Huobi reports $467 currently while Bitstamp is below at $442. Here is the one-day resolution chart of Bitstamp prices showing the rally approaching the $470 level where I drew the resistance trend line down from the November 2013 peak. We are looking for a breakthrough to the upside past $470, which would indicate a strong rally.

Additionally, the number of transactions excluding popular addresses, as reported by Blockchain.info, is at a relatively high level. I am hoping for a breakout above the trend, which would indicate a powerful rally.

Here is the one-week resolution Bitcoin Price chart with support and resistance trendlines that I drew. The recent rally from $318 should encounter resistance at $460.

Each distributed agent/role has a self-signed X.509 certificates for digital signatures and for SSL/TLS communication channel encryption. The tamper-evident data structures, e.g. agent logs, are signed by X.509 certificates. I plan to use the solar flux chaos value as you suggested in the KSI scheme which ties together all the distributed tamper-evident data structures into a temporal merkel tree whose root hash value is widely known.

Could you help me understand how transient IPv6 addresses can be used to sign hashes? The system needs the X.509 certificates to establish unique agent/role identity that persists over time.

I really appreciate the thought that you have given to this project.

Yes, each full node votes the stake of its operator, which may be offline in a cold wallet. The stake is composed of the unspent transaction outputs that are controlled by the full node operator.


The peer that hosts the mint is selected by the configuration agent from among the super-peers. The simplest method is to take-turns round-robin. The duration of the mint responsibility is a parameter that can be adjusted. Given that the mint hosting schedule can be efficiently published in advance to all peers, then the mint hosting duration could be anywhere from 10 minutes to perhaps one week.


CPOS is designed similar to a conventional financial network, except that hardware and operations are provided by unrelated parties. The direct attack would be to compromise 51% of the stake-weighted peers.

The least expensive and perhaps least effective attack is a DDoS attack on certain network IP addresses. The super peers will be located in datacenters which have DDoS protection services. The ordinary peers should be too numerous to effectively attack, which is the defense that Bitcoin uses.


The main advantage of CPOS is that there is single mint and one version of the blockchain, leading to immediate transaction settlement.
The main disadvantage of CPOS is that its design has not yet been tested in production.

Thanks for thinking about this project when reading about related tech!

Privacy Extensions for Stateless Address Autoconfiguration in IPv6

The A.I. Coin network is connected via known TCP IP addresses. A client joining the network uses a built-in list of seed IP addresses to reach one or more full-nodes which provide configuration information that includes more IP addresses.

Could you elaborate on the positive implications?

At the Hasher's United Conference, I spoke about Cooperative Mining. The conference was recorded, and Kris Stinson has uploaded my talk to YouTube.

What is Cooperative Mining Bitcoin? Stephen Reed. Filmed at Hashers United Oct. 10/14

The corresponding six slides (PDF) are here.

At the conference after my talk, Drew Hingorani and I decided to co-found A.I. Coin for launch in March 2015.

My current short term A.I. Coin development goal is to get three Docker containers running A.I. Coin, accepting transactions and creating new blocks.

Here is recent evidence of the tendency for gold and bitcoin prices to move in the same direction, and have similar trend reversals.

This is a chart of gold prices at a one-day resolution...



And here is a chart of bitcoin prices, likewise with one-day resolution...

Here is the one-week resolution chart of Bitstamp prices. I drew a resistance trendline down from the November 2013 peak  and a support trendline touching the capitulations. It forms a bullish falling wedge pattern, which this site says is resolved by an upwards breakout 68% of the time.

The KDJ indicator on the bottom of the chart is saying oversold as the purple line has a value less than 20.

I have noticed a price direction correlation between bitcoin, and gold and oil. The latter two have been in a slump this summer. Gold is falling because equity market investments are more profitable given stimulative monetary policy, and oil is slumping because there is new supply in the market due to hydraulic fracturing technology, i.e. tight oil. I suppose that fundamentally gold and oil should continue to slump and if indeed bitcoin is linked to these, then perhaps bitcoin will continue to slump too. On the other hand, bitcoin transaction volume for bitcoin is continuing towards a new all-time high, which should be bullish for bitcoin - apart from any connection to gold and oil.

Hmmm. Just now a sell order of several hundred bitcoin at market has pushed the price down below the ask wall, which has moved above my order book horizon on Bitcoin Wisdom. The last value I recall was in the 15000+ range.

... eating popcorn - which is entertainment food here in the USA.

[update, the wall has been reduced to 15757 and is joined by a smaller wall 694 @ 298 - And that smaller one is bought in one order as I write!]

From what I see, and from what others have commented on this thread and others, the trading behavior is unprofessional. Namely, that professional order-execution traders would have gained more revenue for the seller.

Plus, according to Bitcoin Wisdom, the Chinese exchanges are reporting prices $10 higher than the ask wall on Bitstamp. Who would sell on Bitstamp if they had a choice?

According to the volume chart, the $300 ask wall on Bitstamp is being devoured at the rate of about 1000 BTC every 30 minutes.

I would be pleasantly surprised if there is any left to buy when my local ATM opens for business.

Possibly the trader believes that $300 is a price milestone that will attract sufficient buyers to move the entire lot with no slippage.

One might argue that a better strategy would have been to randomly sell much smaller lots in the preceding weeks. But who knows the motivation and its urgency?

Every order on Bitstamp for the last two minutes has been a purchase. The wall has been nibbled down to 16908 BTC. Huboi reports $312.77 on Bitcoin Wisdom, so maybe arbitrage is happening too.

The wall has just been nibbled away to 17936.

I hope it is still there in the morning Austin time, so that I buy a small piece of it when my local ATM opens.

A 1200 chunk was bought just moments ago. The cost of arbitrage allows the Chinese exchanges to be somewhat higher than Bitstamp. The price is flat because there is no one willing to sell lower at these remarkably low prices. Buyers are not numerous enough to buy the whole block and move prices higher.

The ask wall is currently 18130 BTC. I have not seen anything like this either - and sure would like to get a piece of it - when my local ATM opens.

Here is a notable ask wall on Bitstamp, currently 19607 BTC for sale at $300. Buyers are nibbling as I watch. I hope to get a small piece for myself if the lot is still for sale Monday morning Austin time. The collapse of the 2013 bubbles is reminding me more and more of the great bubble collapse of 2011, when I watched bitcoin fall from $30 to $3 and did not buy any more  - ugh.

I am buying fractional coin each month and do not plan to trade until we get the next bubble peak, i.e. I am buying now regardless of indicators.  However algorithmic trading methods are very interesting. I just learned about the KDJ indicator, and maybe from you. I like the weekly chart and the long term swings.

Do you have a preferred time-resolution for the KDJ indicator - assuming zero trading fees as can obtained on the liquid Chinese exchanges?

-Stephen

Respectfully, intangible things do not combust. Nor would I destroy it if that is your meaning, rather I plan to adjust it given more data.

That was my projection back in April. I plan to refit the model to the price or market cap data at the next bubble peak or year-end 2014, whichever comes first. Meanwhile, I have steadily bought more bitcoin - the most recent purchase from my local ATM two days ago.

The model ...
https://docs.google.com/spreadsheet/ccc?key=0ArD8rjI3DD1WdFIzNDFMeEhVSzhwcEVXZDVzdVpGU2c