take questions at the end.
So what if the miners decide to do a 51-percent attack to rewrite the past? Instead of starting from the current block and changing the rules into the future, they can start from a previous block and mine forward. And if they have 51-percent of the hashing power, they will eventually reach the current block, in the minority chain, and exceeded it. They will win the race, eventually.
So then the question is – how long do they have to sustain it?
Let's take a simple scenario. Let's say we want to go back and change history three weeks ago. Three weeks doesn't seem like a long time in Bitcoin. It's an eternity. Everyday, 500 megawatts of electricity are used continuously to feed the mining process.
It's just a ballpark figure, it might be more, it might be less right now. Just use that as a ballpark figure. 500 megawatts in 24 hours is 12 gigawatts of electricity. 1200 gigawatt hours of electricity, expended, per day.
12 gigawatt hours of electricity over 30 days, is 360 gigawatt hours of electricity. Over 12 months that’s 3.6 terawatt hours of electricity, in a year. 3.6 terawatt hours of electricity is a lot of electricity. But it's only a lot of electricity if you take it all at once. If you take it on a daily basis, on the 500 megawatt basis, running forward, it's enough to keep the Bitcoin network secure.
But here's the thing — if you try to go change Bitcoin, it starts adding up pretty fast. You go back three weeks, with 51-percent of the hashing power, how long will it take to re-mine the blocks of the last three weeks? Anyone?
Audience Member:Six weeks.
Six weeks. Yeah? Not quite.
Some interesting things happen inbetween, the first week of blocks will take you two weeks to mine, and then at two weeks you're going to have a difficulty change which is going to drop your difficulty, and then it's going to take another two weeks to mine the next two weeks of blocks. So you're going to end up approximately at four weeks total, to mine three weeks worth of blocks.
Here's the problem. The other side didn't stop mining. Right? At forty-nine percent, how long does it take them to mine? So by the time you get to where you were when you stopped mining the majority chain, and you try to rewrite history... they've also mined at least two weeks ahead. If they got the difficulty change too, they've mined even further.
So now you have to mine a bit more, to overtake them. Meanwhile, the miners who are doing this exercise are earning nothing. Presumably, they're part of the same hashing power that mined the first time around. Presumably they already had 51 percent of the power when they were mining the first time around, and now that they're trying to re-mine the last three weeks of blocks... well they've already banked the rewards. But they've banked them on the other chain.
Which they're making invalid. So now they're going to get rewards on the new chain, but only if they give up the rewards they banked on the other chain. Which means effectively they're going to spend three to four weeks, at 500 megawatts mining for free.
Meanwhile what happens in the other chain? On the minority chain? Your 49-percent minor, and you're now mining a minority chain. It's going to be hard. First two weeks is going to be slow, you're going to be doing blocks every 20 minutes. But, your share of the mining capacity just doubled, which means your profitability just doubled. So you're getting more reward, for the same amount of mining. And if that chain still has value, you're making quite a bit of money.
Because you now have a bigger market share. In fact, the more people abandon the chain, the more profitable it is for the minority. And all you have to do is peel off two percent. All you have to do is persuade two percent, of the people who are mining for nothing, to come mine on the chain where we're mining for double rewards.
How hard is that going to be? Which means that actually sustaining a 51-percent attack, for four weeks, is brutally hard. Now of course that means you probably only do it if you had 75%, 80%. Ethereum's starting with 90, at some point they went as low as 70% on the majority chain, when they did their fork. That's a pretty big drop.
So you have these economic incentives that make it very difficult. Now please notice, I've been talking about three weeks. Bitcoin is seven years old. What if you wanted to change a transaction that was last year, or a year and a half ago? Well, now the math is really against you — because it's going to take you almost a year to overtake that chain. During which time you have to sustain that attack and not lose anyone from your group. Otherwise, you never overtake it, and then you make even less money.
So now you've mined it twice, and got a zero reward on both times. Right? And this is the point that we really need to understand about blockchains — there is something inherently interesting, about the fact that you can show someone a number, and they can calculate from that number, how many joules of electricity you consumed to create that number. And it is absolutely unforgeable. That number is in itself proof that you have done the work.
That is an incredible artifact for a digital system. The fact that by presenting a number, to a system that has never seen the history of the blockchain, that may have joined later, that maybe seeing a false history of the blockchain, but you show it a block that has proof in it, and you show that node that number and they know it's real.
And they know it took that much work to produce that number. There is no way to fake it. For additional system, that's as close to real as it gets. This is a monument of immutability, built block-by-block, and these blocks about towering into the sky. 420,000 of them containing a cumulative amount of work that is absolutely gobsmacking.
And it cannot be changed or forged without... not only the other person knowing it has been changed, but without you actually expending the energy all over again. There is no shortcut. And that is the difference between tamper evident and tamper proof. You could disconnect from the blockchain today, not look at it for three years, come back three years later... I can present you a single number and say do you believe this is the actual block from the block chain? And you would be able to say with complete confidence — yes. The amount of work evidenced by this block, could not have been produced any other way than, if during the entire time I was gone, you were expending energy at the predicted rate, and you came up with this artifact. I only need to see the pinnacle to know that it's a real blockchain.
Only the last block, one number, and I know how much work has gone into it cumulatively. Because it tends to have ever increasing work. The longest difficulty chain wins. Bitcoin is not just simply in a system of accounting; it is the first digital artifact that provides forever history. That provides true digital immutability. There is no other system that provides digital immutability of that level.
It is a planetary scale, thermodynamically guaranteed, self-evident system of immutability.
Planetary scale, because in order to do it, you need to marshal resources that all the exist in a planetary scale effort.
Thermodynamically guaranteed, because you can calculate the exact amount of energy it took to create it, and there is no shortcut. Information theory tells us that to flip that many bits takes this many joules, and there is no way to do it otherwise.
Self-evident because the number that is produced as proof-of-work tells you exactly how much work has been done cumulatively. And it really is a monument. Now, then the interesting question arises – can we really afford this?
Is this a waste of energy? There is no thing on the planet that produces a digital record that is self-evidently immutable at this scale. Nothing. It is the only platform on which you can embed data, that will be guaranteed a immutable within a few blocks. Thousand blocks after you put data in, there is no going back. That data is not going to change.
Ok maybe if you put it in, and it's only three blocks old, maybe you can change. Six blocks old... eeeeeh. 144... I dunno. This is getting tough. And that's a day. A week old... done. Done. It's part of permanent history.
Our ancestors said "this is as good as written in stone". Our grandchildren will say "It is as good as written on the blockchain". Because it is the new standard of immutability and it is globally accessible.
Any application can leverage that capability. Other currencies, other chains, smart contracts. They can all check point against the Bitcoin blockchain. And as long as we continue to build the monument, their little inscription, like a piece of graffiti etched into the base stones of the pyramids – will be there. Potentially for centuries, and they can import immutability for the low low price of a transaction fee.
That if you consider it, immutability as a service is an astonishing application. It has enormous implications for software, it has enormous implications for the internet things, for information security, for other systems of currency, for systems of record... title, registration, birth records.
History can be written on the blockchain for the little price of a transaction fee, and it may well be there for a very long time. But as long as it is there, it cannot be changed and everyone can validate it. That is not a waste of electricity. That is the first practical application of digital immutability and it is expensive, but it's expensive because it's giving us something on a planetary scale. And we only need one, really, and it's probably too expensive to build two.
And that just means that the network effect is even more awesome. Because we already have one and it's doing quite well. That one can support all of the other applications. The other applications can do much more lightweight proof-of-stake. But if they really want immutability, not tamper evident... tamper proof. They need to subscribe to a service on the Bitcoin blockchain.
They need to record their data on the Bitcoin blockchain. If you're a banking consortium, and you are signing transactions in a distributed ledger technology by taking turns, what is the cost of fabricating the past? What is the cost of rewriting history? Of saying WikiLeaks never received any of your funds? Any of your donations? We reversed all of those transactions. What is the cost of that? Thermodynamically? Nothing.
In on-chain money? Doesn't matter. We created the on-chain money, we can create more of it. As long as there is no proof-of-work behind it, the cost of re-writing a ledger like that is zero.
And if you can, you will. And if you can, you'll be coerced to. And if you can, when you get a subpoena, you must. And so these blockchains are not immutable. These block chains are mutable as hell. They're fickle blockchains.
To go to the other side of the scale... they're transient, they're meaningless. They have no weight of history behind them. They are whatever the last signer says they are. They have no weight. This year, we're at war with Oceania. Next year, we will always have been at war with East Asia. History is written by the victors. Not the Bitcoin blockchain.
We don't do 1984 on the Bitcoin blockchain. History is written by the expenditure of real-world energy and there is no cheap way to forge that history.
Due to the character limitations on Reddit. I was unable to post the entire transcript which includes the Question and Answer portion. View the entire transcript here.
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