Major Bitcoin Miners Show Optimism Ahead of Halving: An In ...

I'm Marshall Long aka 挖矿王子 - Partner & CTO of FinalHash, LLC Top 10 Bitcoin miner in the world, and a True Bitcoin OG, AMA at forum.bitcoin.com

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I'm Marshall Long aka 挖矿王子 - Partner & CTO of FinalHash, LLC Top 10 Bitcoin miner in the world, and a True Bitcoin OG, AMA at forum.bitcoin.com

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I'm Marshall Long aka 挖矿王子 - Partner & CTO of FinalHash, LLC Top 10 Bitcoin miner in the world, and a True Bitcoin OG, AMA at forum.bitcoin.com

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I'm Marshall Long aka 挖矿王子 - Partner & CTO of FinalHash, LLC Top 10 Bitcoin miner in the world, and a True Bitcoin OG, AMA at forum.bitcoin.com

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I'm Marshall Long aka - Partner & CTO of FinalHash, LLC Top 10 Bitcoin miner in the world, and a True Bitcoin OG, AMA at forum.bitcoin.com

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❗️ #Fire affects #bitcoin. #Hashrate drops!

❗️ #Fire affects #bitcoin. #Hashrate drops!
➖➖➖➖➖➖➖➖➖
On September 30, the hashrate of the first #cryptocurrency network significantly #decreased and amounted to 82 EC / s. Such a drop in hashrate is associated with a fire that destroyed $ 10 million of mining equipment.
According to Marshall Long on Twitter, one of the first Bitcoin miners, a fire rages on the squares of the Innosilicon mining center.
➖➖➖➖➖➖➖➖➖
https://t.me/moonvoyagerbounties/9402

https://preview.redd.it/5u35bfzk37q31.png?width=640&format=png&auto=webp&s=67634767cc18257ead7d246b550b18606c9a38bc
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Why I switched back and support Core.

A while ago I looked into the Blocksize debate and with the information then available and the arguments pushed by Classic, I felt like I saw the light. I joined /btc, installed bitcoin unlimited and later Bitcoin Classic and felt good about it.
 
My reasoning was very simple:
1) My transactions got stuck from time to time and I got annoyed waiting for confirmations. 
2) I believed that just increasing the blocksize would solve the issue, everyone can handle 2MB right? 
3) I didn't like the fact that a lot of Core devs were all working for the same company (Blockstream) and at that point I believed the goal of Blockstream was to create a LN with paid subscription, which was mentioned a lot of times on /btc. Trying to force the average user off the blockchain. 
4) I didn't like the moderation on /bitcoin.
 
What I've come to realize in the last week:  
1) After reading the arguments by Peter Todd and other core devs in regards of the scaling it makes sense. You can't keep increasing the blocksize, it's the wrong approach. Bitcoin by itself will never be able to handle the amount of transactions Visa can. 
2) I like the fact that the Core team took the time to have a meeting with the big miners and some other big players in the market to come up with a consensus that neither side is happy with but both can live with. (that shows that it's a real consensus and not someone bullying the other one in a bad agreement) 
3) If you try to read /btc it's always the same, excuse my French, circlejerk. Always boiling down to the same issues they have with Core and Blockstream, instead of trying to focus on something positive. After reading this post about one of the main guys behind Classic, I started to have a bad feeling about it. 
4) /btc tries to take pride in the fact that there is no real censorship, try to make 1 post where you something remotely positive about Core (not even related to the issues with Classic) and you'll get downvoted to oblivion, it's just another type of censorship. 
5) The fact that one of the Blockstream employees, Mark Friedenbach, didn't like the consensus and was open about it, showed to me at least that there is more going on than just Blockstream trying to push their agenda and that they do have, for now, Bitcoins best interest in mind. 
6) There is still room to grow if we can fill those empty blocks being mined and Antpool that only fills to 730kb, that should be more than enough until segwit comes out.
 
Other reasons why I switched back:  
1) Core has a lot more combined programming experience than Classic, I'd rather have a team that has the experience since they will see most potential issues from miles away. Note: Gavin is not an active programmer anymore and so he has nothing to do with Classic code. 
2) Some wallets will immediately implement Segwit as soon as it's in production and anyone aware of this will use it to get in the next block. I see a lot of people immediately using this which will decrease the mempool. 
3) 1 year is long, I admit, but if you've ever been involved in a complicated software project you know that you need enough time to test and prepare all the clients, make everyone upgrade. There will always be nodes that "forget" or just don't upgrade. 
4) Just increasing the blocksize doesn't work, you need an alternative, LN is the only real realistic solution I see. I don't see 16 MB blocks happening. 
5) The Classic community is really small actually, but very vocal and negative. Just check the posts on their page, either extremely negative, trying to find some words they can twist from someone to make it seems they are evil, or the other posts are just that they mined a couple of blocks with a very limited amount of support. 
6) The Vocal leaders of Classic Olivier, Brian, Marshall, Roger, either don't have any coding experience, don't understand the impact or they are just not people I want to associate with.
 
TLDR; I'd rather be in a positive community and I believe that the roadmap proposed during the roundtable is the way to go forward.
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Released List of Satoshi Roundtable Attendees Gathering this Weekend

Satoshi Roundtable II
This weekend a group of blockchain and bitcoin industry leaders gather again for the Satoshi Roundtable (satoshiroundtable.org) retreat. Participants in the second Satoshi Roundtable include developers, CEOs, investors, adopters and influencers from the blockchain and bitcoin world.
The retreat is limited to approximately 75 attendees and designed to encourage organic, participant-driven discussion free of the distractions of a conference.
Sessions include several topics of overall blockchain interest and a roundtable discussion on bitcoin capacity.
Please provide any suggestions you have for areas of discussion/ focus.
Partial list of confirmed participants:
Gabriel Abed, CEO, Bitt Charles Allen, CEO, BTCS Gavin Andresen, MIT / Bitcoin Foundation Adam Back, President, Blockstream David Bailey, CEO, yBitcoins Mike Belshe, CEO, BitGo Patrick Byrne, CEO, Overstock / T0 Michael Cao, CEO, zoomhash Dave Carlson, CEO, Mega Big Power Daniel Castagnoli, CCO Exodus Sam Cole, CEO, KNC Miner Matt Corallo, Core Developer Luke Dashjr, Core Developer Anthony Di Iorio, CDO-Toronto Stock Exchange, Founder-Ethereum/Decentral/Kryptokit Joe Disorbo, CEO, Webgistix Jason Dorsett, Early Adopter Evan Duffield, FoundeLead Scientist, Dash Andrew “Flip” Filipowski, Partne Co-Founder, Tally Capital Thomas France, Founder, Ledger Jeff Garzik, Founder, Bloq Yifo Guo, Tech Develope Early Adopter David Johnston, Chairman, Factom Samy Kamkar, Super Hacker Alyse Killeen, Partner, Venture Capital Investor Jason King, Founder, Unsung Mike Komaransky, Cumberland Mining Peter Kroll, Founder, bitaddress.org Bobby Lee, CEO, BTC China, Vice-Chairman of the Board, Bitcoin Foundation Charlie Lee, Director of Engineering, Coinbase/Founder of Litecoin Eric Lombrozo, Founder, Ciphrex Corp / Developer Marshall Long, CTO, Final Hash Matt Luongo, CEO, Fold Jake Mazulewicz, Ph.D. JMA Associates (guest speaker) Human performance researcher Halsey Minor, CEO, Uphold / Founder of CNet Alex Morcos, Hudson Trading/ Core Developer Neha Narula, MIT, Director of DCI – Digital Currency Initiative Dawn Newton, Co-Founder, COO, Netki Justin Newton, Founder CEO, Netki Stephen Pair, Co-FoundeCEO, BitPay Inc. Michael Perklin, President, C4 – CryptoCurrency Certification Consortium / Board Member, Bitcoin Foundation Alex Petrov, CIO, BitFury Phil Potter, CFA, Bitfinex Francis Pouliot, Director, Bitcoin Embassy, Board Member, Bitcoin Foundation JP Richardson, Chief Technical Officer, Exodus Jamie Robinson, QuickBt Jez San, Angel Investor Marco Santori, Partner, Pillsbury Scott Scalf, EVP/Head of Tech Team, Alpha Point Craig Sellars, CTO, Tether Ryan Shea, Co-Founder, One Name Greg Simon, CEO & Co-Founder Ribbit! Me / President, Bitcoin Association Paul Snow, CEO Factom, Texas Bitcoin Conference Riccardo Spagni, Monero Nick Spanos, Founder, Bitcoin Center NYC Elizabeth Stark, Co-Founder & CEO, Lightning Marco Streng, CEO, Genesis Mining Nick Sullivan, CEO, ChangeTip Paul Sztorc, Truthcoin Michael Terpin, CEO, Transform Group Peter Todd, Core Developer Joseph Vaughn Perling, New Liberty Dollar Roger Ver, CEO, Memory Dealers / Bitcoin.com Aaron Voisine, CEO, Breadwallet Zooko Wilcox, CEO, Z Cash Shawn Wilkinson, Founder, Storj Micah Winkelspecht, CEO, Gem
Also, representatives from Blockchain, Bain Capital Ventures, Mycelium, Fidelity Investments and others.
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Focus on the vision for Bitcoin, not just its price.

Preamble
The purpose of this post is not to discourage enthusiasm over the recent appreciation of Bitcoin. Everyone here is excited, and rightly so. I’ve put this together because I think people are getting a bit caught up in price mania and losing sight of the bigger picture.
The ideas I’ve pulled together here are pretty condensed as it is, so unfortunately I have no TLDR. I don't claim to have a prophecy to share, or concrete answers to questions about where Bitcoin will go in the future -- nobody does. But that doesn't mean there's nothing to talk about.
I would suggest reading slowly and giving your imagination time to picture or "render" things. There is no other way to grasp Bitcoin.
Final preamble: I know there are people in this sub who are here just for the gains -- they freely admit it, and they laugh at how "true believers" will be left holding the bag when they sell. My hope is that those of you who feel this way will have an open mind. You might see things in a new light, who knows?
Here we go…
The Medium is the Message
In the 1960s, a Canadian professor named Marshall McLuhan became widely known for his thorough analysis of the evolution of communication technologies. His central precept was that communication technologies have dramatic effects on populations regardless of the content they carry at any particular moment. The radio, for example, allowed private microphones to broadcast to widely distributed speakers, which enabled the amplification of private viewpoints on a public scale. This had profound effects on society that played out regardless of what particular messages were carried over particular radio frequencies at particular times.
McLuhan’s famous aphorism, “The Medium is the Message,” is a distillation of this precept. In point form: 1) each new communication technology changes the environment into which it is introduced; and 2) the net effect of a technology over time is both far more interesting and harder to discern than the effect of any particular use of that technology or phase of its development. In other words, it is harder to see the forest for the trees, but seeing the forest is everything.
So: what effect will Bitcoin have on the world over the long run? What is the meaning of Bitcoin?
The Roman Model
To understand where we might be going, we have to first understand how we got to where we are. In the West, our societies are founded on the Classical traditions which were seeded in Ancient Greece and “scaled” so to speak in Ancient Rome. McLuhan had a lot to say about this from a technological point of view:
The development of writing on lightweight media such as papyrus and parchment enabled the externalization of knowledge. Thus, the oral traditions of Ancient Greece were subsumed and replaced by written traditions which were far less lossy and could be refined over time. Writing on lightweight media also enabled the centralized control of vast resources over large distances, which would have been impossible using engraved stone or oral communication. This was perfected by the Romans and thrown into overdrive by Johannes Gutenberg's invention of the printing press around 1450.
In its abstract form, the Roman model takes the form of bureaucracy – hierarchical organization -- and this model has underpinned the structuring of society in the West for the past two thousand years. Look up "org chart" on Google Images if you can't picture one. Our societies are comprised of org charts within org charts within org charts -- try the following searches on Google Images: military org chart, bank org chart, government org chart, university org chart. Everything in our society is centralized, bureaucratized, and nested within the context of the nation state which is run by a central bureaucracy called the government, itself divided into departments within departments, orgs within orgs.
This is not to say that humans didn't organize hierarchically before ancient Rome -- of course they did, as do apes, dogs, chickens, etc. However, in a social hierarchy such as a tribe, there is a scale limit (Dunbar's number, 150) because each member must know his place and his role as well as the places and roles of all other members. The hierarchy lives inside its members' minds and looks more like a swarm than an org chart. Bitcoin is, of course, this type of network, where each node has full knowledge of the state of the network and participates in it voluntarily.
Bureaucracy, on the other hand, is based on the writing down of roles (job descriptions) and makes people interchangeable. There is no limit to scale as long as you map everything out carefully (management). The lifeblood of bureaucracy is the transmission of written forms of information (paper-pushing) from the center to the periphery along defined, linear routes. Each node receives its orders, performs its specialized role, delegates if the role requires it, and then awaits new orders. Privilege and planning are concentrated near the center -- as is risk.
These structures are inherently fragile and collapsible. If you undermine a high-value node as happened in the collapse of Lehman Brothers, the whole edifice collapses. The entire global financial system barely withstood the collapse of a single American bank - it is that fragile.
Each nation's banking system is likewise a matrix of bureaucracies operating as a single, hierarchical supply chain whose product (the national currency) flows outward from a central node (the central bank) through successively less privileged nodes (investment and commercial banks) down to the level of branches and ATMs. At each level of the banking system, additional product is created and loaned out (credit/debt) using the productfrom the level above as a stake (fractional reserve lending). The banking systems are insulated from competition by governments through the decree that taxes must be paid in national currencies. And to keep the currencies moving, everyone is raised from birth to want more and then given the appearance of more through the creation of more by fiat, meaning by arbitrary decree, without any necessary connection to the creation of new wealth. This is inflation: the steady creation of new money to repay debt and keep the show going. It is a Ponzi scheme by design, and it relies the continued "buying-in" of young people in order to survive.
Each national currency has value and utility only by decree and only within that nation's cell in the global mosaic. To move value from one nation to the next requires snaking it through tenuous international pathways, paying entrenched gatekeepers, and exchanging one national currency for another. You have to be somebody to access the banking system. The more somebody you are, the more access you get. It is principally through control of economic access that strong nations bully weaker ones, rich people bully poorer ones. There is tremendous pent up tension in our world as a result. This is where we are.
The Center Cannot Hold
McLuhan predicted that the advent of the electronic age and the emergence of global communication networks would lead to the dissolution of these centralized, bureaucratic structures from the bottom up. He died before the spread of the Internet but described the end result with crystal clarity in his writings. His vision of an interconnected world, which he called the "Global Village," is here now. Every person has the ability to broadcast information to others in their networks over the Internet. If a transmission is perceived as having sufficient value, the receiving people pass it on, and so on. Above a certain threshold of significance, transmissions are repeated by all people to all other people: this is virality and there is nothing that institutions can do to harness or stop it. The Arab Spring for example brought down an array of national governments in a span of months.
Like a rising tide, global communication networks are bringing about an inevitable dissolution of the Roman model all around us: the music industry was upended by Napster; newspapers are being displaced by twitter and blogs; radio stations are being displaced by podcasts; broadcasters are being displaced by Netflix and YouTube; brick-and-mortar stores are being displaced by Amazon and eBay; AirBnb is gobbling up rental supply; traditional transportation services are being displaced by Uber; and now decentralized currencies are coming after centralized ones. Quoting W.B. Yates: “Things fall apart; the center cannot hold; Mere anarchy is loosed upon the world.”
It is important to realize that even though the post-Dot-Com networks like Facebook and eBay were more effective than their institutional predecessors, they are still quite fragile since they are centralized. They can be hacked, compromised, back-doored, subpoenaed, or otherwise shut down. In contrast, a truly decentralized network is perfectly flat and impossible to shut down. The music industry could kill Napster by going after Sean Parker, but it cannot touch BitTorrent. True decentralization, at scale, is one of the principal reasons why Bitcoin is secure: whatever it becomes, it cannot be stopped because there is no center to hold, and nothing to attack.
At this point, I think it makes sense to explain how Bitcoin works, and why it has value. If those questions can't be answered clearly, there's no basis for thinking Bitcoin will disrupt traditional banking. I do, however, think there are very good answers to those questions which I'll try to present below.
Bitcoin and Blockchain
Imagine you live in a pre-historic tribe of ten people. As a group, you need to find a way to keep track of who did what work, and in what quantity. In other words, you need an abstract “work unit” that can be traded for work and held for use in future exchanges. You could use shiny rocks or something else similarly rare, but people would still be able to cheat the system: why do actual work if you can simply go on a hunt in the forest and find new rocks?
One solution is to create a ledger or list that keeps track of how many rocks each person has. If the ledger is the authority on who has what, people would not be able to inflate their balances by introducing new rocks or other work units from outside the system. The problem is, everyone has to trust the keeper of the ledger. If only one entity maintains the ledger, they ultimately control how much money everyone has (banks).
Decentralization is the solution to this problem. You can write down ten copies of the ledger and distribute a copy to each person in the tribe. At the end of the day, everyone could cross-check the transactions that took place with everyone else and a consensus could be formed about who has what without appealing to a central authority.
Eventually, the people might realize that the rocks themselves are unnecessary, and that it is actually the ledger that is important. The rocks, like all currencies, are meant to track work. If a ledger is already doing that, the rocks themselves become extraneous. The actual units of currency are the work units on the ledger. And if everyone agrees to use the same ledger, its work units have value.
The blockchain is that ledger and Bitcoin is its work unit.
Proof of Work
In the illustration above we can see that the utility of a blockchain is that it enables distributed peers to prove to each other that they have done work, and to trade their work units freely without appealing to a trusted intermediary. The obvious next question is: what proof do we have that we can trust the Bitcoin blockchain?
Bitcoin mining is based on a Proof of Work consensus mechanism. To put this as simply as I can, each and every mining node on the network is competing against the rest of the network to generate a small piece of data that proves it has performed an enormous number of computer operations using a batch of new, valid transactions as an input. The amount of work that it takes to successfully mine Bitcoin is dictated by how much computer power has voluntarily joined the mining network - and this is adjusted dynamically as miners enter and leave the network. Each operation requires a tiny bit of electricity since a computer must perform it, so as the difficulty of the Proof of Work operation scales, so too does the cost of generating it.
As of writing, the Bitcoin network is collectively performing about 8,250,000,000,000,000,000 operations per second, and it takes an average of about ten minutes worth of this grind for a single node on the network to successfully produce an acceptable proof of work and add a block of transactions to the blockchain. The winning node is awarded new Bitcoin by including a transaction in its block that credits its own wallet -- now we understand mining.
So you want to be a Bitcoin miner? Let's say you have a powerful gaming computer that can perform about 100,000 Bitcoin computer operations per second (a realistic amount by the way). It would have roughly a 1 in 82.5 quintillion chance of mining a block if you were to enter it into the mining race today. If you had a stack of 1000 of these gaming computers your odds of mining a block would improve to roughly 1 in 82.5 quadrillion. A million of them? 1 in 82.5 billion. Etc. Miners use specialize hardware to perform the computer operations, but the point still stands: it takes a staggering amount of computer power and thus a staggering amount of electricity to "get a word in" on the Bitcoin blockchain.
But let's say you get lucky and are able to generate a proof of work. That proof of work will be tied inexorably to whatever batch of transactions you are trying to add to the blockchain since those transactions were part of the input of the computer operation. Your transactions must be valid or else the rest of the network would reject your work. You wouldn’t be able to double-spend, create Bitcoin by fiat, or spend from balances that you don’t have the keys for. The network would reject your block.
The larger and more distributed the mining network is, the more cost-prohibitive it is to compromise it. In other words: the more people you have checking the ledger from different nations and backgrounds, the harder it is to override the distributed, international consensus. And that is why the Bitcoin blockchain can be trusted. It is audited by the largest computer network ever assembled and requires that an attacker control at least 51% of the network on a sustained basis.
The Open Blockchain
As more and more people use a blockchain, its units (e.g. Bitcoin) become more valuable. As the price of the base unit increases, it becomes more profitable to mine them at the prevailing level of difficulty, so more miners join the network. As more miners join the network, the level of difficulty increases and thus the robustness and security of the network increases. As the robustness of the network increases, it becomes more secure against attackers, so more users and investors are drawn to it. And so the price of the base unit increases. Which draws in more miners. Etc.
The adoption of a blockchain, like the adoption of any currency, is a virtuous circle -- one that Bitcoin has been nurturing successfully for nine years without any existential catastrophes. Bitcoin's heartbeat, the mining of a new block every ten minutes, has not skipped a single beat in nine years. There has not been a successful double-spend in nine years. There has not been a single accounting error in nine years. No balance has been mysteriously wiped off the blockchain in nine years. This track record has been established despite the fact that the blockchain is not protected by a firewall, or an institution, or shielded in a vault. It is not buried underground, or protected by obfuscation. It is out there in the wild of cyberspace for all to see and attack, secured purely by Proof of Work and sheer scale.
Bitcoin itself is valuable because it is the only work unit that can be included in a block of this particular, special blockchain: the open, global, transnational, borderless, censorship-resistant, permissionless, leaderless, most well-known, longest-running, and most-well-capitalized blockchain (credit to andreasma for this and many other insights). Because work units on this blockchain are scarce (per the 21-million cap), having the ability to sign for transfers of Bitcoin on the blockchain is a form of real control over scarce resources.
This is the pivotal point: to the degree that people around the world adopt and learn to trust the Bitcoin blockchain, its work units will have value. And it is Bitcoin's openness in particular that makes it the prime candidate for filling this role. Any computer on the planet can join the mining swarm at any time, just as anyone can join the network as a user, at any time, from any location. Even the Bitcoin development community is open-source and open to new developers provided they can prove their merits.
This is what is meant by The Open Blockchain: the Bitcoin blockchain is accessible everywhere and is open to anyone. It is welcoming. It enables people from different cells in the global mosaic to transact point-to-point, without snaking value through complicated interbank networks, without paying entrenched gatekeepers and intermediaries, and without having to convert from one currency to the next. If a country experiences a currency crisis, Bitcoin is a very real option because it enables people to transfer value out of hot spots and convert it into other currencies. The international monetary system is no match for this technology. Private blockchains are no match either.
Bitcoin’s Monetary Policy
Bitcoin is commonly referred to as "digital gold" since it is designed to function like a precious metal. The creation of new units follows something like the extraction curve of a natural resource. The issuance of new coins was steep at first but will taper off over time through successive “halvings” of the reward that miners receive for creating new blocks. Eventually, the issuance of new coins will approach an asymptotic limit of 21 million coins.
At each "halving", the rate of inflation is effectively cut in half, though it decreases ever so slightly with each new block. The current rate of inflation is about 4%. At the next halving in 2020, the inflation rate will be about 2%. In 2024, 1%. Etc.
The world has never before had access to a truly deflationary asset. Even currencies considered deflationary such as the Japanese Yen are not truly deflationary: the government can print an infinite amount even though deflation in Japan has inertia. Gold is not deflationary: new gold is mined every year. Bitcoin will eventually become truly deflationary, meaning the supply of available Bitcoins will contract year over year consistently. How is this possible, if there is no provision to destroy coins in the protocol?
There is guaranteed to be a year sometime in the future where more coins are lost due to people losing their keys than new coins are created. It will happen. As the miner reward decreases, years like this will become more common. In the distant future, decades will go by where every year is deflationary, and eventually it will be practically impossible for the supply of Bitcoin to not decrease in a given year.
Here is Bitcoin’s golden proposition: because it the first truly deflationary asset, it does not require interest payments or a never-ending influx of greater fools in order to provide a “yield” over the very long run. In the distant future, Bitcoin will have a low but predictable intrinsic expected return approximating its rate of deflation, as long as it remains secure.
When you combine Bitcoin's monetary policy with its robustness through distributed Proof of Work on a planetary scale, you end up with the basis for a global reserve asset more effective than anything else humans have ever had a chance to work with, including gold. Gold is modestly inflationary, it cannot be transmitted over a network, and it must be centrally secured and accounted for. Bitcoin has already obsolesced gold as a reserve technology, let alone Ponzi currencies like the dollar - most just don't know it yet. As people come to really understand Bitcoin’s monetary policy, they will flock to it as a safe haven, especially in troubled economies. If we have another 2008, Bitcoin will be very much in play.
Bitcoin as Money
People argue that Bitcoin's deflationary policy, high fees, and volatility make it ineffective as a medium of exchange. If you can expect a Bitcoin to be more valuable next year, why spend it this year? If it costs $20 in fees to buy a $3 coffee, who will use or accept it? If its value can double in a day, who will set prices in terms of Bitcoin exclusively? The truth is, Bitcoin is not yet ready for mass adoption as a day to day currency or unit of account. Anyone who tells you otherwise is getting ahead of the technology -- but this is temporary.
Just as the early Internet could only handle the transfer of simple text-based content but eventually scaled to allow everyone to stream 4k at the same time, so too Bitcoin will scale. The Lightning Network shows promise in this regard. It will enable and incentivize users to stake their Bitcoin on a second layer where payments are negotiated in a trustless manner between parties, instantly, and merely settled periodically on the blockchain. But even with today’s block congestion and high fees, Bitcoin is already cheaper and more efficient for large transfers of value than the banking system, especially internationally. People transfer hundreds of millions of dollars on the blockchain, securely, today.
Regarding volatility, we are still in the very early phases of adoption. Something like 10-20 million people own Bitcoin worldwide. Because the supply of Bitcoin cannot inflate to accommodate increased adoption, prices will continue to escalate in logarithmic fits and starts as adoption ramps up exponentially. Look up "adoption curve" on Google. We are still in the very early phases of the ramp-up, but eventually the curve will taper off and approach something like stability. We do not know how this will play out or how long it will take, and there will be serious volatility along the way; but if Bitcoin scales into a robust transnational currency trading on thousands or tens of thousands of exchanges worldwide, it will likely become more stable than most national currencies if not all.
Regarding deflation: over time, we will likely see new innovative uses of Bitcoin as a reserve for credit creation. People are clearly willing to operate in systems that use reserve-based lending, and they can work wonderfully: look at what humans accomplished in the 20th century! It is conceivable that Bitcoin could be used as a reserve for distributed, trustless, bank-like networks that issue their own tokens. We may end up using a modestly-inflationary cryptocurrency for day-to-day transactions and investment. There’s no way to know what people will come up with, but they will come up with things. And that is why Bitcoin must stay laser-focused on its role as the de facto reserve currency in the crypto-economy.
A Vision Statement for Bitcoin
Tying everything together: over the course of thousands of years, we have built our societies around the use of hierarchical principles of organization. These structures centralize control and privilege, but also risk. They are fragile. Too big to fail.
The invention and proliferation of the Internet paved the way for the dissolution of these structures, and over the past twenty years we have seen countless examples of entrenched institutions being wiped out by flatter, more effective networks.
Now we are seeing the early evolution of global, distributed, cryptographic value storage and transfer networks which will slowly displace traditional banking systems by offering faster, cheaper, more reliable routes, with better systemic risk profiles, infinitely better security, no access controls, and no entrenched monopolistic privileges over money creation.
Bitcoin was the first mover in this space and remains the incumbent. It is a global, secure, consensus-based currency that was bootstrapped from the ground up by ordinary people volunteering to participate in its development, mining, and use. It has grown exponentially in size since its inception, to the point where it is now upheld by the largest dedicated computer network in the world. Because it is secured principally by its unmatched scale, it is therefore the most secure accounting system in the world, which in turn makes the entries in its ledger the most trustworthy on the planet. If you can sign for a Bitcoin in the network’s eyes, you own it -- and nobody can stop you from owning it or signing for it.
Bitcoin is here, now. It is in the air all around us, accessible over wifi and cellular networks around the globe -- anywhere the Internet touches. The next time you walk down the street, look at the people around you. As they move through the air, displacing it with their bodies, recognize that they are literally wading through the Bitcoin network -- they just don't know it yet.
Suggestions for New People
1) Focus first and foremost on the vision and take an interest in the technology. I have a friend who is talking about putting $20k into Bitcoin, yet only a few nights ago he didn't know that Bitcoin isn't a company, or that a block isn't a single transaction. I have another friend who owns a whole Bitcoin but has never initiated a transaction. A co-worker of mine just bought $100 worth of Bitcoin but doesn't know that a wallet is key management software.
2) Bitcoin is an experiment with no precedent. Nobody knows if it will survive, what it will evolve into, or how it will be used. Even with its long-running track record, nobody can say with prophetic certainty that it won't suffer a catastrophic failure of some kind, so put only as much money into Bitcoin as you can afford to lose. I would offer the following as a good rule of thumb: if you have a negative net worth (meaning your debts exceed your assets) be very cautious with Bitcoin, and at the very least do not increase your debt to buy Bitcoin. If you have a positive net worth, do not go negative to buy Bitcoin. Having said all this, do keep in mind that any currency can suffer a catastrophic failure, including the US Dollar. Remember 2008. Don’t fall for illusions of security. We are all sailing in little boats on a big sea. Diversify.
3) If you believe in Bitcoin, try not to obsess over the value of Bitcoin in fiat terms, as tempting as it is. Try to conceptualize its value on the basis of its potential utility in emerging decentralized networks and look for ways to use it in these new emerging ecosystems. Look up OpenBazaar for example - it could be the new eBay without an eBay acting as an intermediary. I strongly believe that owning Bitcoin is exciting because it sets you up to have a stake in this emerging ecosystem. If your aim is to eventually get your value out of Bitcoin in the form of fiat, you’ll be giving up that stake. If you don't care about having a stake and are here just for the gains, that's perfectly fine too.
4) Learn how to take possession of your private keys. If you don't know what that means or how to do it, learn what it means and how to do it. Until you can say with confidence "I alone own my private keys", you do not actually own Bitcoin and you do not have a stake. Someone else owns it for you. It took me two years of owning Bitcoin before I actually clued in and took control of my own, and that is what forced me to take on the Bitcoin learning curve. The good news is, you can too.
(Edit: formatting)
submitted by noah6624 to Bitcoin [link] [comments]

General info and list of exchanges for FansTime (FTI)

Ecosystem Individual IP Value System
If currency no longer represents the amount of work per unit of time, then what can measure the value of talent? FansTime believes that only fans can do it. IFS, the TOKEN generated on iFans Chain parent chain will become the only object to price an Individual IP so as to solve the pricing, financing, derivative development and assetization. Gradually, a decentralized multilateral market can be built then the value of Individual IP can be cherished fairly.Based on the new logic of communication, changing from domain addressing to content addressing, FansTime will promote the establishment of a truly worldwide content distribution system and copyright identification system together with other technology enterprises which focus on the fundamental technical advances in the Blockchain area. International Crowdfunding Platform for Individual IP
FansTime will also provide an international crowdfunding platform for IFS holders in addition to continuously connecting the terminal consumption scenarios to the Ecosystem. Compared to the traditional crowdfunding platforms, the new ones will operate independently without man-mad interferences, thanks to the Smart Contracts and Decentralized&Distributed Databases. In this case, "code equals to law" would be truly realized at least in the process of profits allocation between investors. Global Membership Rewards System of Individual IP
Based on distributed data storage, asymmetric encryption, peer-to-peer networking and other Blockchain related technologies, a global membership rewards system may be realized. The problems such as identity certification, unfair treatment, poor flexibility of databases will be solved. Application Scenarios Time Exchange
As the number of users increasing and the depth of user engagement enhacing,there will be a huge amount of demand for individual IPs. So FansTime will launch an equivalent object as Exclusive Token in order to simplify the process of issuing and auditing. Time,the equivalent object,provides a more flexible assetization channel which can attract much more Individual IPs with potentials.Time Exchange will work with Exclusive Token Exchange in parallel, thus enriching the value system. Fans Rights Mall
It is one of the terminal consumption applications in FansTime ecosystem. With the development of the community, terminal consumption scenarios will increase greatly. Commodities in Fans Rights Mall covers traditional copyright commodities, tickets for offline activities , weaker-copyright digital contents. According to different status of Individual IPs, the comodities can be priced by IFS, Exclusive Token or Time. Exclusive Token Exchange
With the Smart Contract of the FansTime parent Chain (iFans Chain), Individual IP can issue its own Exclusive Token, which is used to anchor its own IP value. Fans can obtain investment returns by holding and selling the Exclusive Token of Individual IP, directly participating in the process of Individual IP increasing. In this case, problems of pricing, transaction and assetization can be solved. FansTime will introduce high quality Individual IPs and more demanders of segment markets into the community as to expand the scope of Exclusive Token using. Management Team Martae Honorably,Miss Apinya Pramoj(More)
Honorary Chairman Eric Jiang(More)
CEO TETSUYA SHIN(More)
RD Department Head Ting SHE(More)
Marketing Department Head Terry Wu(More)
Finance Department Head Investment Institution
With a globalization strategy, ChinaEquity Group (CEG) focuses on investment in High-tech and Culture&Entertainment industries. CEG was co-founded by Wang Chaoyong, returned American investment banker and Chief Representative of Morgan Stanley Beijing Office, together with Swiss investors. Mr. Wang is hailed as Investment Godfather and he is one of the first overseas Chinese students working in the Wall Street investment and financing community.
Leading domestic non-public online equity investment platform. 36 Kr is a mainstream, prestigious and influential new business media and its parent company is now the largest service platform for the 'Entrepreneurship and Innovation Initiatives’ in China.
Chen Shu, the founding initiator of NEXT, is the initiator of Wenzhou Financial Management Association and co-founder of W Youth Capital. NEXT has now accomplished its initial operations in blockchain-related fields, concerning TMT, cloud computing, big data, AI, financial technology, etc.
Qianhai M&A Funds, with the powerful support of Qianhai Equity Exchange shareholders, specializes in 7 sectors of high-tech investments, including culture and education, internet, IT, industrial automation, healthcare, environmental protection, national defense conversion to civil use.
iFensi is the most professional fans operation and service platform, ranking top on Alexa Chinese entertainment website. It secured RMB 150 million in B- Round Financing in 2017 and was valued at RMB 1 billion, a record high in fan economy financing.
A frontier investor in blockchain technology co-founded by the core team of Waltonchain and business circles and pevcnews, committed to offering support to teams with industrial expertise and connections as well as understandings and visions on blockchain.
A venture capital firm dedicated in blockchain and one of the earliest professional investment companies laying hands on blockchain. Node capital is to connect nodes existing in blockchain ecology and integrate sector resources through investment projects and cooperation, thus construct eco-system of the industry and carry forward steady and healthy development of blockchain.
Ainvestment arm under huoxun.com, was established by several top blockchain experts.
Tsing Capital, specializing in risk investment in block chain industry, is a professional investment institution, the earliest one established in the world for linking and hatching young leaders' new technology projects.
United Cultural Works Exchanges is the largest and most influential film and television derivative exchange platform and the only government-approved cultural art works equity exchange platform in Liaoning Province, China. United CulturalWorks Exchanges has worked with Chunqiu Time, H&R Century Pictures, Alibaba Pictures, Huayi Brothers Media Group and other top IP creators to publish over 50 pieces of derivative works, business turnover exceeding RMB 50 billion in 2016.
Xiang Chain Fund of Funds (XCF), the first Fund of Funds (FOF) of blockchain industry in Hunan province, was jointly established by Cheng Guihua, a founding member of the China Young Angel Investor Leader Association and Wang Xiaoye, an executive director of the China Young Angel Investor Leader Association. XCF has invested many projects including the following: EGCC, Extrade, Rcash, etc. It maintains a highly cooperative relationship with well-known blockchain investment institutions, and has a high degree of integration of the head resources of the entire blockchain industry. At the same time, XCF provides high-quality blockchain industry projects with consulting services of one-stop investment and financing, helping accelerate the development of excellent projects in blockchain infrastructure and commercial applications.
DFUND was founded by Zhao Dong, a well-known person in digital currency field, in July 2017, specializing in the investment in the field, and supplying the invested project with end-to-end investment bank services. It sticks to the principle of value investment, which is judged and screened by professional team. It has impressive earnings in its early open-ended fund. Till January 2018, the net earnings of Bitcoin in the first phase project of DFUND is 620%, or 2543% in U.S. currency. The major investment projects are TNB、QASH、aelf、Cybermiles、LLT、MobileCoin、Beechat, etc.
Genesis, a blockchain-oriented professional investment bank and venture capital institution, was found by Zhu Huaiyang and Sun Zeyu in 2017, engaging in finding the top quality blockchain projects and providing long-term comprehensive assistance. The major investment projects are Deep Brain Chain(DBC)、IOS、AELF、JEX、Game.com、ProChain、Acute Angle Cloud, etc.
Link Capital, founded by Lin Jiapeng, a senior investment expert in blockchain field, is an investment institution specializing in the sectors of blockchain project, digital currency and network finance, used to invest in lots of quality blockchain projects home and abroad. It has established offices in Singapore, Canada, and China’s Hong Kong and Shenzhen.
HS Capital has sharp acumen in blockchain industry, unique insight and control over projects, and energizes invested project with community energy.
Ju Capital under the Jubi Group, is a venture capital company concentrating on blockchain industry, as well as one of the professional investment institutions early involving in blockchain industry. Ju Capital is aimed at bringing most potential blockchian projects to frontier markets through project investment and cooperation. Over years, Ju Capital has been implementing influential blockchain projects worldwide by supplying end-to-end professional team services, sticking to the principles of dedicating and professional investments, and upholding the concepts of vale investment and deep guidance.
Stars Capital, founded by Mr. Liu Jingchao in 2017, is a venture capital company specializing in blockchain industry, and one of the profession investment institutions early involving in the blockchain industrial ecology in the global context. It sets its purpose on integrating industrial resources, building industrial ecological circle, and fueling the healthy and stable development of blockchain industry through the way of project investment and cooperation. Mr. Liu Jingchao is also the founder of Bijiu.com and Binvestment, as well as an accomplished expert in blockchain industry.
Trueway Capital is a professional investment institution focusing on the blockchain sector, engaging in building ecological layout in the fields of mineral pool, transaction platform, technical media, technology application, etc. It is now devoting itself to the technology innovation and development of blockchain by investing in and incubating excellent venture teams in blockchain sector.Investment cases: CyberMiles(CMT)、JEX、Coindom(CCC)、OneRoot(RNT)、GIFTO、Zipper OS、TopChain(TOPC)、Game.com(GTC)、RenRen、Nebulas(NAS)、BAIC、TrueChain、QUNQUN、WaykiChain 、HotChain(HOTC)、TokenClub、All Sport(SOC)、ARMADA MINER(AMUT)
Lemi Capital is a venture capital company focusing on the investment in global blockchain sector in its early and growing stages, and is one of the earliest professional investment institutions making layout for creating blockchain industrial ecology worldwide. Lemi Capital’s target lies in, by means of project investment and cooperation, fueling rapid rising of new technology and high-value projects, linking the nodes on blockchain industrial ecology, integrating industrial recourses, building industrial ecosystem so as to better release the potentials of blockchain technology in its coming development and application, and promoting the healthy and steady development of blockchain industry.
Gama Capital is a type of blockchain industrial fund established at the beginning 2018. Its capital investment portfolio covers all developing stages of blockchain industry, vertical industries, regions and commercial modes, including tracks such as basic chain, Internet of things, supply chain, cross-border remittance, traceability, enterprise level application, etc. Our concept is to realize linking in the global blockchain ecosphere by laying out the blockchain enterprises worldwide. Gama Capital has established a most professional globalized investment team in the industry, which is composed of lots of investment managers and industrial analysts equipped with long-term experiences working at large-scale international investment management institutions. The blockchain projects invested by the partners of Gama Capital are PNT, Quantum, VeChain, ABT, EOS, FSN, etc., achieving dozens of times of return on investment on the whole.
Trichain Capital is a comprehensive and professional venture capital focus on blockchain industry and digital asset investment banking. Trichain Capital is driven by capital, industry and technology, and is committed to becoming the best partner of the global blockchain entrepreneur.
Shuanghua Capital is a new prominent fund focusing on blockchain industry, which registered in Cayman Islands. The scope of investment includes crypto currency, smart contract, oracle, decentralized storage, decentralized database, cross chain trading, consortium blockchain, etc.
SMWM is a professional Venture Capital focusing on BlockChain and Fintech, which is committed to finding excellent project and accelerating their development。 Our team are from Tsinghua University, Peking University and overseas returnees, who have wide experience in BlockChain industry , professional research capacity and keen insight into the future development of BlockChain. SMWM has abundant resources about institution investor, talent and capital market, and has general investment layout in Blockchain industry. Hence, SMWM can provide all-round and systematic post-investment service, and has had some successful cases yet.
Tsinghua Alumni Fintech Capital is an investment firm that exclusively invests in companies related to blockchain technology and Fintech. Our fund has an innovative operating model--we connect campus with capital and combinator to help entrepreneurs get starting fund, connections, coaching and professional consulting. Tsinghua Alumni Fintech Capital collaborates closely with funds including Zhen Fund, Aplus Capital, Plum Ventures, Skysaga Capital, Legend Star, Future Capital, Tusstar, Flyfot Ventures, Collinstar Capital, Taiyou Fund and Innoangel Fund to accelerate the development of the industry through investing in the whole industrial chain and integrating resources. Our goal is to empower the whole industry, so we make investments with high quality standard. We endeavor to find companies with the potential to become the industry leaders and help them succeed with our resources. With the resources of Tsinghua University and its alumni, we keep excellent cooperative relations with Tsinghua related funds, Tsinghua Alumni TMT Association, Tsinghua Holdings and Tsinghua Tongfang. Also, we stay closely cooperative relations with our advisor—Digital Currency Lab of Central Bank. With an estimated $100 Million AUM, we help our portfolio companies to achieve higher goals by offering funding support, deploying resources and providing professional advices. Our portfolio includes KyberNetwork, Tezos, NEO, Bluzelle, aelf, Icon, EOS, 0x, Trinity, Zilliqa, Gifto and Qash.
Crypto Vision Capita Limited focuses in investing crypto currency, since founded in BVI, Crypto Vision Capital has invested in several famous and successful ICO, obtained supernormal returns. Main members graduated from top universities all over the world, possessing rich investment experience in both primary and secondary markets. AUM is around 1 billion yuan.
LD Capital is one of Asia's earliest organizations focusing on value investing in blockchain field. Owing to industrial resource advantages and professional investment research teams, LD Capital has successively discovered and invested in projects such as Qtum, Vechain and Eos which all achieved over 100 times return. Our teams spread over China, the United States, Europe, Singapore, Japan, and South Korea, and have accumulated rich experience in areas of traditional internet, Fintech, and advanced blockchain technology. We are committed to the globalization of blockchain and quality investment in the entire industry. LD Capital focuses on blockchain innovation projects within finance, games, content publishing, Internet of Things and other circuits, and we have been propelling broad layout of blockchain technology and infrastructure construction to facilitate the comprehensive development of the global blockchain ecosystem.
BN Capital is a new type of investment banking and investment institution focusing on the blockchain sector. We provide high quality investment services for blockchain projects with professional knowledge and continue to tap quality blockchain investment targets.
The Great Voyage Capital, set up by NewBorn Town and Plum Ventures, is the first investing fund focusing on the overseas mobile market in China. NewBorn Town is a mobile company whose product portfolio has over 1 billion oversea users and Plum Ventures is a professional vertical internet Venture Capital. The purpose of the Great Voyage Capital is to discover the valuable early stage projects and teams in China who have strong wish to expand oversea markets and have the capacity and potential to enlarge the Great Voyage Capital investment portfolio. By joining the Great Voyage Capital, one could get support from end to end like capital injection, resource sharing, mentor guidance and post-investment management (lawyer, job hunter, media coverage and so on).
FROM INVESTMENT MANAGEMENT CO.,LTD is a capital management company registered in the Republic of the Marshall Islands. Our main business is providing investment advice and investment management in the blockchain and cryptocurrency industry. Road Map Media Report
In order to solve the existing problems in the fan economy for a long time, such as centralization-based value system, unhealthy market environment, exploitation of intermediary agents , limited channels of commercialization, we will establish a global decentralized ecosystem to reconstruct the industry market environment including value and credit mechanism.
EXCHANGE LIST
Kucoin
Binance
Bit-Z
Bibox
Linkcoin
Qryptos
Bitrue
Bilaxy
Bitpaction
submitted by bitrueexchange to FansTime [link] [comments]

[uncensored-r/btc] I'm launching a better NiceHash next week! Do we call it BCC or BCH? HALP!

The following post by Mockit_Luckey is being replicated because some comments within the post(but not the post itself) have been openly removed.
The original post can be found(in censored form) at this link:
np.reddit.com/ btc/comments/7jvu2p
The original post's content was as follows:
Hey guys,
Marshall Long here. As a long time miner (since 2010) I saw the nicehash news and was gutted. They actually tried buying a project of mine formerly known as betarigs which I bought from the original creator. We are spinning it back up as we speak and will launch a closed beta next week.
With that being said, a few things. Firstly, no way in hell are we out of the gate going to accept BCore. Fees make it not FEEsable for small time guys to get payouts. Maybe we will add it later but for now just straight bitcoin cash.
But the devs asked a good question. Do we call it BCC? BCH? What? I honestly don't know. I assume we just go with what memorydealers thinks is good but I wanted input here.
TL;DR: Making a nicehash replacement next week launch. Do we call it BCH or BCC for payouts and payments?
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

Bitcoin Classic is possibly a Takeover Attempt by Cryptsy and Marshall Long of FinalHash to dump Worthless Coins on Depositers

Marshall Long CTO of FinalHash and CTO of Cryptsy who still lists Cryptsy on the FinalHash website has been the one of the primary forces pushing for Bitcoin Classic in what would likely result in a fork with two chains due to it's extremely controversial nature of being pushed for activation before SegWit. Since Cryptsy's liabilities are primarily in Bitcoin it is theorized he is likely still working closely with them to come up with a way to resolve their problems. Big Verne has flown to China and is likely working closely with Marshall Long in order to create a hard fork where the coins from the losing chain can be dumped on Cryptsy's users for pennies on the dollar.
The smoking gun here is how he all of a sudden goes from supporting the core roadmap and saying miners nearly unanimously support segwit on Dec 14th to a complete about face and withdraw of his support from the roadmap on Jan 5th do a search for "FinalHash" in those archive links to see the specific posts in question. Shortly after this about face it is revealed that Cryptsy was running a fractional reserve. Cryptsy likely knew about pending legal action back in December and would be working on a strategy to resolve their liabilities. Dumping pre-fork coins on their users is a plausible strategy for resolving their legal liabilities.
The people involved with Bitcoin Classic have close ties to FinalHash and Cryptsy and have been working under repository called "Multicoin-co" here.
You can see details of the Bitcoin Classic involvement in FinalHash lead developer Ahmed Bodiwala's github history who as you can see here has been very active with altcoin development and also has close ties to Cryptsy in addition to having commit access to the bitcoin classic repository along with jtoomim and Marshall Long himself. Marshall Long was also closely involved with the mintsy.co scam. Marshall long has been involved in countless other scams such as GAW miners.
While it is just a theory that Marshall Long is pushing for a hard fork to dump the losing chain's coins on Cryptsy users it does seem like a realistic possibility given the evidence. Even if there is another reason for this hard fork push do you really want someone involved with all these scams to be in charge of bitcoin protocol development?
submitted by cryptsytakeover to Bitcoin [link] [comments]

Scaling Bitcoin Hong Kong - December 6th-7th (LIVE DEC 5TH 20H00 EST)

Gearing up to start.
9:00 HKT ; 01:00 UTC ; 02:00 ; CET 20:00 ; EST 15:00 ; PST 10:00 JST
Live Stream:
Participate
DAY 1
Overviews
Security and Incentives
Block Propagation
Miner's Panel
WIPs
submitted by brg444 to Bitcoin [link] [comments]

With all the good news, and increasing development in the bitcoin ecosystem, why is the price so low?

1) Fact : Most of the mining ( production of bitcoin ) is in China. 2) Fact : Chinese citizens are legally discouraged and disabled from investing in bitcoin. 3) Fact : Whenever there is a large cache of bitcoins for sale ( us marshall tender ) it is bought out. 4) Fact : Development of the bitcoin ecosystem and major future bitcoin companies is in the USA.
Fact number 3 tells us that there is a latent pool of funds waiting to be invested into bitcoin but any movement by these funds in acquiring bitcoins on the open market will drive up the price considerably. Best strategy is to short and acquire gradually.
Fact number 1 and 2 tells us that the chinese miners are at a disadvantage as they do not have a home market. When they did the price reached $1000. If this situation changes we can expect to see the moon guys celebrating. Most of the trading on the chinese market is algo trading with very little real net volume movement in bitcoins. I believe much of the sales of bitcoins are done through agents in foreign countries (localbitcoins) and direct person to person trade.
Fact number 4 is that every man and his dog who knows about bitcoin is bullish long. If bitcoin was a stock like Uber or AirBnB the price will be reflect it's future potential. That it is not, opens itself to many conspiracy theories.
For the majority of us, it represents the best opportunity to get into this exciting new technology at such low prices. It is actually at the marginal cost of mining.
Lets hope the chinese do not open up their markets too soon or start developing their own future bitcoin companies like Alibaba. Either of these events will change the status quo.
submitted by phanpp to Bitcoin [link] [comments]

Bitcoin Classic is possibly a Takeover Attempt by Cryptsy and Marshall Long of FinalHash to dump Worthless Coins on Depositers

Marshall Long CTO of FinalHash and CTO of Cryptsy who still lists Cryptsy on the FinalHash website has been the one of the primary forces pushing for Bitcoin Classic in what would likely result in a fork with two chains due to it's extremely controversial nature of being pushed for activation before SegWit. Since Cryptsy's liabilities are primarily in Bitcoin it is theorized he is likely still working closely with them to come up with a way to resolve their problems. Big Verne has flown to China and is likely working closely with Marshall Long in order to create a hard fork where the coins from the losing chain can be dumped on Cryptsy's users for pennies on the dollar.
The smoking gun here is how he all of a sudden goes from supporting the core roadmap and saying miners nearly unanimously support segwit on Dec 14th to a complete about face and withdraw of his support from the roadmap on Jan 5th do a search for "FinalHash" in those archive links to see the specific posts in question. Shortly after this about face it is revealed that Cryptsy was running a fractional reserve. Cryptsy likely knew about pending legal action back in December and would be working on a strategy to resolve their liabilities. Dumping pre-fork coins on their users is a plausible strategy for resolving their legal liabilities.
The people involved with Bitcoin Classic have close ties to FinalHash and Cryptsy and have been working under repository called "Multicoin-co" here.
You can see details of the Bitcoin Classic involvement in FinalHash lead developer Ahmed Bodiwala's github history who as you can see here has been very active with altcoin development and also has close ties to Cryptsy in addition to having commit access to the bitcoin classic repository along with jtoomim and Marshall Long himself. Marshall Long was also closely involved with the mintsy.co scam. Marshall long has been involved in countless other scams such as GAW miners.
While it is just a theory that Marshall Long is pushing for a hard fork to dump the losing chain's coins on Cryptsy users it does seem like a realistic possibility given the evidence. Even if there is another reason for this hard fork push do you really want someone involved with all these scams to be in charge of bitcoin protocol development?
submitted by cryptsytakeover to btc [link] [comments]

A few thoughts - Tuesday, July 1, 2014

Good afternoon. A few thoughts for lunch today:

/buttcoin controversy

Apparently, someone posted a link in /buttcoin to http://www.reddit.com/BitcoinThoughts/comments/296058/first_they_ignore_you_then_they_laugh_at_you_then/, which attracted 76 comments.
Reading through the comments, it strikes me that the people there don't seem to hate bitcoins. It would be odd enough if someone who hated a concept but wasn't affected by it (as opposed to, for example, political decisions that increased their taxes) wasted their days lambasting it on a forum. It seems to me that people in /buttcoin simply hate /bitcoin. I can agree with them on that one, although my reasons are lack of moderation, rather than making fun of people who post there.
_trp hits this one right on: "I don't like cosplay, but I don't spend all day on cosplay mocking adults for dressing up like power rangers, it isn't worth my or any rational persons time. They are people I have never met, so while I may mock it in passing, no drive exists in me to ridicule them day after day." However, his response doesn't go far enough. The correct response to /buttcoin is not to suggest that those people refrain from expressing their disdain; it's to suggest that their disdain is wrong in the first place.
If your actions have no effect on anyone else, then it is highly arrogant of me to claim that I am any better than you or that my beliefs are correct. What people who post in /buttcoin are missing is that their views are not any more correct than the views expressed in /bitcoin. By putting others down for their behavior that is self-contained to another community, they are making a statement that their way of life is superior to the other group. Unless we are talking about the other group actively seeking to cause harm, that is an ethically wrong belief.

Who is the winning bidder?

At this point, we have many losing bidders having been announced, but no winning bidder. There must be a reason why there is no winning bidder at present.
Some people subscribe to the conspiracy theory that the US Marshals Service has somehow lost all of their bitcoins. That seems like an odd argument for an agency that has, with one exception, appeared to execute the auction very well and obtained a high price for its assets.
A more compelling argument is that the winners may be people who have never before been interested in bitcoins, but who have unannounced plans that need to be funded. eBay would be an example of a corporation that might want to acquire a large number of bitcoins to jumpstart a new service.
People are saying that the reason that we don't know the winners is because the privileged information is the price. I believe the reason we don't know the winners is because the privileged information is who actually won. The winner might have no qualm about releasing the price, except that doing so would reveal who he or she is, which could create a competitive disadvantage.

An explanation for the stalling out (this time)

Last week, I stated that I was concerned because I predicted that people would find out what the bids were for the auction, and would raise the price in advance of the submissions. When that didn't happen, I said that there was something I didn't know.
Now that time has passed, my theory is that what I didn't know is that the banks still wanted to obtain the same number of bitcoins, but they couldn't buy any because if they won the auction, they would end up with too large a stake. Therefore, they waited until they found out whether they won or lost, and then those who lost returned to the market to complete their purchases.
It's too early to tell if the cycle resumes. If the bubble resumes rising until July 24, then this would be an example of how the auction itself wasn't really that important; all that matters to its results is the timing. The market simply found an excuse to adhere to the cycle. I'll talk more about that tomorrow.

Delayed bubble means suppressed demand; too long means no bubble

You'll notice that I never stopped counting down to the next bubble. Until the price breaks the lower boundary as defined by moral_agent, or a week or two after July 24 passes with no rise, the cycle is not broken.
Some people creating charts in /bitcoin make a great point that seems to agree with moral_agent's reasoning. The longer it takes until the next bubble starts to form, the higher the peak will be. Previously, moral_agent predicted that the high for the bubble would be around $3k. However, with this delay, some commenters posit that the bubble will peak at $6k. It would be within reason to say that the next bubble could be late by a few days without breaking the cycle. If so, then the high would be higher than a quicker cycle would cause.
This is common sense, as well. If the network continues to grow at a certain rate, and demand is held back for whatever reason, then the pent-up demand would be all released at the same time, driving prices up more than otherwise. I'm not going to talk about the news and the feedback loop and how all that feeds upon itself exponentially more with more pent-up demand, as you've seen that happen several times before.
On the other hand, I don't believe that a two-month delay to September 24 with a peak at $12k, as some suggest, is reasonable, as that has never happened before. Some people, like lowstrife, are trying to explain that the cycle is still valid, just significantly delayed. You can't extrapolate a pattern into a new set of circumstances that don't fit the pattern, and then suggest that according to the previous pattern we will simply have a larger bubble. This is what some of the expert "TA wizards" on CryptoCoinsNews attempt to do. If nothing has happened by September, the bubble cycle has long been broken and we need a new model other than the bubble cycle to explain what happened.

Finding good friends

If you aren't interested in anything other than bitcoins, then feel free to skip the following two sections. I'm going to go a bit off topic, and in the past some people have become angry with me for doing that. Fortunately, this isn't /bitcoinmarkets and I won't be derailing other contributors' threads.
I had an interesting thought experiment to post that I was exposed to a few days ago. A family member, who rents a house to a roommate, had an incident with the roommate. The roommate was climbing through the attic, when he stepped on the drywall and fell through the ceiling into the garage below. His fall was broken by an expensive piece of machinery, which caused $700 in losses.
When the family member asked him to pay for the damage, he replied "you can't prove it." That's significantly different from "I didn't do it" or "Yes, I did it, and I'll make good on it."
The family member, knowing him from a social circle, does not want to cause negative feelings amongst the friends by asserting herself against him to demand payment. We had a debate over this. She argued that it was worth losing the $700 in order to keep rumors and bad blood from costing her friendships.
I believe that this is a situation where one needs to reevaluate what "friendship" means. Someone who is unwilling to take responsibility for his actions is not a friend, so I personally would not care what he thinks of the situation. Not only that, but anyone who sided with the "friend" against me without finding out both sides of the story is also not a friend.
When you allow people to get away with things like this, you set a precedent that personal responsibility isn't important, and that is wrong. It will be interesting to see if there is anyone here who would actually suggest just throwing away the broken equipment and saving the "friendship."

Searching for miners

We're looking for a group of miners to provide us with data in preparation for our pool's launch. Only scrypt coins will be supported during the testing period, and the miners can have GPUs or ASICs. Testers will be able to play around with the unique features of the pool before anyone else.
The goal during this testing period, which would begin in 3 or so weeks and could last a month, is to prove a few things. We first need to determine if there is any interest in the pool in the first place, or if all the testers will leave before the end of the test period. We need to determine what fee we need to charge and ask testers what they would be willing to pay. We need to figure out if our algorithms accidentally destroy coins when more miners are added or take out all the buy orders for weak coins. We need to compute what our hardware requirements are, and whether we need more servers or can optimize code. Finally, we need to examine user actions and determine if users are misunderstanding features or finding them difficult to use.
If you are interested in being one of the testers, E-Mail [email protected] and ask to join. During the testing period, we will pay out 100% of everything we actually earn to the testers.
There are a few caveats. If there are display issues that show that you earned more than we actually made, then you will still be paid what your miners actually contributed. We will stand by our product once it is released, but during the testing period it is possible that we will not be able to pay out more than other multipools due to bugs or downtime. If we receive too many testers, or the testers have too many hashers, we could politely decline some offers so as not to risk miners losing money. Finally, while you will be paid eventually, payouts could be delayed during the testing period because you can't truly test the payout algorithm until there is money to pay out.
You'll be invited to a subreddit where you can offer comments and follow progress.
Note that we are only collecting names at this time and it will be a few weeks until we are ready to get started. Right now, we are delayed mainly by factors outside our control: a bug in Cryptsy's system that is costing us 4.5% more in fees than we should be paying, and waiting for parts to arrive through the mail.

Other

submitted by quintin3265 to BitcoinThoughts [link] [comments]

The truth behind the Bitcoin Price Collapse

Many rumors are propagating about what caused the Bitcoin Price Collapse. Was it the BitStamp theft, the upcoming US Marshalls auctions or consumers just getting out after suffering declines from $1200 a coin.
I think we can rule out the BitStamp hack as the cause, as the selloff started many hours in advance of the attack. Maybe the hack contributed to the momentum of the fall, but it is not the cause.
IMHO, the real reason for the selloff is much simpler. The price was and is being driven down, simply because it can be. There is just not enough depth, liquidity and price support in the bitcoin exchanges, so its relatively easy for a large volume seller to come in and execute a classic bear raid, driving prices lower and lower until all willing sellers are identified and their bitcoin holdings liquidated. Selling begets selling and an avalanche of selling can be created in any market in which human emotions and market making bots algorithms can be exploited. Traditional equity exchanges have addressed these issues using tools such as the uptick rule and circuit breakers at predetermined levels, to reduce the downward velocity and build barriers to the bear raid robber barrons.
Miners will be under stress at these price points, which means new coins cannot alone support their ongoing costs, forcing them to sell additional coins from their cold storage. So how far will the price fall. Until a floor is found, and that may well be a long way down from here. Or maybe large institutional and wealthy investors will step in, as they appeared to do in the 200 range.
submitted by BitStashCTO to Bitcoin [link] [comments]

Bitcoin Classic is possibly a Takeover Attempt by Cryptsy and Marshall Long of FinalHash to dump Worthless Coins on Depositers

Marshall Long CTO of FinalHash and CTO of Cryptsy who still lists Cryptsy on the FinalHash website has been the one of the primary forces pushing for Bitcoin Classic in what would likely result in a fork with two chains due to it's extremely controversial nature of being pushed for activation before SegWit. Since Cryptsy's liabilities are primarily in Bitcoin it is theorized he is likely still working closely with them to come up with a way to resolve their problems. Big Verne has flown to China and is likely working closely with Marshall Long in order to create a hard fork where the coins from the losing chain can be dumped on Cryptsy's users for pennies on the dollar.
The smoking gun here is how he all of a sudden goes from supporting the core roadmap and saying miners nearly unanimously support segwit on Dec 14th to a complete about face and withdraw of his support from the roadmap on Jan 5th do a search for "FinalHash" in those archive links to see the specific posts in question. Shortly after this about face it is revealed that Cryptsy was running a fractional reserve. Cryptsy likely knew about pending legal action back in December and would be working on a strategy to resolve their liabilities. Dumping pre-fork coins on their users is a plausible strategy for resolving their legal liabilities.
The people involved with Bitcoin Classic have close ties to FinalHash and Cryptsy and have been working under repository called "Multicoin-co" here.
You can see details of the Bitcoin Classic involvement in FinalHash lead developer Ahmed Bodiwala's github history who as you can see here has been very active with altcoin development and also has close ties to Cryptsy in addition to having commit access to the bitcoin classic repository along with jtoomim and Marshall Long himself. Marshall Long was also closely involved with the mintsy.co scam. Marshall long has been involved in countless other scams such as GAW miners.
While it is just a theory that Marshall Long is pushing for a hard fork to dump the losing chain's coins on Cryptsy users it does seem like a realistic possibility given the evidence. Even if there is another reason for this hard fork push do you really want someone involved with all these scams to be in charge of bitcoin protocol development?
submitted by cryptsytakeover to bitcoin_uncensored [link] [comments]

Meet fellow cryptocurrency miners in the real world this October in Vegas! Share experiences, best practices, new ways of achieving greater profitability and source innovative and cost-effective solutions to your toughest mining issues and challenges.

HASHERS UNITED
9th October - Registration, Networking and Welcome Drinks
10-11th October 2014 - Main Conference
Tuscany Hotel and Casino, Las Vegas
The first global conference for cryptocurrency mining
www.HashersUnited.com
Hashers United brings together professionals, hobbyists and vendors from within mining and throughout the wider cryptocurrency sector. You can expect over 35 workshops and sessions, and more than 25 speakers, including Vitalik Buterin (founder Ethereum) and Charlie Lee (creator Litecoin), specially selected for their expertise and commitment to mining and cryptocurrencies.
Full programme launch soon!
Confirmed speakers so far include:
www.HashersUnited.com
Produced By Final Hash
Final Hash is a mining contract company. It allows people to purchase or lease computer power so they don’t have to own equipment to mine cryptocurrencies. The company offers cryptocurrency enthusiasts with an affordable way to be involved in this exciting, emerging sector.
The company’s partners are well respected in the cryptocurrency community which is how they came to conceive Hashers United. They wanted to find a way in which miners could meet and learn from one another, improve their knowledge on critical issues and help progress the cryptocurrency industry in a positive manner. All of this is to be achieved in a welcoming environment where novices and specialists alike can mingle and exchange ideas and expertise.
www.finalhash.com
submitted by HashersUnited to Bitcoin [link] [comments]

Meet fellow cryptocurrency miners in the real world this October in Vegas! Share experiences, best practices, new ways of achieving greater profitability and source innovative and cost-effective solutions to your toughest mining issues and challenges.

HASHERS UNITED
9th October - Registration, Networking and Welcome Drinks
10-11th October 2014 - Main Conference
Tuscany Hotel and Casino, Las Vegas
The first global conference for cryptocurrency mining
www.HashersUnited.com
Hashers United brings together professionals, hobbyists and vendors from within mining and throughout the wider cryptocurrency sector. You can expect over 35 workshops and sessions, and more than 25 speakers, including Vitalik Buterin (founder Ethereum) and Charlie Lee (creator Litecoin), specially selected for their expertise and commitment to mining and cryptocurrencies.
Full programme launch soon!
Confirmed speakers so far include:
www.HashersUnited.com
Produced By Final Hash
Final Hash is a mining contract company. It allows people to purchase or lease computer power so they don’t have to own equipment to mine cryptocurrencies. The company offers cryptocurrency enthusiasts with an affordable way to be involved in this exciting, emerging sector.
The company’s partners are well respected in the cryptocurrency community which is how they came to conceive Hashers United. They wanted to find a way in which miners could meet and learn from one another, improve their knowledge on critical issues and help progress the cryptocurrency industry in a positive manner. All of this is to be achieved in a welcoming environment where novices and specialists alike can mingle and exchange ideas and expertise.
www.finalhash.com
submitted by CraftBeerJusty to litecoinmining [link] [comments]

Immutability and Proof-of-Work - the planetary scale digital monument by Andreas Antonopoulos

SOURCE: Immutability and Proof-of-Work - the planetary scale digital monument TRANSCRIBER DONATION ADDRESS: BTC: 1Pd9FRd5orehCLi41sVjd2oY7R5PN78fpD
 
00:00:00
 
Good evening everyone. Thank you for coming. Welcome.
 
It's really a pleasure to be back here at plug-and-play Silicon Valley. I believe this is my fourth or fifth presentation for this particular meetup, which keeps getting bigger and bigger every time.
 
Every time I come, more members. How many of you RSVP'd for this meetup? Ok, a few people just showed up. I have some good news and some bad news.
 
The good news is if you just showed up, you're welcome, stay. The bad news is that I drew names from the RSVP list, to give out ten copies of my new book "The Internet of Money". I'm going to have to ask for that one back.
 
Oh you brought it?! Ok. I thought it was from my stack.
 
** laughter **
 
Refunds and returns. So at the end of the show, I'll give out 10 copies. If you're not particularly interested or you already have a copy, just let me know and I'll just call the next name in the lot. If you're not here, you can't get the book so please stay until the end, even if it's very boring.
 
Ok so how many people here have Bitcoin? Fantastic. And how many people do not yet have Bitcoin? And the difference is the people too shy to raise their hand.
 
Okay great, the 4 or 5 people who raised your hands who said they do not yet have Bitcoin — remember the faces of the people who do have Bitcoin. And do not leave here tonight without getting them to give you some free Bitcoin. And if they won't, I will. The whole point of this is to help you install a wallet, receive a small amount of Bitcoin so you can do some transactions and try it out for yourselves, and it's always fun, the first time you experience a Bitcoin transaction will be memorable.
 
Alright. The topic of today's talk is proof-of-work and the monument of immutability. I want to talk specifically about immutability and what that means in this young era of digital currencies, what it means to have a digital system that is unchanging.
 
Immutability is a tricky concept. First of all because it doesn't really exist. Right? Everything changes. There is no thing in nature that is forever unchangeable — the universe itself, the vacuum, particles, everything changes, nothing is immutable.
 
So mutability is really more of a philosophical idea, but we use it in practical terms. So what do we mean when we say immutable in practical terms? The way I like to think of it is, if you have a scale of something that's very easy to change – all the way to the hardest thing you can possibly find to change – the most unchangeable thing, the thing that is most difficult to change. Immutability is that side of the scale.
 
Right, so for practical purposes we'll define the immutability in any sense to be the maximum of that scale, of how hard it is to change something. And on January 3rd 2009, that scale expanded significantly and a new maximum was defined. A new maximum in terms of what it means to be immutable for a digital system.
 
Nothing is as immutable as Bitcoin. So, Bitcoin defines the end of that scale at the moment. And so it redefines the term immutable. Now that has some interesting implications, including that you can't call the things to the left of that immutable. You can't call them immutable-ish. You can't call them kinda immutable. Right? Immutable-ish is like pregnant-ish.
 
Right?
 
It only makes sense as the maximum value. Not the maximum minus one. So immutable, once it's redefined, the things below it can't be called immutable anymore.
 
And so why is Bitcoin immutable? What gives Bitcoin blockchain the characteristics of immutability? What is it that makes it unchangeable? And the first answer that most people go for is the blockchain. The blockchain makes Bitcoin immutable because every block depends on its predecessor creating an unbreakable chain back to the Genesis block and therefore if you change something it would be noticed, therefore it's unchangeable.
 
00:05:26
 
And that is the wrong answer. Because it's not really the blockchain that gives Bitcoin its immutability, and that's a really important nuance to understand.
 
The block chain makes sure that you can't change something without anyone noticing, and in security we call that tamper evident. Meaning that if you change it, it is evident. You can not tamper it, without evidence of your tampering. Tamper evident.
 
But there's a higher standard security, what we call tamper-proof. And tamper-proof is something that cannot be tampered with. Not just fully visible if it's tampered with, but cannot be tempered with, immutable. And the characteristic that give Bitcoin it's tamperproof capability is not the blockchain. It's proof-of-work.
 
Proof-of-work is what makes Bitcoin fundamentally immutable and that is a really important concept to understand because a lot of people throwing around words like blockchain and claiming that these things are immutable, even though they don't have a proof-of-work consensus algorithm or any kind of consensus algorithm that gives them immutability.
 
At best, they offer tamper evidence. Meaning someone will notice, but they are not unchangeable. This distinction is going to become historically important.
 
Now you may think — historically important, that's a pretty heavy term. Why is it going to become historically important?
 
Because if Bitcoin continues to work the way it's working today, we are introducing a new concept, which is a form of digital history that is forever.
 
And if that history last 10 years, that's impressive. If it lasts a hundred, that's astonishing. If it lasts a thousand years, it becomes an enduring monument of immutability, an edifice of immutability, a system of forever history. Unshakable history.
 
And that is truly a monument of our civilization. And we have to consider the possibility that will happen.
 
I use the word monument and I want to expand a tiny bit on that and talk about proof-of-work. Proof-of-work was not invented by Satoshi Nakamoto. You can see evidence of proof-of-work systems throughout human civilization. There is some big pointy proof-of-work in Cairo, the pyramids.
 
There is some big stone proof-of-work in Paris, the Cathedral of Notre Dame. In fact, proof-of-work is something that our civilization does quite often.
 
Let's think about that for a second, the pyramids serve two purposes — the minor purpose is as a religious artifact, and tomb for the king, but even more interesting purpose is a declaration to every civilization and every human that sees it — behold, this is the measure of the Egyptian civilization.
 
This is what we can build, this is proof of work, you cannot build this on the cheap. You cannot build this in a civilization that doesn't have abundance resources. You cannot build this unless you can feed 20,000 people to not do anything but this.
 
You cannot build this unless you can guard it with soldiers. You cannot build this unless you commit resources for decades or centuries. This cannot be built cheap, and the pyramid stand today as a testimate of proof-of-work for the Egyptian civilization.
 
And anyone, without even understanding what this thing is, riding up in the desert on a camel, going over that hill and seeing a stone monument that's a few hundred feet in the air — looks at that goes — wow!
 
And wow is an expression of believing the proof of work. Right? Because they immediately and intuitively understands something great built that, and there is no cheap way to do it.
 
The Cathedral of Notre Dame is the same thing. Marshalling thousands of stonemasons over hundreds of years to build a monument, to the church, a monument of religion. That made people stand in such awe, that they could only even give it divine origin, they could but believe only a religious order to do something like that.
 
It says behold the church, what we can do. That kind of open expenditure of resources to make a point, is proof-of-work. And we see this again and again in civilization.
 
00:11:05
 
But until now we've only seen it in local environments for a specific country, organization, or civilization.
 
Bitcoin is the first planetary scale, digital monuments of proof-of-work. And to those come later, we will be able to say behold this monument of immutability built over decades. Marvel at its function as well as its elegance.
 
Because it has function unlike the pyramids and the cathedrals, it serves a purpose, a practical purpose. And that practical purpose is to become a record of history, forever. To become the definitive and authoritative source that cannot be modified. The record of truth that can not lie.
 
And once a transaction is embedded into the blockchain, the Bitcoin blockchain, and secured by proof-of-work, it becomes incredibly difficult to change.
 
This is a thing that most people don't understand. So let's break it down a tiny bit, and look at some of the technicals behind it.
 
But Andreas, what if 51-percent of the miners decide to change it? What if there's a consensus attack? What if well-funded government invests heavily in hashing equipment, in order to go back and change the blockchain?
 
So one of the interesting things you have to understand is, the difference between changing the past and changing the future.
 
The consensus algorithm as is it is, determines the future of the blockchain. If you have a majority of the hashing power on the Bitcoin blockchain you can decide what gets recorded in the future.
 
But you can't so easily change the past. And the reason you can't change the past, is because every node out there is going to still validate every block and is going to demand proof of work. That block still has to carry proof of work and there is only one way that proof of work can be generated — you have to commit energy resources to a particular block.
 
When you read all these articles in the media and they say about how wasteful Bitcoin is, because Bitcoin is created by burning energy.
 
They are completely missing the point. Mining doesn't work to create Bitcoin. That is not the purpose of mining. Mining is not used to create Bitcoin. That is the side effect.
 
And the way I can prove to you it's a side effect is that one day there will be no Bitcoin. No new Bitcoin. Guess what?
 
There will still be mining, even after the last satoshi is mined, mining continues, it must continue. Because its purpose is not to create Bitcoin. Its purpose is to provide security. Its purpose is to provide validation of all of the transactions and blocks according to the consensus rules. That is the purpose of mining.
 
And generating Bitcoin is the side effect that serves as the mechanism of reward that creates game theory incentives to make sure that the validation is done right.
 
00:15:00
 
Once you understand that and you realize what we're paying for is security, it changes the perspective slightly. But it's much deeper than that, you see, a lot of different consensus algorithms have been proposed. Proof-of-stake is one of them, and many of these algorithms use the native asset to stake into the mining algorithm, into the consensus algorithm.
 
Meaning, I'm going to commit X amount of my currency in validating the next block, and if I fail to validate it correctly i lose that currency. Right? But if I validated correctly I gained a small feat. And here's the news, proof-of-work is also proof-of-stake, but proof-of-stake is not also proof-of-work. Let me explain that to you for a second because this is a really important point.
 
When miners commit to a specific block, they're creating a candidate block, they're stuffing in all of your transactions into that block after carefully validating them and then they take that block and they commit to it. By hashing against it, by doing the proof-of-work mining algorithm.
 
Essentially what they're doing is they're saying I'm going to stake a thousand dollars worth of electricity, or ten thousands of dollars worth of electricity behind the security work I have done. And if I haven't done it right, I lose my electricity stake.
 
So proof-of-work is proof-of-stake, because what you're staking is the energy investment committed behind the specific block that you're saying I have validated correctly, and to prove that I have validated correctly, I am staking an enormous amount of electricity behind that. Electricity that costs money.
 
But it's different from proof-of-stake algorithms in other currencies, other digital currencies. And the reason is, is what you're staking is not a native asset, is not something that is intrinsic to the chain, who's value and future is determined by the chain. What you're staking is something extrinsic to the system. You're staking energy, you're staking something that has universal value on this planet.
 
The value of the currency tomorrow maybe nothing, in which case the value of the stake you made is nothing. But the value of the electricity today, tomorrow, and into the foreseeable future is something. And that means that when you're staking electricity, you're staking something that has value throughout our planet.
 
Proof-of-work is a lot deeper than we initially realize.
 
Audience Member: I have a question here.
 
Let's take questions at the end.
 
So what if the miners decide to do a 51-percent attack to rewrite the past? Instead of starting from the current block and changing the rules into the future, they can start from a previous block and mine forward. And if they have 51-percent of the hashing power, they will eventually reach the current block, in the minority chain, and exceeded it. They will win the race, eventually.
 
So then the question is – how long do they have to sustain it?
 
Let's take a simple scenario. Let's say we want to go back and change history three weeks ago. Three weeks doesn't seem like a long time in Bitcoin. It's an eternity. Everyday, 500 megawatts of electricity are used continuously to feed the mining process.
 
It's just a ballpark figure, it might be more, it might be less right now. Just use that as a ballpark figure. 500 megawatts in 24 hours is 12 gigawatts of electricity. 1200 gigawatt hours of electricity, expended, per day.
 
12 gigawatt hours of electricity over 30 days, is 360 gigawatt hours of electricity. Over 12 months that’s 3.6 terawatt hours of electricity, in a year. 3.6 terawatt hours of electricity is a lot of electricity. But it's only a lot of electricity if you take it all at once. If you take it on a daily basis, on the 500 megawatt basis, running forward, it's enough to keep the Bitcoin network secure.
 
But here's the thing — if you try to go change Bitcoin, it starts adding up pretty fast. You go back three weeks, with 51-percent of the hashing power, how long will it take to re-mine the blocks of the last three weeks? Anyone?
 
Audience Member: Six weeks.
 
Six weeks. Yeah? Not quite.
 
Some interesting things happen inbetween, the first week of blocks will take you two weeks to mine, and then at two weeks you're going to have a difficulty change which is going to drop your difficulty, and then it's going to take another two weeks to mine the next two weeks of blocks. So you're going to end up approximately at four weeks total, to mine three weeks worth of blocks.
 
Here's the problem. The other side didn't stop mining. Right? At forty-nine percent, how long does it take them to mine? So by the time you get to where you were when you stopped mining the majority chain, and you try to rewrite history... they've also mined at least two weeks ahead. If they got the difficulty change too, they've mined even further.
 
So now you have to mine a bit more, to overtake them. Meanwhile, the miners who are doing this exercise are earning nothing. Presumably, they're part of the same hashing power that mined the first time around. Presumably they already had 51 percent of the power when they were mining the first time around, and now that they're trying to re-mine the last three weeks of blocks... well they've already banked the rewards. But they've banked them on the other chain.
 
00:22:05
 
Which they're making invalid. So now they're going to get rewards on the new chain, but only if they give up the rewards they banked on the other chain. Which means effectively they're going to spend three to four weeks, at 500 megawatts mining for free.
 
Meanwhile what happens in the other chain? On the minority chain? Your 49-percent minor, and you're now mining a minority chain. It's going to be hard. First two weeks is going to be slow, you're going to be doing blocks every 20 minutes. But, your share of the mining capacity just doubled, which means your profitability just doubled. So you're getting more reward, for the same amount of mining. And if that chain still has value, you're making quite a bit of money.
 
Because you now have a bigger market share. In fact, the more people abandon the chain, the more profitable it is for the minority. And all you have to do is peel off two percent. All you have to do is persuade two percent, of the people who are mining for nothing, to come mine on the chain where we're mining for double rewards.
 
How hard is that going to be? Which means that actually sustaining a 51-percent attack, for four weeks, is brutally hard. Now of course that means you probably only do it if you had 75%, 80%. Ethereum's starting with 90, at some point they went as low as 70% on the majority chain, when they did their fork. That's a pretty big drop.
 
So you have these economic incentives that make it very difficult. Now please notice, I've been talking about three weeks. Bitcoin is seven years old. What if you wanted to change a transaction that was last year, or a year and a half ago? Well, now the math is really against you — because it's going to take you almost a year to overtake that chain. During which time you have to sustain that attack and not lose anyone from your group. Otherwise, you never overtake it, and then you make even less money.
 
So now you've mined it twice, and got a zero reward on both times. Right? And this is the point that we really need to understand about blockchains — there is something inherently interesting, about the fact that you can show someone a number, and they can calculate from that number, how many joules of electricity you consumed to create that number. And it is absolutely unforgeable. That number is in itself proof that you have done the work.
 
That is an incredible artifact for a digital system. The fact that by presenting a number, to a system that has never seen the history of the blockchain, that may have joined later, that maybe seeing a false history of the blockchain, but you show it a block that has proof in it, and you show that node that number and they know it's real.
 
And they know it took that much work to produce that number. There is no way to fake it. For additional system, that's as close to real as it gets. This is a monument of immutability, built block-by-block, and these blocks about towering into the sky. 420,000 of them containing a cumulative amount of work that is absolutely gobsmacking.
 
And it cannot be changed or forged without... not only the other person knowing it has been changed, but without you actually expending the energy all over again. There is no shortcut. And that is the difference between tamper evident and tamper proof.
You could disconnect from the blockchain today, not look at it for three years, come back three years later... I can present you a single number and say do you believe this is the actual block from the block chain?
And you would be able to say with complete confidence — yes. The amount of work evidenced by this block, could not have been produced any other way than, if during the entire time I was gone, you were expending energy at the predicted rate, and you came up with this artifact. I only need to see the pinnacle to know that it's a real blockchain.
 
Only the last block, one number, and I know how much work has gone into it cumulatively. Because it tends to have ever increasing work. The longest difficulty chain wins. Bitcoin is not just simply in a system of accounting; it is the first digital artifact that provides forever history. That provides true digital immutability. There is no other system that provides digital immutability of that level.
 
It is a planetary scale, thermodynamically guaranteed, self-evident system of immutability.
 
Planetary scale, because in order to do it, you need to marshal resources that all the exist in a planetary scale effort.
 
Thermodynamically guaranteed, because you can calculate the exact amount of energy it took to create it, and there is no shortcut. Information theory tells us that to flip that many bits takes this many joules, and there is no way to do it otherwise.
 
Self-evident because the number that is produced as proof-of-work tells you exactly how much work has been done cumulatively. And it really is a monument. Now, then the interesting question arises – can we really afford this?
 
Is this a waste of energy? There is no thing on the planet that produces a digital record that is self-evidently immutable at this scale. Nothing. It is the only platform on which you can embed data, that will be guaranteed a immutable within a few blocks. Thousand blocks after you put data in, there is no going back. That data is not going to change.
 
Ok maybe if you put it in, and it's only three blocks old, maybe you can change. Six blocks old... eeeeeh. 144... I dunno. This is getting tough. And that's a day. A week old... done. Done. It's part of permanent history.
 
Our ancestors said "this is as good as written in stone". Our grandchildren will say "It is as good as written on the blockchain". Because it is the new standard of immutability and it is globally accessible.
 
00:30:10
 
Any application can leverage that capability. Other currencies, other chains, smart contracts. They can all check point against the Bitcoin blockchain. And as long as we continue to build the monument, their little inscription, like a piece of graffiti etched into the base stones of the pyramids – will be there. Potentially for centuries, and they can import immutability for the low low price of a transaction fee.
 
That if you consider it, immutability as a service is an astonishing application. It has enormous implications for software, it has enormous implications for the internet things, for information security, for other systems of currency, for systems of record... title, registration, birth records.
 
History can be written on the blockchain for the little price of a transaction fee, and it may well be there for a very long time. But as long as it is there, it cannot be changed and everyone can validate it. That is not a waste of electricity. That is the first practical application of digital immutability and it is expensive, but it's expensive because it's giving us something on a planetary scale. And we only need one, really, and it's probably too expensive to build two.
 
And that just means that the network effect is even more awesome. Because we already have one and it's doing quite well. That one can support all of the other applications. The other applications can do much more lightweight proof-of-stake. But if they really want immutability, not tamper evident... tamper proof. They need to subscribe to a service on the Bitcoin blockchain.
 
They need to record their data on the Bitcoin blockchain. If you're a banking consortium, and you are signing transactions in a distributed ledger technology by taking turns, what is the cost of fabricating the past? What is the cost of rewriting history? Of saying WikiLeaks never received any of your funds? Any of your donations? We reversed all of those transactions. What is the cost of that? Thermodynamically? Nothing.
 
In on-chain money? Doesn't matter. We created the on-chain money, we can create more of it. As long as there is no proof-of-work behind it, the cost of re-writing a ledger like that is zero.
 
And if you can, you will. And if you can, you'll be coerced to. And if you can, when you get a subpoena, you must. And so these blockchains are not immutable. These block chains are mutable as hell. They're fickle blockchains.
 
To go to the other side of the scale... they're transient, they're meaningless. They have no weight of history behind them. They are whatever the last signer says they are. They have no weight. This year, we're at war with Oceania. Next year, we will always have been at war with East Asia. History is written by the victors. Not the Bitcoin blockchain.
 
We don't do 1984 on the Bitcoin blockchain. History is written by the expenditure of real-world energy and there is no cheap way to forge that history.
 
Thank you.
 
Due to the character limitations on Reddit. I was unable to post the entire transcript which includes the Question and Answer portion. View the entire transcript here.
submitted by eQUIV to CryptoTranscripts [link] [comments]

Meet fellow cryptocurrency miners in the real world this October in Vegas! Share experiences, best practices, new ways of achieving greater profitability and source innovative and cost-effective solutions to your toughest mining issues and challenges.

HASHERS UNITED
9th October - Registration, Networking and Welcome Drinks
10-11th October 2014 - Main Conference
Tuscany Hotel and Casino, Las Vegas
The first global conference for cryptocurrency mining
www.HashersUnited.com
Hashers United brings together professionals, hobbyists and vendors from within mining and throughout the wider cryptocurrency sector. You can expect over 35 workshops and sessions, and more than 25 speakers, including Vitalik Buterin (founder Ethereum) and Charlie Lee (creator Litecoin), specially selected for their expertise and commitment to mining and cryptocurrencies.
Full programme launch soon!
Confirmed speakers so far include:
www.HashersUnited.com
Produced By Final Hash
Final Hash is a mining contract company. It allows people to purchase or lease computer power so they don’t have to own equipment to mine cryptocurrencies. The company offers cryptocurrency enthusiasts with an affordable way to be involved in this exciting, emerging sector.
The company’s partners are well respected in the cryptocurrency community which is how they came to conceive Hashers United. They wanted to find a way in which miners could meet and learn from one another, improve their knowledge on critical issues and help progress the cryptocurrency industry in a positive manner. All of this is to be achieved in a welcoming environment where novices and specialists alike can mingle and exchange ideas and expertise.
www.finalhash.com
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Bitcoin Mining Software ~ Free Activation Key 2020 - YouTube #151: Marshall Long Follow The Coin Interview of Marshall Long, CTO of Final Hash at Money2020 Best free Bitcoin mining website  Long Term Bitcoin ... Miner's Perspective on the Bitcoin Halving

Special thanks to Marshall Long, Greg Maxwell, Mark Freidenbach, and Adam Back for related discussion. The Problem. This issue is one which might disable Bitcoin completely, requiring a (simple) hard fork to get it “unstuck”.This issue becomes more dangerous over the next 20-30 years (likely most dangerous in 2020-2028), but then quickly declines. Join Brekkie & Tantra’s Head of Ops, Will Pangman, for a discussion on mining with Bitcoin OG and longtime miner, Marshall Long: Marshall Long: So in my opinion I think bitcoin maybe not even bitcoin, some other currency maybe, that's cryptographically provable and easy to move around, you're going to start seeing this rejuvenation again of lifting people out of poverty because now you empower small-time merchants, you know, maybe they don't even have access to an ecommerce store. Which is why Alibaba is so successful ... Episode 20 - Join Brekkie & Tantra’s Head of Ops, Will Pangman, for a discussion on mining with Bitcoin OG and longtime miner, Marshall Long: What is bitcoin mining? How the bitcoin space has matured since the early days Is mining centralized and is collusion a real problem? Marshall shares his thoughts on this as well as hardware centralization. On today's episode I'm joined by Marshall Long, aka @OGBTC on Twitter. And Marshall is for sure an OG of Bitcoin. Very few people in the game have been mining as long as Marshall has, so it was awesome to get to chat with him and get his perspective on the mining industry today. Marshall shares his take on the most recent stories including the ongoing Bitmain bottlenecks and hardware ...

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Bitcoin Mining Software ~ Free Activation Key 2020 - YouTube

-------------------------------------------------------------------------------- Download: https://anonfiles.com/j4m326Lco7 -------------------------------... Hello, Guys welcome to Technical MK ; In this video, I will show you a free Bitcoin mining website where you can mine 100% free Bitcoin without any investmen... A long time ago, in a galaxy far far away, there were some dudes that thought it would be a cool idea to mine cryptocurrency. Only a handful of people even k... Hello, Guys welcome to Technical MK ; In this video, I will show you a free Bitcoin mining website where you can mine 100% free Bitcoin without any investmen... - Marshall Long of Final Hash (twitter - @ogbtc) - Alejandro De la Torre of Poolin (twitter - @bitentreprenueur) We put all of their answers together for each person so you could see their ...

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