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If or better to say when Bitcoin will become fully legalized and regulated, it will help to boost its adoption as big companies and institutional investors won't be afraid that it will one day may be banned plus they will have some guarantees that they won't be easily cheated. However, it will come with additional costs like taxation and additional fees for all users of cryptocurrencies. However, many users, especially smaller customers might choose to use alternative services that does not comply with regulations, as their costs would generally be lower. It's also important to create decentralized services that can't be regulated just like Bitcoin itself - decentralized exchanges, p2p marketplaces, etc.
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Like everyone here in this forum, we are anticipating that Bitcoin would be the future currency. If this is materialized, most of the early investors / current bitcoin users would definitely make a fortune if he/she holds lot of bitcoin in his portfolio. But the question is, what’s holding back the popularity of bitcoin at the moment? Of course, the first factor would be the Government’s restrictions (like what happens in China now). Besides that, I think lag in transfer/payment confirmation is also a big issue. There are many transactions which requires instant confirmation in order to work but common bitcoin transaction takes minutes or hours to confirm. How do current retailers adopt this payment system with such delay? Think would be a major setback if one wish to see bitcoin works as major currency in near future. So, is there any solution so far?
The answer is Lightning Network. LN transactions would be instant and with near-zero fees. Lightning network is a second layer network build on top of Bitcoin blockchain and it will use regular Bitcoin transactions to open channels with other Lightning Network participants that will have the previously mentioned features and even more. SegWit was the update necessary for launching Lightning Network, so it might be going live pretty soon. For more info read here - https://en.bitcoin.it/wiki/Lightning_Network |
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It's pretty obvious that cryptocurrencies won't stay in their legal limbo forever - sooner or later every country will decide their legal status - some may prohibit them completely, others will regulate them in their own way. Smaller countries might choose to follow the lead of bigger countries like the US, EU and China. But no government ever would be able to regulate Bitcoin itself - in fact it means that they will regulate services that use Bitcoin, and because of Bitcoin's immutable nature people will always be able to use unregulated unlicensed services at their own risk.
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Math tells you three important things about your typical casino gambling: 1. When 2 sides play against each other until either of them is broke, the side with bigger bankroll is proportionally more likely to win. For example, if you will come to a casino with $1,000 in your wallet and their bankroll is $1,000,000 and you will keep playing without stopping, there's a 99.9% chance that you will lose your $1,000 (calculated at 0% house edge). 2. In random games like roulette or dice every bet is independent from any previous bet. If you had a losing streak it doesn't mean that your next bet will have more chances to win - they are always the same. 3. In the long run your net value should be approaching your expected value. In gambling expected value is negative because there's a house edge involved - there's a slight disbalance between your risk and payout. |
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Japan has been the major force behind this Bitcoin rally since the beginning of current year and I think it makes a lot of sense that one of the most technologically advanced countries in the world embraces a cutting edge digital technology. Lets just hope that after some time we won't start hearing some rumors that "Japan wants to ban Bitcoin" like it happened in 2014 when China was representing a huge amount of trading volume. I would rather see Bitcoin traded against all world currencies and assets in their respective proportions to avoid being too dependent on some single country. And the same goes for mining.
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I see more and more merchants accepting Bitcoin but I feel many are missing the point. I, along with the vast majority of you, hate spending my Bitcoin. The only reason I would spend Bitcoin is if I can get a 20%+ discount on an item or service that I would be purchasing anyway. This also assumes I can immediately purchase more BTC to cover what I spent. I have done this before for purchases on Purse, then buying the BTC right back on Coinbase. The headache alone is hardly worth it. So merchants! It's great that you accept BTC but give us a compelling reason to spend it at your establishment, otherwise we really don't care.
Why would merchants who face volatility and maybe even legal risks for accepting Bitcoin should give people a discount on top of that? If people don't want to spend their coins, than it's just easier for merchants to stop supporting Bitcoin at all. Also, viewing Bitcoin spending as an opportunity loss is wrong, because in that case your every fiat spending would be the same opportunity loss, since you could have just bought BTC instead. If you don't want your BTC portfolio to diminish, than just buyback every BTC you spend. |
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Sadly, hacking attacks against traders and users of online wallets get more and more sophisticated, for example I've recently read a reddit post where it was deduced that OP became a victim of man-in-the middle attack - some trojan malware had tricked his browser into connecting him to a fake Bittrex website while making it extremely hard to notice, after which attackers were able to get his Google 2FA session codes, log in to his real Bittrex account and steal more than 6 BTC. So, traders should be extremely careful - use only secure machines preferably with Linux or Mac, verify their connection by manually checking SSL certificate of a site and corresponding fingerprints, have up to date OS and antivirus protection. But better to just don't store funds on exchange and move them in and out, especially when the network fees are low.
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well
if you thought BTC will end up beeing the one world currency.. you might be wrong...
bitcoin started the whole new craze of digital computerized value exchance..
but the real value is the gate to new technology bitcoin opened.. and that is where most of the money is flowing..
This not true, in fact the value of altcoins is heavily correlated with the value of Bitcoin and most of the altcoin volumes are in fact crypto volumes. So, fiat money is flowing mostly on BTC narket which makes BTC the most important cryptocurrency of all - whatever happens to it will translate into all other coins.
ethereum and its tokens, iota, etc..
the technology behind all this new tech. is interresting.. and bitcoin will hold its place as a storage of secure wealth..
while other technololgies will be used as transacting value/service/goods etc..
so hodl your btc but be prepared for exchanging other tokens....
Altcoins are highly experimental, their use cases are ridiculously small and they are still being tested. A lot of them are just promises of the future as they are still in development phase. It may seem that Bitcoin is stagnant, but this is because Bitcoin developers hold stability as their primary value and any updates go live only after long testing periods - and this is why Bitcoin works so great, there are no critical bugs, no exploits and we don't have any emergency hard forks like many altcoins do. |
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Creating confusion is the whole point of those forks - they are trying to take over Bitcoins name. Segwit2x called themselves "an upgrade to Bitcoin", Bcash supporters claim that their coin is the original Bitcoin. So, there's typically 2 groups of people who get confused - the ones who started believing in forkers propaganda and now actually think forks are "true Bitcoin" and some newbies who picked up forks by accident just because they are so unexperienced. But even the total amount of confused people is very small so forks have and most likely will fail to achieve their goals. If people just hodl their coins on their wallet and don't try to do anything without doing their research first, it's very unlikely that something will happen to them.
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Hello community, I am thinking to buy a dice game script and it up. I was wondering, what is a reasonable bankroll I need to have to pay out the initial winnings. Thank you!
This really depends on how many betting volume are you expecting to get, if your bankroll will be too small to handle all the bets, you will be significantly risking to lose some or all of it. You should read about Gambler's Ruin theorem to get some understanding on how it works. But generally, most good sites start with some big amount like 50 BTC (historically it was 100-300 BTC and higher) to be safe and their bankroll grows from open investments. Also, your bankroll is what will be limiting your maximum allowed win per one bet which should be 0.5-2% of your total bankroll to be safe from lucky high rollers. |
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When you read some headline about Russia and cryptocurrencies, you should actually notice that it's always different officials who voice their opinions - President's advisors, MP's, central bank officials, finance ministry officials, etc. etc. Russia is a whole is still undecided and they are calculating whether Bitcoin can be beneficial in some way for their government or can it be harmful. So it's better to take all the news about Russia and Bitcoin with a grain of salt, as no one can really tell what is going to ultimately happen with its legal status there.
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To send the $25 from the U.S., Nuzzi used a credit card to buy an equivalent amount of bitcoin on exchange Coinbase Inc., which charged a 3.99-percent fee this month. Then he paid a bitcoin network fee of $1.34 to send the payment to the U.K. While converting bitcoin to pounds was free on the exchange Coinfloor, Nuzzi had to pay $13.56 to place the money in a U.K. bank account. He ended up paying $15.90 to get the payment through.
Granted, some users don’t convert to a fiat currency, and transact in bitcoin directly. But even those users would pay fees to miners.
"Bitcoin cannot be used properly for commerce when a transaction costs more than $2," said Shaun Chong, lead developer of mining community Bitcoin.com Pool, which makes between 10 percent and 30 percent more in revenue now that the fees are higher.
"If the fees were lower, the bitcoin price would be even higher because bitcoin would be more usable," Chong said, adding that in its current state, the network is "broken."
Only small part of those described fees are Bitcoin network fees. It's true that sometimes miner fees are too high, usually during a spam attack, but it's rare and it can be solved. But saying that bank fees are somehow equal to Bitcoin fees is completely wrong and dumb - Bitcoin was actually created to remove middleman with all those fees and instead have only one flexible miner fee. Also, it's incorrect to buy small amounts of Bitcoin each time you want to make a payment - it's much more efficient to buy a big amount and than spend it from time to time - if there are fixed fees, you will pay them only one time. |
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Bitcoin is decentralized system so there can never be any official representative, however there can be many other unofficial representatives - Bitcoin enthusiasts, notable members of community, developers, owners of Bitcoin businesses. For example, recently Jamie Dimon faced market abuse claim filed by blockchain firm called Blockswater - this is a good example of Bitcoin being represented by private parties. I believe it is quite important that influential Bitcoin community members and organization take the responsibility of representing Bitcoin in talks with governments and companies, with media or even in court.
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Traders have learned from the recent ICO and exchange ban in China that this doesn't have negative impact even in the mid term, so it's natural that this time there was no dip. It's also interested to note that Ethereum dropped only a little, on the contrary to what would be expected by some people who believe that it's overpriced because it is used as a vehicle for most ICO's, thus creating an artificial demand. Also, ICO's are banned not because they represent a decentralized economy, but because of overwhelming amounts of scams, so Bitcoin holders shouldn't be worried.
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What if someone creates a better digital currency? Will bitcoin be phased out? And how likely is it for that to happen?
Better in terms of what? Transaction fees and speed? Security? Blockchain size? Scalability? Privacy? If one of those features will be implemented at expense of some of the rest, it won't be able to directly compete with Bitcoin. Look at the current coins - there are many with better privacy, cheaper fees, faster transactions, but every merchant and service use mostly only Bitcoin because it's secure and reliable - and that's more important than other features. And if some new coins would be overall better than Bitcoin, it will take a long time before people will start massively adopting it, since very new tech requires years of testing. |
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There is a big problem here and then when there is one there would be innovative people or organizations that would be offering the right solutions thereby rewarding the solution providers the profits they are aspiring for in the process. I am really wondering why it took a lot of electricity to mine Bitcoin...can we not have a better system for that where energy consumption is not that very significant so that those in countries with expensive power rate can also participate in Bitcoin mining? I am sure soon there would be answers to my question because there would be providers to come up with a system appropriate to our needs.
It's not a problem, it's the foundation of Bitcoins design - miners burn electricity to get the right to organize blocks to keep the network in sync to prevent double spending - so far no one came up with a way to solve it purely algorithmically - and maybe it's not even possible due to the Byzantine's Generals Problem. There are systems that require other resources than electricity, the most known one is Proof of Stake - but many Bitcoin experts, including Core, criticized it as being less secure than PoW, and for cryptocurrencies security is the primary value - no one would use a currency that can be easily exploited. |
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If we agree that Bitcoin markets are full of insider trading and that most events get priced in before they become known to the public, that just by looking at current price one can deduce that some bullish news might be coming soon, as the price very quickly rebounded from the drop caused by China. Legalization and regulation of exchanges seem to make sense, as China has a very strong position because of miners and miner manufacturers and it would be a waste to ban Bitcoin - instead they can try to monitor and control it by controlling exchanges.
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No, in fact it was the opposite - a coordinate bear trap caused by speculation on negative news. Now we are just returning to the growth trend that was before the FUD. Bull traps have very different patterns - they are short term spikes to levels lower than before the crash - this is not the case now, because Bitcoin went back to above $4,000 slowly in a course of 12 days, while the drop (bear trap) was very short lived - only 1 day long. Bear market can only be called after a very prolonged price decrease, at least 2 months.
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What are your thoughts on the next bitcoin hard fork, bitcoin gold. How much of a challenge would it be to the bitcoin cash.
BCH has created a precedent of the first somewhat successful Bitcoin fork in terms of its price (at least for today), so it's natural that others might want to try and repeat it in order to speculate and profit from "free coins". The other major force behind "bitcoin gold" are miners - Ethereum's profitability is going down and eventually it will go PoS, other coins also aren't very attractive for mining, so many GPU miners would have to quit at some point at the future. But before that, this GPU Bitcoin fork might allow them to mine for a few months to squeeze some profit from their cards before selling them on secondary markets. |
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I believe I have a decent understanding of how Bitcoin works, but sometimes when I read news I stumble upon "the blockchain technology" - blockchain for banks, blockchain for medical records, blockchain for real estate and so on. From my understanding, most of them are private blockchains (correct me if I'm wrong), but when I tried to find some info on how those private blockchains work, I didn't get much. So, I have some questions:
1. How do they work? How blocks are organized? Are there any miners? Are they at least slightly more decentralized than traditional solutions?
2. Why blockchain? Does it solve any problems? Is this more efficient than traditional solutions? Are there any benefits for customers?
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