Bitcoin Forum
January 18, 2018, 06:47:04 AM *
News: Latest stable version of Bitcoin Core: 0.15.1  [Torrent].
  Home Help Search Donate Login Register  
  Show Posts
Pages: « 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 [44] 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 ... 461 »
861  Economy / Speculation / Re: Will bitcoin value increase with difficulty? on: June 04, 2013, 01:20:47 AM
For more difficulty vs price;

Hey, I recognize that!   Grin


862  Bitcoin / Bitcoin Discussion / Re: Are ASICs having a major effect on difficulty yet? on: June 04, 2013, 12:47:28 AM
Since it takes so long for people to receive theirs, would they have much effect on the difficulty at the moment?

Well new orders that aren't going to ship for weeks months obviously wont have any effect on today's difficulty, but ASICs now being delivered for previous orders are certainly responsible for this:


[Edit: And that's likely just the beginning of where it begins to rise.]
863  Economy / Speculation / Re: Will bitcoin value increase with difficulty? on: June 03, 2013, 11:54:58 PM
But I believe difficulty lags price by a month or so.

There was a pretty clear pattern (difficulty rises lagged behind price increases by three to eight weeks) when GPUs were the primary technology used.   Currently the rise thanks to ASICs will rise regardless of the direction and rate of change of the exchange rate.
But for sure, there's no reason a higher difficulty yields a higher exchange rate unless for some reason there was not enough hashing occurring where the exchange rate was depressed due to concern that it wasn't high enough to provide sufficient protection.   Dan Kaminsky thinks we might be there again simply because a well-funded single supplier of ASICs can easily reach 51%.   Others think he is blowing smoke as who has five or ten million dollars to blow trying to prove his point.   Who knows.
864  Bitcoin / Bitcoin Discussion / Re: Is difficulty going to rise so fast that on: June 03, 2013, 11:48:08 PM
If it does, people will panic about their power bill,

Depends on whether you are talking GPUs or FPGAs and ASICs.

With ASICs there's a loooonnnnngggg way before the cost of electricity comes back to being a relevant factor as far as profitability (where you'ld consider unplugging).   It was that way with GPUs for a while ( ~ Sept - Jan, 2011), and that will happen again soon thanks to the volume of ASICs now reaching miners.   FPGAs eventually will hit that point but even they are still wildly profitable in terms of generating more revenue than the cost of electricity to power them.  
865  Bitcoin / Legal / Re: Trading on BTC-E on: June 03, 2013, 11:32:38 PM
Also, I just noticed the subject title reads specifically BTC-E.

Sometimes people are asking not whether the tax laws apply to a certain transaction but instead are trying to learn specifically about non-compliance.

BTC-E can be accessed via Tor -- which provides a way to transact without the exchange having your IP in any logs.

BTC-E allows anonymous accounts.

Anonymous accounts (or any account that hasn't had a bank transaction ... as a deposit or as a withdrawal, and hasn't had to verify the account for AML/KYC purposes) can trade digital currencies and the account can be defunded (all funds withdrawn) without providing identity, up to certain limits -- though there are some exceptions.

The exchange still likely has a log showing which Bitcoin addresses were used to add funds to the account, and which alt-coin addresses those funds were withdrawn to so there's the possibility of tracing your deposit to your withdrawal even though no bank account or identity had ever been used.  Mixing services might lessen the traceability.    I've no idea if that level of tracing happens but you should know it is possible.
866  Bitcoin / Legal / Re: Trading on BTC-E on: June 03, 2013, 11:18:30 PM
If I just trade one crypto for another, do I have to worry about taxes? or do I just worry when trading back to Fiat? I'm a US citizen if that helps.

Generally the taxable event occurs when you close a position.  So if you are selling bitcoins it won't matter if the exhange is to dollars or another virtual currency, you have a gain (or loss) on the original position.

Disclaimer: I'm not a tax accountant.

Some more info:
867  Bitcoin / Development & Technical Discussion / Re: Cooperative unmixing for anti-money-laundering on: June 03, 2013, 08:18:38 PM
encouraging model citizens

Financial privacy is NOT A CRIME!
868  Bitcoin / Development & Technical Discussion / Re: Can two computers use the same wallet keys concurrently? on: June 03, 2013, 08:12:18 PM
I know I can't double money, but theoretically I think this should be possible, as a redundancy. Does anyone have experiences with that?

The Bitcoin-Qt/bitcoind client does not handle a situation where you've double spent very well at all.   If you were, for instance, to spend from one client while a second was offline, then launched the second right after making the transaction then the second client wouldn't know of the transaction until either the first client re-broadcasts the transaction (perhaps not until an hour later) or else if the transaction gets included in a block.       So then let's say you make another spend transaction from the second client and if it uses the same coin as was already spent then that transaction will be invalid and will never confirm.

It gets worse, ... the Bitcoin-Qt/bitcoind client doesn't have any easy way to remove that invalid transaction that you've made.   So that transaction and any coins it used will be locked in a 0/unconfirmed status on the second client.

Additionally, the key pool will start to diverge between the two wallets.  So your balance on one client will eventually show different from the wallet on another.   And both will need to be backed up and kept separate.

So, in other words .. for most people, sharing a Bitcoin-Qt/bitcoind wallet among multiple computers ends up going badly.  
869  Bitcoin / Legal / Re: Filed a request for an administrative to FinCEN this morning. on: June 03, 2013, 07:51:20 PM
I also brought up the scenario of operating an eWallet which involve only a single virtual currency and no real currency:
BTC: Person A -----> Wallet Provider -----> Person B
USD:  None

That's the question I had, since the guidance states:

The term "money transmission services" means "the acceptance of currency, funds, or other value that substitutes for currency from one person and the transmission of currency, funds, or other value that substitutes for currency to another location or person by any means.

870  Bitcoin / Project Development / Re: Branded Bitcoin Tablet Devices on: June 03, 2013, 07:19:10 PM
I would like to gauge how interested and receptive the community is to a Bitcoin tablet device.

I was thinking about the need for a Tor Tablet, with a bitcoin wallet, on a secure O/S or at least configured to be as secure as you can get on a consumer-level device.   This would be for the person who simply wants a device for use with Tor that is completely separate from anything else ... i.e., so they don't need to install Tor on a laptop or desktop or other mobile / tablet / etc.

Additionally, how about an online gaming tablet for shared use.    Essentially this would be something that a bar or club could hand out to a customer, already loaded with some funds for the customer to use for play (e.g., on bitZino or some other site, depending on what the customer wanted to play. ... there's plenty ), and then when the customer wants to cash out they can do it themselves or the club could do it for the customer.

[This could be tightly controlled by the club by setting up the account on bitZino requiring two-factor auth on withdrawals only)]

But then when the customer is done the tablet gets reset to a specific image (e.g., re-loaded) so there's no risk of malware / etc.

Of course, in the U.S., each state has gambling statutes and offering this device in this manner would not likely be allowed (some states don't have a problem with you gambling in a bar, just as long as the state gets its huge cut of the action - ).   But there are other parts of the world where it wouldn't be a problem.
871  Bitcoin / Bitcoin Discussion / Re: Would you sleep with me for $100, No? how about $1,000,000. Maybe? on: June 03, 2013, 06:26:51 PM
yes we early adopters will win a bunch debt/military based money

You presume those cashing out bitcoins for fiat then store that value in fiat.   We don't know where those funds land.   If they stay as fiat then they are available to buy back some coins should the exchange rate drop again in the future.     Other times they are going into other forms of value, such as precious metals, or investment, etc.

The reason it isn't a problem that people will sell some bitcoins after there are gains in the purchasing power is because with Bitcoin the system isn't set up to enrich the money changers.   In the U.S. there are many tens of billions in banking fees (monthly account fees, NSF fees, etc.) and that fiat banking system enriches the bankers.   Bitcoin has transaction fees but they are tiny fraction of the amount the banks get and they go to those who openly compete to earn those fees.

In other words, fiat money goes back to the bankers a fraction at a time with each transaction.   With Bitcoin this isn't the case -- so if there are parties who want to acquire bitcoins they are paying market prices for them and gaining them that way.

But once they have them they have no advantage over anyone else anyway.   It isn't just those who hold bitcoins that have ultimate power, it is those who are willing to buy the miner's proceeds ... they, the economic majority, are what will remain decentralized.
872  Bitcoin / Meetups / Re: Central Iowa meetup on: June 03, 2013, 06:08:47 PM
I'm looking to start a central Iowa btc meetup in the Ames or Des Moines area.  I'm hoping to understand if there is any interest here or if anyone has any suggestions for such a meetup in the central Iowa area.

With all the retail locations in that area who take Dwolla thanks to Des Moines being home to Dwolla's HQ (and there being an easy way to cash out from BTC to Dwolla USD, through Camp BX) and also the ability to get fast (same-day) transfers of USD funds from a bank account to an exchange (thanks to Dwolla's FiSync transfer gateway from Verdian credit union), Bitcoiners in the area have it easy!

It makes for an easy way to plug bitcoin too.  Each merchant you visit and pay using Dwolla you could then suggest to the merchant that if they also accepted Bitcoin for payment they'ld receive some additional business from Bitcoiners who have a much lower number of merchants they can buy from and pay directly with bitcoin.   And since the merchant accepts Dwolla they already have the equipment (e.g., iPad tablet, or desktop system, etc.) to accept Bitcoin for payment as well.  
873  Economy / Service Announcements / Re: [ANN] Tangible Cryptography suspends Bitcoin related transactions on: June 03, 2013, 05:23:07 PM
The company has been given thirty days to provide written explanation on why our activity is exempt from licensing under current law. The commission has formally stated that unless exempt from licensing we must stop further activity until such time as we apply for and obtain a Money Transmitter license.

I see that Tangible Cryptography's MSB registration (#31000023734880), dated March 23, 2013, lists MSB Activities as "Money transmitter".  

The types of activities to choose from include:

Money Services Business - The term "money services business" includes any person doing business, whether or not on a regular basis or as an organized business concern, in one or more of the following capacities:

(1) Currency dealer or exchanger.
(2) Check casher.
(3) Issuer of traveler's checks, money orders or stored value.
(4) Seller or redeemer of traveler's checks, money orders or stored value.
(5) Money transmitter.
(6) U.S. Postal Service.

If Tangible Cryptography were to have wanted to choose something other than Money transmitter, there's nothing else that really applies.   And money transmitter isn't really correct either.

Bitcoins simply is a round peg that doesn't fit in any of the regulator's square holes.
874  Bitcoin / Bitcoin Technical Support / Re: Unconfirmed ghost transaction on: June 01, 2013, 09:02:06 PM
How can this transaction be confirmed?

Unless the sender or some other node is re-broadcasting the transaction then today consider it as if that transaction had never been sent.

Your client could have seen the transaction back when it was last relayed to you but after a restart your client should not still have an unconfirmed transaction retained.
875  Bitcoin / Development & Technical Discussion / Re: Parrallel block chains on: May 30, 2013, 10:11:43 PM
I'd wondered about something like this for fast payment processing. Something like an alt chain but using bitcoins split off from the main chain and re-merged hourly/daily, no idea how it could be implemented though :/

That kind of sounds like cross-chain trading.  That's not currently something supported but here's the thoughts on it:

There's also Ripple, Open Transactions, etc, which all are solutions that let you use Bitcoin as the backing for the value transferred but using a different layer on top.
876  Bitcoin / Press / Re: 2013-05-30 - Bitcoin will continue to function beyond the reach o on: May 30, 2013, 07:55:32 PM
Duplicate... not that it doesn't merit a second read, mind you.  Cheesy

Ya, I see that now.  The timestamps are just a couple minutes apart.

As far as the article, the comments show how there's still so much about the basics of bitcoin that people aren't grasping.   But compare that to the comments from a year ago, or two years ago and the typical reader is much further along.   (I suppose since even infrequent readers have now seen a dozen articles about it they are starting to realize it isn't some ponzi / scam and will probably be with us for a while).
877  Bitcoin / Press / Re: NEW articles in Press Forum on: May 30, 2013, 07:45:58 PM
2013-05-30 - Bitcoin will continue to function beyond the reach o
878  Bitcoin / Press / 2013-05-30 - Bitcoin will continue to function beyond the reach o on: May 30, 2013, 07:37:20 PM
Bitcoin will continue to function beyond the reach of government and law
by James Ball

The real transformative power of Bitcoin, or something like it, lies not in a speculative bubble, but in its potential to put currency outside of the control of governments, or law enforcement agencies.
"Bitcoin makes Liberty Reserve look quaint as unlike the alleged money launderer, Bitcoin is decentralised. There's no single company or entity controlling the currency, and so it's nearly impossible to shut down.
"Where real money is exchanged into Bitcoins is still a potential weak spot for authorities and some Bitcoin exchanges are looking to sign up with regulators.
"If Bitcoin, or a currency working in a similar way to it, got a stable value and a large user base, it could take cash flows forever out of the hands of government. Whether that's a great thing or a terrible thing depends on what you're trying to do, what you think of government and what country you're talking about.
The prosecutors of the southern district of New York are very publicly celebrating their shutting down of the Liberty Reserve operation. They should enjoy it it may be one of their last such victories.

879  Bitcoin / Project Development / Re: Bringing Bitcoin to the world-competing with Western Union on: May 30, 2013, 05:15:10 PM

Bitcoin essentially displaces hawala.  With hawala there is this set of transactions in two locations which is only possible due to a linkage of trust between the two parties facilitating the "transfer".  With bitcoin, a transfer of fiat is simplified into two domestic Bitcoin exchange transactions, each independent from the other.  One is the buying of bitcoins at one location and the other transaction is cashing out the bitcoins at another.

Every hawalador can essentially go independent and offer to do Bitcoin exchange services, ... up to a point.

At most it would mean finding trustworthy people who already have the capital to invest.      

The problem is the street-level hawalador agent handling the cash-out needs to quickly turn over the bitcoins received right back into fiat.   So the street-level hawalador needs a nearby low-cost exchanger who will buy the hawalador's bitcoins and pay out cash.  

So there is a capital requirement for providing this exchange service where held by the mid-level exchanger is an inventory of cash to be able to buy every bitcoin that the street-level hawalador wishes to sell.

When I see how there are 70,000 M-Pesa agents in Kenya who earn commission that supplements their income, (including many who earn so much from M-Pesa that they do it full-time now), it is a natural that individuals looking to earn a little money by providing bitcoin exchange will emerge in that role.  But what they need help with to get started is a way to turn the bitcoins they buy back into cash.

Down the road this will probably build some form of a hierarchy.  You'll have the street-level exchangers buying bitcoins and paying maybe 5% below spot.  That level may seem a little high but it is necessary due to the time involved to provide this service (arranging and meeting face-to-face is time consuming) and to protect against the risks -- exchange rate risk where the value fluctuates after the exchanger buys the coins after completing a buy from a customer but has not yet sold them.   Other risks include receiving counterfeit bills (though with proper training that risk can be lowered) and physical security (i.e., handling cash can be dangerous).

But then if that street exchanger can visit (or get a visit) from a broker-dealer/mid-level exchanger who will convert those bitcoins back to cash at about a 2% to 3% fee then the amount of money earned makes it worth it for the street exchanger to provide the service.   The broker-dealer itself might have a trusted party that the coins are flipped to immediately (wholesale, close to spot rate) so that there is no exchange rate risk exposure and exists is a fairly quick method of replenishing the dealer's inventory of cash.  

The reason the street-level exchanger doesn't just send the coins to an exchange is because that would involve the banking system, and either the costs or the settlement delays associated with the banking system are prohibitive.  And exchange is probably a regulated activity so the street-level exchanger wouldn't use a bank regardless.  Even the broker-dealer probably won't use the banking system either.  

So essentially, this eventually has just tiers like any supply chain.  The street-level exchanger buys coins from the public and sells them to a broker-dealer (the next level up in the hierarchy).  Then the broker-dealer trades those coins up to a wholesaler (who has the banking relationships and / or relationships with large buyers.)

But this hierarchy isn't necessary to get things started.  All that is needed are for the two parties (prospective buyer and prospective seller) to learn that each other exists.  These relationships can be learned from attending a local meetup, or from a classified ad on craigslist even.

LocalBitcoins is essentially the closest thing to a hawala network that exists with Bitcoin today as I can (and have) used that to do a three-party transaction.  Here's how that three-party transaction worked.   I as the seller contacted the buyer in a far away location.  The buyer met with my person who was to receive the cash.    My person sent me a text saying the buyer was there with the cash, I released the bitcoin funds, and the buyer then handed over the cash.     My recipient of the funds didn't know anything about Bitcoin, except that Bitcoin had made it possible for some person to show up at a certain time and hand over some cash -- no names, no phone numbers, no ID, no nothing.  The only technology that was needed at the hand over of the cash was a couple text messages between me and the person receiving the funds.
880  Economy / Trading Discussion / Re: Mt.Gox AML/KYC Process Explained on: May 30, 2013, 03:08:03 PM
All Mt. Gox user accounts are required to be verified in order to perform any currency deposits and withdrawals

TOKYO - JAPAN - May 30, 2013

Statement Regarding Account Verifications

The Bitcoin market continues to evolve, as do regulations and conditions of compliance for Mt. Gox to continue bringing secure services to our customers. It our responsibility to provide a trusted and legal exchange, and that includes making sure that we are operating within strict anti-money laundering rules and preventing other malicious activity.

As a result, beginning May 30th, 2013 all Mt. Gox user accounts are required to be verified in order to perform any currency deposits and withdrawals. Bitcoin deposits do not need verification, and at this time we are not requiring verification for Bitcoin withdrawals.

In the past two months Mt. Gox has invested in more than doubling our verification support staff, and we are currently able to process most verifications within 24~48 hours.

We apologize for any inconvenience this may cause. Please visit the Security Center in your Mt. Gox account if you are not already verified, and keep in mind that being careful to submit the proper documents will result in a much faster processing time.

Mt.Gox Co. Ltd Team.

Mt.Gox Contact

Pages: « 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 [44] 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 ... 461 »
Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!