deflationary bias – azizonomics

How can Bitcoin work as currency?

Here's some stuff so that people reading will understand where I am in my knowledge of BTC (you can judge for yourself if my level is shit or mid-level).
  1. I get there's a max limit on the supply of btc
  2. I get what private keys are and how they generate public keys via elliptic curves, thus I know how to store btc on a hardware wallet like a Trezor
  3. I get that btc and crypto in general is programmable money which means it's a platform in which things that I can't even fathom will be built (similar to how no one could see social media be a thing in 1990).
  4. I have a general understanding of economics and the properties of what makes a currency a currency
  5. There's more but this should give you enough of an idea
---------------- SKIP TO HERE IF YOU DON'T GIVE A FOOK ABOUT JUDGING OTHERS ----------------
QUESTION: Bitcoin is at best neutral but most likely slightly biased towards being deflationary mainly through people misplacing/losing their Bitcoin. Now there's a certain group of people that believe Bitcoin could replace currently existing fiat currencies but I don't understand this. Being able to print currency seems to be a primary need for existing economic structures to work (I realize this reason does not imply that other economic structures can't work) since inflation works as an incentive to invest current dollars today. But since Bitcoin is most likely deflationary, how can this ever replace fiat currency?
My current belief is that Bitcoin (at least for the next 30-50 years) will be something that will work alongside fiat currencies. In fact, I think fiat currencies will be built on top of the bitcoin network and in some cases use bitcoin to perform large transactions.
So what am I missing? How can Bitcoin ever replace fiat currencies given it's fundamental constraint of having a supply limit?
submitted by tornAclFooker to Bitcoin [link] [comments]

RESEARCH REPORT ABOUT KYBER NETWORK

RESEARCH REPORT ABOUT KYBER NETWORK
Author: Gamals Ahmed, CoinEx Business Ambassador

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ABSTRACT

In this research report, we present a study on Kyber Network. Kyber Network is a decentralized, on-chain liquidity protocol designed to make trading tokens simple, efficient, robust and secure.
Kyber design allows any party to contribute to an aggregated pool of liquidity within each blockchain while providing a single endpoint for takers to execute trades using the best rates available. We envision a connected liquidity network that facilitates seamless, decentralized cross-chain token swaps across Kyber based networks on different chains.
Kyber is a fully on-chain liquidity protocol that enables decentralized exchange of cryptocurrencies in any application. Liquidity providers (Reserves) are integrated into one single endpoint for takers and users. When a user requests a trade, the protocol will scan the entire network to find the reserve with the best price and take liquidity from that particular reserve.

1.INTRODUCTION

DeFi applications all need access to good liquidity sources, which is a critical component to provide good services. Currently, decentralized liquidity is comprised of various sources including DEXes (Uniswap, OasisDEX, Bancor), decentralized funds and other financial apps. The more scattered the sources, the harder it becomes for anyone to either find the best rate for their trade or to even find enough liquidity for their need.
Kyber is a blockchain-based liquidity protocol that aggregates liquidity from a wide range of reserves, powering instant and secure token exchange in any decentralized application.
The protocol allows for a wide range of implementation possibilities for liquidity providers, allowing a wide range of entities to contribute liquidity, including end users, decentralized exchanges and other decentralized protocols. On the taker side, end users, cryptocurrency wallets, and smart contracts are able to perform instant and trustless token trades at the best rates available amongst the sources.
The Kyber Network is project based on the Ethereum protocol that seeks to completely decentralize the exchange of crypto currencies and make exchange trustless by keeping everything on the blockchain.
Through the Kyber Network, users should be able to instantly convert or exchange any crypto currency.

1.1 OVERVIEW ABOUT KYBER NETWORK PROTOCOL

The Kyber Network is a decentralized way to exchange ETH and different ERC20 tokens instantly — no waiting and no registration needed.
Using this protocol, developers can build innovative payment flows and applications, including instant token swap services, ERC20 payments, and financial DApps — helping to build a world where any token is usable anywhere.
Kyber’s fully on-chain design allows for full transparency and verifiability in the matching engine, as well as seamless composability with DApps, not all of which are possible with off-chain or hybrid approaches. The integration of a large variety of liquidity providers also makes Kyber uniquely capable of supporting sophisticated schemes and catering to the needs of DeFi DApps and financial institutions. Hence, many developers leverage Kyber’s liquidity pool to build innovative financial applications, and not surprisingly, Kyber is the most used DeFi protocol in the world.
The Kyber Network is quite an established project that is trying to change the way we think of decentralised crypto currency exchange.
The Kyber Network has seen very rapid development. After being announced in May 2017 the testnet for the Kyber Network went live in August 2017. An ICO followed in September 2017, with the company raising 200,000 ETH valued at $60 million in just one day.
The live main net was released in February 2018 to whitelisted participants, and on March 19, 2018, the Kyber Network opened the main net as a public beta. Since then the network has seen increasing growth, with network volumes growing more than 500% in the first half of 2019.
Although there was a modest decrease in August 2019 that can be attributed to the price of ETH dropping by 50%, impacting the overall total volumes being traded and processed globally.
They are developing a decentralised exchange protocol that will allow developers to build payment flows and financial apps. This is indeed quite a competitive market as a number of other such protocols have been launched.
In Brief - Kyber Network is a tool that allows anyone to swap tokens instantly without having to use exchanges. - It allows vendors to accept different types of cryptocurrency while still being paid in their preferred crypto of choice. - It’s built primarily for Ethereum, but any smart-contract based blockchain can incorporate it.
At its core, Kyber is a decentralized way to exchange ETH and different ERC20 tokens instantly–no waiting and no registration needed. To do this Kyber uses a diverse set of liquidity pools, or pools of different crypto assets called “reserves” that any project can tap into or integrate with.
A typical use case would be if a vendor allowed customers to pay in whatever currency they wish, but receive the payment in their preferred token. Another example would be for Dapp users. At present, if you are not a token holder of a certain Dapp you can’t use it. With Kyber, you could use your existing tokens, instantly swap them for the Dapp specific token and away you go.
All this swapping happens directly on the Ethereum blockchain, meaning every transaction is completely transparent.

1.1.1 WHY BUILD THE KYBER NETWORK?

While crypto currencies were built to be decentralized, many of the exchanges for trading crypto currencies have become centralized affairs. This has led to security vulnerabilities, with many exchanges becoming the victims of hacking and theft.
It has also led to increased fees and costs, and the centralized exchanges often come with slow transfer times as well. In some cases, wallets have been locked and users are unable to withdraw their coins.
Decentralized exchanges have popped up recently to address the flaws in the centralized exchanges, but they have their own flaws, most notably a lack of liquidity, and often times high costs to modify trades in their on-chain order books.

Some of the Integrations with Kyber Protocol
The Kyber Network was formed to provide users with a decentralized exchange that keeps everything right on the blockchain, and uses a reserve system rather than an order book to provide high liquidity at all times. This will allow for the exchange and transfer of any cryptocurrency, even cross exchanges, and costs will be kept at a minimum as well.
The Kyber Network has three guiding design philosophies since the start:
  1. To be most useful the network needs to be platform-agnostic, which allows any protocol or application the ability to take advantage of the liquidity provided by the Kyber Network without any impact on innovation.
  2. The network was designed to make real-world commerce and decentralized financial products not only possible but also feasible. It does this by allowing for instant token exchange across a wide range of tokens, and without any settlement risk.
  3. The Kyber Network was created with ease of integration as a priority, which is why everything runs fully on-chain and fully transparent. Kyber is not only developer-friendly, but is also compatible with a wide variety of systems.

1.1.2 WHO INVENTED KYBER?

Kyber’s founders are Loi Luu, Victor Tran, Yaron Velner — CEO, CTO, and advisor to the Kyber Network.

1.1.3 WHAT DISTINGUISHES KYBER?

Kyber’s mission has always been to integrate with other protocols so they’ve focused on being developer-friendly by providing architecture to allow anyone to incorporate the technology onto any smart-contract powered blockchain. As a result, a variety of different dapps, vendors, and wallets use Kyber’s infrastructure including Set Protocol, bZx, InstaDApp, and Coinbase wallet.
Besides, dapps, vendors, and wallets, Kyber also integrates with other exchanges such as Uniswap — sharing liquidity pools between the two protocols.
A typical use case would be if a vendor allowed customers to pay in whatever currency they wish, but receive the payment in their preferred token. Another example would be for Dapp users. At present, if you are not a token holder of a certain Dapp you can’t use it. With Kyber, you could use your existing tokens, instantly swap them for the Dapp specific token and away you go.
Limit orders on Kyber allow users to set a specific price in which they would like to exchange a token instead of accepting whatever price currently exists at the time of trading. However, unlike with other exchanges, users never lose custody of their crypto assets during limit orders on Kyber.
The Kyber protocol works by using pools of crypto funds called “reserves”, which currently support over 70 different ERC20 tokens. Reserves are essentially smart contracts with a pool of funds. Different parties with different prices and levels of funding control all reserves. Instead of using order books to match buyers and sellers to return the best price, the Kyber protocol looks at all the reserves and returns the best price among the different reserves. Reserves make money on the “spread” or differences between the buying and selling prices. The Kyber wants any token holder to easily convert one token to another with a minimum of fuss.

1.2 KYBER PROTOCOL

The protocol smart contracts offer a single interface for the best available token exchange rates to be taken from an aggregated liquidity pool across diverse sources. ● Aggregated liquidity pool. The protocol aggregates various liquidity sources into one liquidity pool, making it easy for takers to find the best rates offered with one function call. ● Diverse sources of liquidity. The protocol allows different types of liquidity sources to be plugged into. Liquidity providers may employ different strategies and different implementations to contribute liquidity to the protocol. ● Permissionless. The protocol is designed to be permissionless where any developer can set up various types of reserves, and any end user can contribute liquidity. Implementations need to take into consideration various security vectors, such as reserve spamming, but can be mitigated through a staking mechanism. We can expect implementations to be permissioned initially until the maintainers are confident about these considerations.
The core feature that the Kyber protocol facilitates is the token swap between taker and liquidity sources. The protocol aims to provide the following properties for token trades: ● Instant Settlement. Takers do not have to wait for their orders to be fulfilled, since trade matching and settlement occurs in a single blockchain transaction. This enables trades to be part of a series of actions happening in a single smart contract function. ● Atomicity. When takers make a trade request, their trade either gets fully executed, or is reverted. This “all or nothing” aspect means that takers are not exposed to the risk of partial trade execution. ● Public rate verification. Anyone can verify the rates that are being offered by reserves and have their trades instantly settled just by querying from the smart contracts. ● Ease of integration. Trustless and atomic token trades can be directly and easily integrated into other smart contracts, thereby enabling multiple trades to be performed in a smart contract function.
How each actor works is specified in Section Network Actors. 1. Takers refer to anyone who can directly call the smart contract functions to trade tokens, such as end-users, DApps, and wallets. 2. Reserves refer to anyone who wishes to provide liquidity. They have to implement the smart contract functions defined in the reserve interface in order to be registered and have their token pairs listed. 3. Registered reserves refer to those that will be cycled through for matching taker requests. 4. Maintainers refer to anyone who has permission to access the functions for the adding/removing of reserves and token pairs, such as a DAO or the team behind the protocol implementation. 5. In all, they comprise of the network, which refers to all the actors involved in any given implementation of the protocol.
The protocol implementation needs to have the following: 1. Functions for takers to check rates and execute the trades 2. Functions for the maintainers to registeremove reserves and token pairs 3. Reserve interface that defines the functions reserves needs to implement
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1.3 KYBER CORE SMART CONTRACTS

Kyber Core smart contracts is an implementation of the protocol that has major protocol functions to allow actors to join and interact with the network. For example, the Kyber Core smart contracts provide functions for the listing and delisting of reserves and trading pairs by having clear interfaces for the reserves to comply to be able to register to the network and adding support for new trading pairs. In addition, the Kyber Core smart contracts also provide a function for takers to query the best rate among all the registered reserves, and perform the trades with the corresponding rate and reserve. A trading pair consists of a quote token and any other token that the reserve wishes to support. The quote token is the token that is either traded from or to for all trades. For example, the Ethereum implementation of the Kyber protocol uses Ether as the quote token.
In order to search for the best rate, all reserves supporting the requested token pair will be iterated through. Hence, the Kyber Core smart contracts need to have this search algorithm implemented.
The key functions implemented in the Kyber Core Smart Contracts are listed in Figure 2 below. We will visit and explain the implementation details and security considerations of each function in the Specification Section.

1.4 HOW KYBER’S ON-CHAIN PROTOCOL WORKS?

Kyber is the liquidity infrastructure for decentralized finance. Kyber aggregates liquidity from diverse sources into a pool, which provides the best rates for takers such as DApps, Wallets, DEXs, and End users.

1.4.1 PROVIDING LIQUIDITY AS A RESERVE

Anyone can operate a Kyber Reserve to market make for profit and make their tokens available for DApps in the ecosystem. Through an open reserve architecture, individuals, token teams and professional market makers can contribute token assets to Kyber’s liquidity pool and earn from the spread in every trade. These tokens become available at the best rates across DApps that tap into the network, making them instantly more liquid and useful.
MAIN RESERVE TYPES Kyber currently has over 45 reserves in its network providing liquidity. There are 3 main types of reserves that allow different liquidity contribution options to suit the unique needs of different providers. 1. Automated Price Reserves (APR) — Allows token teams and users with large token holdings to have an automated yet customized pricing system with low maintenance costs. Synthetix and Melon are examples of teams that run APRs. 2. Fed Price Reserves (FPR) — Operated by professional market makers that require custom and advanced pricing strategies tailored to their specific needs. Kyber alongside reserves such as OneBit, runs FPRs. 3. Bridge Reserves (BR) — These are specialized reserves meant to bring liquidity from other on-chain liquidity providers like Uniswap, Oasis, DutchX, and Bancor into the network.

1.5 KYBER NETWORK ROLES

There Kyber Network functions through coordination between several different roles and functions as explained below: - Users — This entity uses the Kyber Network to send and receive tokens. A user can be an individual, a merchant, and even a smart contract account. - Reserve Entities — This role is used to add liquidity to the platform through the dynamic reserve pool. Some reserve entities are internal to the Kyber Network, but others may be registered third parties. Reserve entities may be public if the public contributes to the reserves they hold, otherwise they are considered private. By allowing third parties as reserve entities the network adds diversity, which prevents monopolization and keeps exchange rates competitive. Allowing third party reserve entities also allows for the listing of less popular coins with lower volumes. - Reserve Contributors — Where reserve entities are classified as public, the reserve contributor is the entity providing reserve funds. Their incentive for doing so is a profit share from the reserve. - The Reserve Manager — Maintains the reserve, calculates exchange rates and enters them into the network. The reserve manager profits from exchange spreads set by them on their reserves. They can also benefit from increasing volume by accessing the entire Kyber Network. - The Kyber Network Operator — Currently the Kyber Network team is filling the role of the network operator, which has a function to adds/remove Reserve Entities as well as controlling the listing of tokens. Eventually, this role will revert to a proper decentralized governance.

1.6 BASIC TOKEN TRADE

A basic token trade is one that has the quote token as either the source or destination token of the trade request. The execution flow of a basic token trade is depicted in the diagram below, where a taker would like to exchange BAT tokens for ETH as an example. The trade happens in a single blockchain transaction. 1. Taker sends 1 ETH to the protocol contract, and would like to receive BAT in return. 2. Protocol contract queries the first reserve for its ETH to BAT exchange rate. 3. Reserve 1 offers an exchange rate of 1 ETH for 800 BAT. 4. Protocol contract queries the second reserve for its ETH to BAT exchange rate. 5. Reserve 2 offers an exchange rate of 1 ETH for 820 BAT. 6. This process goes on for the other reserves. After the iteration, reserve 2 is discovered to have offered the best ETH to BAT exchange rate. 7. Protocol contract sends 1 ETH to reserve 2. 8. The reserve sends 820 BAT to the taker.

1.7 TOKEN-TO-TOKEN TRADE

A token-to-token trade is one where the quote token is neither the source nor the destination token of the trade request. The exchange flow of a token to token trade is depicted in the diagram below, where a taker would like to exchange BAT tokens for DAI as an example. The trade happens in a single blockchain transaction. 1. Taker sends 50 BAT to the protocol contract, and would like to receive DAI in return. 2. Protocol contract sends 50 BAT to the reserve offering the best BAT to ETH rate. 3. Protocol contract receives 1 ETH in return. 4. Protocol contract sends 1 ETH to the reserve offering the best ETH to DAI rate. 5. Protocol contract receives 30 DAI in return. 6. Protocol contract sends 30 DAI to the user.

2.KYBER NETWORK CRYSTAL (KNC) TOKEN

Kyber Network Crystal (KNC) is an ERC-20 utility token and an integral part of Kyber Network.
KNC is the first deflationary staking token where staking rewards and token burns are generated from actual network usage and growth in DeFi.
The Kyber Network Crystal (KNC) is the backbone of the Kyber Network. It works to connect liquidity providers and those who need liquidity and serves three distinct purposes. The first of these is to collect transaction fees, and a portion of every fee collected is burned, which keeps KNC deflationary. Kyber Network Crystals (KNC), are named after the crystals in Star Wars used to power light sabers.
The KNC also ensures the smooth operation of the reserve system in the Kyber liquidity since entities must use third-party tokens to buy the KNC that pays for their operations in the network.
KNC allows token holders to play a critical role in determining the incentive system, building a wide base of stakeholders, and facilitating economic flow in the network. A small fee is charged each time a token exchange happens on the network, and KNC holders get to vote on this fee model and distribution, as well as other important decisions. Over time, as more trades are executed, additional fees will be generated for staking rewards and reserve rebates, while more KNC will be burned. - Participation rewards — KNC holders can stake KNC in the KyberDAO and vote on key parameters. Voters will earn staking rewards (in ETH) - Burning — Some of the network fees will be burned to reduce KNC supply permanently, providing long-term value accrual from decreasing supply. - Reserve incentives — KNC holders determine the portion of network fees that are used as rebates for selected liquidity providers (reserves) based on their volume performance.

Finally, the KNC token is the connection between the Kyber Network and the exchanges, wallets, and dApps that leverage the liquidity network. This is a virtuous system since entities are rewarded with referral fees for directing more users to the Kyber Network, which helps increase adoption for Kyber and for the entities using the Network.
And of course there will soon be a fourth and fifth uses for the KNC, which will be as a staking token used to generate passive income, as well as a governance token used to vote on key parameters of the network.
The Kyber Network Crystal (KNC) was released in a September 2017 ICO at a price around $1. There were 226,000,000 KNC minted for the ICO, with 61% sold to the public. The remaining 39% are controlled 50/50 by the company and the founders/advisors, with a 1 year lockup period and 2 year vesting period.
Currently, just over 180 million coins are in circulation, and the total supply has been reduced to 210.94 million after the company burned 1 millionth KNC token in May 2019 and then its second millionth KNC token just three months later.
That means that while it took 15 months to burn the first million KNC, it took just 10 weeks to burn the second million KNC. That shows how rapidly adoption has been growing recently for Kyber, with July 2019 USD trading volumes on the Kyber Network nearly reaching $60 million. This volume has continued growing, and on march 13, 2020 the network experienced its highest daily trading activity of $33.7 million in a 24-hour period.
Currently KNC is required by Reserve Managers to operate on the network, which ensures a minimum amount of demand for the token. Combined with future plans for burning coins, price is expected to maintain an upward bias, although it has suffered along with the broader market in 2018 and more recently during the summer of 2019.
It was unfortunate in 2020 that a beginning rally was cut short by the coronavirus pandemic, although the token has stabilized as of April 2020, and there are hopes the rally could resume in the summer of 2020.

2.1 HOW ARE KNC TOKENS PRODUCED?

The native token of Kyber is called Kyber Network Crystals (KNC). All reserves are required to pay fees in KNC for the right to manage reserves. The KNC collected as fees are either burned and taken out of the total supply or awarded to integrated dapps as an incentive to help them grow.

2.2 HOW DO YOU GET HOLD OF KNC TOKENS?

Kyber Swap can be used to buy ETH directly using a credit card, which can then be used to swap for KNC. Besides Kyber itself, exchanges such as Binance, Huobi, and OKex trade KNC.

2.3 WHAT CAN YOU DO WITH KYBER?

The most direct and basic function of Kyber is for instantly swapping tokens without registering an account, which anyone can do using an Etheruem wallet such as MetaMask. Users can also create their own reserves and contribute funds to a reserve, but that process is still fairly technical one–something Kyber is working on making easier for users in the future.

2.4 THE GOAL OF KYBER THE FUTURE

The goal of Kyber in the coming years is to solidify its position as a one-stop solution for powering liquidity and token swapping on Ethereum. Kyber plans on a major protocol upgrade called Katalyst, which will create new incentives and growth opportunities for all stakeholders in their ecosystem, especially KNC holders. The upgrade will mean more use cases for KNC including to use KNC to vote on governance decisions through a decentralized organization (DAO) called the KyberDAO.
With our upcoming Katalyst protocol upgrade and new KNC model, Kyber will provide even more benefits for stakeholders. For instance, reserves will no longer need to hold a KNC balance for fees, removing a major friction point, and there will be rebates for top performing reserves. KNC holders can also stake their KNC to participate in governance and receive rewards.

2.5 BUYING & STORING KNC

Those interested in buying KNC tokens can do so at a number of exchanges. Perhaps your best bet between the complete list is the likes of Coinbase Pro and Binance. The former is based in the USA whereas the latter is an offshore exchange.
The trading volume is well spread out at these exchanges, which means that the liquidity is not concentrated and dependent on any one exchange. You also have decent liquidity on each of the exchange books. For example, the Binance BTC / KNC books are wide and there is decent turnover. This means easier order execution.
KNC is an ERC20 token and can be stored in any wallet with ERC20 support, such as MyEtherWallet or MetaMask. One interesting alternative is the KyberSwap Android mobile app that was released in August 2019.
It allows for instant swapping of tokens and has support for over 70 different altcoins. It also allows users to set price alerts and limit orders and works as a full-featured Ethereum wallet.

2.6 KYBER KATALYST UPGRADE

Kyber has announced their intention to become the de facto liquidity layer for the Decentralized Finance space, aiming to have Kyber as the single on-chain endpoint used by the majority of liquidity providers and dApp developers. In order to achieve this goal the Kyber Network team is looking to create an open ecosystem that garners trust from the decentralized finance space. They believe this is the path that will lead the majority of projects, developers, and users to choose Kyber for liquidity needs. With that in mind they have recently announced the launch of a protocol upgrade to Kyber which is being called Katalyst.
The Katalyst upgrade will create a stronger ecosystem by creating strong alignments towards a common goal, while also strengthening the incentives for stakeholders to participate in the ecosystem.
The primary beneficiaries of the Katalyst upgrade will be the three major Kyber stakeholders: 1. Reserve managers who provide network liquidity; 2. dApps that connect takers to Kyber; 3. KNC holders.
These stakeholders can expect to see benefits as highlighted below: Reserve Managers will see two new benefits to providing liquidity for the network. The first of these benefits will be incentives for providing reserves. Once Katalyst is implemented part of the fees collected will go to the reserve managers as an incentive for providing liquidity.
This mechanism is similar to rebates in traditional finance, and is expected to drive the creation of additional reserves and market making, which in turn will lead to greater liquidity and platform reach.
Katalyst will also do away with the need for reserve managers to maintain a KNC balance for use as network fees. Instead fees will be automatically collected and used as incentives or burned as appropriate. This should remove a great deal of friction for reserves to connect with Kyber without affecting the competitive exchange rates that takers in the system enjoy. dApp Integrators will now be able to set their own spread, which will give them full control over their own business model. This means the current fee sharing program that shares 30% of the 0.25% fee with dApp developers will go away and developers will determine their own spread. It’s believed this will increase dApp development within Kyber as developers will now be in control of fees.
KNC Holders, often thought of as the core of the Kyber Network, will be able to take advantage of a new staking mechanism that will allow them to receive a portion of network fees by staking their KNC and participating in the KyberDAO.

2.7 COMING KYBERDAO

With the implementation of the Katalyst protocol the KNC holders will be put right at the heart of Kyber. Holders of KNC tokens will now have a critical role to play in determining the future economic flow of the network, including its incentive systems.
The primary way this will be achieved is through KyberDAO, a way in which on-chain and off-chain governance will align to streamline cooperation between the Kyber team, KNC holders, and market participants.
The Kyber Network team has identified 3 key areas of consideration for the KyberDAO: 1. Broad representation, transparent governance and network stability 2. Strong incentives for KNC holders to maintain their stake and be highly involved in governance 3. Maximizing participation with a wide range of options for voting delegation
Interaction between KNC Holders & Kyber
This means KNC holders have been empowered to determine the network fee and how to allocate the fees to ensure maximum network growth. KNC holders will now have three fee allocation options to vote on: - Voting Rewards: Immediate value creation. Holders who stake and participate in the KyberDAO get their share of the fees designated for rewards. - Burning: Long term value accrual. The decreasing supply of KNC will improve the token appreciation over time and benefit those who did not participate. - Reserve Incentives:Value creation via network growth. By rewarding Kyber reserve managers based on their performance, it helps to drive greater volume, value, and network fees.

2.8 TRANSPARENCY AND STABILITY

The design of the KyberDAO is meant to allow for the greatest network stability, as well as maximum transparency and the ability to quickly recover in emergency situations. Initally the Kyber team will remain as maintainers of the KyberDAO. The system is being developed to be as verifiable as possible, while still maintaining maximum transparency regarding the role of the maintainer in the DAO.
Part of this transparency means that all data and processes are stored on-chain if feasible. Voting regarding network fees and allocations will be done on-chain and will be immutable. In situations where on-chain storage or execution is not feasible there will be a set of off-chain governance processes developed to ensure all decisions are followed through on.

2.9 KNC STAKING AND DELEGATION

Staking will be a new addition and both staking and voting will be done in fixed periods of times called “epochs”. These epochs will be measured in Ethereum block times, and each KyberDAO epoch will last roughly 2 weeks.
This is a relatively rapid epoch and it is beneficial in that it gives more rapid DAO conclusion and decision-making, while also conferring faster reward distribution. On the downside it means there needs to be a new voting campaign every two weeks, which requires more frequent participation from KNC stakeholders, as well as more work from the Kyber team.
Delegation will be part of the protocol, allowing stakers to delegate their voting rights to third-party pools or other entities. The pools receiving the delegation rights will be free to determine their own fee structure and voting decisions. Because the pools will share in rewards, and because their voting decisions will be clearly visible on-chain, it is expected that they will continue to work to the benefit of the network.

3. TRADING

After the September 2017 ICO, KNC settled into a trading price that hovered around $1.00 (decreasing in BTC value) until December. The token has followed the trend of most other altcoins — rising in price through December and sharply declining toward the beginning of January 2018.
The KNC price fell throughout all of 2018 with one exception during April. From April 6th to April 28th, the price rose over 200 percent. This run-up coincided with a blog post outlining plans to bring Bitcoin to the Ethereum blockchain. Since then, however, the price has steadily fallen, currently resting on what looks like a $0.15 (~0.000045 BTC) floor.
With the number of partners using the Kyber Network, the price may rise as they begin to fully use the network. The development team has consistently hit the milestones they’ve set out to achieve, so make note of any release announcements on the horizon.

4. COMPETITION

The 0x project is the biggest competitor to Kyber Network. Both teams are attempting to enter the decentralized exchange market. The primary difference between the two is that Kyber performs the entire exchange process on-chain while 0x keeps the order book and matching off-chain.
As a crypto swap exchange, the platform also competes with ShapeShift and Changelly.

5.KYBER MILESTONES

• June 2020: Digifox, an all-in-one finance application by popular crypto trader and Youtuber Nicholas Merten a.k.a DataDash (340K subs), integrated Kyber to enable users to easily swap between cryptocurrencies without having to leave the application. • June 2020: Stake Capital partnered with Kyber to provide convenient KNC staking and delegation services, and also took a KNC position to participate in governance. • June 2020: Outlined the benefits of the Fed Price Reserve (FPR) for professional market makers and advanced developers. • May 2020: Kyber crossed US$1 Billion in total trading volume and 1 Million transactions, performed entirely on-chain on Ethereum. • May 2020: StakeWith.Us partnered Kyber Network as a KyberDAO Pool Master. • May 2020: 2Key, a popular blockchain referral solution using smart links, integrated Kyber’s on-chain liquidity protocol for seamless token swaps • May 2020: Blockchain game League of Kingdoms integrated Kyber to accept Token Payments for Land NFTs. • May 2020: Joined the Zcash Developer Alliance , an invite-only working group to advance Zcash development and interoperability. • May 2020: Joined the Chicago DeFi Alliance to help accelerate on-chain market making for professionals and developers. • March 2020: Set a new record of USD $33.7M in 24H fully on-chain trading volume, and $190M in 30 day on-chain trading volume. • March 2020: Integrated by Rarible, Bullionix, and Unstoppable Domains, with the KyberWidget deployed on IPFS, which allows anyone to swap tokens through Kyber without being blocked. • February 2020: Popular Ethereum blockchain game Axie Infinity integrated Kyber to accept ERC20 payments for NFT game items. • February 2020: Kyber’s protocol was integrated by Gelato Finance, Idle Finance, rTrees, Sablier, and 0x API for their liquidity needs. • January 2020: Kyber Network was found to be the most used protocol in the whole decentralized finance (DeFi) space in 2019, according to a DeFi research report by Binance. • December 2019: Switcheo integrated Kyber’s protocol for enhanced liquidity on their own DEX. • December 2019: DeFi Wallet Eidoo integrated Kyber for seamless in-wallet token swaps. • December 2019: Announced the development of the Katalyst Protocol Upgrade and new KNC token model. • July 2019: Developed the Waterloo Bridge , a Decentralized Practical Cross-chain Bridge between EOS and Ethereum, successfully demonstrating a token swap between Ethereum to EOS. • July 2019: Trust Wallet, the official Binance wallet, integrated Kyber as part of its decentralized token exchange service, allowing even more seamless in-wallet token swaps for thousands of users around the world. • May 2019: HTC, the large consumer electronics company with more than 20 years of innovation, integrated Kyber into its Zion Vault Wallet on EXODUS 1 , the first native web 3.0 blockchain phone, allowing users to easily swap between cryptocurrencies in a decentralized manner without leaving the wallet. • January 2019: Introduced the Automated Price Reserve (APR) , a capital efficient way for token teams and individuals to market make with low slippage. • January 2019: The popular Enjin Wallet, a default blockchain DApp on the Samsung S10 and S20 mobile phones, integrated Kyber to enable in-wallet token swaps. • October 2018: Kyber was a founding member of the WBTC (Wrapped Bitcoin) Initiative and DAO. • October 2018: Developed the KyberWidget for ERC20 token swaps on any website, with CoinGecko being the first major project to use it on their popular site.

Full Article

submitted by CoinEx_Institution to kybernetwork [link] [comments]

BSoV: The Minable and Deflationary ERC20

The year 2020 exposed many of the negative aspects of the current financial construct which the world relies on. On 4/9/2020, the Federal Reserve announced that they would inject another $2,300,000,000,000 (2.3 Trillion, you read that right) into the U.S. economy. With the threat of Covid-19 essentially shutting down the daily operations of the economy overnight, something HAD to be done, right? Were there any other options? Many people are expecting a $1,200 stimulus check to cushion the pockets of people affected by the mass layoffs and market collapses. I myself asked a simple question, "What are the long term consequences of diluting the market with the USD?"
This question is one that should be asked over, and over, and over by every single person who receives a paycheck from their employer or government regardless of where you reside in the world. The U.S. dollar is the dominant monetary force in the global economy, and it dictates much of the value of all things being bought, sold, and utilized in said economy. It is common and public knowledge that the dollar has been subject to inflation: in 1913, the same $100 you had then would only have the purchasing power of a about $26 today. One could expect, in theory, that this number will diminish even more because of the drastic amount of USD injection occuring because of this pandemic. Most people cant afford basic necessities because of this ridiculous level of inflation caused at the hands of the Fed.
As many of you know, Satoshi Nakamoto had a response to this type of stimulus and bailout system the Federal Reserve has created and enlisted at any opportunity to respond to a crisis. It was called Bitcoin, and today it has become a financial power to be reckoned with. It has brought governments to terms with the fact that their systems are not efficient, along with putting power back into the peoples hands when it comes to controlling and utilizing their own money. There are no restrictions on how much Bitcoin you can send. There are no restrictions on whom you can send it to, and there are no ways to hide whom you've sent it to using blockchain technology and cryptography to secure its network and create a database of all transactions. The creation of Bitcoin was an answer to many of the problems with the financial system.
On June 17th, 2019, a person under the pseudonym "Mundo" also tried to provide an answer to some of these problems with a laser focus on inflation. The solution he proposed (we have not seen the long term benefits, so the solution is not quite yet an answer) is BSoV, or BitcoinSoV (Bitcoin Store of Value). BSoV is an ERC20 token which utilizes the EIP918 protocol first utilized by a similar token called 0xBTC. EIP918 allows both BSoV and 0xBTC to be minable on the Ethereum blockhain via a smart contract. Following the same distribution model, consensus mechanism, and total supply of Bitcoin (Fair Start, meaning no ICO, Premine, or developers fees; Mined using PoW, specifically Solidity SHA3; 21,000,000 total supply, 3.6 million mined thus far, divisible to 8 decimal points, with the same amount of halving eras as BTC) BSoV differs in one very different way: a 1% transaction burn built into its code.
With BSoV, every transaction is subject to a mandatory 1% transaction burn when a transaction is sent and confirmed on the Ethereum blockchain. The deflationary mechanism is the solution that Mundo proposed as an answer to the inflation the peoples money is exposed to because of the negligent actions of the Fed. This inflation is created out of the control of the people, and their purchasing power is diminished. With BSoV, the deflationary aspect is out of there control, but the end result is the opposite; an increase in its value due to scarcity and exchange of resources from its consensus mechanism. (This is a great scholarly article which details how mining provides a bottom value to PoW coins/tokens due to resource exchange, ie. Computing power, electricity, etc. https://www.sciencedirect.com/science/article/abs/pii/S0736585315301118)
It's important to note that the project has not been around long enough to see its end goal or vision come to fruition. This is precisely why I am writing this article. More is needed to help study and analyze if this is the answer to this problem. What I can say is that this is one of the few real potential answers that have been proposed, created and implemented to try and combat the Fed. With mass adoption, can we have a true store of value solution that protects itself from the self burdening negligence of the powers that be? Do we have to keep loaning our money to banks to invest for free, only for them to need a bailout every 10-20 years due to poor monetary management and investing sprees? An immutable smart contract that cannot be 51% attacked or controlled by those in power might be worth pursuing.
I'd like to end this article on a more transparent note about myself and my involvement with the project to help shed light on any apparent bias or misconceptions that some may have about my intentions here. I am one of 950 current holders and community members. I mined BSoV after I joined the telegram group and got involved on July 4th, 2019. I have never been paid for my work here, and it is strictly something that I believe in and want to help shed light on to those who might be interested in what the project has to offer. Just like many of the cryptocurrency enthusiast on the on P2P mailing list in 2009, many of us are working together tirelessly to bring one of the few tokens with integrity, transparency and ethics to those who want to experiment and see what may happen.
Something that I have also asked my self is "Whats the worst that can happen?" when it comes to my involvement here.
If the worst is a little time wasted on something I believed in, I will sleep fine at night. But if I am so fortunate to be apart of something that could truly change lives and alter the never-ending downtrend of inflation which has made life so difficult for the average human being, I will have a better nights sleep than I could have ever imagined.
Thank you for your time. I wish all of you health, wealth, and safety during this difficult time.
Sincerely,
BSoV_Chris
(You can find out more @ BSoV.io)
submitted by Chrisc9234 to ethtrader [link] [comments]

BSoV: The Minable and Deflationary Token

The year 2020 exposed many of the negative aspects of the current financial construct which the world relies on. On 4/9/2020, the Federal Reserve announced that they would inject another $2,300,000,000,000 (2.3 Trillion, you read that right) into the U.S. economy. With the threat of Covid-19 essentially shutting down the daily operations of the economy overnight, something HAD to be done, right? Where there any other options? Many people are expecting a $1,200 stimulus check to cushion the pockets of people affected by the mass layoffs and market collapses. I myself asked a simple question, "What are the long term consequences of diluting the market with the USD?"
This question is one that should be asked over, and over, and over by every single person who receives a paycheck from their employer or government regardless of where you reside in the world. The U.S. dollar is the dominant monetary force in the global economy, and it dictates much of the value of all things being bought, sold, and utilized in said economy. It is common and public knowledge that the dollar has been subject to inflation: in 1913, the same $100 you had then would only have the purchasing power of a about $26 today. One could expect, in theory, that this number will diminish even more because of the drastic amount of USD injection occuring because of this pandemic. Most people cant afford basic necessities because of this ridiculous level of inflation caused at the hands of the Fed.
As many of you know, Satoshi Nakamoto had a response to this type of stimulus and bailout system the Federal Reserve has created and enlisted at any opportunity to respond to a crisis. It was called Bitcoin, and today it has become a financial power to be reckoned with. It has brought governments to terms with the fact that their systems are not efficient, along with putting power back into the peoples hands when it comes to controlling and utilizing their own money. There are no restrictions on how much Bitcoin you can send. There are no restrictions on whom you can send it to, and there are no ways to hide whom you've sent it to using blockchain technology and cryptography to secure its network and create a database of all transactions. The creation of Bitcoin was an answer to many of the problems with the financial system.
On June 17th, 2019, a person under the pseudonym "Mundo" also tried to provide an answer to some of these problems with a laser focus on inflation. The solution he proposed (we have not seen the long term benefits, so the solution is not quite yet an answer) is BSoV, or BitcoinSoV (Bitcoin Store of Value). BSoV is an ERC20 token which utilizes the EIP918 protocol first utilized by a similar token called 0xBTC. EIP918 allows both BSoV and 0xBTC to be minable on the Ethereum blockhain via a smart contract. Following the same distribution model, consensus mechanism, and total supply of Bitcoin (Fair Start, meaning no ICO, Premine, or developers fees; Mined using PoW, specifically Solidity SHA3; 21,000,000 total supply, divisible to 8 decimal points, with the same amount of halving eras as BTC) BSoV differs in one very different way: a 1% transaction burn built into its code.
With BSoV, every transaction is subject to a mandatory 1% transaction burn when a transaction is sent and confirmed on the Ethereum blockchain. The deflationary mechanism is the solution that Mundo proposed as an answer to the inflation the peoples money is exposed to because of the negligent actions of the Fed. This inflation is created out of the control of the people, and their purchasing power is diminished. With BSoV, the deflationary aspect is out of there control, but the end result is the opposite; an increase in its value due to scarcity and exchange of resources from its consensus mechanism. (This is a great scholarly article which details how mining provides a bottom value to PoW coins/tokens due to resource exchange, ie. Computing power, electricity, etc. https://www.sciencedirect.com/science/article/abs/pii/S0736585315301118)
It's important to note that the project has not been around long enough to see its end goal or vision come to fruition. This is precisely why I am writing this article. More is needed to help study and analyze if this is the answer to this problem. What I can say is that this is one of the few real potential answers that have been proposed, created and implemented to try and combat the Fed. With mass adoption, can we have a true store of value solution that protects itself from the self burdening negligence of the powers that be? Do we have to keep loaning our money to banks to invest for free, only for them to need a bailout every 10-20 years due to poor monetary management and investing sprees? An immutable smart contract that cannot be 51% attacked or controlled by those in power might be worth pursuing.
I'd like to end this article on a more transparent note about myself and my involvement with the project to help shed light on any apparent bias or misconceptions that some may have about my intentions here. I am one of 927 current holders and community members. I mined BSoV after I joined the telegram group and got involved on July 4th, 2019. I have never been paid for my work here, and it is strictly something that I believe in and want to help shed light on to those who might be interested in what the project has to offer. Just like many of the cryptocurrency enthusiast on the on P2P mailing list in 2009, many of us are working together tirelessly to bring one of the few tokens with integrity, transparency and ethics to those who want to experiment and see what may happen.
Something that I have also asked my self is "Whats the worst that can happen?" when it comes to my involvement here.
If the worst is a little time wasted on something I believed in, I will sleep fine at night. But if I am so fortunate to be apart of something that could truly change lives and alter the never-ending downtrend of inflation which has made life so difficult for the average human being, I will have a better nights sleep than I could have ever imagined.
Thank you for your time. I wish all of you health, wealth, and safety during this difficult time.
Sincerely,
BSoV_Chris
(Visit https://BSoV.io for more information)
submitted by Chrisc9234 to CryptoMoonShots [link] [comments]

BSoV: The Minable and Deflationary Token

The year 2020 exposed many of the negative aspects of the current financial construct which the world relies on. On 4/9/2020, the Federal Reserve announced that they would inject another $2,300,000,000,000 (2.3 Trillion, you read that right) into the U.S. economy. With the threat of Covid-19 essentially shutting down the daily operations of the economy overnight, something HAD to be done, right? Where there any other options? Many people are expecting a $1,200 stimulus check to cushion the pockets of people affected by the mass layoffs and market collapses. I myself asked a simple question, "What are the long term consequences of diluting the market with the USD?"
This question is one that should be asked over, and over, and over by every single person who receives a paycheck from their employer or government regardless of where you reside in the world. The U.S. dollar is the dominant monetary force in the global economy, and it dictates much of the value of all things being bought, sold, and utilized in said economy. It is common and public knowledge that the dollar has been subject to inflation: in 1913, the same $100 you had then would only have the purchasing power of a about $26 today. One could expect, in theory, that this number will diminish even more because of the drastic amount of USD injection occuring because of this pandemic. Most people cant afford basic necessities because of this ridiculous level of inflation caused at the hands of the Fed.
As many of you know, Satoshi Nakamoto had a response to this type of stimulus and bailout system the Federal Reserve has created and enlisted at any opportunity to respond to a crisis. It was called Bitcoin, and today it has become a financial power to be reckoned with. It has brought governments to terms with the fact that their systems are not efficient, along with putting power back into the peoples hands when it comes to controlling and utilizing their own money. There are no restrictions on how much Bitcoin you can send. There are no restrictions on whom you can send it to, and there are no ways to hide whom you've sent it to using blockchain technology and cryptography to secure its network and create a database of all transactions. The creation of Bitcoin was an answer to many of the problems with the financial system.
On June 17th, 2019, a person under the pseudonym "Mundo" also tried to provide an answer to some of these problems with a laser focus on inflation. The solution he proposed (we have not seen the long term benefits, so the solution is not quite yet an answer) is BSoV, or BitcoinSoV (Bitcoin Store of Value). BSoV is an ERC20 token which utilizes the EIP918 protocol first utilized by a similar token called 0xBTC. EIP918 allows both BSoV and 0xBTC to be minable on the Ethereum blockhain via a smart contract. Following the same distribution model, consensus mechanism, and total supply of Bitcoin (Fair Start, meaning no ICO, Premine, or developers fees; Mined using PoW, specifically Solidity SHA3; 21,000,000 total supply, divisible to 8 decimal points, with the same amount of halving eras as BTC) BSoV differs in one very different way: a 1% transaction burn built into its code.
With BSoV, every transaction is subject to a mandatory 1% transaction burn when a transaction is sent and confirmed on the Ethereum blockchain. The deflationary mechanism is the solution that Mundo proposed as an answer to the inflation the peoples money is exposed to because of the negligent actions of the Fed. This inflation is created out of the control of the people, and their purchasing power is diminished. With BSoV, the deflationary aspect is out of there control, but the end result is the opposite; an increase in its value due to scarcity and exchange of resources from its consensus mechanism. (This is a great scholarly article which details how mining provides a bottom value to PoW coins/tokens due to resource exchange, ie. Computing power, electricity, etc. https://www.sciencedirect.com/science/article/abs/pii/S0736585315301118)
It's important to note that the project has not been around long enough to see its end goal or vision come to fruition. This is precisely why I am writing this article. More is needed to help study and analyze if this is the answer to this problem. What I can say is that this is one of the few real potential answers that have been proposed, created and implemented to try and combat the Fed. With mass adoption, can we have a true store of value solution that protects itself from the self burdening negligence of the powers that be? Do we have to keep loaning our money to banks to invest for free, only for them to need a bailout every 10-20 years due to poor monetary management and investing sprees? An immutable smart contract that cannot be 51% attacked or controlled by those in power might be worth pursuing.
I'd like to end this article on a more transparent note about myself and my involvement with the project to help shed light on any apparent bias or misconceptions that some may have about my intentions here. I am one of 927 current holders and community members. I mined BSoV after I joined the telegram group and got involved on July 4th, 2019. I have never been paid for my work here, and it is strictly something that I believe in and want to help shed light on to those who might be interested in what the project has to offer. Just like many of the cryptocurrency enthusiast on the on P2P mailing list in 2009, many of us are working together tirelessly to bring one of the few tokens with integrity, transparency and ethics to those who want to experiment and see what may happen.
Something that I have also asked my self is "Whats the worst that can happen?" when it comes to my involvement here.
If the worst is a little time wasted on something I believed in, I will sleep fine at night. But if I am so fortunate to be apart of something that could truly change lives and alter the never-ending downtrend of inflation which has made life so difficult for the average human being, I will have a better nights sleep than I could have ever imagined.
Thank you for your time. I wish all of you health, wealth, and safety during this difficult time.
Sincerely,
BSoV_Chris
(Visit https://BSoV.io for more information)
submitted by Chrisc9234 to CryptoCurrencies [link] [comments]

Got censored because of karma and or age restrictions on the other cryptocurrency page imagine the irony after this legendary rant.

We're really talking about mail in ballots? And now free speech on social media? Post whatever you want. WTF..... Pretty sure I just grab the mail to keep the mail box from filling up with junk anyways.....
We are so far behind because of old ways. There are simple solutions to "security", "fake news", and "verification" of proven non-biased facts. Block chain is the answer. Funding either increases or decreases every year based of factual accuracy later on proven, paid for with tax dollars. This gives human reporters incentive to publish real facts. Then fractions of shares can be purchased by anyone and spent at anytime based off of a "deflationary" rate. The longer you hold shares the more valuable they become. why do you think I get so excited about things like bitcoin? (Not a maximalist by the way) The value of the money is based off of the trust the people have in the system. It's like throwing the tea off the boat. One of the most American things ever.
Information verification and trusted networks owned by the public will redistribute wealth and stimulate growth without government intervention. Having money hold value based on facts and owned/controlled by the public, accepted by public, and spent by the public, will always have 100% trust.
Here's an idea don't let billionaires provide the network for the news to be published on. That's called a "business" a businesses purpose is to make "money". Narrative & power creates the "money" every time. And "money" controls the power and narrative every time. This may sound blasphemous but having the government control monetary value by voting in people who are rich and have agendas, is kinda like an employee determining how much he or she should be paid an hour. All elected officials are suppt to be civil servants not share holders or 1%-ers. We need to have seperation of government and funds. Kinda like I don't know.... What's that called? "separation" of church and "State". kind of what America is based off of. I believe people prospered they sold our souls to keep and maintain their power. And yes I believe USA currency dominance could still exist because we have a shit ton of assets. However a fair global system which everyone could support and share this currency without bias, would equalize inequality in countries and stimulate new opportunities in places thought undesirable. It would also stifle war because what's good for some would be hurtful for most. We are becoming sedentary in our ways, the majority is what makes opportunity not the few.
And please God just arrest the man already so the city can stop burning and start healing. New ways require new perspectives. America was never supposed to be one way forever. It's always supposed to evolve and change. That is what makes America great, and America, well.... America.
submitted by mushroommilitia to CryptoCurrencies [link] [comments]

Removed comments/submissions for /u/OverLeveraged14

Hi OverLeveraged14, you're not shadowbanned, but 97 of your most recent 105 comments/submissions were removed (either automatically or by human moderators).

Comments:

ft8ds4z in CryptoCurrency on 07 Jun 20 (1pts):
bitcoin relies 100% on confirmation bias. everyone yells ''its amazing'' because they're financially biased, but they dont actually believe it. they just hope someone will pump their bags. to me the...
frm76ad in Crypto_com on 24 May 20 (1pts):
simply put, they dont support canadian banking and canadian dollars. at least yet. might change when they add debit card for canada since i would assume that will be denominated in CAD but i could...
frkvb1u in CryptoCurrency on 23 May 20 (1pts):
eth has a 5x premium on greyscale, i just dont understand how anyone can accept that lol. https://i.imgur.com/eeXlo9H.png
frkloxd in Crypto_com on 23 May 20 (1pts):
keep calm and eat jellybeans.
frkiibm in CryptoCurrency on 23 May 20 (1pts):
bitcoin answer to this is ''but store of value bruhh''
frkfuy6 in Crypto_com on 23 May 20 (1pts):
you can use it to go 1.5x leverage. loan 5k, buy btc, btc goes up, sell 5k worth and keep the difference. free real estate bruh! just kidding, leverage is dangerous :)
frk8jee in CryptoCurrency on 23 May 20 (1pts):
Zcoin, its an establish coin that's been around for a while, has some interesting stuff happening this year but mainly just looking at the chart is enough for me to take the risk. bought a...
frk6eir in CryptoCurrency on 23 May 20 (1pts):
beware of POS coins in general. it doesnt matter if you make 100% if the coin goes down 90%, you still lose 80% of your money. its fine to prefer pos over pow if you dont care about the security as...
frk5z26 in CryptoCurrency on 23 May 20 (1pts):
im sure Kenyans love paying half their wealth in fees.
frk5mht in CryptoCurrency on 23 May 20 (1pts):
fwiw, there's a loser on each side of a trade.
frk5hn6 in CryptoCurrency on 23 May 20 (1pts):
here's a little tip, if a coin has a sub coin to pay fees, its garbage.
frk5cdn in CryptoCurrency on 23 May 20 (1pts):
haaa yes, the indicators that rewrite themselves to make it look like they called the shots
frk4pia in CryptoCurrency on 23 May 20 (1pts):
i like cryptowatch. has standard list but also has charts and a few other useful views like this. https://cryptowat.ch/cards/assets also has a bunch of other...
frk2zzv in CryptoCurrency on 23 May 20 (1pts):
i cant wait for 1000sat/byte as a standard when btc hits 100k$! its gon be great! i really dont care if 90% of my paycheck vanishes in a transaction fee cause ill hodl till i die! i already threw...
frjwzk9 in CryptoCurrency on 23 May 20 (1pts):
well, at least he's not shilling a scam this time i guess?
frjvori in CryptoCurrency on 23 May 20 (1pts):
people didnt expect that kind of bull run in 2016, at least no that i remember. there was some hype early on in 2017, specially because of ETH, i still cant tel wheter or not btc rode on eth's...
frjt8r7 in CryptoCurrency on 23 May 20 (1pts):
eth by far. bitcoin is racing towards a dead end and everyone knows it but choose to ignore it and scream moon all day long. its sad but true bitcoin cant sustain anymore growth and there's no plan...
frjr53k in technology on 23 May 20 (1pts):
how about let it fucking sink so it can be bought for a penny on the dollar? only thing this system is doing is promoting irresponsible business management because ''why take precautions or innovate...
frjq6q8 in technology on 23 May 20 (1pts):
the best way to make you gmail inbox safer is to use protonmail instead haha.
frjg2ez in CryptoCurrency on 23 May 20 (1pts):
i can attest to this. i did a piece that shows how 4mb block would HELP bitcoin adoption AND decentralization and was banned for promoting BCH, which i havent talked about once in all of my...
frjfwao in CryptoCurrency on 23 May 20 (1pts):
no, its means goldman needs a conference call to tel investors not to buy bitcoin.
frjfehq in CryptoCurrency on 23 May 20 (1pts):
proof of funds is the scummiest bullshit ever created. allows institutions to literally steal money from legitimate users who cant provide a proof. its easy for freshly earned money now that we know...
frjbtml in CryptoCurrency on 23 May 20 (1pts):
it doesnt really matter how much the fed prints, because it wont leave the fed without someone taking the loans, and nobody wants a loan right now. theses funds mainly exist in order to prevent the...
frgj543 in politics on 22 May 20 (1pts):
why? its not like he has issues routing a billion dollars of public funds over to Ukraine.
frggmty in CryptoCurrency on 22 May 20 (1pts):
''in a nutshell'' dont hang out in bitcoin or btc, bitcoin has gestapo mods and btc is salt all day long.
frfp692 in WhitePeopleTwitter on 22 May 20 (1pts):
just go gamble 100x till you make it, ez.
frfoe8c in LifeProTips on 22 May 20 (1pts):
Discord my friend, Discord.
free9l1 in CryptoCurrency on 22 May 20 (1pts):
hahaha, no.
fredual in CryptoCurrency on 22 May 20 (1pts):
dw bout it, everyone pays to learn in this space. some later than others. better take your loses early on rather than get your illusion of success shattered down the road.
frdpvm8 in CryptoCurrency on 21 May 20 (1pts):
all you had to do is claim you hex, for free. if you dont pay for something, how are you getting scammed? you have no clue who gave him that eth, for what purpose, and if they're okay with him...
frdo9tl in CryptoCurrency on 21 May 20 (1pts):
lets be honest, sending them to an exchange that has ''Fren with justin sun'' written all over it was not exactly his most genius moment.
frde4ag in CryptoCurrency on 21 May 20 (1pts):
folding is great but it honestly pisses me off at the same time. there is so much spare computing power owned by american companies and almost all of it is never put to use for folding, it should be...
frddkuy in CryptoCurrency on 21 May 20 (1pts):
''investing'' in crypto is honestly the wrong way to think about it. gambling is a much better term. at best you're all in on btc and you're hedging against fiat inflation, at worst you buy any...
frdcffn in CryptoCurrency on 21 May 20 (1pts):
that explains why you know nothing about it.
frdaz60 in CryptoCurrency on 21 May 20 (1pts):
doubtful. negative interest rates in a deflationary environment wont be a big deal. yall really seem to misunderstand how good the USD is at fucking you over. keep believing hyperinflation is gonna...
frdantd in CryptoCurrency on 21 May 20 (1pts):
you havent seen nothing yet my man. 2017 had fees up to 100$. its gonna happen again.
frcveyn in CryptoCurrency on 21 May 20 (1pts):
considering he thinks bitmex sells trader's fund on spot after they place a trade, its fair to say this guy doesnt know anything about anything.
frcn75e in CryptoCurrency on 21 May 20 (1pts):
this is the dumbest article ever made on crypto.
frcmmkz in CryptoCurrency on 21 May 20 (1pts):
you're an idiot.
frcgfqm in CryptoCurrency on 21 May 20 (1pts):
while i agree that bitcoin sucks as it is and needs a block size increase (4mb would be perfect for now and wouldnt change a damn thing about decentralization) bsv is garbage and bch too.
frcg7pc in CryptoCurrency on 21 May 20 (1pts):
those 3 pools are also made of thousands of individuals. its not the pools' hashrate. if they start messing with the network, that hashrate will leave fast as fuck.
frc3yb5 in CryptoCurrency on 21 May 20 (1pts):
yet only 5mil in liquidity. useless network.
frbyhp0 in CryptoCurrency on 21 May 20 (1pts):
btc blocks should be 4mb-8mb right now to keep in line with technological advancement since the 1mb block limit was implemented. prove me wrong. ill debate anyone. and before you ask, im a btc...
frbxj5j in CryptoCurrency on 21 May 20 (1pts):
opening the pandora's box for market manipulation is a bad thing for wallstreet. these's patterns are not exclusive to crypto, at all, and ''trapping'' and stop hunts has been done for decades. this...
fr8anz5 in CryptoCurrency on 20 May 20 (1pts):
honestly wouldnt be surprised. btc isnt going anywhere without scaling and ln is a cluster fuck for adoption.
fr64v2n in Bitcoin on 19 May 20 (1pts):
rofl.
fr64mko in Bitcoin on 19 May 20 (1pts):
this is software or 3rd parties trapping people into having to use those fees.
fr649wf in CryptoCurrency on 19 May 20 (1pts):
that company is a fucking leech regardless how you look at it. trying to make itself relevant by attacking others. they arent doing anyone but themselves a favor. you can hate on XRP just as much as...
fr62m0n in Bitcoin on 19 May 20 (1pts):
this is absolute garbage propaganda to assume that nodes would drop out rather than upgrade. im so fucking tired of people pretending like buying a 400$ computer to run a node is a problem but...
fr61jya in Bitcoin on 19 May 20 (1pts):
supply is 18million, not 900/day. there's plenty to buy from. also if you are talking about paul tudor jones, he didnt buy a single bitcoin and said so himself that he would only be playing futures...
fr60yqv in Bitcoin on 19 May 20 (1pts):
store of value is NOT a use case, and bitcoin is NOT widely adopted.
fr5yqcw in Bitcoin on 19 May 20 (1pts):
" not really looking for financial advice " maybe you should.
submitted by MarkdownShadowBot to CommentRemovalChecker [link] [comments]

BSoV: The Minable and Deflationary Token

The year 2020 exposed many of the negative aspects of the current financial construct which the world relies on. On 4/9/2020, the Federal Reserve announced that they would inject another $2,300,000,000,000 (2.3 Trillion, you read that right) into the U.S. economy. With the threat of Covid-19 essentially shutting down the daily operations of the economy overnight, something HAD to be done, right? Were there any other options? Many people are expecting a $1,200 stimulus check to cushion the pockets of people affected by the mass layoffs and market collapses. I myself asked a simple question, "What are the long term consequences of diluting the market with the USD?"
This question is one that should be asked over, and over, and over by every single person who receives a paycheck from their employer or government regardless of where you reside in the world. The U.S. dollar is the dominant monetary force in the global economy, and it dictates much of the value of all things being bought, sold, and utilized in said economy. It is common and public knowledge that the dollar has been subject to inflation: in 1913, the same $100 you had then would only have the purchasing power of a about $26 today. One could expect, in theory, that this number will diminish even more because of the drastic amount of USD injection occuring because of this pandemic. Most people cant afford basic necessities because of this ridiculous level of inflation caused at the hands of the Fed.
As many of you know, Satoshi Nakamoto had a response to this type of stimulus and bailout system the Federal Reserve has created and enlisted at any opportunity to respond to a crisis. It was called Bitcoin, and today it has become a financial power to be reckoned with. It has brought governments to terms with the fact that their systems are not efficient, along with putting power back into the peoples hands when it comes to controlling and utilizing their own money. There are no restrictions on how much Bitcoin you can send. There are no restrictions on whom you can send it to, and there are no ways to hide whom you've sent it to using blockchain technology and cryptography to secure its network and create a database of all transactions. The creation of Bitcoin was an answer to many of the problems with the financial system.
On June 17th, 2019, a person under the pseudonym "Mundo" also tried to provide an answer to some of these problems with a laser focus on inflation. The solution he proposed (we have not seen the long term benefits, so the solution is not quite yet an answer) is BSoV, or BitcoinSoV (Bitcoin Store of Value). BSoV is an ERC20 token which utilizes the EIP918 protocol first utilized by a similar token called 0xBTC. EIP918 allows both BSoV and 0xBTC to be minable on the Ethereum blockhain via a smart contract. Following the same distribution model, consensus mechanism, and total supply of Bitcoin (Fair Start, meaning no ICO, Premine, or developers fees; Mined using PoW, specifically Solidity SHA3; 21,000,000 total supply, 3.6 million mined thus far, divisible to 8 decimal points, with the same amount of halving eras as BTC) BSoV differs in one very different way: a 1% transaction burn built into its code.
With BSoV, every transaction is subject to a mandatory 1% transaction burn when a transaction is sent and confirmed on the Ethereum blockchain. The deflationary mechanism is the solution that Mundo proposed as an answer to the inflation the peoples money is exposed to because of the negligent actions of the Fed. This inflation is created out of the control of the people, and their purchasing power is diminished. With BSoV, the deflationary aspect is out of there control, but the end result is the opposite; an increase in its value due to scarcity and exchange of resources from its consensus mechanism. (This is a great scholarly article which details how mining provides a bottom value to PoW coins/tokens due to resource exchange, ie. Computing power, electricity, etc. https://www.sciencedirect.com/science/article/abs/pii/S0736585315301118)
It's important to note that the project has not been around long enough to see its end goal or vision come to fruition. This is precisely why I am writing this article. More is needed to help study and analyze if this is the answer to this problem. What I can say is that this is one of the few real potential answers that have been proposed, created and implemented to try and combat the Fed. With mass adoption, can we have a true store of value solution that protects itself from the self burdening negligence of the powers that be? Do we have to keep loaning our money to banks to invest for free, only for them to need a bailout every 10-20 years due to poor monetary management and investing sprees? An immutable smart contract that cannot be 51% attacked or controlled by those in power might be worth pursuing.
I'd like to end this article on a more transparent note about myself and my involvement with the project to help shed light on any apparent bias or misconceptions that some may have about my intentions here. I am one of 927 current holders and community members. I mined BSoV after I joined the telegram group and got involved on July 4th, 2019. I have never been paid for my work here, and it is strictly something that I believe in and want to help shed light on to those who might be interested in what the project has to offer. Just like many of the cryptocurrency enthusiast on the on P2P mailing list in 2009, many of us are working together tirelessly to bring one of the few tokens with integrity, transparency and ethics to those who want to experiment and see what may happen.
Something that I have also asked my self is "Whats the worst that can happen?" when it comes to my involvement here.
If the worst is a little time wasted on something I believed in, I will sleep fine at night. But if I am so fortunate to be apart of something that could truly change lives and alter the never-ending downtrend of inflation which has made life so difficult for the average human being, I will have a better nights sleep than I could have ever imagined.
Thank you for your time. I wish all of you health, wealth, and safety during this difficult time.
Sincerely,
BSoV_Chris
(You can find out more @ BSoV.io)
submitted by Chrisc9234 to BitcoinSoV [link] [comments]

Questions for Architects or anybody who designs systems for a variety of problems. Have you ever actually had a problem and thought "Blockchain would solve this problem" when a traditional system could not?

TLDR: I get triggered when I hear all the bs about blockchain, I am curious what the AWS community feels about blockchain and do they share the same sentiment as me. Below I talk about specific reasons why but even if you don't read it I would love to hear your opinion in the comments. I am also unsure how suitable this post is in /aws, but I just feel like its one of the few places where you can find people who are in the know of the subject matter, but are not biased due to having invested in blockchain such as dedicated crypto forums.
Starts Here
I ask this because I personally think its a complete joke when I see all these ICO's and ads that state blockchain is giving them a revolutionary advantage etc I literally cringe.
Look at this ad that I see whenever I watch a world cup game https://www.youtube.com/watch?v=Zw0pSPb1JUs "Hdac technology platform is smart and secure, thanks to the blockchain solution". This is the kind of stuff that really triggers me. In reality, I could create a much more secure, cheaper, scalable, less resource intensive smart home system with AWS than using any sort of "blockchain" solution. But these ads are targeted at people who do not know better.
If we talk about cryptocurrencies, Its just a glorified Ponzi scheme. People who promote it gain if you invest in their crypto after they did, so they can sell it at a higher price they bought it for. Creating this delusional circle-jerk on dedicated online forums where everybody sounds brainwashed/trying to hype each other so everybody else keeps their investment into the cryptocurrency or invests more
It's not scalable at all, is much slower than traditional payment methods, is extremely bad for the environment (just mining bitcoin alone consumes more energy than entire countries), is much more expensive than traditional payment methods. And as mentioned any smart protocol can be created much more easily using standard software & infrastructure tools.
The one element that blockchain claims to have going for itself is decentralisation. But it is not as decentralised as people make it out to be. Here are 3 main entities everybody needs to trust for the system to work as claimed:
So there is an example of 3 parties I need to trust
Although all these scenarios are unlikely, they are just as likely as the scenarios pro blockchain users claim, such as a large entity, (in their case the government or banks) losing all your money or assets. I could mention more entities you technically need to trust such as who ever is distributing the mining code to the miners, or whoever is distributing the software for people to make transactions.
But lets for a second think about decentralisation & having a trust-less system, is that actually a good thing? There are countless cases of HUGE hacks on wallets stealing millions of dollars worth of cryptocurrency, due to the decentralised nature of a system, once that is done you can't do anything about, but if there was an entity in charge of a system, which was responsible for the system, they can refund you, or take initiative to stop bad things happening on the system. Then purely through gaining trust as an entity, users gravitate to that platform (kind of like how AWS is top dog partly due to there customer obsession and the level of trust we have with them)
There are more points I could talk about but in the interest of time I wont, such as the fact that a deflationary currency is a terrible principle and won't work as a currency due to the value in hoarding the currency. Or the way companies like BlockStream have literally hijacked Bitcoin core by hiring all the core bitcoin developers. Or the way the Lightning Network is so insanely ridiculous to the core concept of blockchain.
So all this mess is aboard this blockchain phenomenon, yet, I can't think of a single use case where just building a good system on AWS isn't the better choice 100% of the time. I am actually all for the initial benefits blockchain promised, but its pretty obvious now that none of those promises are being delivered.
Its all hype, clouded by the fact that people don't understand how it works combined by forums crowded with people who financially profit if you believe in the technology. Find me one good use case that I cannot achieve through standard software and infrastructure methods, there are none. VISA can handle 60000 transactions per second, Ethereum and Bitcoin can handle 10-20 per second, and had huge issues when it happened, that's like 0.03% of the scale, and it's already causing huge issues and wasting a countries load of energy.
I am curious if other people involved with AWS or any cloud provider share a similar sentiment to me in regards to blockchain & cryptocurrencies or maybe I am alone with thinking about this?
submitted by zergUser1 to aws [link] [comments]

At this time the global financial system is at the “Wile E. Coyotee cliff” moment. Apologies to those that have to Google it. The humor from the resulting list of Youtube videos should make up for the inconvenience.

Don’t Panic.
Every Central banker around the globe at this moment worth their finance degree has a fist full of antacids in one hand and an expensive bottle of liquor in the other. No one wants to be the one that starts the panic that I have been calling the “Days of Vantablack” in the markets. The market is going to panic and there is nothing or no one that can stop it. Don’t panic, it will be alright. I am not here to blame the system or the people pulling the strings of the system that have forced this inevitable event that has been building over the last few decades.
In the past few decades the periodic collapse of bubbles in the market place has seen money run to safety to wait out the time of uncertainty while the equity markets stabilized. The problem with the markets this time around is that the bubble is in both the equity markets and the bonds markets to which equity money runs to safety. The realization will take hold that there is no safe place for money to run to as both sides will be in simultaneous collapse and we will be on the brink of the “Nightmare Scenario”. This will be the end of fiat currencies and the fractional reserve lending systems that accompany it. How ever both the “Gold Bugs” and the crypto currency pushers have it wrong.
For the crypto currency pushers they ignored a fatal weakness in the core premise their desired system. When you have a system that has to account for bad actors the higher the percentage of bad actors that the system has to account for the higher the drag coefficient of the system. This drag can be ignored for systems where few to no actors are trusted as long as the transaction rate is small. The drag increases geometrically with the rate of transactions. A bitcoin like system would require the computing power of Asimov’s Universal Univac computer to process the rate of the average days worth of world wide credit card transactions.
The Gold bugs would have been correct in the world economy prior to the 1980’s. Since the 1980’s if not four decades prior, the need to be able to expand the money supply to account for economic growth would not be possible. The amount of new gold that would have been required to be added to the system could only have been extracted from the Earth’s core or the asteroid belts. If the monetary system would return to the Gold Standard, the constraint of not being able to add gold at a sufficient rate to the system would cause a fatally acute deflationary bias.
There is only one item that can back currency that would naturally balance the inflationary and deflationary pressures in an expanding or contracting economy. Most of the activity of our economic system that keeps us alive and with our creature comforts can be reduced to MoMA. MoMA stands for Move or Manipulate Atoms. I pronounce it as a long o and a short a i.e. “moe ma” with the accent on “moe”. Any manufacturing or chemical process is Manipulating Atoms. Everything else is Moving those same Atoms from one place to another. At this moment only a tiny part of all MoMA is done with physical labor and the trend is for the percentage of physical labor to become infinitesimal if not zero.
When a person purchases a physical object from a company the company exchanges said item for money and then proceeds to replace the item. The entire chain of production can be simplified to the company paying out some of the money to people for there services and then purchases energy that is then used to mine the raw material, transport the raw material to a manufacturing plant, process the raw material into the final product and then transport the product to the customer. In the current system the fluctuation of energy cost is the dominant factor in the purchasing power of money.
From this it can be concluded that beginning with the industrial revolution and continuing to the future the value of money is approaching its purchasing power of energy. Granted there are differing forms of energy delivery but this has been shown to equalize with the markets ability to arbitrage. Money is equal to the promise to deliver some unit of energy in a particular form to a particular location and time.
For us humans energy in the form of food what drives us. Food in its wide forms of production also follows the above example with the added processes that plant growth is powered by the light coming from the sun and animal growth is powered from the consumption of a portion of the grown plants.
For economists this is a new “Stand up and shout”1. For anyone that is a biologist, rocket and/or satellite engineer this is as basic as water is wet.

ALL budgets are fundamentally an energy budget.

I need take the opportunity to make a public apology and point out who the real hero or heroes are that laid the foundation for the saving grace to our current situation. After the the 2011 Fukushima disaster a German politician/bureaucrat or group there of altered German policy to abandon the current atomic energy policy. Upon reading this change in policy I screamed at my computer screen uttering insults to the shortsightedness and disastrous consequences in following the fear mongering of nuclear power. I was wrong. They were right. Because of this change in the allocation of government directed investment into solar power a critical point was reached in 2017 where the full cycle of energy invested into a solar farm would be repaid in energy output in eight years with a continuing trend in the reduction of the EROEI, energy return on energy invested. This new dynamic created the situation that the growth of renewable energy sources can and will grow faster that the population growth indefinitely (well until we consume all the material resources of the entire solar system).

Back of the napkin business plan:
Lets combine the resources of all interested pension funds and create a co-op that take the premise to exchange any current debt instrument for a new promissory note to pay an energy equivalent of the current debt instrument’s energy value (take the current debts instruments value and calculate the energy equivalent of what it could purchase in oil and extract its full theoretical energy content) to be paid out at a future date accumulating a 6.5 percent annual interest compounding until fulfillment of the note. This co-op then takes these incoming funds and begins to build monstrous solar farm reinvesting the energy output into expansion of the farm until its critical mass is reached and it then can start paying off its energy note obligations. The excess energy can be distributed as short term notes to the population where the population can trade these notes for goods and services.
submitted by gnosi to KnowTheFundamentals [link] [comments]

For the first time, well known Bitcoin maximalist Tuur Demeester given Ethereum some reasonable respect and attention - but be skeptical

For the first time, well known Bitcoin maximalist Tuur Demeester has given Ethereum some reasonable respect and attention - but be skeptical
Demeester is a well-known maximalist, Technical Analysis B.S. pumper dumper, and he’s is not opposed to spreading misinformation in order to deter Ethereum’s success. While I would love to think that he’s finally coming to terms with the reality of the blockchain space, I remain quite skeptical. But coming from the position that everyone deserves more than second chances, I feel his recent Medium post is as close to even handed I’ve seen these highly biased maximalists get. Maybe he’s begun bargaining, or maybe this is just another ploy to setup a pump-dump ETC scam. We’ll see.
To my surprise, there are several risks and benefits he highlights with Bitcoin and Ethereum that find very reasonable. However, while more even handed than normal for maximalists, there are quite a few holes in his medium post too. Here’s a few.
Ethereum is “Less backwards compatible”
I’m not sure what is meant by this. Without additional details, I can see arguments that support and reject this notion.
“On track towards a more centralized future”
If anything, Ethereum’s platform allow “decentralize all the things” far more than Bitcoin. Also, the Devs are quite a large consortium now, no longer an group lead by the Ethereum Foundation alone. The fact that these different groups get along and come to terms doesn’t mean they are centralized.
“Transaction finality is less certain”
If this is in reference to the DAO exploit fix, I’ll repeat a reference that highlights Bitcoin nonsensical arguments of Code is Law. The CVE attack, which while we could split hair as to whether it is the same thing, it is clear it means that Bitcoin, in its history, rolled back the entire fucking blockchain to fix an exploit. Ethereum never rolled back the blockchain; Etheruem only “reverse” a transaction. During Bitcoin’s rollback, mined coined were invalidated! Even those not attributed to the exploit. They literally rolled the blockchain back! Code is Law? Immutable? My ass! Now, Bitcoin’s rollback was needed, but my forceful language is to express how fucking stupid the Ethereum criticism is. Both were smart, community voted and decided, actions.
“Core dev Vlad Zamfir: Ethereum isn’t money, safe, or scalable” and the “different visions”
Vlad also noted that Ethereum “might be” safer than other blockchains, arguing that the entire space is experimental (this is quite a misrepresentation of his argument)
Inflation unknown
“unknown” doesn’t mean no information. The inflation rate is known to be trivial. This is the biggest strawman argument I’ve seen from maximalists. Value is supply and demand, and given the expected trivial issuance, Ethereum may end up deflationary.
These are just from my quick read. The Flippening will happen. It can't be stopped anymore. It is great to see someone as maximalist as Demeester starting to come to terms (maybe). But what am I missing?
submitted by BitEther to ethtrader [link] [comments]

Of Wolves And Weasels - Day 25 - With A Little Help From Our Friends

Hey All, GoodShibe here!
I like starting off with good things, don't you? Well, here's something great! Remember that thread I put up a couple of days ago, asking for donations for Bell Let's Talk (even though we missed the day and probably wouldn't get any coverage for it) - well, together we raised 80,000 DOGE - which Moolah_ added 100K - which meant that we raised about $268.71 USD. Well, as it turns out, Moolah_ wasn't done yet - so they rounded it up to an even $1000 and donated it on /Dogecoin's behalf to The Canadian Association of Mental Health. You can see the receipt here. So, let's give all the generous shibes who contributed to this effort, a sound round of ap-paws (yeah, I said it...).
Well done!
As it turns out yesterday's post caused quite a bit of discussion - lots of passionate shibes coming out to discuss where we're going, how we see our coin -- and even our community -- evolving over time.
I think it's a fantastic thing that we can have these kinds of discussions openly, and that, even when we may not always agree with one another, we do try to see eye to eye and understand where each shibe is coming from. I have to admit that then I first posted my article, I was somewhat ambivalent about either side of the issue -- and I worked to keep my language neutral as I could. Explain the facts, try to explain how it might effect us all, and some ideas on how it might be fixed. Over the course of the discussion that followed, I found myself being swayed by the arguments toward the coin moving in an 'inflationary' direction. I say this now, publicly, not in an attempt to sway you, but to acknowledge a bias that's started to form toward one direction.
I believe that it's through understanding my own biases that I can work to try and keep an even keel, try and stay neutral until the facts clearly point toward a direction. In acknowledging such a bias, it encourages me to look THAT much harder at the other arguments against it. Look for arguments that weaken said bias. I want to make sure that I'm not just 'believing' something to be true, I want the facts to support said belief structure. So, by stating this, I want you to know where I'm at on this issue, that I'm looking into the benefits and flaws of both a 'Deflationary' and 'Inflationary' coin. Trying to wrap my head around it properly so that if I do end up supporting one direction, I know why and can state it clearly.
That said, I still believe that there are ways to meet in the middle -- I have no idea what they are just yet -- but we have a whole year or more to find a way to come up with a solution with calm, rational discussion on all sides.
Moving on to more fun news - and thank you for bearing with me - we've got some fantastic community efforts underway that I want to take a moment to hightlight:
In the news:
And finally, just for fun:
It's 11:14AM EST, we're at 40.93% of DOGEs found. Our Global Hashrate it rising from ~91 to ~95 Gigahashes per second (after an early morning spike to ~218) and our Difficulty is falling from ~1547 to ~1402. Looks like a busy day, folks!
Have a great one!
As always, I appreciate your support!
GoodShibe
PS: Sorry about the late post, all, turns out I've been writing in fits and starts, dealing with some /dogecoinscamwatch stuff.
EDIT 1: I've had some criticism regarding how I go about my reporting, and that's fine. Criticism, I can handle.
I firmly believe that, whatever the news is, when I know it, good or bad, the community needs to know so that, together, we at least have the ability to make informed decisions.
If you want it, fine, if you don't care, that's also fine, but at least you're aware - at least you get to choose.
I take this responsibility - the gift of trust you've bestowed upon me - seriously, and try my best at it. Will I make mistakes? Absolutely. And you won't always agree with me. And that's fine too. But I will always do my best for the community, and, succeed or fail, my heart will always be in the right place, working for the good of us all.
submitted by GoodShibe to dogecoin [link] [comments]

Dear Bitcoiners, I am Contributor for Seeking Alpha who is currently writing about Bitcoin...

...as well as a newb to BTC.
I don't mind telling you up front (as the Reddit Community will have the link to my article once it's complete) that I've been openly skeptical on bitcoin's viability in the past. HOWEVER, I've also been working out a number of economic scenarios over the past 24 hours or so and I must say that I've evolved on a number of points. The situation now strikes me as being far more nuanced, even for those who disagree with deflationary currencies. (See my previous Reddit)
The article will focus on risks and rewards for companies (and, of course, the stock prices of those companies) who might be considering accepting Bitcoin. I'll add that SA is the most read financial re-syndication outlet by C-Level executives currently in existence and, if my Editors accept it, it will likely be re-syndicated to Google Finance, Yahoo, et cet. Publication time is about 24 hours unless it's slow or a weekend and the published article will be re-published here to Reddit, which I'm also new to. (Aren't first times great?)
Oh, and mainstream journalists love (and are totally invited) to jack our ideas for their own write-ups. (Deadlines, deadlines.)
Anyway, so much for "Process."
Would any bitcoiners here care to make a case as to why the shareholders of these companies will benefit from adopting bitcoin? I plan to submit the article today. (Previous BTC biases can be referenced via my previous Reddit post) Sharp quoters will be duly quoted. Thanks in advance for any replies.
submitted by analyst4933 to Bitcoin [link] [comments]

Bitcoin and friends - a thoughtful wake up on when and How this bubble ends

Firstly - NOONE is going to like this. But please, THINK about it for a couple of days THEN downvote it. I want this to be a visible discussion.
HARSH TLDR - maybe Eth crash ($500-$100) precedes bitcoin $5300 peak?!? discuss. AND crypto's value offering thoughts
Me - I met bitcoin at $30 and was OBSESSED with it for years and have thought HARD about it. I made a lot of mistakes, and risked money I shouldn't have, and might well come away with enough for a deposit on a second (rental) property. Not a lambo.
one Bitcoin and all crypto are nearly useless as a transactional vehicle (at the moment). Now, it is still a speculators plaything. Digital gold - that's no bad thing. That's a STAGE that it has to go through to become what it wants to be - by design. By Genius design. Short version: wild price swings are the major hurdle. The WEAKNESSES that bitcoin has (risks) are - mining centralisation and the network being responsible for its future. Its strengths are immense. Rock solid decentralised trustless "peoples currency" with the "gold standard". i.e money with value. Bitcoin used to be for people who didn't trust banks (and fractional reserve banking [definitely google if you do not know]). Deflationary currency - can it work? Nobody knows. I have found that economists ... don't know. BUT - that's a fundamental part of it's value offering.
Alt coins (non-btc crypto) Offer many interesting ideas on how to improve bitcoin. When I last looked (2014) none had put it "all together". Nothing is 10x better than bitcoin, and you need that kind of advantage to really knock it off its perch. I, personally, don't think that a blockchain crypto can do it. The blockchain is a central pillar of bitcoin and is it's strength and weakness. The way around it involves centralisation, and trust, and that's kind of an oxymorron. It negates the blockchain's only real offering of value. In time, a mature crypto [oh, maybe say bitcoin?] could implement some kind of off-chain system that would enable it to work as a serious vehicle for the world's money. But - that's ... the issue.
Bitcoin bubbles and Alts. After (fucking) dogecoin in 2013, I learned that new people to bitcoin wanted to get "bitcoin at a bargain" and so looked to altcoins. They made huge gains, but ALL dwindled. Long term, there was nothing of value. I bought a portfolio of alts for cheap for the next bubble. This bubble I've done OK out of them. Nearly covering their cost in Bitcoin. Some turned to dust, reddcoin has done me a x100. I was foiled by my hatred of some (litecoin, ethuyuhrumurm, ripple) and so could have done far better. Point is - that's what is happening. Latecomers to bitcoin want a bargain. Of course I wish you all well.
Why the bubble? The price is rising, so the price will rise. Until it doesn't. Bitcoin was a "risky" investment. Maybe it'll get hacked, maybe the government/banks will kill it, maybe it'll just die. All bitcoin had to do from 2013 onwards was not die. It's done that. So - it's proved that it can increase wildly in value. So - it will increase wildly in value. Alts too. Especially alts. They saw by far the greatest increases in 2013 (and definitely now).
Now, this is the juice. How will this bubble go? No answer. This is the debate I want.
How much does bitcoin lead this? Is this actually an ETH bubble? Is it a multi-year crypto bubble? Is this really the bigtime. Is this IT is this THE bubble of death? Everybody knows about bitcoin, and those technical enough, understand it enough. I think it has to be said that after 2013 anybody that really believed in bitcoin had the opportunity to buy-in. Those whose belief was not strong enough stayed on the sidelines. I think it's THAT money that's now coming in (and professionals who were Not Allowed to buy in).
What I want to know is who is leading who, and what indicators can I get for the bubble top.
Will ETH stop growing, then money go into "lower" alts, then into bitcoin? will the lower alts go to ETH/XRP then bitcoin? will bitcoin to go ETH? Will ALL the top 10 coins go to the shitcoins?
Especially today, where bitcoin is WOBBLING on 2500
it seems that the markets always try to sync. China, japan, usa, altcoins. All will probably come together, or apart. Or something. But they're all in the same boat. Bitcoin and friends.
People on this sub are definitely looking at the alts far more than they were WEEKS ago. But they're looking for gains. It seems now is a very fluid time, but a critical one. My bubble top prediction WAS 2-4k, but I extended it to 4-6k. Really, I think we are half way up. And I think this next phase is going to be Really interesting on who does what.
My feeling is that ETH is So High that some balance of power (price) has to be re-addressed. But that it's such a pillar of the bubble that it is highly significant. ETH could end bitcoin's bubble. Or it could feed into bitcoin's Last Leg.
My feeling is that ETH and (maybe XRP) will start to wain. Hold similar price ranges to now, but that bitcoin will increase, and the lower alts will also increase. Now, that would suit my portfolio, so I have to admit I'm biased. But - given my value system, I still think that. That really is what I think. Bias blinds you.
I feel I have to offer my prediction on what will happen. So I have to make one up.
And it iiiisss...
Bitcoin pisses about in the 2300-3000 range for a week or two.
ETH / XRP dwindle a little (maybe setting ATH, maybe dropping 20-30%)
Shitcoins gain more traction, and start to pump hard (to use the jargon associated with them).
Bitcoin goes for it's peak of 4400-5300, shitcoins dump, ETH starts to pump but then craps out first, tanking hard 500-100. Bitcoin hits its peak and starts a long multi-bounce crash from 5000 to about 2000. It then starts to slowly start up for a new bubble in 2018 where it goes for the fabled 10k, and starts to stabilise long term in the low XX,000 range. (5-30k).
I would not be surprised if an anonymous coin becomes the malware currency of choice, but I would not expect it to have a speculators future as exchanges looking to get on the bitcoin wagon would be legitimate enough not to be allowed to dabble.
Bitcoin wins! yay. Hurrah for cognitive bias.
Can I say - thanks for not being offended by any of the terminology. I wish all investors well. It's a sad fact that this IS a zero sum game, and not everybody can get rich of this. Just look after yourself by trying to keep greed and fear within sane bounds. Remember that 1-5% per year is a pretty good investment. $10 in your bank might well be worth more than $10,000 on poloniex (!!!).
Please let me know which coins you think will "pop first".
TDLR repeat for the Super Skim Readers out there:
HARSH TLDR - maybe Eth crash ($500-$100) precedes bitcoin $5300 peak?!? discuss. AND crypto's value offering thoughts
submitted by inteblio to BitcoinMarkets [link] [comments]

Long Term Bull Trends (switched my flair)

I've switched my flair to bull, I think the recent cycle has slowed down and will continue the sideways movement until the next major round of service/news cycle boom.
My personally feeling is that the next major upward motion will start in the spring as larger and larger players start getting involved more and the current innovators services are upgraded.
This just my own perception of the market, more than anything I am interested in what other people are seeing as long term indicators, either positive or negative.
The utility of the network, IMO, is the primary backer for the actual market price, with speculation pushing it above or below that value at times. It's one of the reasons that I feel confident about the real market price of BTC being around the $500-600 mark. I would argue that the utility levels of the network are now providing that value.
https://en.bitcoin.it/wiki/Trade -- this list is surprisingly long compared to last April. Very positive indicator IMO, Black Friday was a success, that grow will continue as entry barriers continue to come down and services mature.
Big players are starting to make noise about getting into BTC. This last push, along with the ability to really test the services/utility of the network, has made the 'writing on the wall' a little more clear to the tech industry.
http://wagepoint.com/ - payroll service, allows portion of salary to convert to BTC, 1% rate on cavirtex. The are launching that service in the USA soon.
This is a MAJOR entry barrier being removed, I am pushing my work to move to them as it simplifies my buy in process (get paid, convert percentage of FIAT to BTC automatically). This is going to start causing upward spikes on paydays, which probably won't spike down as this service lends to savings and commerce (i.e. people buy coins at payday but will most likely end up holding them and using some of it for commerce).
**edit: also it has massive savings over the existing services for our company, it appears to be win/win. We have mixed mode employees (hourly and salary) and the existing services are a PITA to deal with.
Bitcoin ATMs - starting to pop up, while there is debate on the revenue models, these are things that will get shaken out as the market continues to grow. I see these as just another way to start lowering the entry barrier.
Payment Network - If you haven't used BTC to buy something yet, it is hard to explain the physiological aspect of buying goods/services online with BTC.
The best way I have been able to describe it is, it feels the same as reaching into my physical wallet and paying with cash. I bought a computer off the Bitcoinstore site, it was insanely easy. Just clicked on the bitcoin: link, it opened my wallet, sent the transaction, poof order was completed.
BitPay has some excellent services in place and appear to be a clear leader in this market. I'm looking to invest directly into that company, they are so far out in front of anyone else that I am aware of (is there any other serious competion in the PoS market yet?).
Store of Value: It's better than a savings account in many ways.
I see store of value services starting to grow over time that will start to compete with tradional banking services. People are going to need secure services, those services will potentially end up with large pools of capital which can be used to fund long term stable investments, providing low risk returns on saving accounts.
BTC being a deflationary currency is interesting this way, I am really interested to see how this shakes out. My gut feeling is that in the long run nothing else will be able to compete against BTC as a store of value.
China: I personally think China is somewhere around post April crash mentality. The novelty is starting to wear off and I am sure there are some bright minds over there that can see the potential utility of the bitcoin protocol and network.
Honestly, this is the one I am the most shaky on, we don't get a lot of information out of China that is 'man on the street' level, so it's hard to gauge WTF is going on over there. The native Chinese speakers that post are appreciated but without anyway to validate who you are, I have to take those assessments with a grain of salt.
Basically because of China's political structures, I don't really trust media coming out of there and I am not aware of how to find reliable sources of trusted information coming out of China. Mostly I am betting on their need to continue to grow their economy to avoid a major political collapse, if they can't keep their growth rate chugging along, they will most likely end up in a similar situation as the USSR did.
This reason alone is why I think they are putting out a quasi-offical messages in support of BTC, if the USA economy collapses, then China's goes with it and that would probably end being worse for them than the Western economies.
** take with a grain of salt, confirmation bias is probably at work here...hard to be objective with oneself but I try ;)
Alt Coins: I'm not sure how to take these, for most of them I don't really see much of a market unless there is a major issue with Bitcoin and even then I suspect Litecoin would be the end point of any migrations (unless the same issue is present there as well).
As for the rest, the next couple of months the market will shake out the ones that don't have any actual utility. I think LTC is here to stay, it provides redundancy to the Bitcoin network if any of the issues LTC is attempting to address become a reality (i.e. BTC mining centralized due requirements to compete) and it acts as additional point of entry.
Enough places are taking it for donations and the market value appears to be holding in the $25-$35 range that I expect to see more fixed rate conversion services for BTC/LTC.
If this should have gone into the daily discussion I apologize, it seem more approriate as it is focused on long term trends vesus the day to day.
submitted by mryddlin to BitcoinMarkets [link] [comments]

How many people do you come across that still say "What is Bitcoin?"

I mean, I understand this community has definite bias on this one, because I KNOW that we are the people that all tell pretty much everyone we know about bitcoin.
And yet, there are still so many people I have met, that straight up say to me "What is Bitcoin? Never. Even. Hearduvit." It actually blows my mind now when I find one of these people, but again, bias.
My default response is "Internet money." Then I start throwin all the D-words at them, decentralized, distributed, digital sigantures. They stop me right there.
[EDIT] Deflationary
submitted by Mathematician22 to Bitcoin [link] [comments]

You get a lot of persons in bitcoin that don't know anything about economics but think they do and they are loud about it....

It's because bitcoin is very easy to quickly realize how difficult it would be to pull off (ie how special and important it is but without having to truly understand its surrounding details). It's difficult for non-experienced or non-bitcoin people to truly grasp because it literally takes time to traverse the associated material and compressed explanations (and ignorant or dis-information).
We are all looking for that thing, that answer, and we can easily be convinced it is the next technology (if we knew what the next technology was..
The purpose of money and the way it arose comes with a cognitive bias. We generally don't understand it (or our banking system that provides and maintains it).
So in a kind of irrational exuberance some people begin to start promoting their understanding of bitcoin as the new age evolution of economics, but without understanding what economics (ie or banking) is in the first place.
How many people in this space have I come across with a passionate and ultimately negative emotional persona, expounding on arguments that have no basis in and founded economic argument (save the odd reference to very narrow and misappropriated citations or quotes from an economic argument that (for example) supports deflationary currencies).
And so these persons alienate themselves to discussions with only non bitcoiners and/or routinely block and avoid discussion with those that will encourage them to attach their arguments to existing accepted economic principles (so they can be properly scrutinized in a reasonable timeframe).
How often when I cite my arguments am I told that its an appeal to authority. There are many bitcoiners that don't understand what it means to make a logical argument.
How often do I hear bitcoin is new and therefore doesn't need to have an argument based on our empirical historical observations on how economies and money works?
How often do I come across those that haven't read the literature they are citing and quoting (Vimmy L.!)
Perhaps I am one of those people.
submitted by pokertravis to Bitcoin [link] [comments]

FAQ about Bitcoin(2)

FAQ about Bitcoin(2)
www.fmz.com
Legal
Is Bitcoin legal?
To the best of our knowledge, Bitcoin has not been made illegal by legislation in most jurisdictions. However, some jurisdictions (such as Argentina and Russia) severely restrict or ban foreign currencies. Other jurisdictions (such as Thailand) may limit the licensing of certain entities such as Bitcoin exchanges.
Regulators from various jurisdictions are taking steps to provide individuals and businesses with rules on how to integrate this new technology with the formal, regulated financial system. For example, the Financial Crimes Enforcement Network (FinCEN), a bureau in the United States Treasury Department, issued non-binding guidance on how it characterizes certain activities involving virtual currencies.
Is Bitcoin useful for illegal activities?
Bitcoin is money, and money has always been used both for legal and illegal purposes. Cash, credit cards and current banking systems widely surpass Bitcoin in terms of their use to finance crime. Bitcoin can bring significant innovation in payment systems and the benefits of such innovation are often considered to be far beyond their potential drawbacks.
Bitcoin is designed to be a huge step forward in making money more secure and could also act as a significant protection against many forms of financial crime. For instance, bitcoins are completely impossible to counterfeit. Users are in full control of their payments and cannot receive unapproved charges such as with credit card fraud. Bitcoin transactions are irreversible and immune to fraudulent chargebacks. Bitcoin allows money to be secured against theft and loss using very strong and useful mechanisms such as backups, encryption, and multiple signatures.
Some concerns have been raised that Bitcoin could be more attractive to criminals because it can be used to make private and irreversible payments. However, these features already exist with cash and wire transfer, which are widely used and well-established. The use of Bitcoin will undoubtedly be subjected to similar regulations that are already in place inside existing financial systems, and Bitcoin is not likely to prevent criminal investigations from being conducted. In general, it is common for important breakthroughs to be perceived as being controversial before their benefits are well understood. The Internet is a good example among many others to illustrate this.
Can Bitcoin be regulated? FMZ
The Bitcoin protocol itself cannot be modified without the cooperation of nearly all its users, who choose what software they use. Attempting to assign special rights to a local authority in the rules of the global Bitcoin network is not a practical possibility. Any rich organization could choose to invest in mining hardware to control half of the computing power of the network and become able to block or reverse recent transactions. However, there is no guarantee that they could retain this power since this requires to invest as much than all other miners in the world.
It is however possible to regulate the use of Bitcoin in a similar way to any other instrument. Just like the dollar, Bitcoin can be used for a wide variety of purposes, some of which can be considered legitimate or not as per each jurisdiction's laws. In this regard, Bitcoin is no different than any other tool or resource and can be subjected to different regulations in each country. Bitcoin use could also be made difficult by restrictive regulations, in which case it is hard to determine what percentage of users would keep using the technology. A government that chooses to ban Bitcoin would prevent domestic businesses and markets from developing, shifting innovation to other countries. The challenge for regulators, as always, is to develop efficient solutions while not impairing the growth of new emerging markets and businesses.
What about Bitcoin and taxes?
Bitcoin is not a fiat currency with legal tender status in any jurisdiction, but often tax liability accrues regardless of the medium used. There is a wide variety of legislation in many different jurisdictions which could cause income, sales, payroll, capital gains, or some other form of tax liability to arise with Bitcoin.
What about Bitcoin and consumer protection?
Bitcoin is freeing people to transact on their own terms. Each user can send and receive payments in a similar way to cash but they can also take part in more complex contracts. Multiple signatures allow a transaction to be accepted by the network only if a certain number of a defined group of persons agree to sign the transaction. This allows innovative dispute mediation services to be developed in the future. Such services could allow a third party to approve or reject a transaction in case of disagreement between the other parties without having control on their money. As opposed to cash and other payment methods, Bitcoin always leaves a public proof that a transaction did take place, which can potentially be used in a recourse against businesses with fraudulent practices.
It is also worth noting that while merchants usually depend on their public reputation to remain in business and pay their employees, they don't have access to the same level of information when dealing with new consumers. The way Bitcoin works allows both individuals and businesses to be protected against fraudulent chargebacks while giving the choice to the consumer to ask for more protection when they are not willing to trust a particular merchant.
Economy
How are bitcoins created? FMZ
New bitcoins are generated by a competitive and decentralized process called "mining". This process involves that individuals are rewarded by the network for their services. Bitcoin miners are processing transactions and securing the network using specialized hardware and are collecting new bitcoins in exchange.
The Bitcoin protocol is designed in such a way that new bitcoins are created at a fixed rate. This makes Bitcoin mining a very competitive business. When more miners join the network, it becomes increasingly difficult to make a profit and miners must seek efficiency to cut their operating costs. No central authority or developer has any power to control or manipulate the system to increase their profits. Every Bitcoin node in the world will reject anything that does not comply with the rules it expects the system to follow.
Bitcoins are created at a decreasing and predictable rate. The number of new bitcoins created each year is automatically halved over time until bitcoin issuance halts completely with a total of 21 million bitcoins in existence. At this point, Bitcoin miners will probably be supported exclusively by numerous small transaction fees.
Why do bitcoins have value?
Bitcoins have value because they are useful as a form of money. Bitcoin has the characteristics of money (durability, portability, fungibility, scarcity, divisibility, and recognizability) based on the properties of mathematics rather than relying on physical properties (like gold and silver) or trust in central authorities (like fiat currencies). In short, Bitcoin is backed by mathematics. With these attributes, all that is required for a form of money to hold value is trust and adoption. In the case of Bitcoin, this can be measured by its growing base of users, merchants, and startups. As with all currency, bitcoin's value comes only and directly from people willing to accept them as payment.
What determines bitcoin’s price?
The price of a bitcoin is determined by supply and demand. When demand for bitcoins increases, the price increases, and when demand falls, the price falls. There is only a limited number of bitcoins in circulation and new bitcoins are created at a predictable and decreasing rate, which means that demand must follow this level of inflation to keep the price stable. Because Bitcoin is still a relatively small market compared to what it could be, it doesn't take significant amounts of money to move the market price up or down, and thus the price of a bitcoin is still very volatile.
Bitcoin price over time:
www.fmz.com
Can bitcoins become worthless?
Yes. History is littered with currencies that failed and are no longer used, such as the German Mark during the Weimar Republic and, more recently, the Zimbabwean dollar. Although previous currency failures were typically due to hyperinflation of a kind that Bitcoin makes impossible, there is always potential for technical failures, competing currencies, political issues and so on. As a basic rule of thumb, no currency should be considered absolutely safe from failures or hard times. Bitcoin has proven reliable for years since its inception and there is a lot of potential for Bitcoin to continue to grow. However, no one is in a position to predict what the future will be for Bitcoin.
Is Bitcoin a bubble? FMZ
A fast rise in price does not constitute a bubble. An artificial over-valuation that will lead to a sudden downward correction constitutes a bubble. Choices based on individual human action by hundreds of thousands of market participants is the cause for bitcoin's price to fluctuate as the market seeks price discovery. Reasons for changes in sentiment may include a loss of confidence in Bitcoin, a large difference between value and price not based on the fundamentals of the Bitcoin economy, increased press coverage stimulating speculative demand, fear of uncertainty, and old-fashioned irrational exuberance and greed.
Is Bitcoin a Ponzi scheme?
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money, or the money paid by subsequent investors, instead of from profit earned by the individuals running the business. Ponzi schemes are designed to collapse at the expense of the last investors when there is not enough new participants.
Bitcoin is a free software project with no central authority. Consequently, no one is in a position to make fraudulent representations about investment returns. Like other major currencies such as gold, United States dollar, euro, yen, etc. there is no guaranteed purchasing power and the exchange rate floats freely. This leads to volatility where owners of bitcoins can unpredictably make or lose money. Beyond speculation, Bitcoin is also a payment system with useful and competitive attributes that are being used by thousands of users and businesses.
Doesn't Bitcoin unfairly benefit early adopters?
Some early adopters have large numbers of bitcoins because they took risks and invested time and resources in an unproven technology that was hardly used by anyone and that was much harder to secure properly. Many early adopters spent large numbers of bitcoins quite a few times before they became valuable or bought only small amounts and didn't make huge gains. There is no guarantee that the price of a bitcoin will increase or drop. This is very similar to investing in an early startup that can either gain value through its usefulness and popularity, or just never break through. Bitcoin is still in its infancy, and it has been designed with a very long-term view; it is hard to imagine how it could be less biased towards early adopters, and today's users may or may not be the early adopters of tomorrow.
Won't the finite amount of bitcoins be a limitation?
Bitcoin is unique in that only 21 million bitcoins will ever be created. However, this will never be a limitation because transactions can be denominated in smaller sub-units of a bitcoin, such as bits - there are 1,000,000 bits in 1 bitcoin. Bitcoins can be divided up to 8 decimal places (0.000 000 01) and potentially even smaller units if that is ever required in the future as the average transaction size decreases.
Won't Bitcoin fall in a deflationary spiral?FMZ
The deflationary spiral theory says that if prices are expected to fall, people will move purchases into the future in order to benefit from the lower prices. That fall in demand will in turn cause merchants to lower their prices to try and stimulate demand, making the problem worse and leading to an economic depression.
Although this theory is a popular way to justify inflation amongst central bankers, it does not appear to always hold true and is considered controversial amongst economists. Consumer electronics is one example of a market where prices constantly fall but which is not in depression. Similarly, the value of bitcoins has risen over time and yet the size of the Bitcoin economy has also grown dramatically along with it. Because both the value of the currency and the size of its economy started at zero in 2009, Bitcoin is a counterexample to the theory showing that it must sometimes be wrong.
Notwithstanding this, Bitcoin is not designed to be a deflationary currency. It is more accurate to say Bitcoin is intended to inflate in its early years, and become stable in its later years. The only time the quantity of bitcoins in circulation will drop is if people carelessly lose their wallets by failing to make backups. With a stable monetary base and a stable economy, the value of the currency should remain the same.
Isn't speculation and volatility a problem for Bitcoin?
This is a chicken and egg situation. For bitcoin's price to stabilize, a large scale economy needs to develop with more businesses and users. For a large scale economy to develop, businesses and users will seek for price stability.
Fortunately, volatility does not affect the main benefits of Bitcoin as a payment system to transfer money from point A to point B. It is possible for businesses to convert bitcoin payments to their local currency instantly, allowing them to profit from the advantages of Bitcoin without being subjected to price fluctuations. Since Bitcoin offers many useful and unique features and properties, many users choose to use Bitcoin. With such solutions and incentives, it is possible that Bitcoin will mature and develop to a degree where price volatility will become limited.
What if someone bought up all the existing bitcoins? FMZ
Only a fraction of bitcoins issued to date are found on the exchange markets for sale. Bitcoin markets are competitive, meaning the price of a bitcoin will rise or fall depending on supply and demand. Additionally, new bitcoins will continue to be issued for decades to come. Therefore even the most determined buyer could not buy all the bitcoins in existence. This situation isn't to suggest, however, that the markets aren't vulnerable to price manipulation; it still doesn't take significant amounts of money to move the market price up or down, and thus Bitcoin remains a volatile asset thus far.
What if someone creates a better digital currency?
That can happen. For now, Bitcoin remains by far the most popular decentralized virtual currency, but there can be no guarantee that it will retain that position. There is already a set of alternative currencies inspired by Bitcoin. It is however probably correct to assume that significant improvements would be required for a new currency to overtake Bitcoin in terms of established market, even though this remains unpredictable. Bitcoin could also conceivably adopt improvements of a competing currency so long as it doesn't change fundamental parts of the protocol.
to be continued. FMZ
submitted by FmzQuant to u/FmzQuant [link] [comments]

FAQ about Bitcoin(2)

FAQ about Bitcoin(2)
www.fmz.com
Legal
Is Bitcoin legal?
To the best of our knowledge, Bitcoin has not been made illegal by legislation in most jurisdictions. However, some jurisdictions (such as Argentina and Russia) severely restrict or ban foreign currencies. Other jurisdictions (such as Thailand) may limit the licensing of certain entities such as Bitcoin exchanges.
Regulators from various jurisdictions are taking steps to provide individuals and businesses with rules on how to integrate this new technology with the formal, regulated financial system. For example, the Financial Crimes Enforcement Network (FinCEN), a bureau in the United States Treasury Department, issued non-binding guidance on how it characterizes certain activities involving virtual currencies.
Is Bitcoin useful for illegal activities?
Bitcoin is money, and money has always been used both for legal and illegal purposes. Cash, credit cards and current banking systems widely surpass Bitcoin in terms of their use to finance crime. Bitcoin can bring significant innovation in payment systems and the benefits of such innovation are often considered to be far beyond their potential drawbacks.
Bitcoin is designed to be a huge step forward in making money more secure and could also act as a significant protection against many forms of financial crime. For instance, bitcoins are completely impossible to counterfeit. Users are in full control of their payments and cannot receive unapproved charges such as with credit card fraud. Bitcoin transactions are irreversible and immune to fraudulent chargebacks. Bitcoin allows money to be secured against theft and loss using very strong and useful mechanisms such as backups, encryption, and multiple signatures.
Some concerns have been raised that Bitcoin could be more attractive to criminals because it can be used to make private and irreversible payments. However, these features already exist with cash and wire transfer, which are widely used and well-established. The use of Bitcoin will undoubtedly be subjected to similar regulations that are already in place inside existing financial systems, and Bitcoin is not likely to prevent criminal investigations from being conducted. In general, it is common for important breakthroughs to be perceived as being controversial before their benefits are well understood. The Internet is a good example among many others to illustrate this.
Can Bitcoin be regulated? FMZ
The Bitcoin protocol itself cannot be modified without the cooperation of nearly all its users, who choose what software they use. Attempting to assign special rights to a local authority in the rules of the global Bitcoin network is not a practical possibility. Any rich organization could choose to invest in mining hardware to control half of the computing power of the network and become able to block or reverse recent transactions. However, there is no guarantee that they could retain this power since this requires to invest as much than all other miners in the world.
It is however possible to regulate the use of Bitcoin in a similar way to any other instrument. Just like the dollar, Bitcoin can be used for a wide variety of purposes, some of which can be considered legitimate or not as per each jurisdiction's laws. In this regard, Bitcoin is no different than any other tool or resource and can be subjected to different regulations in each country. Bitcoin use could also be made difficult by restrictive regulations, in which case it is hard to determine what percentage of users would keep using the technology. A government that chooses to ban Bitcoin would prevent domestic businesses and markets from developing, shifting innovation to other countries. The challenge for regulators, as always, is to develop efficient solutions while not impairing the growth of new emerging markets and businesses.
What about Bitcoin and taxes?
Bitcoin is not a fiat currency with legal tender status in any jurisdiction, but often tax liability accrues regardless of the medium used. There is a wide variety of legislation in many different jurisdictions which could cause income, sales, payroll, capital gains, or some other form of tax liability to arise with Bitcoin.
What about Bitcoin and consumer protection?
Bitcoin is freeing people to transact on their own terms. Each user can send and receive payments in a similar way to cash but they can also take part in more complex contracts. Multiple signatures allow a transaction to be accepted by the network only if a certain number of a defined group of persons agree to sign the transaction. This allows innovative dispute mediation services to be developed in the future. Such services could allow a third party to approve or reject a transaction in case of disagreement between the other parties without having control on their money. As opposed to cash and other payment methods, Bitcoin always leaves a public proof that a transaction did take place, which can potentially be used in a recourse against businesses with fraudulent practices.
It is also worth noting that while merchants usually depend on their public reputation to remain in business and pay their employees, they don't have access to the same level of information when dealing with new consumers. The way Bitcoin works allows both individuals and businesses to be protected against fraudulent chargebacks while giving the choice to the consumer to ask for more protection when they are not willing to trust a particular merchant.
Economy
How are bitcoins created? FMZ
New bitcoins are generated by a competitive and decentralized process called "mining". This process involves that individuals are rewarded by the network for their services. Bitcoin miners are processing transactions and securing the network using specialized hardware and are collecting new bitcoins in exchange.
The Bitcoin protocol is designed in such a way that new bitcoins are created at a fixed rate. This makes Bitcoin mining a very competitive business. When more miners join the network, it becomes increasingly difficult to make a profit and miners must seek efficiency to cut their operating costs. No central authority or developer has any power to control or manipulate the system to increase their profits. Every Bitcoin node in the world will reject anything that does not comply with the rules it expects the system to follow.
Bitcoins are created at a decreasing and predictable rate. The number of new bitcoins created each year is automatically halved over time until bitcoin issuance halts completely with a total of 21 million bitcoins in existence. At this point, Bitcoin miners will probably be supported exclusively by numerous small transaction fees.
Why do bitcoins have value?
Bitcoins have value because they are useful as a form of money. Bitcoin has the characteristics of money (durability, portability, fungibility, scarcity, divisibility, and recognizability) based on the properties of mathematics rather than relying on physical properties (like gold and silver) or trust in central authorities (like fiat currencies). In short, Bitcoin is backed by mathematics. With these attributes, all that is required for a form of money to hold value is trust and adoption. In the case of Bitcoin, this can be measured by its growing base of users, merchants, and startups. As with all currency, bitcoin's value comes only and directly from people willing to accept them as payment.
What determines bitcoin’s price?
The price of a bitcoin is determined by supply and demand. When demand for bitcoins increases, the price increases, and when demand falls, the price falls. There is only a limited number of bitcoins in circulation and new bitcoins are created at a predictable and decreasing rate, which means that demand must follow this level of inflation to keep the price stable. Because Bitcoin is still a relatively small market compared to what it could be, it doesn't take significant amounts of money to move the market price up or down, and thus the price of a bitcoin is still very volatile.
Bitcoin price over time:

www.fmz.com
Can bitcoins become worthless?
Yes. History is littered with currencies that failed and are no longer used, such as the German Mark during the Weimar Republic and, more recently, the Zimbabwean dollar. Although previous currency failures were typically due to hyperinflation of a kind that Bitcoin makes impossible, there is always potential for technical failures, competing currencies, political issues and so on. As a basic rule of thumb, no currency should be considered absolutely safe from failures or hard times. Bitcoin has proven reliable for years since its inception and there is a lot of potential for Bitcoin to continue to grow. However, no one is in a position to predict what the future will be for Bitcoin.
Is Bitcoin a bubble? FMZ
A fast rise in price does not constitute a bubble. An artificial over-valuation that will lead to a sudden downward correction constitutes a bubble. Choices based on individual human action by hundreds of thousands of market participants is the cause for bitcoin's price to fluctuate as the market seeks price discovery. Reasons for changes in sentiment may include a loss of confidence in Bitcoin, a large difference between value and price not based on the fundamentals of the Bitcoin economy, increased press coverage stimulating speculative demand, fear of uncertainty, and old-fashioned irrational exuberance and greed.
Is Bitcoin a Ponzi scheme?
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money, or the money paid by subsequent investors, instead of from profit earned by the individuals running the business. Ponzi schemes are designed to collapse at the expense of the last investors when there is not enough new participants.
Bitcoin is a free software project with no central authority. Consequently, no one is in a position to make fraudulent representations about investment returns. Like other major currencies such as gold, United States dollar, euro, yen, etc. there is no guaranteed purchasing power and the exchange rate floats freely. This leads to volatility where owners of bitcoins can unpredictably make or lose money. Beyond speculation, Bitcoin is also a payment system with useful and competitive attributes that are being used by thousands of users and businesses.
Doesn't Bitcoin unfairly benefit early adopters?
Some early adopters have large numbers of bitcoins because they took risks and invested time and resources in an unproven technology that was hardly used by anyone and that was much harder to secure properly. Many early adopters spent large numbers of bitcoins quite a few times before they became valuable or bought only small amounts and didn't make huge gains. There is no guarantee that the price of a bitcoin will increase or drop. This is very similar to investing in an early startup that can either gain value through its usefulness and popularity, or just never break through. Bitcoin is still in its infancy, and it has been designed with a very long-term view; it is hard to imagine how it could be less biased towards early adopters, and today's users may or may not be the early adopters of tomorrow.
Won't the finite amount of bitcoins be a limitation?
Bitcoin is unique in that only 21 million bitcoins will ever be created. However, this will never be a limitation because transactions can be denominated in smaller sub-units of a bitcoin, such as bits - there are 1,000,000 bits in 1 bitcoin. Bitcoins can be divided up to 8 decimal places (0.000 000 01) and potentially even smaller units if that is ever required in the future as the average transaction size decreases.
Won't Bitcoin fall in a deflationary spiral?FMZ
The deflationary spiral theory says that if prices are expected to fall, people will move purchases into the future in order to benefit from the lower prices. That fall in demand will in turn cause merchants to lower their prices to try and stimulate demand, making the problem worse and leading to an economic depression.
Although this theory is a popular way to justify inflation amongst central bankers, it does not appear to always hold true and is considered controversial amongst economists. Consumer electronics is one example of a market where prices constantly fall but which is not in depression. Similarly, the value of bitcoins has risen over time and yet the size of the Bitcoin economy has also grown dramatically along with it. Because both the value of the currency and the size of its economy started at zero in 2009, Bitcoin is a counterexample to the theory showing that it must sometimes be wrong.
Notwithstanding this, Bitcoin is not designed to be a deflationary currency. It is more accurate to say Bitcoin is intended to inflate in its early years, and become stable in its later years. The only time the quantity of bitcoins in circulation will drop is if people carelessly lose their wallets by failing to make backups. With a stable monetary base and a stable economy, the value of the currency should remain the same.
Isn't speculation and volatility a problem for Bitcoin?
This is a chicken and egg situation. For bitcoin's price to stabilize, a large scale economy needs to develop with more businesses and users. For a large scale economy to develop, businesses and users will seek for price stability.
Fortunately, volatility does not affect the main benefits of Bitcoin as a payment system to transfer money from point A to point B. It is possible for businesses to convert bitcoin payments to their local currency instantly, allowing them to profit from the advantages of Bitcoin without being subjected to price fluctuations. Since Bitcoin offers many useful and unique features and properties, many users choose to use Bitcoin. With such solutions and incentives, it is possible that Bitcoin will mature and develop to a degree where price volatility will become limited.
What if someone bought up all the existing bitcoins? FMZ
Only a fraction of bitcoins issued to date are found on the exchange markets for sale. Bitcoin markets are competitive, meaning the price of a bitcoin will rise or fall depending on supply and demand. Additionally, new bitcoins will continue to be issued for decades to come. Therefore even the most determined buyer could not buy all the bitcoins in existence. This situation isn't to suggest, however, that the markets aren't vulnerable to price manipulation; it still doesn't take significant amounts of money to move the market price up or down, and thus Bitcoin remains a volatile asset thus far.
What if someone creates a better digital currency?
That can happen. For now, Bitcoin remains by far the most popular decentralized virtual currency, but there can be no guarantee that it will retain that position. There is already a set of alternative currencies inspired by Bitcoin. It is however probably correct to assume that significant improvements would be required for a new currency to overtake Bitcoin in terms of established market, even though this remains unpredictable. Bitcoin could also conceivably adopt improvements of a competing currency so long as it doesn't change fundamental parts of the protocol.
to be continued. FMZ
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* IS BITCOIN BETTER THAN GOLD and HOW TO STORE???  Question and Answer Series First Shots Fired in the Cryptocurrency War (w/ Nick Colas)  The Big Story  Real Vision™ Tom Lee Calls For 100% Bitcoin Returns On Heels of ... Bitcoin Dominance Could Soar to 90% amid Economic Crisis ... Weekly Analysis 15-19 June 2020 For Gold Silver Crude Bitcoin SP 500 US30 And Forex Majors

What isn’t discussed however is the economic implications of the deflationary bias of the Bitcoin system. Deflation is inherently undesirable in an economy, just as is inflation. What’s actually needed is a monetary system that adjust in relationship to the need for a specific amount of “money” in order to achieve price stability absent ... For instance, in April 2013, the popular American author Matthew O’Brien wrote that BTC has a “massive deflationary bias” as some economists have always believed bitcoins will fall into a ... Bitcoins, uncertain security from theft and fraud, and a long-term deflationary bias that encourages the hoarding of Bitcoins. In addition, Bitcoin raises a number of legal and regulatory concerns, including its potential for facilitating money laundering, its treatment under federal securities law, and its status in the If Bitcoins transactions continue to increase but the amount of currency ceases to do so because it has a ceiling, then it will suffer deflationary bias. That is, each Bitcoin will be revalued too ... Posts about deflationary bias written by John Aziz. Bitcoin is very much in ascendancy. While it has for over three years existed as a decentralised and anonymous electronics payments system and medium of exchange for online black markets and gambling, more attempts to integrate Bitcoin into the wider economic system — most notably the integration of Bitpay with Amazon.com — have brought ...

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* IS BITCOIN BETTER THAN GOLD and HOW TO STORE??? Question and Answer Series

These two technical experts weigh in on the differences and commonalities between Gold and Bitcoin. ... How To Read Stock Charts Properly & Develop a Market Bias ... Deflationary Depression - Bear ... Bitcoin's deflationary bias encourages hoarding. However, currently Bitcoin does see some use as a currency. By November 2013 there were about 1000 "brick and mortar" businesses willing to accept ... Gold Silver Crude Bitcoin and Forex Majors weekly analysis 20 - 24 April 2020 in applied EW Theory - Duration: 1:30:58. NMK Vijay's Forex Surfers Channel 445 views 1:30:58 🎯Why Bitcoin was a Short and the coming 5x ... Three Falling Wedges resolve upside, bull bias STF, Descending Triangle is a Fox ... A Deflationary World. - Duration: 15:56. ... This video is unavailable. Watch Queue

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