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761  Alternate cryptocurrencies / Speculation (Altcoins) / Re: [XMR] Monero Speculation on: April 06, 2016, 01:04:52 PM
I came across this guy stating that Polo does not have a Money Transmission License:
https://www.reddit.com/r/BitcoinMarkets/comments/4cmzit/is_kraken_lending_out_customer_funds/

Doing a quick search I found another one which looks at the issue closer and for more exchanges:
https://www.reddit.com/r/Bitcoin/comments/3krum0/the_ticking_time_bomb_of_crypto_exchanges_and/

FUD? If not, what could be the possible consequences?



In the case of Poloniex it is pure FUD since they are registered as an MSB with registration number: 31000055869515.  Go to https://www.fincen.gov/financial_institutions/msb/msbstateselector.html and search for the registration number or for Poloniex under legal name.

Edit: Money Transmitter Licenses in the US are a state requirement. So it is quite possible Poloniex are not compliant in one, more or all states.
762  Bitcoin / Bitcoin Discussion / Re: Separate Computer for Bitcoin/Financial Information vs Personal? on: April 05, 2016, 01:53:32 AM
The simplest solution is to get rid of Windows and use GNU/Linux instead. Do not run Wine on your main GNU/Linux computer.  If one needs Windows for a particular application put it in a virtual machine and use it only for that application. Alternatively use a second version of GNU/Linux in a virtual machine and run wine in the VM. It is not just high risk activities a simple email can easily infect a Windows computer.

As for high risk activities such as surfing porn I would suggest a separate GNU/Linux machine that is not on your network.  One can also use a live CD/DVD not a USB in that way none of the malware will be saved.  Also consider Tor. For Windows gaming use a separate computer for that purpose.
763  Alternate cryptocurrencies / Speculation (Altcoins) / Re: [XMR] Monero Speculation on: April 03, 2016, 08:46:33 PM
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As it has stated earlier in this thread the biggest resistance is on the way to 0.004-0.0045 levels as many of the bagholders are desperate to break even
. Once they have been shaken out at current levels, it is speculated the rise is smoothier since the permabulls are the only bagholders. And this bull-community will not sell their coins but rather think how they can diversify into other assets.
It has been told us by Risto earlier that we should sell a part of our stash at 2 usd each... Personally I refuse doing this. Even 20 usd is too little for me. Some diversification (or "redistribution of coins") might take place once the price hits 200+ usd each. But also at that point there are takers as well and the choir in the trollboxes are praising and singing happy songs about XMR and her bright future.

I would use a lot caution when making this of kind long term technical analysis on a fair launch POW crypto currency such as Monero. This type of analysis makes sense for stocks where price is directly linked to market capitalization but can easily fail in first years of Monero because one has to take into account the emitted coins since Monero was trading in the 0.004 - 0.005 range in the summer of 2014. To get an idea of this divergence take a look at the following chart. https://coinmarketcap.com/currencies/monero/#charts. The current market cap is 3x what it was at the peak in July 2014. If we used the then price of 0.00614 and the then number of XMR to support the current market cap one would need a price of 0.0184. This would be the equivalent if Monero was a stock.

My take is that as a rough indicator one could argue that a support or resistance point from the summer of 2014 is less significant by a factor of  3.  Or to put it another way many of the "bagholders" from the summer of 2014 had many opportunities to average down, putting their average cost well below 0.003 and their positions in the black. This kind of opportunity would not have been presented itself to the same degree with a stock with a fixed number of shares.
764  Bitcoin / Bitcoin Discussion / Re: 1 year from now 2MB HF will be proposed will you support it? on: April 03, 2016, 12:08:54 AM
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Alright, if you want to call it a hard fork, then it's a hard fork. But the difference between that and now is the context of its deployment. They are not comparable.

Yes the circumstances are very different and this is fast becoming a serious problem for BItcoin.

The difference is that it is very easy to hard fork a cypto currency when the community is still small and there are no economic interests adversely impacted by the hard fork. As a coin matures it should be design be very difficult or impossible to hard fork if the hard fork has an adverse impact on existing economic interests. The problem that Bitcoin faces is that it needs to hard fork in order to scale, while at the same time it may be already too late for a hard fork that may have adverse economic impacts on members of the community. The miners trapped behind the Great Firewall of China may be a good example of this kind of economic interest.

There is a very critical lesson here for alt-coin developers.
765  Bitcoin / Bitcoin Discussion / Re: 1 year from now 2MB HF will be proposed will you support it? on: April 02, 2016, 11:47:46 PM
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Nope, there was no hard fork. There was no need to as there was not enough transaction volume to even come close to the limit. The limit was simply just added in this commit: https://github.com/bitcoin/bitcoin/commit/9d2174b6f5f3fac2463c7ebc2dbb9004b3740d23.

Oh please you mean to say that reversing those changes is not a hard fork. Of course it is a hard fork. By your same argument one can introduce a 32 MB blocksize limit after say block 1000000 and claim it is not a "hard fork"
766  Alternate cryptocurrencies / Speculation (Altcoins) / Re: [XMR] Monero Speculation on: April 02, 2016, 05:37:33 PM
On the other hand, maybe it really was someone who wanted to acquire that much monero with no slippage.  Who knows?  Cheesy



In other news, I think my comments earlier were misconstrued.  Monero is literally the best money on the planet.  So any other financial moves you do, wherein you hope to profit, should ideally end up with you holding more Monero than you did before.  You could try to use your financial moves to acquire more USD or Bitcoin, but these are inferior forms of money.  The fact that XMR is not especially popular yet doesn't detract from its superiority.  
  
The goal of any financial game is to gain more money, and make moves that allow you to gain more money than you had before.  This is why I said every move needs to be calculated in how it could impact your Monero holdings - up until a reasonable individual limit of 200k to 400k Monero, more is always better (especially at these early stages).  At this point is seems silly to try to chase more USD; I prefer to chase assets with more growth potential.  

Placing a buy wall slightly above market, creating a combination taker / maker order, is a very effective way for someone to buy a substantial position at market with minimal slippage. This is what I suspect our 40K XMR buyer just did.

Edit: The idea is accepting that your order will move the market while at the same time minimizing slippage.
767  Bitcoin / Bitcoin Discussion / Re: 1 year from now 2MB HF will be proposed will you support it? on: April 02, 2016, 05:25:37 PM
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That is simply not true. Bitcoin has had no intentional hard fork ever. We have only had soft forks.

The 1 MB maximum blocksize limit was added,, I believe in 2010, via a hard fork.

Edit: The previous effective blocksize limit was 32 MB.
768  Alternate cryptocurrencies / Altcoin Discussion / Re: The altcoin topic everyone wants to sweep under the rug on: April 01, 2016, 03:12:49 PM
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Great for you that you feel you can hide from modern civilization in Belarus.

Meanwhile most developers (a.k.a. ICO "issuers") and promoters (a.k.a. "broker dealers") live in the G20 and thus will be subject to SEC prosecution due to the announced cooperation of the G20 to go after financial crimes.

Replace SEC with FinCEN and I will agree with you.

Edit: Many ICOs are not securities; however the fact that they are not securities does not make them legal.
769  Alternate cryptocurrencies / Altcoin Discussion / Re: Ban ICOs on: April 01, 2016, 05:00:23 AM
Virtually all ICOs become illegal in the United States because the administrator does not register as an MSB with FinCEN within the required time period. This is not about "banning" it really should be about enforcement of existing laws.

My take is that enforcement will come but it will take some time as government agencies are not known for moving fast.
770  Alternate cryptocurrencies / Speculation (Altcoins) / Re: [XMR] DarkFlarb Speculation on: April 01, 2016, 04:36:06 AM
I would prefer it if XMR rose steadily over time and did not allow margin traders to come in and make big profits off us and then leave, taking our btc away with them.  If the whale is trying to keep our rise more steady by holding the price down when its rising too fast, and punishing margin traders, then more power to him.  

The environment in DarkFlarb in 2016 has been great for any long term buy and holder.  Keep it up whales.  Steady rise over time, no huge spikes and dumps.

I value the speculator because speculators provide liquidity and accept risk. A highly liquid market is important so that a vibrant economy can develop and merchants can accept Monero. In many markets speculators provide a very valuable service by taking on the market risk. This allows those engage in productive activities to hedge their positions. One of the strong aspects of Monero is that it is a very liquid coin for its size, and we can thank speculators and margin traders in part for that.
771  Alternate cryptocurrencies / Speculation (Altcoins) / Re: [XMR] Monero Speculation on: March 31, 2016, 05:57:54 PM
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In that case the wallet owner could easily have moved smaller amounts with mixing to not be noticed. This was intentional.

It is possible it was an exchange, if so I would like them to affirm that. *cough Polo

RingCT will take care of this.
772  Alternate cryptocurrencies / Speculation (Altcoins) / Re: [XMR] Monero Speculation on: March 28, 2016, 06:48:24 AM
This coin is in all the wrong hands you can imagine.
In your view, who are these wrong hands and why do they own the coin?

Actually the more interesting question is how does slapper know who owns what amount of XMR?
773  Alternate cryptocurrencies / Speculation (Altcoins) / Re: [XMR] Monero Speculation on: March 28, 2016, 05:26:45 AM
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In non-adversarial conditions, which doesn't apply to anyone attempting to exhibit cartel behavior.  Since you can't force people to propagate blocks, and the speed of light is a limiting constant, the bigger the blocks, it seems like the bigger the attack vector.


The speed of light is not the limiting constant here. The speed of electromagnetic energy traveling down a telegraph line in say 1856 is actually comparable to the speed light in a fiber optic cable today. The bandwidth is however very different.

Edit: The bandwidth of a carrier pigeon has increased conservatively by a factor of 1010 in the last 40 years. The speed at which the carrier pigeon flies has not changed.
774  Alternate cryptocurrencies / Speculation (Altcoins) / Re: [XMR] Monero Speculation on: March 28, 2016, 04:56:24 AM
Bitcoin cannot scale, until the fixed blocksize issue is fixed.

There is no fixed block size issue because by most people's estimations, something like the relay network is required for over 500k-ish blocks.  Because there is currently no alternative to the relay network that isn't opt-in, this just makes it a cartel creation type of tool to exclude various adversaries from interacting with the network at all.

What do you expect, Monero is just gonna scale to 100mb blocks with no side effects?  Monero does not solve Bitcoin scalability issues.  There really is no huge scalability problem in the first place.  I estimate around 8MB blocks is what is needed to have $10kish transactions and higher valid for on-chain use as a major world currency.  That's just within capability of catching mainstream consumer support.


I see crypto currencies today are where credit cards were 60 years ago. I am sure many people in 1956 could not envision a credit card network processing 10s of thousands of transactions per second using punched cards and tabulating machines. They designed credit card and payment card business models around high value transactions where the retailer had very large margins. The dominant Credit Card networks of the day were Diner's Club and American Express.  Who are the dominant Credit Card networks today?

Bitcoin is heading with the above model to becoming the Diner's Club of crypto currency, while Monero at least has a chance of becoming the VISA of crypto currency.

By the way 10K USD and above is the kind of money where the existing banking system actually starts to become very competitive when it comes to transferring money internationally.
775  Alternate cryptocurrencies / Speculation (Altcoins) / Re: [XMR] Monero Speculation on: March 28, 2016, 03:20:45 AM
I do not agree with the TrueCryptonaire sig:

"In the long run XMR has good chances to gain higher marketcap than btc."

BTC can scale off-chain and Monero doesn't, nor through SPV type implementations.  At that point, there is no point in using Monero over BTC.  It's true, Monero market cap can be much higher than now, even in the billions, but if it was, Bitcoin would probably be in the trillions.

It's possible Monero or Zcash will occupy some type of niche market, but the anon wars of incrementalism would have to end first, and I'm not really seeing how that's going to happen.  You would need to subscribe to four ideas for Monero to really do something:

1)  Smooth's claim that currency is the killer app of the blockchain (likely plausible)
2)  Anonymity is a mandatory feature set of that app (less plausible)
3)  Governments would not make the anon currency extremely difficult to use while allowing BTC instead, crippling the anon currency market cap
4)  The need to believe on-chain anonymity would be useful in a clearing/settlement network.

If your key feature is not utilized in the likely evolution of the network, you're relegated back to the niche market.  That niche market could be worth billions of dollars though, so I guess it's all relative.  BTC on the other hand could go to trillions as a settlement layer.  There's just not an overwhelming need to make Bitcoin obsolete and switch when both coins operate roughly the same in the end game.  Ring signatures will likely block many further on-chain scaling options to boot.  So yea, it could be valuable, but likely not a threat to Bitcoin.

Bitcoin cannot scale, until the fixed blocksize issue is fixed. Off-chain solutions in Bitcoin will also require massive increases in the blocksize. Monero has a currently working solution for main chain scaling by using adaptive blocksize limits and a tail emission.  As for SPV implementations they serve to allow for the use of Bitcoin on devices with limited capabilities such as certain mobile devices. SPV does not solve the fundamental issue with Bitcoin scaling in any meaningful way.  https://en.bitcoin.it/wiki/Thin_Client_Security
776  Alternate cryptocurrencies / Speculation (Altcoins) / Re: [XMR] Monero Speculation on: March 28, 2016, 02:51:35 AM
Pretty petty to begin with allowing an asset you are invested in to be shorted for fractions of a percent in interest.

I would not call it petty, and I do not have a "moral" problem with it. It is just in this case I find it extremely risky.  
777  Alternate cryptocurrencies / Speculation (Altcoins) / Re: [XMR] Monero Speculation on: March 28, 2016, 02:44:54 AM
The good thing is I got a pay day during this dump. A lot of old shorts (including 0.9 %) was closed and a nice chunk of Moneros was pocketed and now lent back to the next generation of bears.
Always cool to get some extra Moneros... All the dust even is worth picking IMO as opposed to let someone else to take it.  Wink

To each their own, but personally I do not like the risk to reward ratio of financing Monero short positions that use Dash for example as collateral. Nothing against Dash, I would feel the same about a Dash short position that uses Monero as collateral. The risk of a double whammy here can be very high.
778  Alternate cryptocurrencies / Speculation (Altcoins) / Re: [XMR] Monero Speculation on: March 28, 2016, 02:29:22 AM
The seller is a whale, no question about it. Kinda dangerous to hold a coin that is held by some whales who can move the markets with their moods and emotions.  Huh

Absolutely true. Perhaps the most important thing you have said in your entire BTCTalk history. This coin is not suitable to be introduced to any new people through word of mouth or even pointing to any articles or other literature.

This coin is in all the wrong hands you can imagine. Even Darkcoin/Dash is built with a lot of solid hands giving it value.

This is why we need zcash. Just like we need Ethereum, not just for technology but for value and respecting value of an asset.

Seriously Monero has gone up over 400% in a period of 2.5 months and one can reach the above conclusion over a 25% correction? The reality is that a correction is in many cases healthy for the longevity of a bull market. This applies to any asset not just crypto currencies.
Maybe what the market is looking for here is for more bears to get deeper into margin in order to set up a good short squeeze. As I have indicated before a short squeeze involving crypto currencies can get real ugly real fast, which is why taking delivery and sitting back and watching this unravel is my preferred course of action.

Edit: I have said this before and will say it again. The most effective way to squeeze the shorts to the wall is to take delivery and wait.
779  Bitcoin / Press / Re: [2016-03-26] Is Bitcoin the New Swiss Bank Account (And Is That a Problem?) on: March 27, 2016, 10:06:46 PM
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Public opinion is definitely in favour of Apple in the encryption debate. Governments (including tax collectors) should just get used to the reality that strong encryption methods are available to everybody now. They should adapt, even though jobs like tax collection might be more difficult in the Bitcoin world.

This assumes that the Apple vs FBI dispute is actually about encryption which it is not. It is actually about protecting Apple's DRM and Apple's Orwellian business model. The FBI would be content with just  two things 1) The source code to IOS and 2) The ability to install software on an iPhone without having to get Apple's permission. This would make the encryption equivalent to say GNU Privacy Guard the software that Edward Snowden used for his leaks. Of course in order for the encryption to be secure one has to use a strong password. In the Apple vs FBI case, the FBI has reason to believe that the terrorist in question used a very weak password. This is like trying to crack a Bitcoin wallet "secured" with a 4 digit number. So the dispute is actually about DRM rather than encryption.

The Apple DRM that is currently inhibiting an anti terrorism investigation where the government has dotted all the legal i's and crossed all the legal t's is the very same DRM that Apple used used to censor Bitcoin from 2009 to 2014.
780  Alternate cryptocurrencies / Speculation (Altcoins) / Re: [XMR] Monero Speculation on: March 27, 2016, 07:16:21 PM
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Perhaps we should explicitly define "technological failure" as only events which take down both BTC and LTC.  Then you get to be right by circular logic, which is pretty much exactly what you were trying to do in a more subtle manner.   Wink

Part of the issue I see here is the focus on an "event", while ignoring a chronic problem that will over time take down both Bitcoin and Litecoin as well many other alt-coins. I am talking of course of the fixed blocksize issue and the lack of a viable fee market that will at the same time allow for scaling of the blockchain. The one solution to this problem that exists requires both an adaptive blocksize limit and a tail emission: Monero and Aeon. Dogecoin has a partial solution in that it has the hardest part of the problem solved (from a social covenant perspective) namely the tail emission. One could replace the tail emission with demurrage so one can argue that Freicoin also has a partial solution to this issue. In reality if one looks at the market capitalizations Monero is the most viable Bitcoin backup followed by Dogecoin.

Which is has a higher risk of death in the long run: A twenty year old who breaks his leg more than once and walks around in crutches for a few months after each injury or a twenty year old who is exposed to asbestos and catches a cancer that has no symptoms for 25 years and then kills him? Now picture the position of a life insurance company. If one is writing a 5 year short term life insurance the one exposed to asbestos is the lowest risk since the policy will be long expired before the cancer manifests any symptoms; however if one is writing a whole life policy to last a lifetime it is the injury prone 20 year old that is the lowest risk since the certain mortality at age 45 will cost the life insurance company more.
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