Bitcoin: Making Money Using Stock to Flow

10-29 22:39 - 'Buy the rumor, sell the fact? Just an old fashioned stock market guideline. All time high although B2X fork in the background. I am gonna move to bitcoin cash - finally the real Satoshi. And probably the better per...' (i.redd.it) by /u/XVA-Coin removed from /r/Bitcoin within 12-22min

Buy the rumor, sell the fact? Just an old fashioned stock market guideline. All time high although B2X fork in the background. I am gonna move to bitcoin cash - finally the real Satoshi. And probably the better performance next week.
Go1dfish undelete link
unreddit undelete link
Author: XVA-Coin
submitted by removalbot to removalbot [link] [comments]

Let's talk about Bitcoin price volatility.

The idea of that as more people adopt Bitcoin the price will stabilize to its long term exponential curve.
Here's why I think that's true.
  1. We're already seeing this. Check out the price charts to confirm.
  2. It makes sense. The ratio of seasoned Bitcoiners to new investors increases over time. N00bs are far more likely to panic sell for a loss. So as more and more Bitcoin users develop their strong aversion to selling, the sharp downward swings (caused by panic selling n00bs) are reduced in severity and frequency.
  3. Plus now we have larger, more wealthy entities who buy the dip. Microstrategy already publicly announced that they're doing this. So large dips are cut off before they gain any momentum. You'll only see large downward swings if someone cashes out a few million dollars in BTC all at once. But the severity of those dips will be blunted.
  4. Regular buyers: Grayscale Bitcoin Trust alone is buying more than 100% of the newly mined Bitcoins. Where do you think the extra Bitcoin is coming from? (BTW glorious nation of Kazakhstan just invested $700,000,000 in Bitcoin mining gear). Eventually this pool of existing Bitcoin that they're buying from will dry up more and more. That's without even considering the massive effect that the 4 year halving cycle creates.
  5. At the next halving 31months from now, the amount of new Bitcoin created gets cut in half again for the 4th time. This will run the well even drier. Let's say Grayscale continues to buy the same amount (even though they will definitely keep increasing their investment and other players will join in too). The faster the reserve of already existing Bitcoin is getting bought up, the faster the price goes up. The halvings increase this every 4 years.
It is an absolute certainty that Bitcoin will outperform every alternative investment and one day replace or completely dominate every other type of money.
And for the Bitcoin scaling issue, the lightning network has already solved that. It does a million transactions per second, and has the capacity to send 10 BTC at once, instantly, for a few Satoshis (practically free). The Bitcoin blockchain will always run right about at capacity. The lightning network has private transactions. How do we know that Bitcoin together with Bitcoin lightning aren't doing as much business as Visa?
There is no limit for how high Bitcoin will go.
Compare this with TSLA. Today they have a P/E ratio of 1145. Many will consider this to be overvalued. That limits how high the stock price can go. Plus, you can't spend stock. You HAVE TO sell it first.
Bitcoin has no such limits. The price of Bitcoin can and will continue to go up exponentially over the long term. As volatility improves, the pace of price increase should increase as well. Accelerating acceleration. You never need to sell Bitcoin. Just spend it, unlike stocks or other financial instruments.
Eventually, after 6 or 7 more halvenings, Bitcoin will have a market cap of higher than the rest of the world's wealth combined. Every step is there between here and then. Eventually government created fiat money will be nearly entirely worthless by comparison.
This halving period will create another bull run as more institutional investors adopt the hold forever strategy. Volatility goes down. Bitcoin becomes more famous for its performance, draws deeper attention, converts more believers/investors, more people hold forever, Bitcoin price goes to infinity with no limit. It's just a matter of time.
Bitcoin is the most genius thing I've ever seen.
submitted by BlandTomato to Bitcoin [link] [comments]

Repeated Experiment: I bought $1k of Top10 Cryptos on 01/01/2019. Result? UP +43%

Repeated Experiment: I bought $1k of Top10 Cryptos on 01/01/2019. Result? UP +43%

EXPERIMENT - Tracking 2019 Top Ten Cryptocurrencies – Month Seventeen - UP 43%

Full blog post with all the tables here.

tl;dr - This is the 17th monthly update on the 2019 Top Ten Experiment. Ethereum up the most in May, plus got a shout out from J.K. Rowling, so it obviously won the month. Overall, BTC in first place since January 2019, BSV in second place. Half of the 2019 Top Ten Portfolio is up at least +50%. XRP is worst performing. Total $3k (3 x $1k) investments the 2018, 2019, and 2020 Top Ten are up +3.5%, but similar approach with US stocks market would have yielded +10%.

The Experiment:

Instead of hypothetically tracking cryptos, I made an actual $1000 investment, $100 in each of the Top 10 cryptocurrencies by market cap on the 1st of January 2018. The result? The 2018 Top Ten portfolio ended 2018 down 85%, my $1000 worth only $150. I then repeated the experiment on the 1st of January 2019 with the new 2019 Top Ten cryptos, then again in 2020.
Think of the Top Ten Experiments as a lazy man’s Index Fund (no weighting or rebalancing), less technical, but hopefully still a proxy for the market as a whole – or at the very least an interesting snapshot of the 2018, 2019, and 2020 crypto space. I am trying to keep this project simple and accessible for beginners and those looking to get into crypto but maybe not quite ready to jump in yet. I try not to take sides or analyze, but rather attempt to report in a detached manner letting the numbers speak for themselves.
This is not investing advice – as a matter of fact, the vast majority of the reports will show that the Top Ten approach under performs other strategies. This experiment is designed to be documentary in nature, describing a specific period in cryptocurrency history.

The Rules:

Buy $100 of each the Top 10 cryptocurrencies on January 1st, 2018, 2019, and 2020. Hold only. No selling. No trading. Report monthly.

Month Seventeen – UP 43%

Unlike April’s all green month, May was more mixed. That said, the gains outweighed the losses this month in the 2019 Top Ten Portfolio.

Question of the month:

In May, Reddit launched two Ethereum-based tokens on the Cryptocurrency and FortNiteBR subreddits. What are the Cryptocurrency token called?
A) Moons
B) Bricks
C) Satoshis
D) Cryptos
Scroll down for the answer.

Ranking and March Winners and Losers

Besides Stellar (down two spots to #13) and Tron (down one from #16 to #17) every other crypto was locked in place.
Speaking of Stellar and Tron, they are still the only two cryptos to have dropped out of the 2019 Top Ten since January 1st, 2019. They have been replaced by Binance Coin and Tezos.
May WinnersEthereum ended the month up +16% and got a shout out from J.K. Rowling, so it obviously won May. BTC came in a close second this month, up +14%.
May Losers – A tight battle for the basement this month with BSV (down -3.9%) edging out XRP (down -3.7%) for the bottom spot.
For nerds those keeping score, here is tally of which coins have the most monthly wins and loses during the first seventeen months of the 2019 Top Ten Experiment: Tether is still in the lead with five monthly victories followed by BSV in second place with three. BSV also holds the most monthly losses, finishing last in six out of seventeen months.

Overall update – BTC increases lead over second place BSV, XRP still worst performing

Ahead until just last month, BSV lost a lot of ground to BTC in May. Bitcoin is now up +168% since January 2019 compared to BSV‘s +116% gain. That initial $100 investment in BTC? Now worth $273.
As was the case last month, 50% of the 2019 Top Ten cryptos are up at least +50% since the beginning of the experiment.
At the other end, XRP continues to struggle, now down -41% since January 2019.

Total Market Cap for the entire cryptocurrency sector:

The overall crypto market added about $35B in May, and is now near August 2019 levels. It is up +123% since January 2019.

Bitcoin dominance:

BitDom was steady again in May. This marks the third straight month it’s been stuck at around 65% For context, the range since the beginning of the experiment in January 2019 has been between 50%-70%.

Overall return on investment since January 1st, 2019:

The 2019 Top Ten Portfolio gained about $65 in May. After the initial $1000 investment, the 2019 group of cryptos is worth $1,431, up about +43%.
Here’s a look at the ROI over the life of the first seventeen months of the experiment, month by month:
Almost completely green for the 2019 Top Ten, a welcome change from the all red table you’ll see in the 2018 experiment. As you can see, every month except the first month ends in positive territory. At the lowest point, the 2019 Top Ten portfolio was down -9%, at the highest point, up +114% (May 2019).
How does the 2019 Top Ten Experiment compare to the parallel projects?
Taking the three portfolios together, here’s the bottom bottom bottom line:
After a $3000 investment in the 2018, 2019, and 2020 Top Ten Cryptocurrencies, my portfolios are worth $3,104‬.
That’s up about +3.5% for the combined portfolios. Better than a few months ago (aka the zombie apocalypse) where it was down -24%, but not yet back at January (+13%) or February (+6%) levels.
How does this compare to traditional markets?

How does the 2019 Top Ten portfolio compare US stock market?

Excellent question, I’m glad you asked. And you’re in luck, I’m also tracking the S&P 500 as part of my experiment to have a comparison point with other popular investments options. Despite the fact that the world seemed to be on fire, May 2020 saw the continued rebound of the stock market. It’s now up +22% since the start of the 2019 Experiment.
As a reminder (or just scroll up) the 2019 Top Ten portfolio is returning +43% over the same time period, which is about double the S&P 500.
The initial $1k investment I put into crypto would be worth $1,220 had it been redirected to the S&P 500 in January 2019.
But what if I took the same world’s-slowest-dollar-cost-averaging/$1,000-per-year-in-January approach with the S&P 500? It would yield the following:
  • $1000 investment in S&P 500 on January 1st, 2018: +$140
  • $1000 investment in S&P 500 on January 1st, 2019: +$220
  • $1000 investment in S&P 500 on January 1st, 2020: -$50
Taken together, here’s the bottom bottom bottom line for a similar approach with the S&P:
After three $1,000 investments into an S&P 500 index fund in January 2018, 2019, and 2020, my portfolio would be worth $3,310.
That $3,310 is up over+10% since January 2018, compared to the $3,104 value (+3.5%) of the combined Top Ten Crypto Experiment Portfolios.
That’s about a 7% difference in favor of the stock market. Last month, there was only a 3% difference, the month before, the gap was 13% (all in favor of the stock market).

Implications/Observations:

The difference between the 2019 Top Ten crypto group and the overall crypto market is stark. Since January 2019, the overall market has gained +123% compared to the 2019 Top Ten crypto group which has gained +43%. This is an absolutely massive 80% gap. A +43% return is solid compared to the stock market, but it also implies that an investor would have done much better picking different cryptos or investing in the entire market instead of focusing only on the Top Ten. There are a few examples of this approach outperforming the overall market in this 2019 Top Ten Crypto Experiment, but the cases are few and far between.
The 2018 Top Ten portfolio, on the other hand, has never outperformed the overall market, at least not in the first twenty-nine months of that Experiment.
For the most recent 2020 Top Ten group, the opposite had been true: the 2020 Top Ten had easily outperformed the overall market 100% of the time…until this month.

Conclusion:

The BTC halving event came and went in May and crypto markets shrugged. As the world continues to change because of COVID-19, what will be crypto’s place when we finally emerge on the other side?
Final word: Please take care of yourselves, your families, and your communities. Stay safe out there.
Thanks for reading and for supporting the experiment. I hope you’ve found it helpful. I continue to be committed to seeing this process through and reporting along the way. Feel free to reach out with any questions and stay tuned for progress reports. Keep an eye out for the original 2018 Top Ten Crypto Index Fund Experiment and the recently launched 2020 Top Ten Experiment.

And the Answer is…

A) Moons
According CryptoCurrency, Moons represent ownership in the subreddit, “tokens on the Ethereum blockchain controlled entirely by you, and they can be freely transferred, tipped, and spent in CryptoCurrency*.*” Check out this post for more details.
submitted by Joe-M-4 to CryptoCurrency [link] [comments]

Deep fundamental reasons behind all conflicts with Tezos Foundation

Let's first take a look at two core ideas behind Tezos protocol:
  1. In Bitcoin protocol, there are those who create blocks (miners) and users. Those are two fundamentally different groups. As a result of that they do have fundamentally different interests. When those interests are aligned, it's all work very well. However, sometimes those interests might get misaligned. Miners might want one set of changes in the protocol while users might want another set of changes. Tezos procotol solves this problem via proof of stake's baking mechanism by allowing users of XTZ to become block creators (like miners in Bitcoin protocol). Users/holders of XTZ and block creators are now fundamentally the same group and therefore there is no interest misalignment. Moreover, as a consequence of choosing proof of stake over proof of work, almost anyone can become a baker at low cost. Of course, there is a minimum requirement but it can be easily reduced through voting if price XTZ goes too high;
  2. Although per (1) problem of misalignment between users and miners solved, Tezos protocol make one step further. Namely, there is self-amending mechanisms in protocol. Through of the set of voting rounds, attached bounties (via dillution), there is a deterministic path to resolve disputes in upgrading Tezos protocol. Nobody knows the future, nobody knows how protocol should look like after 5-10-20 years. That's why it's very important to have self-amending procedure. Without deterministic path to protocol upgrade, you will have fork-wars like in Bitcoin. As a result of these fork-wars, you now have Bitcoin, Bitcoin Cash, Bitcoin SV. Also, with built-in bounties via dillution, Tezos protocol guarantees funding for its further development;
There is third core idea behind Tezos protocol. Namely, formal verification friendly, low-level and explicit smart contract language - Michelson. While it's very important feature, it's not relevant for this discussion.
Now imagine you are going back in time when Tezos protocol isn't implemented yet, only draft whitepaper. How would you bring it to life if you were original author?
If there were no crypto-currencies, then all you have to do is to take time and implement minimum viable product (MVP) on your own. May be you might do it with co-founder but it's not really necessary for releasing the first version of protocol in absence of any competition.
However, the field was already crowded and time works against you. It would be necessary for project's survival to be as fast as possible in such dynamic field. You need to raise funds to hire dozen of strong programmers to implement Tezos protocol and on top of that to fund development of ecosystem in Tezos network. Namely, wallets, higher-level languages on top of low-level Michelson, education materials for future smart contract writers, new projects similar to 0x, Maker, Compound, Cryptokitties etc.
Now, I would like you to make a pause and think what is Tezos protocol. It tries to align incentives of parties using game-theoretic constructs! And now, I would like you to make second pause and think what crypto-currencies are all about in broader sense. Crypto-currencies are about eliminating centralization and unnecessary middle-mans. One of the biggest middle-mans is governments and their legal system.
People who are in the space for long time should know how much crypto-currencies influenced by Austrian School of Economics (read Hayek's book "Denationalization Of Money" (1976) and early Satoshi Nakamoto's posts).
With that in mind (spirit behind Tezos and crypto-currencies in general), how would you fund development of Tezos protocol and later its initial ecosystem?
The correct answer is to setup decentralized autonomus organization (DAO). Initial DAO on Ethereum protocol since you don't have any Tezos protocol implementations (remember, we are still back in time!).
This DAO will be used to develop Tezos protocol itself and leverage power of smart contracts to correctly align incentives for development of Tezos protocol. Namely, backers of this DAO would get ERC20 token representing voting and governance power. For example, let's say founders raised 250M USD worth in ETH and all of these money will be locked in smart contract. Only backers can unlock funds from smart contract by tranches as Tezos protocol developers making progress. It would be similar to traditional world - seed round, round A, round B etc. When Tezos mainnet goes live, backers would receive proportional amount of XTZ as their ERC20 voting tokens on Ethereum. Since that initial DAO would still have tons of ETH locked by the time Tezos mainnet released, those proceeds will be used to fund wallet developers, high-language developers, and so on (via voting by backers of course).
In this scenario, I would envision that the first big project after Tezos mainnet launched would be to build trustless, decentralized bridge between Tezos blockchain and Ethereum blockchain. Simply, because it would be good to migrate intial DAO and its ETH funds into Tezos blockchain.
There are only two downsides with this approach:
  1. You can't raise funds in Bitcoin but who cares if it's 100M or even 50M (still huge amount of money);
  2. Many people in crypto-space will make fun of you because you just setup DAO on Ethereum while developing Ethereum competitor;
Neither of these two downsides is important. Ultimate upside is that backers has direct control over how funds are spent because they would be the only ones who can unlock funds by voting for proposals.
On meta-level, you would have beautiful symmetry. Namely, you develop Tezos protocol and its ecosystem, using the similar ideas and spirit as Tezos protocol itself!
But we all know that it was never happened!
We all know drama with Gevers who tried to capture power at Tezos Foundation. We all know that there is no RPC command in Tezos github to vote out Tezos Foundation members ;) We all know that we are not in control of Tezos Foundation. Tezos Foundation is a swiss non-profit organization with its own board and we are not part of it. Tezos Foundation is govern under Swiss law and most of you are not even Swiss citizens.
Here is the question why Breitmans suddently decided to throw away all fundamental principles behind crypto-currencies and just went all-in with traditional world? Why we all got stuck with our own mini-Washington, namely Tezos Foundation? There is one reason why Breitmans decided to throw away all their principles and stick with this strange scheme involving Swiss foundations.
The reason is ... socialism. You might think I'm joking but stay with me. There were roaring 1920s and following 1929 stock market crash (by the way that was actually caused by government creating credit bubble). Republican (but still a socialist) Herbert Hoover created depression from 1929 crash. Franklin Roosevelt made this depression truly great! He imposed price-controls and outright gold confiscation (check "Executive Order 6102"). One of his most terrible pieces of paternalistic socialist legislation was "Securities Act of 1933". And this is the reason why Breitmans tried so hard escape iron hand of Roosevelt's zombie.
The same month as Tezos fundraiser, SEC issued statement about the most famous Ethereum DAO:
https://www.sec.gov/news/press-release/2017-131
https://www.sec.gov/litigation/investreport/34-81207.pdf
Basically, they tried to say that DAO violated their 1933 Securities Act (aka Roosevelt zombie). I'm not claiming that Breitmans anticipated this exact SEC statement about Ethereum DAO. All I'm saying that they are smart enough to understand that SEC might come after them as well. It doesn't matter if SEC had right to do so. It doesn't matter that XTZ is not security at all. Only people outside of hardcore old school crypto-community would believe in such non-sense as rights. The truth is that any government is essentially an army which controls a territory and they (not you!) decide what they think is right or wrong.
Breitmans knew that SEC might chase them with bloody machete, so they decided to play traditional game which many played when Switzerland still had numbered accounts. Namely, using Switzerland as old-style traditional escape from Roosevelt zombies.
Unfortunately, for them they got in hands of people who knew too well how actually Swiss foundations work. We all remember how Gevers tried to exploit Swiss law about foundations to seize control over foundation's assets. Now we have new drama. But fundamentally, it's all because Breitmans choose Swiss law over Ethereum smart-contracts.
Don't get me wrong, I'm not blaming Breitmans. I really think that their fear of Roosevelt zombie with bloody machete led them to setup weird foundation in Switzerland. In normal circumstances, I don't see any rational reason not to setup DAO as I described above.
Zooming out, on the bigger scale, you might see that these two worlds (i.e. traditional government law and crypto) are not compatible at all. You just can't have both of two worlds.
For the same reason, I don't believe in STOs. It's a nice toy, a temporary thing to bootstrap your Defi ecosystem in Tezos but nothing more than that.
Every STO, at some point, rely on some centralized entity which is controlled by law of some jurisdiction. Once government (aka army which control territories and make visibility of its own legitimacy via elections and passing laws) decides that your STO is not compliant, all these STO tokens will be worthless overnight. More on this in my another long post:
https://www.reddit.com/MakerDAO/comments/de0sys/kyc_is_absolutely_not_acceptable_for_makerdao/
Regardless of what's happen with Tezos Foundation, I strongly believe that Tezos protocol will thrive. Mainnet went life and the jinn that can't be put back in the bottle!
Update: Many here criticized my position regarding STOs. That's partly my fault with being too lax with terminology (once I wrote big post, I didn't have much energy to clarify on STOs in the end). By STO, I mean any tokens backed by regulated assets (again, I know it's lax definition). I assumed almost everyone here is for open, borderless finance. As a result of that, I assumed that you want to make these tokens available for everyone and that's why one day government will put pressure on such STO issuers to freeze tokens. However, it's turned out that some people excited for STOs being fully regulated from the start and therefore these tokens wouldn't be available for everyone. Basically, some people see main benefits of STOs as being pro-actively censorship friendly. In other words, they want to move all compliance on blockchain. Whereas, I see very existence of government regulations as root of all problems. Having said that, I'm not against STOs but I'm not very excited about them either. You have to make great mental leap to understand that fully-regulated STOs fundamentally solving wrong problem. You have to build fully censorship resistant technology, not fully censorship friendly. No matter how big market for STOs, it's still several orders of magnitude smaller than potential world of fully-inclusive finance without any borders whatsoever. Tezos is very well equipped for this ambitious task especially with new privacy features coming. Remember, Satoshi Nakamoto didn't ask permission from governments before releasing Bitcoin.
submitted by omgcoin to tezos [link] [comments]

Where is Bitcoin Going and When?

Where is Bitcoin Going and When?

The Federal Reserve and the United States government are pumping extreme amounts of money into the economy, already totaling over $484 billion. They are doing so because it already had a goal to inflate the United States Dollar (USD) so that the market can continue to all-time highs. It has always had this goal. They do not care how much inflation goes up by now as we are going into a depression with the potential to totally crash the US economy forever. They believe the only way to save the market from going to zero or negative values is to inflate it so much that it cannot possibly crash that low. Even if the market does not dip that low, inflation serves the interest of powerful people.
The impending crash of the stock market has ramifications for Bitcoin, as, though there is no direct ongoing-correlation between the two, major movements in traditional markets will necessarily affect Bitcoin. According to the Blockchain Center’s Cryptocurrency Correlation Tool, Bitcoin is not correlated with the stock market. However, when major market movements occur, they send ripples throughout the financial ecosystem which necessary affect even ordinarily uncorrelated assets.
Therefore, Bitcoin will reach X price on X date after crashing to a price of X by X date.

Stock Market Crash

The Federal Reserve has caused some serious consternation with their release of ridiculous amounts of money in an attempt to buoy the economy. At face value, it does not seem to have any rationale or logic behind it other than keeping the economy afloat long enough for individuals to profit financially and politically. However, there is an underlying basis to what is going on which is important to understand in order to profit financially.
All markets are functionally price probing systems. They constantly undergo a price-discovery process. In a fiat system, money is an illusory and a fundamentally synthetic instrument with no intrinsic value – similar to Bitcoin. The primary difference between Bitcoin is the underlying technology which provides a slew of benefits that fiat does not. Fiat, however, has an advantage in being able to have the support of powerful nation-states which can use their might to insure the currency’s prosperity.
Traditional stock markets are composed of indices (pl. of index). Indices are non-trading market instruments which are essentially summaries of business values which comprise them. They are continuously recalculated throughout a trading day, and sometimes reflected through tradable instruments such as Exchange Traded Funds or Futures. Indices are weighted by market capitalizations of various businesses.
Price theory essentially states that when a market fails to take out a new low in a given range, it will have an objective to take out the high. When a market fails to take out a new high, it has an objective to make a new low. This is why price-time charts go up and down, as it does this on a second-by-second, minute-by-minute, day-by-day, and even century-by-century basis. Therefore, market indices will always return to some type of bull market as, once a true low is formed, the market will have a price objective to take out a new high outside of its’ given range – which is an all-time high. Instruments can only functionally fall to zero, whereas they can grow infinitely.
So, why inflate the economy so much?
Deflation is disastrous for central banks and markets as it raises the possibility of producing an overall price objective of zero or negative values. Therefore, under a fractional reserve system with a fiat currency managed by a central bank – the goal of the central bank is to depreciate the currency. The dollar is manipulated constantly with the intention of depreciating its’ value.
Central banks have a goal of continued inflated fiat values. They tend to ordinarily contain it at less than ten percent (10%) per annum in order for the psyche of the general populace to slowly adjust price increases. As such, the markets are divorced from any other logic. Economic policy is the maintenance of human egos, not catering to fundamental analysis. Gross Domestic Product (GDP) growth is well-known not to be a measure of actual growth or output. It is a measure of increase in dollars processed. Banks seek to produce raising numbers which make society feel like it is growing economically, making people optimistic. To do so, the currency is inflated, though inflation itself does not actually increase growth. When society is optimistic, it spends and engages in business – resulting in actual growth. It also encourages people to take on credit and debts, creating more fictional fiat.
Inflation is necessary for markets to continue to reach new heights, generating positive emotional responses from the populace, encouraging spending, encouraging debt intake, further inflating the currency, and increasing the sale of government bonds. The fiat system only survives by generating more imaginary money on a regular basis.
Bitcoin investors may profit from this by realizing that stock investors as a whole always stand to profit from the market so long as it is managed by a central bank and does not collapse entirely. If those elements are filled, it has an unending price objective to raise to new heights. It also allows us to realize that this response indicates that the higher-ups believe that the economy could crash in entirety, and it may be wise for investors to have multiple well-thought-out exit strategies.

Economic Analysis of Bitcoin

The reason why the Fed is so aggressively inflating the economy is due to fears that it will collapse forever or never rebound. As such, coupled with a global depression, a huge demand will appear for a reserve currency which is fundamentally different than the previous system. Bitcoin, though a currency or asset, is also a market. It also undergoes a constant price-probing process. Unlike traditional markets, Bitcoin has the exact opposite goal. Bitcoin seeks to appreciate in value and not depreciate. This has a quite different affect in that Bitcoin could potentially become worthless and have a price objective of zero.
Bitcoin was created in 2008 by a now famous mysterious figure known as Satoshi Nakamoto and its’ open source code was released in 2009. It was the first decentralized cryptocurrency to utilize a novel protocol known as the blockchain. Up to one megabyte of data may be sent with each transaction. It is decentralized, anonymous, transparent, easy to set-up, and provides myriad other benefits. Bitcoin is not backed up by anything other than its’ own technology.
Bitcoin is can never be expected to collapse as a framework, even were it to become worthless. The stock market has the potential to collapse in entirety, whereas, as long as the internet exists, Bitcoin will be a functional system with a self-authenticating framework. That capacity to persist regardless of the actual price of Bitcoin and the deflationary nature of Bitcoin means that it has something which fiat does not – inherent value.
Bitcoin is based on a distributed database known as the “blockchain.” Blockchains are essentially decentralized virtual ledger books, replete with pages known as “blocks.” Each page in a ledger is composed of paragraph entries, which are the actual transactions in the block.
Blockchains store information in the form of numerical transactions, which are just numbers. We can consider these numbers digital assets, such as Bitcoin. The data in a blockchain is immutable and recorded only by consensus-based algorithms. Bitcoin is cryptographic and all transactions are direct, without intermediary, peer-to-peer.
Bitcoin does not require trust in a central bank. It requires trust on the technology behind it, which is open-source and may be evaluated by anyone at any time. Furthermore, it is impossible to manipulate as doing so would require all of the nodes in the network to be hacked at once – unlike the stock market which is manipulated by the government and “Market Makers”. Bitcoin is also private in that, though the ledge is openly distributed, it is encrypted. Bitcoin’s blockchain has one of the greatest redundancy and information disaster recovery systems ever developed.
Bitcoin has a distributed governance model in that it is controlled by its’ users. There is no need to trust a payment processor or bank, or even to pay fees to such entities. There are also no third-party fees for transaction processing. As the ledge is immutable and transparent it is never possible to change it – the data on the blockchain is permanent. The system is not easily susceptible to attacks as it is widely distributed. Furthermore, as users of Bitcoin have their private keys assigned to their transactions, they are virtually impossible to fake. No lengthy verification, reconciliation, nor clearing process exists with Bitcoin.
Bitcoin is based on a proof-of-work algorithm. Every transaction on the network has an associated mathetical “puzzle”. Computers known as miners compete to solve the complex cryptographic hash algorithm that comprises that puzzle. The solution is proof that the miner engaged in sufficient work. The puzzle is known as a nonce, a number used only once. There is only one major nonce at a time and it issues 12.5 Bitcoin. Once it is solved, the fact that the nonce has been solved is made public.
A block is mined on average of once every ten minutes. However, the blockchain checks every 2,016,000 minutes (approximately four years) if 201,600 blocks were mined. If it was faster, it increases difficulty by half, thereby deflating Bitcoin. If it was slower, it decreases, thereby inflating Bitcoin. It will continue to do this until zero Bitcoin are issued, projected at the year 2140. On the twelfth of May, 2020, the blockchain will halve the amount of Bitcoin issued when each nonce is guessed. When Bitcoin was first created, fifty were issued per block as a reward to miners. 6.25 BTC will be issued from that point on once each nonce is solved.
Unlike fiat, Bitcoin is a deflationary currency. As BTC becomes scarcer, demand for it will increase, also raising the price. In this, BTC is similar to gold. It is predictable in its’ output, unlike the USD, as it is based on a programmed supply. We can predict BTC’s deflation and inflation almost exactly, if not exactly. Only 21 million BTC will ever be produced, unless the entire network concedes to change the protocol – which is highly unlikely.
Some of the drawbacks to BTC include congestion. At peak congestion, it may take an entire day to process a Bitcoin transaction as only three to five transactions may be processed per second. Receiving priority on a payment may cost up to the equivalent of twenty dollars ($20). Bitcoin mining consumes enough energy in one day to power a single-family home for an entire week.

Trading or Investing?

The fundamental divide in trading revolves around the question of market structure. Many feel that the market operates totally randomly and its’ behavior cannot be predicted. For the purposes of this article, we will assume that the market has a structure, but that that structure is not perfect. That market structure naturally generates chart patterns as the market records prices in time. In order to determine when the stock market will crash, causing a major decline in BTC price, we will analyze an instrument, an exchange traded fund, which represents an index, as opposed to a particular stock. The price patterns of the various stocks in an index are effectively smoothed out. In doing so, a more technical picture arises. Perhaps the most popular of these is the SPDR S&P Standard and Poor 500 Exchange Traded Fund ($SPY).
In trading, little to no concern is given about value of underlying asset. We are concerned primarily about liquidity and trading ranges, which are the amount of value fluctuating on a short-term basis, as measured by volatility-implied trading ranges. Fundamental analysis plays a role, however markets often do not react to real-world factors in a logical fashion. Therefore, fundamental analysis is more appropriate for long-term investing.
The fundamental derivatives of a chart are time (x-axis) and price (y-axis). The primary technical indicator is price, as everything else is lagging in the past. Price represents current asking price and incorrectly implementing positions based on price is one of the biggest trading errors.
Markets and currencies ordinarily have noise, their tendency to back-and-fill, which must be filtered out for true pattern recognition. That noise does have a utility, however, in allowing traders second chances to enter favorable positions at slightly less favorable entry points. When you have any market with enough liquidity for historical data to record a pattern, then a structure can be divined. The market probes prices as part of an ongoing price-discovery process. Market technicians must sometimes look outside of the technical realm and use visual inspection to ascertain the relevance of certain patterns, using a qualitative eye that recognizes the underlying quantitative nature
Markets and instruments rise slower than they correct, however they rise much more than they fall. In the same vein, instruments can only fall to having no worth, whereas they could theoretically grow infinitely and have continued to grow over time. Money in a fiat system is illusory. It is a fundamentally synthetic instrument which has no intrinsic value. Hence, the recent seemingly illogical fluctuations in the market.
According to trade theory, the unending purpose of a market or instrument is to create and break price ranges according to the laws of supply and demand. We must determine when to trade based on each market inflection point as defined in price and in time as opposed to abandoning the trend (as the contrarian trading in this sub often does). Time and Price symmetry must be used to be in accordance with the trend. When coupled with a favorable risk to reward ratio, the ability to stay in the market for most of the defined time period, and adherence to risk management rules; the trader has a solid methodology for achieving considerable gains.
We will engage in a longer term market-oriented analysis to avoid any time-focused pressure. The Bitcoin market is open twenty-four-hours a day, so trading may be done when the individual is ready, without any pressing need to be constantly alert. Let alone, we can safely project months in advance with relatively high accuracy. Bitcoin is an asset which an individual can both trade and invest, however this article will be focused on trading due to the wide volatility in BTC prices over the short-term.

Technical Indicator Analysis of Bitcoin

Technical indicators are often considered self-fulfilling prophecies due to mass-market psychology gravitating towards certain common numbers yielded from them. They are also often discounted when it comes to BTC. That means a trader must be especially aware of these numbers as they can prognosticate market movements. Often, they are meaningless in the larger picture of things.
  • Volume – derived from the market itself, it is mostly irrelevant. The major problem with volume for stocks is that the US market open causes tremendous volume surges eradicating any intrinsic volume analysis. This does not occur with BTC, as it is open twenty-four-seven. At major highs and lows, the market is typically anemic. Most traders are not active at terminal discretes (peaks and troughs) because of levels of fear. Volume allows us confidence in time and price symmetry market inflection points, if we observe low volume at a foretold range of values. We can rationalize that an absolute discrete is usually only discovered and anticipated by very few traders. As the general market realizes it, a herd mentality will push the market in the direction favorable to defending it. Volume is also useful for swing trading, as chances for swing’s validity increases if an increase in volume is seen on and after the swing’s activation. Volume is steadily decreasing. Lows and highs are reached when volume is lower.
Therefore, due to the relatively high volume on the 12th of March, we can safely determine that a low for BTC was not reached.
  • VIX – Volatility Index, this technical indicator indicates level of fear by the amount of options-based “insurance” in portfolios. A low VIX environment, less than 20 for the S&P index, indicates a stable market with a possible uptrend. A high VIX, over 20, indicates a possible downtrend. VIX is essentially useless for BTC as BTC-based options do not exist. It allows us to predict the market low for $SPY, which will have an indirect impact on BTC in the short term, likely leading to the yearly low. However, it is equally important to see how VIX is changing over time, if it is decreasing or increasing, as that indicates increasing or decreasing fear. Low volatility allows high leverage without risk or rest. Occasionally, markets do rise with high VIX.
As VIX is unusually high, in the forties, we can be confident that a downtrend for the S&P 500 is imminent.
  • RSI (Relative Strength Index): The most important technical indicator, useful for determining highs and lows when time symmetry is not availing itself. Sometimes analysis of RSI can conflict in different time frames, easiest way to use it is when it is at extremes – either under 30 or over 70. Extremes can be used for filtering highs or lows based on time-and-price window calculations. Highly instructive as to major corrective clues and indicative of continued directional movement. Must determine if longer-term RSI values find support at same values as before. It is currently at 73.56.
  • Secondly, RSI may be used as a high or low filter, to observe the level that short-term RSI reaches in counter-trend corrections. Repetitions based on market movements based on RSI determine how long a trade should be held onto. Once a short term RSI reaches an extreme and stay there, the other RSI’s should gradually reach the same extremes. Once all RSI’s are at extreme highs, a trend confirmation should occur and RSI’s should drop to their midpoint.

Trend Definition Analysis of Bitcoin

Trend definition is highly powerful, cannot be understated. Knowledge of trend logic is enough to be a profitable trader, yet defining a trend is an arduous process. Multiple trends coexist across multiple time frames and across multiple market sectors. Like time structure, it makes the underlying price of the instrument irrelevant. Trend definitions cannot determine the validity of newly formed discretes. Trend becomes apparent when trades based in counter-trend inflection points continue to fail.
Downtrends are defined as an instrument making lower lows and lower highs that are recurrent, additive, qualified swing setups. Downtrends for all instruments are similar, except forex. They are fast and complete much quicker than uptrends. An average downtrend is 18 months, something which we will return to. An uptrend inception occurs when an instrument reaches a point where it fails to make a new low, then that low will be tested. After that, the instrument will either have a deep range retracement or it may take out the low slightly, resulting in a double-bottom. A swing must eventually form.
A simple way to roughly determine trend is to attempt to draw a line from three tops going upwards (uptrend) or a line from three bottoms going downwards (downtrend). It is not possible to correctly draw a downtrend line on the BTC chart, but it is possible to correctly draw an uptrend – indicating that the overall trend is downwards. The only mitigating factor is the impending stock market crash.

Time Symmetry Analysis of Bitcoin

Time is the movement from the past through the present into the future. It is a measurement in quantified intervals. In many ways, our perception of it is a human construct. It is more powerful than price as time may be utilized for a trade regardless of the market inflection point’s price. Were it possible to perfectly understand time, price would be totally irrelevant due to the predictive certainty time affords. Time structure is easier to learn than price, but much more difficult to apply with any accuracy. It is the hardest aspect of trading to learn, but also the most rewarding.
Humans do not have the ability to recognize every time window, however the ability to define market inflection points in terms of time is the single most powerful trading edge. Regardless, price should not be abandoned for time alone. Time structure analysis It is inherently flawed, as such the markets have a fail-safe, which is Price Structure. Even though Time is much more powerful, Price Structure should never be completely ignored. Time is the qualifier for Price and vice versa. Time can fail by tricking traders into counter-trend trading.
Time is a predestined trade quantifier, a filter to slow trades down, as it allows a trader to specifically focus on specific time windows and rest at others. It allows for quantitative measurements to reach deterministic values and is the primary qualifier for trends. Time structure should be utilized before price structure, and it is the primary trade criterion which requires support from price. We can see price structure on a chart, as areas of mathematical support or resistance, but we cannot see time structure.
Time may be used to tell us an exact point in the future where the market will inflect, after Price Theory has been fulfilled. In the present, price objectives based on price theory added to possible future times for market inflection points give us the exact time of market inflection points and price.
Time Structure is repetitions of time or inherent cycles of time, occurring in a methodical way to provide time windows which may be utilized for inflection points. They are not easily recognized and not easily defined by a price chart as measuring and observing time is very exact. Time structure is not a science, yet it does require precise measurements. Nothing is certain or definite. The critical question must be if a particular approach to time structure is currently lucrative or not.
We will measure it in intervals of 180 bars. Our goal is to determine time windows, when the market will react and when we should pay the most attention. By using time repetitions, the fact that market inflection points occurred at some point in the past and should, therefore, reoccur at some point in the future, we should obtain confidence as to when SPY will reach a market inflection point. Time repetitions are essentially the market’s memory. However, simply measuring the time between two points then trying to extrapolate into the future does not work. Measuring time is not the same as defining time repetitions. We will evaluate past sessions for market inflection points, whether discretes, qualified swings, or intra-range. Then records the times that the market has made highs or lows in a comparable time period to the future one seeks to trade in.
What follows is a time Histogram – A grouping of times which appear close together, then segregated based on that closeness. Time is aligned into combined histogram of repetitions and cycles, however cycles are irrelevant on a daily basis. If trading on an hourly basis, do not use hours.
  • Yearly Lows (last seven years): 1/1/13, 4/10/14, 1/15/15, 1/17/16, 1/1/17, 12/15/18, 2/6/19
  • Monthly Mode: 1, 1, 1, 1, 2, 4, 12
  • Daily Mode: 1, 1, 6, 10, 15, 15, 17
  • Monthly Lows (for the last year): 3/12/20 (10:00pm), 2/28/20 (7:09am), 1/2/20 (8:09pm), 12/18/19 (8:00am), 11/25/19 (1:00am), 10/24/19 (2:59am), 9/30/19 (2:59am), 8/29,19 (4:00am), 7/17/19 (7:59am), 6/4/19 (5:59pm), 5/1/19 (12:00am), 4/1/19 (12:00am)
  • Daily Lows Mode for those Months: 1, 1, 2, 4, 12, 17, 18, 24, 25, 28, 29, 30
  • Hourly Lows Mode for those Months (Military time): 0100, 0200, 0200, 0400, 0700, 0700, 0800, 1200, 1200, 1700, 2000, 2200
  • Minute Lows Mode for those Months: 00, 00, 00, 00, 00, 00, 09, 09, 59, 59, 59, 59
  • Day of the Week Lows (last twenty-six weeks):
Weighted Times are repetitions which appears multiple times within the same list, observed and accentuated once divided into relevant sections of the histogram. They are important in the presently defined trading time period and are similar to a mathematical mode with respect to a series. Phased times are essentially periodical patterns in histograms, though they do not guarantee inflection points
Evaluating the yearly lows, we see that BTC tends to have its lows primarily at the beginning of every year, with a possibility of it being at the end of the year. Following the same methodology, we get the middle of the month as the likeliest day. However, evaluating the monthly lows for the past year, the beginning and end of the month are more likely for lows.
Therefore, we have two primary dates from our histogram.
1/1/21, 1/15/21, and 1/29/21
2:00am, 8:00am, 12:00pm, or 10:00pm
In fact, the high for this year was February the 14th, only thirty days off from our histogram calculations.
The 8.6-Year Armstrong-Princeton Global Economic Confidence model states that 2.15 year intervals occur between corrections, relevant highs and lows. 2.15 years from the all-time peak discrete is February 9, 2020 – a reasonably accurate depiction of the low for this year (which was on 3/12/20). (Taking only the Armstrong model into account, the next high should be Saturday, April 23, 2022). Therefore, the Armstrong model indicates that we have actually bottomed out for the year!
Bear markets cannot exist in perpetuity whereas bull markets can. Bear markets will eventually have price objectives of zero, whereas bull markets can increase to infinity. It can occur for individual market instruments, but not markets as a whole. Since bull markets are defined by low volatility, they also last longer. Once a bull market is indicated, the trader can remain in a long position until a new high is reached, then switch to shorts. The average bear market is eighteen months long, giving us a date of August 19th, 2021 for the end of this bear market – roughly speaking. They cannot be shorter than fifteen months for a central-bank controlled market, which does not apply to Bitcoin. (Otherwise, it would continue until Sunday, September 12, 2021.) However, we should expect Bitcoin to experience its’ exponential growth after the stock market re-enters a bull market.
Terry Laundy’s T-Theory implemented by measuring the time of an indicator from peak to trough, then using that to define a future time window. It is similar to an head-and-shoulders pattern in that it is the process of forming the right side from a synthetic technical indicator. If the indicator is making continued lows, then time is recalculated for defining the right side of the T. The date of the market inflection point may be a price or indicator inflection date, so it is not always exactly useful. It is better to make us aware of possible market inflection points, clustered with other data. It gives us an RSI low of May, 9th 2020.
The Bradley Cycle is coupled with volatility allows start dates for campaigns or put options as insurance in portfolios for stocks. However, it is also useful for predicting market moves instead of terminal dates for discretes. Using dates which correspond to discretes, we can see how those dates correspond with changes in VIX.
Therefore, our timeline looks like:
  • 2/14/20 – yearly high ($10372 USD)
  • 3/12/20 – yearly low thus far ($3858 USD)
  • 5/9/20 – T-Theory true yearly low (BTC between 4863 and 3569)
  • 5/26/20 – hashrate difficulty halvening
  • 11/14/20 – stock market low
  • 1/15/21 – yearly low for BTC, around $8528
  • 8/19/21 – end of stock bear market
  • 11/26/21 – eighteen months from halvening, average peak from halvenings (BTC begins rising from $3000 area to above $23,312)
  • 4/23/22 – all-time high
Taken from my blog: http://aliamin.info/2020/
submitted by aibnsamin1 to Bitcoin [link] [comments]

Some very important points that most people do not understand about Bitcoin

Point 1)
Most people do not understand that you can't send money over internet, but only information. Bitcoin is the first digital settlement layer.
When I send a picture to someone on Facebook messenger, I don't actually send a picture. I send information about the pictures structure, and the picture gets restructured on the client side (the cellphone) of the user I send it to. Copy of the information is being sent, not the picture itself. So you can't send money over internet, it is not possible, only information.
If I have a bank account at some bank, and I send $50 dollars to another person in the same bank by using the banks website, then a transaction happens between two people within the same infrastructure, which is the banks back-end system and database. So the banks system just subtracts $50 dollars from one person and adds $50 dollars to another person. But no money has moved, only information has been edited. But if I send money to someone that uses another Bank, then this bank has its own infrastructure which is independent of the first. So Bank1 tells Bank2 that they have a user that wants to send money to a user of the other bank. So Bank1 subtracts $50 from User1, and Bank2 adds $50 to User2, but now Bank1 owes Bank2 $50, why? Because you can't send money over internet. So they have to settle the difference between them with some kind of a settlement system, (cash, gold or a third party like a central bank). This difference can be the result of many transactions between many users and can be millions of dollars of worth, the settlement can be done periodically for example every 6 months.
With Bitcoin, because of how the system works, it is almost as if you can send value over internet for the first time, even though you don't really send value, you still send information, but since the infrastructure is global, it is like the first example, it is as if the world has (one large bank infrastructure), that is fully automated and which no one controls.
This alone makes Bitcoin extremely valuable, because it is a trust less digital settlement layer which is extremely secure and not dependent on one particular nation or organisation.
Point 2)
There can never be more than 21 million Bitcoin. This is very hard for people to grasp. Because what do you mean there can never be more than 21 million bitcoin? It sounds like a game, such a scam... People do not understand that Bitcoin is not normal software. In normal software the developers can change the code as they want and publish the code when they want. They do not understand that Bitcoin is a software that is not like a normal software. You can't actually change the number even if the number is programmed in. Which of-course most people will deny, because it makes no sense for most people. They do not understand that even though it is theoretically possible to change it, it is practically almost impossible. It is theoretically possible for me to convince half of Sweden to burn half of their money, but practically impossible. Just because something is theoretically possible, doesn't mean that it will happen within a time frame, or even in your lifetime. In order for the 21 million supply to change, most people in the Bitcoin community needs to agree on it, which is practically impossible. Miners have to change to the new protocol and so on. Not going to happen.
When gold treasures were lost in the past, someone else could find them. Gold practically never completely disappears, it is a chemical element. With Bitcoin, once it is lost it is practically lost forever (put aside quantum computing for now and other theoretical unforeseeable events). 21 million is only the upper theoretical limit. Bitcoin will be more and more scarce as time goes by. Gold is not like this. Gold has an inflation rate of 1,5% every year. The reason it is constant is because even if the stock gets bigger, the flow into the stock also gets bigger because of better mining capabilities, so you can look at it as constant inflation of 1.5% every year. With Bitcoin, not only do the stock to flow ratio go up every halvening, and the flow into bitcoin not only decreases with time, but almost goes into negative because of lost coins every year. This is completely insane and people do not understand this. If you combine this almost deflationary nature of Bitcoin with extreme bullish market sentiment then you will realize that no one knows what is going to happen in the future because wrapping your head around all this and to come to a conclusion about the Bitcoin price will make you sound absolutely delusional to most people.
Point 3)
People think that $100,000 bitcoin is wishful thinking and that there is not enough money in the world for Bitcoin to be worth millions of dollars. Which I can assure you is false. Bitcoin can even be worth $50 million dollars per coin, which would make 2 satoshi 1 dollar. Even if one Bitcoin transaction would cost 10 000 Satoshi. You might say, that's not possible, whats the point if one transaction is so expensive. Again, you don't need to actually do a transfer of money, as in the first example of point 1, virtual transactions on bank level can happen, or on Coinbase. You can send 100 satoshi to someone and pay 1 satoshi in fee "on the bank level", not on chain, banks or exchanges then will settle the difference as they want. At least with Bitcoin you have the option to be you own bank, even if that will cost you more, you still have the option. This is already happening in front of your eyes. Banks like Dutch ING, Deutsche bank, are already working on custody services for cryptocurrencies. And even exchanges want to operate as banks and exchanges like Coinbase are working to get license for this. This is already happening and it is the correct move forwards, a mix between the legacy banking system and cryptocurrencies. You can already spend your Bitcoin with Coinbase Visa Card or similar services. Most people are too lazy and stupid to operate like us with their own wallets, it is a fact well known.
In terms of the price, money inflow is not the same as market cap. Take for instance the following simple scenario. I own 100% of the shares of my own company and I decide to sell 10% of the company for 1 million USD, which will value my whole company at 10 million USD, so 1 million flow into my company leads to 10x market cap of 10 million USD. For Bitcoin to have 21 trillion market cap, Bitcoin does not need 21 trillion of money inflow. Bitcoin price is dependent on market sentiment, if the market sentiment is such that very few people want to sell their coins because the price keeps going up then you might have 100x market cap of the money inflow. So 1 billion USD in money inflow translates to 100 billion USD in market cap. The multiplier can be 10x, 2x or 50x, all depends on market sentiment and time period. So an inflow of 10 trillion USD in 10 years might lead to 100 trillion USD market cap of BTC and 5 million USD per Bitcoin.
Bitcoin value have no roof, the price might actually just keep going up and up and up and up and up. We have never had something that is absolutely scarce, and global, and seen as an alternative form of money, when the rest of the world keeps bubbling up. There is no limit on the BTC price because the whole world works with a bubbly system, and the way Bitcoin is price discovered, is a guaranteed insane BTC price in the future. Even $100 million USD per Bitcoin in 50 years before I am dead is possible.
Point 4)
Fiat does not need to die, and Bitcoin does not need to take over in order for Bitcoin to have "ridiculous price". No financial crisis is needed. Actually what you want is things to just continue as they have done in the last 10 years. No too extreme events. Just "small events" here and there. You can't change human nature, it is inevitable. Bitcoin is so ingrained into our world that there is no way back. There will be people with whole Bitcoin, and people without. Just like people with gold and stock investments and real estate, and people without those things. No insane events, this is all normal.
Point 5)
Bitcoin has won as the financial cryptocurrency. No flippening will happen. The only flippening will be with gold and fiat currencies. If I wanted to, I could have developed a system like PayPal in 1 month time, and it would be able to do 5000 transactions per second because I would use MySQL and SSD, but no one would use my service because they would not trust me because they have no idea who I am and what my service is, and there is no one to send money too, so the network is not there. Bitcoin has won because security and network effect is way more important than transactions per second. Transactions per second will be dealt with on bank level, exchange level, or layer 2 solutions. This is already clear to me. Bitcoin has won.
Point 6)
In order to understand Bitcoin and what will happen in the future, you have to be able to see things that are not in front of you. You can't compare Bitcoin to Tulip mania, or even Gold. Because something like Bitcoin has never existed before and you have to think about it's properties and try to understand it with human nature and with how the world works and how everything keeps increasing, and Bitcoin is the thing that does not increase in supply. You will eventually accept the unnatural thought of Bitcoin never stopping going up in value, which is something that is hard to come to terms with, because it feels unnatural, "and it could not possibly be so".
Point 7)
The Gini coefficient of Bitcoin is not a big deal. I used to think that it was unfair that some people had 1,000 BTC, 10,000 BTC, or even 50,000 BTC. And I was afraid that they might dump their coins into the market and crash it. I have now realised that these people are smart people and they think like me, and they won't just dump their whole BTC holding on the market as that might be a very bad move for them. It is like when a majority holder of a company, like Jeff Bezos and Amazon, understands that he can't sell all of his shares in one go as that would effect Amazon stock value too much and would not be smart. It is best to sell when the price goes up, but then when they sell the BTC will just be eaten up by other people, and they will be at a loss in the longer term. And the other thing is that perhaps there is no other smart place to put that fiat money, Bitcoin might just be the best place to keep those amounts of money. Someone with a very large holding has two options. He can either sell his BTC, in which case the price would go down but the Bitcoin would be spread out between potentially thousands of new users, or he might decide to never sell. If he decides to never sell, it is as if those Bitcoins are lost forever and that is good for the Bitcoin price and Bitcoin in general. If he decides to sell then Bitcoin will be divided more equally among many users which is also a good thing for Bitcoin because that increases the network effect, and after he sells he no longer has the power to drive the price down, but now he sits on a very large fiat holding, he might even buy back at a higher price and drive the price higher. I know that if I had 10,000 BTC, I would sell 1,000 BTC and buy a house and a car and whatever I wanted, and sell another 1,000 BTC to diversify into some other assets. And keep 8,000 BTC because I don't know of anywhere else to put that kind of money into good work. I believe in Bitcoin so as an investor it makes sense to keep it here. I probably would never sell because I would never need anything else after the initial 1,000 BTC sell.
Bitcoin is like a black hole that sucks in the Earths monetary resources over time. Most people that bought really early and were smart enough to hold all the way to these prices will only sell what they need to sell and keep the rest in BTC. Some of them might want to speculate and try to time the ATH, only to buy back in with most of the fiat they sold. Which means that even if money goes out of the market, it only goes out of the market temporarily, only to get back in at hopefully lower prices. And so the market grows, and grows and grows over time.
Point 8)
Bitcoin has intrinsic value. When people like Peter Schiff say that gold has intrinsic value because gold can be used in electronics and aviation and therefore gold has value but Bitcoin has no value because it has no intrinsic value, you have to take a pause and do some critical thinking. Can you imagine 16th century pirates looking to find a gold treasure worth an insane amount because they knew gold had value because of electronics and aviation? This is clearly absurd. Gold has been used as money for thousands of years and electronics and aviation was not even a thing 150 years ago. Gold has value because it is globally scarce. Bitcoin is absolutely verifiable scarce. Bitcoin has intrinsic value because of it's monetary policy and because you can carry millions of dollars of value by remembering only 24 words in your head, and carry that value wherever you want and no one can stop you, that is intrinsic value.
People had a hard time understanding that a website like Facebook could be worth billions of dollars, because it was not physical, it was "just a website". Even a website like Google search is not physical and still it has immense value. It is valuable information and it provides a good service, and that has value, it does not have to be physical and tangible.
submitted by 21btc to Bitcoin [link] [comments]

White Paper, Miner, Pizza … | "Old Objects" in the Cryptocurrency Museum

White Paper, Miner, Pizza … |
https://preview.redd.it/giu1ssilga151.jpg?width=900&format=pjpg&auto=webp&s=41510785ccdc0d99544ec74229f62427d1c0ce3e
Museum has played the role of a time recorder. Talking about bitcoin, more than ten years has passed since the creation of it. Although it is uncomparable to the stock market with a hundred years of history, during the ten years, in the different stages of the development of bitcoin and blockchain have continuously poured in geeks, miners, speculators, newbies, leaving keywords such as sudden rich, myth, scam, belief, revolution, etc.
There are also many “old objects” with stories in the “Museum” of the cryptocurrency realm. On Museum Day, let ’s review the stories brought by these “old objects”.
The First Digital Currency White Paper — Bitcoin White Paper
On Oct. 31, 2008, Satoshi Nakamoto released the Bitcoin white paper — A Peer-to-Peer Electronic Cash System in the cryptographic mail group where he belongs, and Bitcoin was born since then.
A white paper is a document that explains the purpose and technology used in cryptocurrency. Usually a cryptocurrency uses the white paper to help people understand what it provides, and it is also an important information channel for investors to understand a project. Therefore, the level of the white paper affects people’s confidence towards the coin.
In a word, in the cryptocurrency and blockchain industry, the value of a white paper is equivalent to that of a standard financing speech. The white paper plays a vital role in this emerging market.
The First Public Bitcoin-Physical Transaction — Pizza
Since Satoshi Nakamoto mined the Bitcoin genesis block on January 3, 2009, Bitcoin has only been spread among the small crowd and has not realized its value.
Not until May 22, 2010, Bitcoin enthusiast “Laszlo Hanyecz” bought a pizza coupon worth $25 with 10,000 bitcoins. This is the first public bitcoin-physical transaction. Bitcoin has its price with 0.3 cents per bitcoin.


This day has also become the famous “Bitcoin Pizza Day” in Bitcoin history. Bitcoin as the imagination of the financial system has more practical significance. The tenth anniversary is coming. How will you commemorate it? Will you buy a pizza?
The First Digital Asset Exchange — Bitcoinmarket.com
After the birth of Bitcoin, in addition to mining, the only way to get Bitcoin in the early days was to conduct transactions on forums or IRC (commonly known as Internet Relay Chat). However, this method involves both long transaction time and great security risk.
In March 2010, the first digital asset exchange — Bitcoinmarket.com launched. However, due to lack of liquidity and transaction depth, it disappeared soon after its establishment, but Bitcoinmarket.com opened the era of the operation of the cryptocurrency realm exchange 1.0.


On June 9, 2011, China’s first Bitcoin exchange — Bitcoin China (BTCChina) launched. Its founder, Yang Linke, translated Bitcoin into Chinese “比特币” for the first time. In 2013, China’s bitcoin trading entered the golden age, and exchanges sprung up. China monopolized more than 90% of the world’s bitcoin transactions. Now, if the top three exchanges Binance, Huobi Global, OKEx are the Exchange 2.0, then the index exchange represented by 58COIN called the 3.0 version, leading the trend.
The First Generation of High-Performance Miner — ASIC Miner
When Satoshi Nakamoto created Bitcoin, the only way to get it is to use computers (including home computers) to mine, mainly relying on the CPU to calculate. However, as the value of digital currencies such as Bitcoin has become higher and higher, mining has become an industry with the competition is getting fiercer, accompanied by increasing difficulty of mining. Therefore, hardware performance competition starts.
In July 2012, the genius Jiang Xinyu (Internet nickname is “Friedcat”) from the junior class of the University of Science and Technology declared at the forum that he could make ASIC miners (chips). As far as mining computing power is concerned, ASICs can be tens of thousands or more higher than the same-generation CPUs and GPUs.
At the beginning of 2013, Zhang Nanqian (Pumpkin Zhang), a suspended doctoral student from the Beijing University of Aeronautics and Astronautics, developed the ASIC miner and named it “Avalon”.


In June 2013, the Friedcat’s miner USB was finally released, and it maintained 20% of the computing power of the entire network.
At the end of 2013, Wu Jihan, used the tens of millions yuan earned from Friedcat through investment, worked together with Jenke group, to develop the Antminer S1. Since then, the miner manufacturer Bitmain began to enter the stage of history.
It is no exaggeration to say that Friedcat and Zhang Nangeng have opened the domestic “mining” era.
The Birthplace of China’s Bitcoin — Garage Coffee
It is not only the “old objects” that record history, but also a place that everyone in the cryptocurrency realm aspires to.
Guo Hongcai once said, “Without no The Garage Café, there will be no cryptocurrency realm today. Since it is a very mysterious place that all waves of people from the café joint together to create today’s digital asset industry.

▲ In March 2013, American student Jake Smith successfully purchased a cup of coffee at The Garage Café with 0.131 bitcoins. This move attracted the attention of CCTV, and it conducted an interview.
Indeed, The Garage Café is the world ’s first entrepreneurial-themed coffee shop. It has been legendary since its establishment in 2011. The Garage Cafét is not only the core coordinate on China’s Bitcoin map, but also the birthplace of the Chinese cryptocurrency circle, where digital asset realm tycoons including Guo Hongcai, Zhao Dong, Li Xiaolai, Li Lin have made their ways.
The development of digital currency is only 11 years old. Through these “old objects”, we review the various stories of this wave of technology together, hoping to help you understand the development process of the digital currency field. Meanwhile, I also remind all practitioners to use history as a mirror and forge ahead.
Website: https://www.58ex.com/
Twitter: https://twitter.com/58_coin
Facebook: https://www.facebook.com/coin.58COIN
Telegram: https://t.me/official58
Medium: https://medium.com/@58coin_blog/
submitted by 58CoinExchange to u/58CoinExchange [link] [comments]

Risks/Rewards Of Bitcoin Cash

Recently, I have been thinking a lot about cryptocurrencies. As Satoshi Nakamoto said, "Governments are good at cutting off the heads of a centrally controlled networks like Napster, but pure P2P networks like Gnutella and Tor seem to be holding their own."
When you cut off one head, 2 more will grow in its place. And the BTC vs Bitcoin Cash fork is exactly what happened on 1st Aug 2017. The good news is that Bitcoin Cash has survived and proved its anti-fragility properties. Bitcoin Cash continues its goal as "A Peer-to-Peer Electronic Cash System", as specified in the original Bitcoin whitepaper. Betting against Bitcoin Cash is like betting against Bitcoin in the early years.
In fact, Bitcoin Cash had made such huge progress in the last 2 years, thanks to the extremely talented developers, that the value proposition of Bitcoin Cash has grown multifold. I have no doubt that the prices of cryptocurrencies are heavily manipulated, with no exception to Bitcoin Cash. If some malicious actors wanted to sabotage Bitcoin Cash, they will suppress the prices so that people feel disheartened by it. Evidence of constant trolling, seemingly paid propaganda campaigns, harassments against the Bitcoin Cash community has added weight to this suspicion. And that is why, I have decided to write this article about the risk/reward and share my opinions about Bitcoin Cash.
Let's get right to it. In my opinion, here are the 3 biggest risk factors concerning Bitcoin Cash.
1) Tether Implosion - With the New York AG case hanging over Bitfinex/Tethers, I expect unusually high volatility as the bad guys tries to milk as much money (liquidating longs/shorts) as they can while the court case is still ongoing. However, I expect New York AG to win the case eventually, and the massive loss of confidence in the space will affect the entire crypto space very badly.
2) Hostile Regulatory Climate - Some governments may try to ban cryptocurrencies outright, such as India. Ironically, these countries will be the ones shooting themselves in the foot because the crypto innovations and money will prosper in the more welcoming countries. Given that the crypto space is easily influenced by such news, there may be price dumps in the short term due to such regulatory actions.
3) Malicious Actors Infiltrating BCH Community - Just because it had happened before doesn't mean it won't happen again. Splitting the community is one of the ways to hurt the value proposition of a cryptocurrency. Afterall, it's the community that gives the cryptocurrency its value.
I'm a big fan of Warren Buffett when it comes to value investing. He likes to say, he wished the prices were lower so that he could buy them cheaper. Value investors are always on the lookout for undervalued stocks, buy low sell high. The last few days, I had scooped up as many undervalued Bitcoin Cash as I could, and it felt incredibly liberating. It felt truly awesome knowing that you, and only you, has total control over this new p2p magic Internet money. With BTC, you need to worry about unspendable funds due to insufficient fees. With fiat money, you need to worry about hyperinflation due to corrupt government. With Bitcoin Cash, you never have such worries with your own money.
In my opinion, here are the things going for Bitcoin Cash.
1) Bitcoin Cash has much better fundamentals (Privacy - CashShuffle, Tokens - SLP/Wormhole/etc, Cash Accounts, Utility - Medium of Exchange, Oracles - Sports Betting, etc) than BTC. In other words, this means both the floor and ceiling price for Bitcoin Cash will be much higher than BTC. It may take some time to catch up, but it seems inevitable given Bitcoin Cash's current progress and trajectory. If BTC could reach $20k, then Bitcoin Cash's ceiling could well be multiple times that. This means Bitcoin Cash has a much more attractive risk/reward ratio compared to obselete coins like BTC. In my opinion, BTC is for short term gambling/speculation while Bitcoin Cash is more fundamentals based investment.
2) Bitcoin Cash's Halving is coming within a few months, around 8th April 2020. This means less supply which, based on historic data, usually leads to growing prices.
3) The global money supply is around $75 trillion dollars. With Bitcoin Cash's marketcap of $5 billion dollars currently, and its goals as a medium of exchange, $75 trillion will give us plenty of room to grow into. Even if we consider shadow banking, which Bitcoin Cash is well suited for, that's around $50 trillion dollars. That's a lot of room to grow into so again, the risk/reward ratio is too attractive for me to pass up.
4) Bitcoin Cash is my insurance policy. Most people didn't know that the average lifespan of a fiat currency is only 27 years nor do they know fiat currency such as US dollars had lost over 90% of its purchasing power in mere decades. If it could happen to once properous countries such as Venezuela or Greece or Argentina or even powerful nations such as America, it could happen to any country. Of if there is a war, how am I going to carry the gold bar across the border without getting robbed by the borders officers? Bitcoin Cash is my insurance policy to be able to seek refuge in a safe country and protect my loved ones from poverty when such precarious situations happens.
5) I think Bitcoin Cash is still in the very early adopters period. It's exactly like Bitcoin back in 2010 where only a small group of folks know what's up. Back then, when you talk about Bitcoin to people, they had all these wrong impressions due to their lack of understanding about it. Likewise, when you talk about Bitcoin Cash now even in the crypto space alone, you can see people with wrong impressions due to their lack of understanding about it. Some see this as a problem, I see this as an opportunity to be ahead of the crowd and accumulate more Bitcoin Cash!
One of the things I learnt from people like Jack Ma is that if you do what everyone else is doing, you're going to get what everyone else is getting, average results. Value investors educate themselves and are ahead of the curve. So I am not even mad at the propaganda against Bitcoin Cash, because it helps value investors like myself get as much Bitcoin Cash at as low a price point as possible ahead of the pack. Thanks to those trolls costantly spreading lies and propaganda against Bitcoin Cash, because if not for them, I would have left so much more money on the table while buying those same amount of Bitcoin Cash.
6) The Bitcoin Cash community is awesome. What can I say, so many incredibly smart and passionate folks making a difference in shaping the future of money. I think it's worth repeating that what gives cryptocurrency its value is because of its community. If I am going to put my money on something, one of the driving factors is definitely the awesome community.
7) Let's do some Math about BTC. Miners need to sell their BTC to pay for electricity. 6 (blocks/hour) * 24 (hours) * 12.5 (block reward) * $12000 * 30 (days/month) is equal to $648 million dollars per month required just to sustain the BTC price. Do you really believe there is $648 million dollars each month or about $8 billion dollars a year of new money coming into BTC? Really? I am not sure anyone with so much money is that stupid to buy BTC. And even so, it merely sustains the BTC price at $12000. If the price goes up to $20k, you need more than 1 billion dollars of new money coming in every single month! On the other hand, Bitcoin Cash just needs $16 million dollars per month to grow, which looks much more sustainable to me.
BTC Maximalists loves shouting how BTC will get to a million dollars, as if repeating over and over what they hope to be true, will make it come true. Sheeps follow these lies without thinking for themselves. They seems to believe that by repeating a lie or name calling (bcash) long enough, it will become reality. I leave you this quote from Michael Burry (The Big Short), "People want an authority to tell them how to value things, but they choose this authority not based on facts or results. They choose it because it feels authoritative and familiar."
With Bitcoin Cash, there is no authority nor maximalists telling you what you can or cannot do. I see Bitcoin Cash as the people's money and having Bitcoin Cash gives me the feeling of solidarity with commoners around the world. Everytime I read about how badly some governments treated their own citizens, it makes me buy more Bitcoin Cash with a passion. Unlike other cryptocurrencies such as BTC which depends on lies and propaganda to sustain its price, Bitcoin Cash survives based on merits and fundamentals and putting power back into the peoples hands. I hold Bitcoin Cash with a happy clear conscience and sleep well at night. Bitcoin Cash is betting against dumb money (aka lambo/moon bois) and soon enough, we will know just how dumb that money really is.
Sorry about the wall of text. It was an accumulation of days of thoughts and self reflection.
submitted by MobTwo to btc [link] [comments]

r/Bitcoin recap - June 2019

Hi Bitcoiners!
I’m back with the 30th monthly Bitcoin news recap.
For those unfamiliar, each day I pick out the most popularelevant/interesting stories in Bitcoin and save them. At the end of the month I release them in one batch, to give you a quick (but not necessarily the best) overview of what happened in bitcoin over the past month.
You can see recaps of the previous months on Bitcoinsnippets.com
A recap of Bitcoin in May 2019
Adoption
Development
Security
Mining
Business
Research
Education
Regulation & Politics
Archeology (Financial Incumbents)
Price & Trading
Fun & Other
submitted by SamWouters to Bitcoin [link] [comments]

The Decade in Blockchain — 2010 to 2020 in Review

2010

February — The first ever cryptocurrency exchange, Bitcoin Market, is established. The first trade takes place a month later.
April — The first public bitcoin trade takes place: 1000BTC traded for $30 at an exchange rate of 0.03USD/1BTC
May — The first real-world bitcoin transaction is undertaken by Laszlo Hanyecz, who paid 10000BTC for two Papa John’s pizzas (Approximately $25 USD)
June — Bitcoin developer Gavin Andreson creates a faucet offering 5 free BTC to the public
July — First notable usage of the word “blockchain” appears on BitcoinTalk forum. Prior to this, it was referred to as ‘Proof-of-Work chain’
July — Bitcoin exchange named Magic The Gathering Online eXchange—also known as Mt. Gox—established
August —Bitcoin protocol bug leads to emergency hard fork
December — Satoshi Nakamoto ceases communication with the world

2011

January — One-quarter of the eventual total of 21M bitcoins have been generated
February — Bitcoin reaches parity for the first time with USD
April — Bitcoin reaches parity with EUR and GBP
June — WikiLeaks begins accepting Bitcoin donations
June — Mt. Gox hacked, resulting in suspension of trading and a precipitous price drop for Bitcoin
August — First Bitcoin Improvement Proposal: BIP Purpose and Guidelines
October — Litecoin released
December — Bitcoin featured as a major plot element in an episode of ‘The Good Wife’ as 9.45 million viewers watch.

2012

May — Bitcoin Magazine, founded by Mihai Alisie and Vitalik Buterin, publishes first issue
July — Government of Estonia begins incorporating blockchain into digital ID efforts
September — Bitcoin Foundation created
October — BitPay reports having over 1,000 merchants accepting bitcoin under its payment processing service
November — First Bitcoin halving to 25 BTC per block

2013

February — Reddit begins accepting bitcoins for Gold memberships
March — Cyprus government bailout levies bank accounts with over $100k. Flight to Bitcoin results in major price spike.
May —Total Bitcoin value surpasses 1 billion USD with 11M Bitcoin in circulation
May — The first cryptocurrency market rally and crash takes place. Prices rise from $13 to $220, and then drop to $70
June — First major cryptocurrency theft. 25,000 BTC is stolen from Bitcoin forum founder
July — Mastercoin becomes the first project to conduct an ICO
August — U.S. Federal Court issues opinion that Bitcoin is a currency or form of money
October — The FBI shuts down dark web marketplace Silk Road, confiscating approximately 26,000 bitcoins
November — Vitalik Buterin releases the Ethereum White Paper: “A Next-Generation Smart Contract and Decentralized Application Platform
December — The first commit to the Ethereum codebase takes place

2014

January — Vitalik Buterin announces Ethereum at the North American Bitcoin Conference in Miami
February — HMRC in the UK classifies Bitcoin as private money
March — Newsweek claims Dorian Nakamoto is Bitcoin creator. He is not
April — Gavin Wood releases the Ethereum Yellow Paper: “Ethereum: A Secure Decentralised Generalised Transaction Ledger
June — Ethereum Foundation established in Zug, Switzerland
June — US Marshals Service auctions off 30,000 Bitcoin confiscated from Silk Road. All are purchased by venture capitalist Tim Draper
July — Ethereum token launch raises 31,591 BTC ($18,439,086) over 42 days
September — TeraExchange launches first U.S. Commodity Futures Trading Commission approved Bitcoin over-the-counter swap
October — ConsenSys is founded by Joe Lubin
December — By year’s end, Paypal, Zynga, u/, Expedia, Newegg, Dell, Dish Network, and Microsoft are all accepting Bitcoin for payments

2015

January — Coinbase opens up the first U.S-based cryptocurrency exchange
February — Stripe initiates bitcoin payment integration for merchants
April — NASDAQ initiates blockchain trial
June — NYDFS releases final version of its BitLicense virtual currency regulations
July — Ethereum’s first live mainnet release—Frontier—launched.
August — Augur, the first token launch on the Ethereum network takes place
September — R3 consortium formed with nine financial institutions, increases to over 40 members within six months
October — Gemini exchange launches, founded by Tyler and Cameron Winklevoss
November — Announcement of first zero knowledge proof, ZK-Snarks
December — Linux Foundation establishes Hyperledger project

2016

January — Zcash announced
February — HyperLedger project announced by Linux Foundation with thirty founding members
March — Second Ethereum mainnet release, Homestead, is rolled out.
April — The DAO (decentralized autonomous organization) launches a 28-day crowdsale. After one month, it raises an Ether value of more than US$150M
May — Chinese Financial Blockchain Shenzhen Consortium launches with 31 members
June — The DAO is attacked with 3.6M of the 11.5M Ether in The DAO redirected to the attacker’s Ethereum account
July — The DAO attack results in a hard fork of the Ethereum Blockchain to recover funds. A minority group rejecting the hard fork continues to use the original blockchain renamed Ethereum Classic
July — Second Bitcoin halving to 12.5BTC per block mined
November — CME Launches Bitcoin Price Index

2017

January — Bitcoin price breaks US$1,000 for the first time in three years
February — Enterprise Ethereum Alliance formed with 30 founding members, over 150 members six months later
March — Multiple applications for Bitcoin ETFs rejected by the SEC
April — Bitcoin is officially recognized as currency by Japan
June — EOS begins its year-long ICO, eventually raising $4 billion
July — Parity hack exposes weaknesses in multisig wallets
August — Bitcoin Cash forks from the Bitcoin Network
October — Ethereum releases Byzantium soft fork network upgrade, part one of Metropolis
September — China bans ICOs
October — Bitcoin price surpasses $5,000 USD for the first time
November — Bitcoin price surpasses $10,000 USD for the first time
December — Ethereum Dapp Cryptokitties goes viral, pushing the Ethereum network to its limits

2018


January — Ethereum price peaks near $1400 USD
March — Google bans all ads pertaining to cryptocurrency
March — Twitter bans all ads pertaining to cryptocurrency
April — 2018 outpaces 2017 with $6.3 billion raised in token launches in the first four months of the year
April — EU government commits $300 million to developing blockchain projects
June — The U.S. Securities and Exchange Commission states that Ether is not a security.
July — Over 100,000 ERC20 tokens created
August — New York Stock Exchange owner announces Bakkt, a federally regulated digital asset exchange
October — Bitcoin’s 10th birthday
November — VC investment in blockchain tech surpasses $1 billion
December — 90% of banks in the US and Europe report exploration of blockchain tech

2019

January — Coinstar machines begin selling cryptocurrency at grocery stores across the US
February — Ethereum’s Constantinople hard fork is released, part two of Metropolis
April — Bitcoin surpasses 400 million total transactions
June — Facebook announces Libra
July — United States senate holds hearings titled ‘Examining Regulatory Frameworks for Digital Currencies and Blockchain”
August — Ethereum developer dominance reaches 4x that of any other blockchain
October — Over 80 million distinct Ethereum addresses have been created
September — Santander bank settles both sides of a $20 million bond on Ethereum
November — Over 3000 Dapps created. Of them, 2700 are built on Ethereum
submitted by blockstasy to CryptoTechnology [link] [comments]

Plan To Recover Our Losses


Background on the Initiative

My name is Matt. I’ve lived in Calgary my whole life, and been running businesses and programming since I was 10 years old. I’m a recent graduate of the University of Calgary in a business and computer science double major, and I currently manage the software team (6 students) at a small Calgary IoT startup. My past business experiences include running a window cleaning franchise across 6 communities, a popular concession stand, and a free web hosting service with over 10,000 clients.
I first got involved with cryptocurrency in 2017, when we had the big run up. Prior to that, I’d done a ton of research but never actually invested. While my losses in Quadriga are significant, they’re nowhere near some of the losses I’ve been hearing about. I’m fortunate to be in a “walk away” position if I so choose and I more or less did for the first week. But I couldn’t stay away. It isn’t right. Especially not now when the solution is so close and the potential impact is so significant.
Quadriga Initiative is the result of 6-7 months of on and off brainstorming, collaboration, and iteration around the central goal of recovering what's been lost.
The money is almost certainly not accessible. (I'm pretty sure it would have been found already.) We'll all get something from the bankruptcy, and I appreciate the legal team and official committee working hard on our behalf, but I fear it won't even come close to making up for what was lost. For many people - their whole life savings. It's not a very satisfying recovery. It doesn't leave anyone whole. It leaves a lot of people behind.
Without funds to pull from, any full recovery solution has to center around creating new value. Entrepreneurs and business leaders are creating value every day, and this is where the idea comes from.
We take advantage of the fact we have a large affected user community, tons of economic bargaining power, and a vast network. Many in the business community were affected, know someone who was affected, or feel horrible about what happened. My discussions with business leaders have shown that they generally desire to make this right, and businesses regularly do "goodwill" donations or gestures for marketing. The Quadriga Initiative provides a way businesses can help easily and in a "win win" way by running token-accepting promotions. We then provide a competitive framework that helps to promote businesses which make the biggest impact, highly incentivizing a faster recovery.
At this stage, everything is more or less ready. We have a primary exchange partner, a growing team of affected users, and multiple business connections. What remains is the incredibly tough challenge of creating trust and understanding among a community that's been completely devastated in the worst way. This is no easy task.
We need your help! If things don't make sense, or you still have questions, or you don't understand something, please take the time to ask and reach out! In addition to commenting here, please feel free to chat with us on Telegram: https://t.me/QuadrigaInitiative



Where Does the Money Come From?

The money (value) comes out of the profit margin of businesses. Businesses normally sell a product or service at a profit over the cost of production. Instead, a business would sell the product or service at a discount (less profit), accepting tokens in place of the difference.
While this may seem generous, like the business is giving something away, it also benefits the business as well:
Once a successful marketplace is established, affected users will have a multitude of businesses where they can spend tokens and get good deals. As well, other consumers can buy the tokens at a discount (supporting affected users), then use them to save money.
The leaderboard and large affected user community give a strong advantage to businesses to participate and offer the best deals. Businesses that have recovered the most are rewarded with more people seeing their promotion (free advertising).



The Various Uses For Tokens

Our Partner Exchange: Tokens will be tradable and accepted at face value towards the trading fees on the partner exchange. A trader who wants to save money on trades can stock up on the tokens to gain a discount over other customers who don't bother. The tokens can be used towards 50%-100% of the trading fees depending on the calendar date. This means a heavy discount for affected users and is essentially a price segment for the exchange.
In addition, the primary exchange partner we have is looking into giving back a small portion (15%) of gross trading revenue towards cashing tokens. This is done to incentivize the affected user community to spread the word about the exchange.
Participating Businesses: Businesses in the community accept the tokens towards purchases to promote to Quadriga victims, supporters, and deal seekers. It functions similar to a discount, where the tokens are applied as a portion of the sale price, with a few additional advantages for the business:
Businesses sell promotions for tokens, and send the tokens to a burn address that encodes the business website URL. To further encourage business participation, a leaderboard is set up to promote those businesses which have burned the most tokens. The leaderboard is a useful place to go shopping if you have tokens. You can find businesses who take them and get the best deals. All information is on the blockchain, enabling anyone to set up a leaderboard or start accepting tokens.



Token Flow Diagram

The linked diagram is a handy visualization of the initiative and how the various parties interact:
https://www.quadrigainitiative.com/Quadriga%20Initiative%20Diagram.pdf
The complete initiative is a full marketplace, enabling the beneficial (win win) interaction of all parties and the gradual recovery of losses over time. The token supply is finite, limited by the amount of losses we can verify, and all tokens eventually get cashed for $1 worth of products/services (or primary exchange gross trading revenue) as the program runs.


Our Primary Exchange Partner

Since the primary exchange is handling validation and distributing the tokens, it's important they be trustworthy. Given the history with Quadriga, most affected users (including every member of our team) are legitimately concerned about anyone losing their funds again. This is the primary reason we've selected to work with TxQuick.


Proof of Reserves and Why It Matters

In case you missed them, so far this year we've seen 3 large scale exchange collapses:
Each one represents massive losses for those involved - hundreds and thousands of affected lives. These are real people and families at the other ends, with hopes and dreams, who worked hard for their money.
In the case of QuadrigaCX, it took the freezing of the bank accounts, the death/disappearance of the CEO, and concerted legal action to even realize it was insolvent.
Exchanges can easily continue to operate for years with whatever level of reserves they like. Third party audits are riddled with holes like:
On top of that - most exchange platforms still don't even bother to audit. Despite the warnings about storing funds on exchanges, people still do. And remember that many affected users weren't storing funds on Quadriga - they simply got stuck with no way to withdraw.
Proof of Reserves asks exchanges to:
What it doesn't prevent:
What it does prevent:
Check this link for more details on Proof of Reserves, including the full hash tree algorithm.
Despite the relative simplicity of publishing wallet keys, the vast selection of exchanges we have in Canada, and the many millions of dollars stored, not a single exchange has done so. The hash tree algorithm has existed since 2014. It's presently on one exchange (last audited in 2014).
We feel that Proof of Reserves is key to preventing future exchange collapses, which is why we are so pleased to have a primary exchange partner which will be implementing the full algorithm. While we can't control other exchanges, traders now have an option to use an exchange which proves full backing of all deposits and we hope this will encourage wider adoption and greater industry transparency.


Timeline for the Initiative

The initiative process breaks down into roughly 3 stages:
Pre-Claim Stage - We are working to save affected user balances for later validation, as well as determine if there is sufficient interest in the project. This is ongoing.
Exchange Stage - We bring the primary exchange online, and process claims. Recovery starts through exchange trading fee discounts and eventually gross trading revenue. The exchange platform is expected to launch within a few months.
Marketplace Stage - Once we have enough individuals with tokens, we bring in the first businesses from the wider community. After we have several initial businesses, the marketplace grows organically as more businesses sign up over time. This is approximately a year after launching the exchange.
Full recovery (all losses) is likely to take multiple years, anywhere from 2 to 25 years. There are a lot of factors to consider.


Verification of Claims

Accurately capturing losses is key. Businesses are interested in helping honest victims of a crime who had their money stolen from them, and not too interested in supporting any fraud. We've been working hard to make our process as easy as possible for affected users, while being as hard as possible for false claims (claiming wrong amounts, losses of others, or fake claims).


How To Sign Up

If you wish to participate, please sign up at https://www.quadrigainitiative.com/.
You can do a pre-claim to save your balance, or an email only sign up just to show interest and get the launch email.



How You Can Help

We are stronger together!


Thanks so much!
submitted by azoundria2 to QuadrigaCX [link] [comments]

How I LOST a lot of money with Bitcoin, and why I don't give a fuck.

I Buy Bitcoin

There, now you know, I own a Bitcoin (or more) and I buy them fucking coins.
Recently I had an investor come to me with big monster dollars; he says buy me dem fucking coins. I wait for the right time to buy, and boom it's $13k...
Long story short, my investor is down 20%. Does he give a fuck? Nope! Why? Cause he ain't cashing out!
He's got time, and I got confidence dem coins be going back to $11k... and probably more!
4 YEARS - 4 years is the life-cycle of a Bitcoin.
In 4 years, Bitcoins should be expected to double. Merely doubling every 4 years is 19% returns (annualized)... HOLLARAGE!
If Bitcoins go to $22k... in the next 4 years... my investor is psyched. If it hits $88k in... 12 years... that's still awesome.
Even with only 20% of his portfolio devoted to Bitcoins, Bitcoins might out earn the other 80%... with far, far less work, effort, and taxes - just buying and holding for multiple years.
And that is even if it only hits $88k IN TWELVE YEARS. That's 19% ROI (BTC) vs 8% ROI (SPY).
Now that man is old. He don't need no money.
But what 'bout me? I got bills homes.
Now here is deh trick.
ARE YOU EARNING YOUR MAXIMUM?
Probably, for reasons, you ain't.
What's that mean? It means you are losing - LOSING - money each year you work, below the better wage.
Bitcoin ain't my meal ticket... that's work. Bitcoin is my lifelong security ticket.
But Bitcoin gives me something other investments don't, POSSIBILITY. The possibility to get to quit work and retire, instantly.
Now what do you do with new found knowledge? Well first you focus on making that fooking dollar. Make so much dollar, working almost seems fun. What does it take to make that? A new mindset. Checkout a business book, visit professional clubs, make that fucking money.
You got to get smart.
Focus on no less than $200k per annum for self-employed, or $100k if W2 with full benefits - accept absolutely no less.
Are you making $30k / year? Invest in skill training, equipment. For $10k you can nab a computer programming career in a year paying $60k.
That's 300% return on investment, do it. Fully capitalized (profit x 5), that's $150k expected from a $10k investment... CLAP HANDS DO IT.
If ya got to work for fucking money, make it easy. Make it reward. Get smart, so the money gets easy. Get them rewards, so that you enjoy that work.
HOW LONG HAVE YOU SUFFERED AT LOW PAY? How long did you allow yourself to 'slave' without any chance of success or thriving!
NO MORE!
I committed myself to smart work, making good dollar some 2 years ago.
But still Bitcoin boomed... so what did I do? Did I buy a lambo? Did I quit?
Fuck all, no!
BOOM - Now my salary demands doubled - doubled mother fucker.
In 2 years I go from $80k to $200k (annualized, self-employed).
But do I actually make that $200k? No.
More like I went from $80k to $80k... but from 30 hours to 10 hours of laboring, per week.
The thing is, I ABSOLUTELY LOVE MY JOB!
You'd be surprised, but getting paid $200 / hour makes you love god-damn about anything, honestly.
Even if Bitcoin booms, would I retire? Fuck no. WHY THE FUCK WOULD I? I GET PAID FUCKING AMAZING!
And what if Bitcoin goes slow, or in the tubes? WHO GIVES A FUCK! I making money hand over fist, and got the career path to earn butt loads more.
I might spend 10 hours per week now branding or networking to make the next mark... but laboring a mere 2 hours more per week might double my savings... that's huge!
And what am I going to do if Bitcoin goes bust?
TAKE ANOTHER STAB MOTHER FUCKER!
I got Tesla in my sights, I had Lambda School on the radar from day 1.
TAKE A STAB!
If you lose out, you keep working... GREAT! I got to do that EVEN IF I WIN with the STOCK MARKET!
But if you take a chance on an early investment stage startup, you can get 100% annualized returns.
It only takes a few of these to hit, and boom, you are fucking a loaded god.
But I got money security because I have skills security.
I got the skills to make the fucking money.
What I need is WEALTH, not money.
For my buck, Bitcoin is the best wealth making investment at this point in time, available to a general public.
Bitcoin is also the best store of wealth, cause it's mobile, and I am mobile.. I can't get cornered at the ATM by Uncle Sam nor can I get trapped having to liquidate and rotate around a series of real-estate and stock holdings, should I want to move to Puerto Rico, or whatnot.
And inflation risk is less concerning, with Bitcoin... and the passive price inflation is expected to be 19%, at a mere doubling every 4 years. That is HUGGGEEE!
In fact, I've taken out (don't hate me) loans at good interest rates and long payoffs, to buy them fucking coins.
While it sounds crazy, students absolutely should be buying long-term, huge-payoff investments (like Bitcoin) - financially speaking
But that is aside the point. The point is:
If you are worried about a dip - EARN MORE MONEY!
If you are want wealth - GO LONG! 4 YEARS AT LEAST!
If you want a lambo - YOU ARE A MORON! - and -
If you want to retire - GET PAID MORE TODAY!
And beyond that, just be realistic. 8% returns is about the SPY average, but say even 11% is a reasonably well-managed index - still, that is miles below 19% for Bitcoin.
Now how does BTC get to 19%? By maintaining consistent demand, and consistent cash-out-cash-in rates of investment.
Not consistent PERCENTAGES, but consistent DOLLARS.
In effect, for Bitcoin to fail to achieve 19% (over 4 years), barring an unusual event (like Satoshi liquidating), then the amount of DOLLARS on the planet must never increase (technology stops, population flatlines) OR Bitcoin has already reached peak popularity, and significantly so.
So that's the question to you...
Has an investment that predictably returns 19% reached peak popularity and widespread public adoption? An investment unseizable, totally movable, and completely passive? Transferable worldwide in an instant?
I think not. I say we got ROOOOOOMMM to grow.
And that is why I don't give a fuck about losing money - I'm not about to take it out in cash.
And that is why I don't give a fuck about selling Bitcoins - I'm only selling to EARN way more money in job skills, which goes back to Bitcoin.
sploosh peace out!
submitted by Bitcoin1776 to Bitcoin [link] [comments]

Risks/Rewards Of Bitcoin Cash

Recently, I have been thinking a lot about cryptocurrencies. As Satoshi Nakamoto said, "Governments are good at cutting off the heads of a centrally controlled networks like Napster, but pure P2P networks like Gnutella and Tor seem to be holding their own."
When you cut off one head, 2 more will grow in its place. And the BTC vs Bitcoin Cash fork is exactly what happened on 1st Aug 2017. The good news is that Bitcoin Cash has survived and proved its anti-fragility properties. Bitcoin Cash continues its goal as "A Peer-to-Peer Electronic Cash System", as specified in the original Bitcoin whitepaper. Betting against Bitcoin Cash is like betting against Bitcoin in the early years.
In fact, Bitcoin Cash had made such huge progress in the last 2 years, thanks to the extremely talented developers, that the value proposition of Bitcoin Cash has grown multifold. I have no doubt that the prices of cryptocurrencies are heavily manipulated, with no exception to Bitcoin Cash. If some malicious actors wanted to sabotage Bitcoin Cash, they will suppress the prices so that people feel disheartened by it. Evidence of constant trolling, seemingly paid propaganda campaigns, harassments against the Bitcoin Cash community has added weight to this suspicion. And that is why, I have decided to write this article about the risk/reward and share my opinions about Bitcoin Cash.
Let's get right to it. In my opinion, here are the 3 biggest risk factors concerning Bitcoin Cash.
1) Tether Implosion - With the New York AG case hanging over Bitfinex/Tethers, I expect unusually high volatility as the bad guys tries to milk as much money (liquidating longs/shorts) as they can while the court case is still ongoing. However, I expect New York AG to win the case eventually, and the massive loss of confidence in the space will affect the entire crypto space very badly.
2) Hostile Regulatory Climate - Some governments may try to ban cryptocurrencies outright, such as India. Ironically, these countries will be the ones shooting themselves in the foot because the crypto innovations and money will prosper in the more welcoming countries. Given that the crypto space is easily influenced by such news, there may be price dumps in the short term due to such regulatory actions.
3) Malicious Actors Infiltrating BCH Community - Just because it had happened before doesn't mean it won't happen again. Splitting the community is one of the ways to hurt the value proposition of a cryptocurrency. Afterall, it's the community that gives the cryptocurrency its value.
I'm a big fan of Warren Buffett when it comes to value investing. He likes to say, he wished the prices were lower so that he could buy them cheaper. Value investors are always on the lookout for undervalued stocks, buy low sell high. The last few days, I had scooped up as many undervalued Bitcoin Cash as I could, and it felt incredibly liberating. It felt truly awesome knowing that you, and only you, has total control over this new p2p magic Internet money. With BTC, you need to worry about unspendable funds due to insufficient fees. With fiat money, you need to worry about hyperinflation due to corrupt government. With Bitcoin Cash, you never have such worries with your own money.
In my opinion, here are the things going for Bitcoin Cash.
1) Bitcoin Cash has much better fundamentals (Privacy - CashShuffle, Tokens - SLP/Wormhole/etc, Cash Accounts, Utility - Medium of Exchange, Oracles - Sports Betting, etc) than BTC. In other words, this means both the floor and ceiling price for Bitcoin Cash will be much higher than BTC. It may take some time to catch up, but it seems inevitable given Bitcoin Cash's current progress and trajectory. If BTC could reach $20k, then Bitcoin Cash's ceiling could well be multiple times that. This means Bitcoin Cash has a much more attractive risk/reward ratio compared to obselete coins like BTC. In my opinion, BTC is for short term gambling/speculation while Bitcoin Cash is more fundamentals based investment.
2) Bitcoin Cash's Halving is coming within a few months, around 8th April 2020. This means less supply which, based on historic data, usually leads to growing prices.
3) The global money supply is around $75 trillion dollars. With Bitcoin Cash's marketcap of $5 billion dollars currently, and its goals as a medium of exchange, $75 trillion will give us plenty of room to grow into. Even if we consider shadow banking, which Bitcoin Cash is well suited for, that's around $50 trillion dollars. That's a lot of room to grow into so again, the risk/reward ratio is too attractive for me to pass up.
4) Bitcoin Cash is my insurance policy. Most people didn't know that the average lifespan of a fiat currency is only 27 years nor do they know fiat currency such as US dollars had lost over 90% of its purchasing power in mere decades. If it could happen to once properous countries such as Venezuela or Greece or Argentina or even powerful nations such as America, it could happen to any country. Of if there is a war, how am I going to carry the gold bar across the border without getting robbed by the borders officers? Bitcoin Cash is my insurance policy to be able to seek refuge in a safe country and protect my loved ones from poverty when such precarious situations happens.
5) I think Bitcoin Cash is still in the very early adopters period. It's exactly like Bitcoin back in 2010 where only a small group of folks know what's up. Back then, when you talk about Bitcoin to people, they had all these wrong impressions due to their lack of understanding about it. Likewise, when you talk about Bitcoin Cash now even in the crypto space alone, you can see people with wrong impressions due to their lack of understanding about it. Some see this as a problem, I see this as an opportunity to be ahead of the crowd and accumulate more Bitcoin Cash!
One of the things I learnt from people like Jack Ma is that if you do what everyone else is doing, you're going to get what everyone else is getting, average results. Value investors educate themselves and are ahead of the curve. So I am not even mad at the propaganda against Bitcoin Cash, because it helps value investors like myself get as much Bitcoin Cash at as low a price point as possible ahead of the pack. Thanks to those trolls costantly spreading lies and propaganda against Bitcoin Cash, because if not for them, I would have left so much more money on the table while buying those same amount of Bitcoin Cash.
6) The Bitcoin Cash community is awesome. What can I say, so many incredibly smart and passionate folks making a difference in shaping the future of money. I think it's worth repeating that what gives cryptocurrency its value is because of its community. If I am going to put my money on something, one of the driving factors is definitely the awesome community.
7) Let's do some Math about BTC. Miners need to sell their BTC to pay for electricity. 6 (blocks/hour) * 24 (hours) * 12.5 (block reward) * $12000 * 30 (days/month) is equal to $648 million dollars per month required just to sustain the BTC price. Do you really believe there is $648 million dollars each month or about $8 billion dollars a year of new money coming into BTC? Really? I am not sure anyone with so much money is that stupid to buy BTC. And even so, it merely sustains the BTC price at $12000. If the price goes up to $20k, you need more than 1 billion dollars of new money coming in every single month! On the other hand, Bitcoin Cash just needs $16 million dollars per month to grow, which looks much more sustainable to me.
BTC Maximalists loves shouting how BTC will get to a million dollars, as if repeating over and over what they hope to be true, will make it come true. Sheeps follow these lies without thinking for themselves. They seems to believe that by repeating a lie or name calling (bcash) long enough, it will become reality. I leave you this quote from Michael Burry (The Big Short), "People want an authority to tell them how to value things, but they choose this authority not based on facts or results. They choose it because it feels authoritative and familiar."
With Bitcoin Cash, there is no authority nor maximalists telling you what you can or cannot do. I see Bitcoin Cash as the people's money and having Bitcoin Cash gives me the feeling of solidarity with commoners around the world. Everytime I read about how badly some governments treated their own citizens, it makes me buy more Bitcoin Cash with a passion. Unlike other cryptocurrencies such as BTC which depends on lies and propaganda to sustain its price, Bitcoin Cash survives based on merits and fundamentals and putting power back into the peoples hands. I hold Bitcoin Cash with a happy clear conscience and sleep well at night. Bitcoin Cash is betting against dumb money (aka lambo/moon bois) and soon enough, we will know just how dumb that money really is.
Sorry about the wall of text. It was an accumulation of days of thoughts and self reflection.
submitted by MobTwo to Bitcoincash [link] [comments]

Quadriga Initiative - Additional Information and Clarifications

Quadriga Initiative - Additional Information and Clarifications

Introduction / Summary

The Quadriga Initiative is an independent process where affected users and businesses in the community work together to recover losses from QuadrigaCX. An exchange (the primary exchange) will verify claims and distribute free tokens representing losses. Tokens will be accepted at the primary exchange and by participating businesses at face value. There is a white paper here with more detail:
https://quadrigainitiative.com/Quadriga%20Initiative.pdf
If you wish to participate in the Quadriga Initiative and receive free tokens representing your loss, there is a pre-claim process now open. A pre-claim uses your QCX client ID, first name as registered on the QCX platform, and a valid email address to copy your balance information and associate it with your email address.
https://quadrigainitiative.com/
Although a personal email will work, it is recommended for privacy and security to set up a new "forwarder" email account that doesn't personally identify you, with a unique password. Make sure that whatever email process you set up is one which still works to reach you in a few months time.
  • We are a community initiative which is not connected with the bankruptcy process. Participation does not impact your bankruptcy claim. You can find the official bankruptcy information on the Miller Thompson website.
  • We have taken all reasonable measures to protect our website and stored data against SQL injection. The website back-end is simple, all input is sanitized, and all access passwords are 16+ character full random. (I have a background in web hosting.)
  • There is no cost to participate and the pre-claim process takes approximately 3 minutes.
  • Please be sure to keep a copy of your bankruptcy claim paperwork for later validation!


Background on the Initiative

My name is Matt. I’ve lived in Calgary my whole life, and been running businesses and programming since I was 10 years old. I’m a recent graduate of the University of Calgary in a business and computer science double major, and I currently manage the software team (6 students) at a small Calgary IoT startup. My past business experiences include running a window cleaning franchise across 6 communities, a popular concession stand, and a free web hosting service with over 10,000 clients.
I first got involved with cryptocurrency in 2017, when we had the big run up. Prior to that, I’d done a ton of research but never actually invested. While my losses in Quadriga are significant, they’re nowhere near some of the losses I’ve been hearing about. I’m fortunate to be in a “walk away” position if I so choose and I more or less did for the first week. But I couldn’t stay away. It isn’t right. Especially not now when the solution is so close and the potential impact is so significant.
Quadriga Initiative is the result of 6-7 months of intense brainstorming, collaboration, and perpetual iteration around the central problem of how to recover what's been lost.
The money is almost certainly not accessible. (I'm pretty sure it would have been found already.) We'll all get something from the bankruptcy, but for most of us I fear it won't really make up for what was lost. For many people - their whole life savings. It's not a very satisfying recovery. It doesn't leave anyone whole. It leaves a lot of people behind.
Without funds to pull from, any full recovery solution has to center around creating new value. Entrepreneurs and business leaders are creating value every day, and this is where the idea comes from.
We take advantage of the fact we have a large affected user community, tons of economic bargaining power, and a vast network. Many in the business community were affected, know someone who was affected, or feel horrible about what happened. My discussions with business leaders have shown that they generally desire to make this right, and businesses regularly do "goodwill" donations or gestures for marketing. The Quadriga Initiative provides a way businesses can help easily and in a "win win" way by running token-accepting promotions. We then provide a competitive framework that helps to promote businesses which make the biggest impact, highly incentivizing a faster recovery.
At this stage, everything is more or less ready to launch. We have a primary exchange partner, a small team of affected users, and multiple business connections. What remains is the incredibly tough challenge of creating trust and understanding among a community that's been completely devastated in the worst way. This is no easy task.
We need your help! If things don't make sense, or you still have questions, or you don't understand something, please take the time to ask and reach out! In addition to commenting here, please feel free to chat with us on Telegram: https://t.me/QuadrigaInitiative



Where Does the Money Come From?

The money (value) comes out of the profit margin of businesses. Businesses normally sell a product or service at a profit over the cost of production. Instead, a business would sell the product or service at a discount (less profit), accepting tokens in place of the difference.
While this may seem generous, like the business is giving something away, it also benefits the business as well:
  • The business can get additional sales. Even though the profit per sale is less, the business still makes profit on those additional sales.
  • The business can find new customers. Even if a business sells a product or service "at cost" (meaning zero profit), they've established a relationship. The customer may buy other products or services in the future, or it could be part of a subscription.
  • The business is seen positively as "giving back", creating a better future, helping fraud victims, etc...
Once a successful marketplace is established, affected users will have a multitude of businesses where they can spend tokens and get good deals. As well, other consumers can buy the tokens at a discount (supporting affected users), then use them to save money.
The leaderboard and large affected user community give a strong advantage to businesses to participate and offer the best deals. Businesses that have recovered the most are rewarded with more people seeing their promotion (free advertising).



The Various Uses For Tokens

The Primary Exchange: Tokens will be tradable and accepted at face value towards the trading fees on the primary exchange. A trader who wants to save money on trades can stock up on the tokens to gain a discount over other customers who don't bother. The tokens can be used towards 50%-100% of the trading fees depending on the calendar date. This means a heavy discount for affected users and is more or less a price segment for the exchange.
In addition, the primary exchange partner we have at the moment is looking into giving back a small portion (15%) of gross trading revenue towards cashing tokens. This is done to incentivize the affected user community to spread the word about the exchange.
Participating Businesses: Businesses in the community accept the tokens towards purchases to promote to Quadriga victims, supporters, and deal seekers. It functions similar to a discount, where the tokens are applied as a portion of the sale price, with a few additional advantages for the business:
  • It price segments. The business doesn't lose revenue on customers who would have paid full price. With a 20% discount, the business loses revenue on some customers who would have bought anyway. Nobody likes to throw away free money.
  • It can run continuously. A 20% discount running continuously would mean the perceived value of the product would just be 20% less. A promotion accepting tokens can run long-term, enabling the business to attract more customers with less effort.
  • It's a give-back play, showing the business is caring about the wider community, and maybe has a larger agenda than pure profits. (ie Trying to create a better future.)
Businesses sell promotions for tokens, and send the tokens to a burn address that encodes the business website URL. To further encourage business participation, a leaderboard is set up to promote those businesses which have burned the most tokens. The leaderboard is a useful place to go shopping if you have tokens. You can find businesses who take them and get the best deals. All information is on the blockchain, enabling anyone to set up a leaderboard or start accepting tokens.



Token Flow Diagram

The following diagram is a handy visualization of the initiative and how the various parties interact:
Quadriga Initiative Diagram
The complete initiative is a full marketplace, enabling the beneficial (win win) interaction of all parties and the gradual recovery of losses over time. The token supply is finite, limited by the amount of losses we can verify, and all tokens eventually get cashed for $1 worth of products/services (or primary exchange gross trading revenue) as the program runs.


Our Primary Exchange Partner

Since the primary exchange is handling validation and distributing the tokens, it's important they be trustworthy. Given the history with Quadriga, most affected users (including every member of our team) are legitimately concerned about anyone losing their funds again. This is the primary reason we've selected to work with TxQuick.
  • TxQuick is being developed by Ethan Burnside, who has demonstrated his integrity in 2012-2013 when he ran BTC Trading Corp. When it was shut down, he spent significant personal funds to keep it running so everyone could get their money out - likely the only time in history that an exchange shut down and everyone got their funds. You can learn more about him from his post here.
  • We've had extensive discussions on Telegram about security. Ethan is open, transparent, and extremely knowledgeable. He has invested heavily in developing a system of secure multi-sig wallets. His previous exchange was never successfully hacked. If you have any questions, Ethan is happy to answer them!
  • Ethan is strongly in favour of publishing wallet public keys. The exchange will feature a full transparency page to allow anyone to see that all funds are fully backed. In the future, a full proof of reserves will be deployed to assure all customers that their balances are represented.
  • In addition to the token validation/verification function:
    • TxQuick will be the first platform to allow buying and selling of the tokens.
    • TxQuick proposes to accept the tokens at face value towards trading fees on the exchange. Affected users can use tokens to get free or discounted trading (50%+ off).
    • TxQuick will also handle a slow token payback, enabling tokens to be exchanged 1:1 for cash over time using 15% of gross trading revenue.
  • This proposal is subject to approval by the TxQuick board. It could be changed. There is a necessary interest level from the affected user community of at least 1,000 sign-ups.
  • While it might seem like Ethan is being super generous and giving a lot away for free, again this is mutually beneficial (win win). Here are some of the benefits to the primary exchange:
    • Lots of sign-ups from affected users and, later, interested consumers, many of whom will stay to use the platform. Ethan desires to achieve a dominant position in the Canadian marketplace.
    • The token program provides an effective price segment, increasing revenue over time. (Low prices = lost profit, high prices = less customers, price segment = more profit and customers.)
    • Customers with recovered funds are likely to be more loyal and prefer the platform, and the profit share incentivizes spreading the word about the platform. (Interests are aligned.)
  • It is not required to use the primary exchange platform for trading or deposit any money. You are free to sign up, receive your free tokens, and continue trading on any other platform or just use the marketplace.


Proof of Reserves and Why It Matters

In case you missed them, so far this year we've seen 3 large scale exchange collapses:
  • QuadrigaCX
  • EZ-BTC
  • Cryptopia
Each one represents massive losses for those involved - hundreds and thousands of affected lives. These are real people and families at the other ends, with hopes and dreams, who worked hard for their money.
In the case of QuadrigaCX, it took the freezing of the bank accounts, the death/disappearance of the CEO, and concerted legal action to even realize it was insolvent.
Exchanges can easily continue to operate for years with whatever level of reserves they like. Third party audits are riddled with holes like:
  • How can they possibly know the client list they're given is legitimate and fully inclusive?
  • How can you know the funds weren't borrowed for the audit purposes?
  • How old is the report? How can you trust the auditor?
On top of that - most exchange platforms still don't even bother to audit. Despite the warnings about storing funds on exchanges, people still do. And remember that many affected users weren't storing funds on Quadriga - they simply got stuck with no way to withdraw.
Proof of Reserves asks exchanges to:
  • Publish the wallet public keys so people can see that funds are fully backed. (A satoshi test can prove ownership of those wallets.)
  • Publish a hash tree to let each customer validate that their balance is included in the total.
What it doesn't prevent:
  • Same as presently, if funds are not secured in proper multi-sig wallets or multiple exchange operators are corrupt, the funds could still be taken, up to what's stored. However, this would be immediately known to everyone instead of revealed whenever admins felt like it (or never).
  • The balances of customers who never check the hash tree could be excluded by a dishonest exchange, which wouldn't be noticed until one of those customers decided to check.
  • A dishonest exchange could still dispute the balance of a customer or arbitrarily prevent withdrawals. In this case, the customer and exchange would have to sort that out.
  • A dishonest exchange could pretend to own wallets it doesn't. A satoshi test would help with this, where the exchange operators send a small amount at a specified time.
  • While it makes things safer, it's still not a good idea to store funds on the exchange.
What it does prevent:
  • The exchange owner can't spend funds of active customers, and still claim to hold them.
    • ie QuadrigaCX, EZ-BTC
  • The exchange owner can't conceal if funds are hacked or stolen. It becomes known immediately.
    • ie Mt. Gox, Cryptopia
  • Anyone can see if the exchange is solvent before trading.
    • ie Anyone with "bad timing" using an insolvent exchange.
Check this link for more details on Proof of Reserves, including the full hash tree algorithm.
Despite the relative simplicity of publishing wallet keys, the vast selection of exchanges we have in Canada, and the many millions of dollars stored, not a single exchange has done so. The hash tree algorithm has existed since 2014. It's presently on one exchange (last audited in 2014).
We feel that Proof of Reserves is the key to preventing future exchange collapses, which is why we are so pleased to have a primary exchange partner which will be implementing the full algorithm. While we can't control other exchanges, traders now have an option to use an exchange which proves full backing of all deposits and we hope this will encourage wider adoption and greater industry transparency.


Timeline for the Initiative

The initiative process breaks down into roughly 3 stages:
Pre-Claim Stage - We are working to save affected user balances for later validation, as well as determine if there is sufficient interest in the project. This is ongoing.
Exchange Stage - We bring the primary exchange online, and process claims. Recovery starts through exchange trading fee discounts and eventually gross trading revenue. The exchange platform is expected to launch within a few months.
Marketplace Stage - Once we have enough individuals with tokens, we bring in the first businesses from the wider community. After we have several initial businesses, the marketplace grows organically as more businesses sign up over time. This is approximately a year after launching the exchange.
Full recovery (all losses) is likely to take multiple years, anywhere from 3 to 25 years. My best estimate would be 10 years, although there are a lot of factors to consider.


Verification of Claims

Accurately capturing losses is key. Businesses are interested in helping honest victims of a crime who had their money stolen from them, and not that interested in supporting any fraud. We've been working hard to make our process as easy as possible for affected users, while being as hard as possible for false claims (claiming wrong amounts, losses of others, or fake claims).
  • Our ideal verification is based on:
  • If we don't have all the information, or there are problems, claims may be limited or rejected. This is at our full discretion, along with our primary exchange partner.
  • The user balance website is available to confirm balances for a limited time. It could go offline as early as August 31st. Once it goes offline, pre-claims will no longer be possible. As no list of claimants is being published through the bankruptcy, and paperwork can easily be manipulated, larger balances will then have to be validated through the courts.
  • Anyone with a balance on Quadriga can create a pre-claim by providing:
    • Client ID and first name for the purposes of saving the total which you had.
    • An email address for a future launch announcement (which can be a forwarder).


How To Sign Up

If you wish to participate, please sign up at https://www.quadrigainitiative.com/.
You can do a pre-claim to save your balance, or an email only sign up just to show interest and get the launch email.

  • We are a community initiative which is not connected with the bankruptcy process. Participation does not impact your bankruptcy claim. You can find the official bankruptcy information on the Miller Thompson website.
  • We have taken all reasonable measures to protect our website and stored data against SQL injection. The website back-end is simple, all input is sanitized, and all access passwords are 16+ character full random. (I have a background in web hosting.)
  • There is no cost to participate and the pre-claim process takes approximately 3 minutes.
  • Please be sure to keep a copy of your bankruptcy claim paperwork for later validation!


How You Can Help

We are stronger together!
  • Get yourself to a solid level of understanding of what we are doing by asking any questions or giving any feedback if anything doesn't make sense. This is the biggest thing!
  • Send in your pre-claim or do an email-only signup. (Every sign-up helps show interest.)
  • Upvote.
  • Share on social media.
  • Let us know your ideas/thoughts!
  • Join our Telegram group. Come meet our team!
  • Help us get the word out. Tell your friends.


Thanks so much!
submitted by azoundria2 to BitcoinCA [link] [comments]

HOW TO CLAIM FREE BITCOIN  50,000 SATOSHIS PER MINUTE ... New Bitcoin Coin Earning Site200 Satoshi Per Hour With Payment ProofNew BTC Telegram BotCrypto SL Bitcoin Casino with Faucet: Dice Church - 10 satoshis per ... Earn Free Bitcoin Every 1 Minute 1000 Satoshis per Claim 2017 latest Website Cointoshi com Bitcoin earning site 8000 satoshi 1 minutes!!!

Satoshi meaning the smallest indivisible unit of the Bitcoin cryptocurrency. In fact, in the world of Satoshi cryptocurrency is the same as in the real world a penny or a cent. It is a one hundred millionth of a single bitcoin (0.00000001 BTC). The unit has been named in collective homage to the original creator of Bitcoin, Satoshi Nakamoto. A bitcoin is equivalent to 100 million satoshis and there are a total of 21 million bitcoin that will ever be mined. Investors can buy, sell, and trade stock in investments like bitcoin and other cryptocurrencies only at a properly licensed exchange. In this guide, we will walk you through how you can buy bitcoin stock and where to do it… What Is A Bitcoin Stock Exchange? Last Update June ... Each bitcoin is equal to 100 million Satoshis, making a Satoshi the smallest unit of bitcoin currently recorded on the blockchain. Think of the Satoshi as the “cents” part of bitcoin. But unlike a penny that represents 0.01 USD, Satoshi represents roughly 0.00000001 BTC — or bitcoin to its eighth decimal. Bitcoin price. We closed the day, September 23 2020, at a price of $10,225. That’s a notable 2.97 percent decline in 24 hours, or -$313.59. It was the lowest closing price in fourteen days. Each bitcoin (BTC) is divisible to the 8th decimal place, so each BTC can be split into 100,000,000 units. Each unit of bitcoin, or 0.00000001 bitcoin, is called a satoshi. A Satoshi is the smallest unit of Bitcoin. Buy Satoshis At These Exchanges:

[index] [2558] [45967] [4700] [22908] [32579] [50350] [16101] [29330] [31317] [3832]

HOW TO CLAIM FREE BITCOIN 50,000 SATOSHIS PER MINUTE ...

LOOTBITS REFERRAL LINK = https://lootbits.io/?invite=1111187 COINPAYU REFERRAL LINK = https://www.coinpayu.com/?r=ranmon1911 In this video I will be showing ... Hello Guys, Welcome To My YouTube Channel. Today I Will Show New Bitcoin Cloud Mining Site Earning Site. You Can Use This Link For SingUp Site Link:-https://... Website Link : http://linkshrink.net/7v2cXq Earn Free Bitcoin Every 1 Minute 1000 Satoshis per Claim 2017 latest Website Do watch my other videos as well pls... LINK: https://bit.ly/2Fzmp5L Faucet List: https://updatedfaucetlist.blogspot.com/ What is a Bitcoin and how does it work? Bitcoin is a payment system introdu... Now the price of Bitcoin is around 17,000$ ! who people are not interested to earn Bitcoin?? Everyone wants to earn Bitcoin. Today I show you 'How can you earn 1000 Satoshi per claim. please see ...

#