Bitcoin Forum
November 21, 2017, 10:51:47 AM *
News: Latest stable version of Bitcoin Core: 0.15.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: New comer with questions  (Read 596 times)
GetToTheTrenchLine
Newbie
*
Offline Offline

Activity: 12


View Profile
February 12, 2017, 07:06:36 AM
 #1

I started looking into cryptocurrencys just recently. I was originally looking for an idea for a school paper and settled on bitcoins. I wanted to learn more about it myself and research how it all works. I wanted to see what it is all about. The more ill learned the more questions I had. I am still asking myself is it really any good? I realize there are a lot more coins that just  "bitcoin" aside from their algorithms what is the difference? 

What I am caught up on is how are cryptocurrencys safe? I mean you put your coins into a wallet like Coinbase, so what if Coinbases servers go down..? your fucked ya?
Whats stopping the site creators from stealing all your coins? They could do that right? You wouldn't simply "trust" they wont do it...

And iv read there is cap on how many coins can be produced..? and from what it looks like there are some pretty big mining farms. So 5 years down the road what when some hotshots horde all the coins, whats left? Move onto a new coin? It could never be a real currency if that's true. More coins would have to be put into circulation...
 
You want your transactions to be untraceable yet you have nodes that store each movement of a coin, that doesn't sound hard to trace.
And then to buy coins you would have to use your debit card to buy them online showing the very people you are trying to get away from where you are going. They now know where you are, they have all the data of every transaction because anyone can have a node(spell check), it just doesn't sound like cryptocurrencys are really all the "decentralized"



Again this is what iv questioned myself with the two night of researching i have done. The point of the paper i am trying to make is 'why a local business should start accepting bitcoins as a form of currency'. I first have  to convince myself that is the case.
1511261507
Hero Member
*
Offline Offline

Posts: 1511261507

View Profile Personal Message (Offline)

Ignore
1511261507
Reply with quote  #2

1511261507
Report to moderator
1511261507
Hero Member
*
Offline Offline

Posts: 1511261507

View Profile Personal Message (Offline)

Ignore
1511261507
Reply with quote  #2

1511261507
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
Xester
Hero Member
*****
Offline Offline

Activity: 644


★YoBit.Net★ 350+ Coins Exchange & Dice


View Profile
February 12, 2017, 07:17:15 AM
 #2

If the coinbase servers go down there is no panic, they will just run the servers again after all transactions made are stored in their database. Next is if one person hoards bitcoin in great volumes, then that is good news for us since the price of bitcoin will soar up high and will tremendously increase. If the supply is not enough for the demand the solution is to sell the coins in a much higher price. Lastly why do you want to run away, did you make illegal transactions or use bitcoin in an illicit manner such as buying weapons and illegal drugs. If you dont use bitcoin in such evil manner then you must not panic.

GetToTheTrenchLine
Newbie
*
Offline Offline

Activity: 12


View Profile
February 12, 2017, 07:34:44 AM
 #3

"if one person hoards bitcoin in great volumes, then that is good news for us since the price of bitcoin will soar up high and will tremendously increase"

With that being said, to be of any benefit to you, there has  to be another form of currency $$.
One person hoards a lot of bitcoin, price of bitcoin sores, you sell, hoarder buys, now he has even more. The possibility for  one person/organization to have all bitcoins is do-able.


And yes that is exactly what I am saying. I want to do some sketch business involving bitcoin (hypothesizing). Isn't that to be one of the perks to it? me being untraceable?
nisya
Member
**
Offline Offline

Activity: 84


View Profile
February 12, 2017, 07:36:41 AM
 #4

i think you are thinking too much about crypto currency, if you are really afraid then you don't have to use crypto currency and stay away from from it. before you decide to play around in crypto currency, i think you should know what is the risk, if you make deposit with your own money, then you should be wis to use it and don't spend too much if you are not ready.

if we start the business, even in offline or online, the risk to be get scam is always there and we should thinking seriously and we need to avoid the way that could makes us getting scam.
Amph
Legendary
*
Offline Offline

Activity: 1694



View Profile
February 12, 2017, 07:38:59 AM
 #5

if your ely on centralized service while using a decentralized tool like all the altcoin(minus ripple which is not even an alt...) it's your fault, you should keep your coins locally

crypto are safe on their own it's theoir usage that can lead to usecurity, pool owner can also do the same thing on exchange but they would be caught easily and lose their 1% fee, and it's not in their interests

bitcoin is not untraceable and never was, in fact the blockchain it's a ledger used to trace all the transaction, if you want more privacy use alternative service like coinmixer, or altcoin like zcash/classic/monero
Pursuer
Legendary
*
Offline Offline

Activity: 952


Where is my ring of blades...


View Profile
February 12, 2017, 07:41:50 AM
 #6

read this: https://bitcoin.org/en/you-need-to-know

I realize there are a lot more coins that just  "bitcoin" aside from their algorithms what is the difference? 
they are called altcoins, and each of the are different. the difference from bitcoin is ranging from small differences to completely different everything. you can find out about each of them by searching their names and reading their website, announcement topic and paper.

Quote
What I am caught up on is how are cryptocurrencys safe? I mean you put your coins into a wallet like Coinbase, so what if Coinbases servers go down..? your fucked ya?
Whats stopping the site creators from stealing all your coins? They could do that right? You wouldn't simply "trust" they wont do it...
coinbase is not bitcoin.
coinbase and by extension all other online web wallets are third party services offering you option to store your coins with them.
it is like giving your fiat money to someone else to hold it for you. the risks are also the same.

if you are afraid of them going under then learn what a bitcoin wallet really is and use a bitcoin wallet not a third party account such as coinbase.

Quote
And iv read there is cap on how many coins can be produced..? and from what it looks like there are some pretty big mining farms. So 5 years down the road what when some hotshots horde all the coins, whats left? Move onto a new coin? It could never be a real currency if that's true. More coins would have to be put into circulation...
new coins are produced as mining reward each block is mined and the rate is slow and getting slower. read about bitcoin supply on the wiki.
and about "some hotshots" I have to say there has never been any restrictions on who can buy or hold how much or when to do it.
from day one bitcoin was open to everyone to mine, buy and hold. if someone did it from day one and has lots of coins or if someone like me joined the party 3 years ago and has been accumulating it just means we are thinking better about the future. and nobody is stopping others from doing the same Smiley

Quote
You want your transactions to be untraceable yet you have nodes that store each movement of a coin, that doesn't sound hard to trace.
And then to buy coins you would have to use your debit card to buy them online showing the very people you are trying to get away from where you are going. They now know where you are, they have all the data of every transaction because anyone can have a node(spell check), it just doesn't sound like cryptocurrencys are really all the "decentralized"
https://en.bitcoin.it/wiki/Anonymity
when you buy with your debit card I can't know your identity, the service you are using knows it. and that is the anonymity of bitcoin simplified version Smiley
and you can always use cash and buy with cash without anyone knowing any better.

Quote
Again this is what iv questioned myself with the two night of researching i have done. The point of the paper i am trying to make is 'why a local business should start accepting bitcoins as a form of currency'. I first have  to convince myself that is the case.
- fast transactions
- no chargeback (you don't have to worry about charge back, stolen credit cards,... all that other problems in fiat world)
- (to some extent) cheap transactions
- high security
- users don't have to sign up, submit their documents,.... like when they do with credit cards: high privacy for users.
* these are off the top of my mind, I try to add more if I can think of any more

GetToTheTrenchLine
Newbie
*
Offline Offline

Activity: 12


View Profile
February 12, 2017, 07:44:01 AM
 #7

"you should keep your coins locally"

What do you mean by that? How do I store my coins locally..?
odolvlobo
Legendary
*
Offline Offline

Activity: 1946



View Profile
February 12, 2017, 08:06:02 AM
 #8

What I am caught up on is how are cryptocurrencys safe? I mean you put your coins into a wallet like Coinbase, so what if Coinbases servers go down..? your fucked ya?
Whats stopping the site creators from stealing all your coins? They could do that right? You wouldn't simply "trust" they wont do it...
That is right. If you let them hold your money, you have to trust that they won't steal it or lose it. If you hold it yourself, then you only need to trust yourself.

And iv read there is cap on how many coins can be produced..? and from what it looks like there are some pretty big mining farms. So 5 years down the road what when some hotshots horde all the coins, whats left? Move onto a new coin? It could never be a real currency if that's true. More coins would have to be put into circulation...
That is unlikely to be a problem for many reasons. There will always be enough coins.

You want your transactions to be untraceable yet you have nodes that store each movement of a coin, that doesn't sound hard to trace.
And then to buy coins you would have to use your debit card to buy them online showing the very people you are trying to get away from where you are going. They now know where you are, they have all the data of every transaction because anyone can have a node(spell check), it just doesn't sound like cryptocurrencys are really all the "decentralized"
That's mostly correct. All transactions are public and it may be possible to associate some people with some transactions, but that has nothing to do with being decentralized.

Buy bitcoins with cash from somebody near you: LocalBitcoins
Join an anti-signature campaign: DannyHamilton's ignore list
bob123
Sr. Member
****
Offline Offline

Activity: 378


JOLYY - The future of beauty!


View Profile
February 12, 2017, 08:59:39 AM
 #9

I realize there are a lot more coins that just  "bitcoin" aside from their algorithms what is the difference? 

They differ in kinda few things, for example Time until block is mined, the concept (Proof-of-Work, ..), the security..
To get all the differences between BTC and a special Coin u need to look at the Paper (Or at a thread regarding this coin)


I mean you put your coins into a wallet like Coinbase, so what if Coinbases servers go down..? your fucked ya?
Whats stopping the site creators from stealing all your coins? They could do that right? You wouldn't simply "trust" they wont do it...

Theoratically.. yes if there Server go down (and they lose your private keys) your coins are lost.. and Yes they could just steal them..
But the Awnser to this is: Dont use an Online Wallet.. Store your Coins on YOUR PC (or a Hardware wallet, or even a Paper wallet).
And then.. your coins are safe.


And iv read there is cap on how many coins can be produced..? and from what it looks like there are some pretty big mining farms. So 5 years down the road what when some hotshots horde all the coins, whats left? Move onto a new coin? It could never be a real currency if that's true. More coins would have to be put into circulation...

If there would be no cap.. the value of BTC would sink because Computing power is raising constantly (Proof-of-Work concept)


You want your transactions to be untraceable yet you have nodes that store each movement of a coin, that doesn't sound hard to trace.
And then to buy coins you would have to use your debit card to buy them online showing the very people you are trying to get away from where you are going. They now know where you are, they have all the data of every transaction because anyone can have a node(spell check), it just doesn't sound like cryptocurrencys are really all the "decentralized"

BTC is not anonymous at all.. its pseudonymous.. Every Action can be seen from everyone.. but you only see pseudonyms..
Of course, if you know all pseudonyms (Addresses) of one person you can see all his payments.

            ███           ▄▄▄████████▄▄▄           ███       ▀███          ▀██▄ ▄██▀          ███▀
            ███         ▄████▀▀    ▀▀████▄         ███         ███          ▀█████           ███
            ███       ▄███▀            ▀███▄       ███          ▀██▄         ▄███▄         ▄██▀
            ███      ███▀                ▀███      ███            ███       ███▀███       ███
            ███     ███▀                  ▀███     ███             ▀██▄   ▄██▀   ▀██▄   ▄██▀
            ███     ███                    ███     ███               ███▄██▀       ▀██▄██▀
            ███     ███                    ███     ███                ▀███▀         ▀███▀
            ███     ███                    ███     ███                 ███           ███
            ███     ███▄                  ▄███     ███                 ███           ███
            ███      ███▄                ▄███      ███                 ███           ███
           ███▀       ▀███▄            ▄███▀       ▀███                ███           ███
██▄▄▄  ▄▄▄███▀          ▀████▄▄    ▄▄████▀          ▀███▄▄▄  ▄▄▄██     ███           ███
▀▀████████▀▀              ▀▀▀████████▀▀▀              ▀▀████████▀▀     ███           ███
           T H E   F U T U R E             
                       o f   B E A U T Y


 ▀█▄             ▄▄▄▄▄▄
   ▀█▄      ▄▄███▀▀▀▀
    ▄██     ▀▀▀     ▄▄▄▄
 ▄▄▄ ██         ▄     ▀▀██▄
▀█▀█▀█▀▄       █▄     ▄██▀
               ▀████████
               ▀ ▀ ▀ ▀ ▀


      ▄▄
     ▀█▀▀▀

    █▄
     ███████▀▀▀
    █▄
      ▀▀▀▀▀
erikalui
Legendary
*
Offline Offline

Activity: 1134



View Profile WWW
February 12, 2017, 09:54:44 AM
 #10

All your questions have been answered till now but one thing about coinbase that I would like to add is coinbase would never run away with your money as it has received a New York BitLicense (unlike other exchanges and mining companies who turned fraud and were considered offering services without any license) and hence if they commit any fraud, they could be charged for the same. However, compared to a bank, coinbase is less secure and you getting your money back cannot be guaranteed. This is the case if blockchain network fails and your transactions are stuck. If any case this currency is termed illegal, again you'll be losing your money which can happen anytime.

You cannot trust bitcoin for life compared to how you trust your own local currency. It has lasted for 6-7 years but since it cannot be regulated, it is considered to be anonymous and difficult to track all your transactions and verify the sources. There are numerous ways in which you can hide your transactions by using mixers.


Local businesses should or can start using bitcoins for these important factors:
1. Send/receive money from/to any country. Not all countries can accept other payment modes like WU/PayPal etc.
2. Volatility. It's quite profitable to store bitcoins just like it's profitable to store gold. Businesses can consider it as shares.
3. No chargebacks. The money cannot be reversed at any cost.



      ▄▄▄█████████▄▄
   ▄██████████████████▄
 ▄██████████████████████▄
██████████████████████████▄
 ████████████████████████
    ▀▀▀▀██████████████████
       ████████████████████▄
      ██████████████████   ▀▀
      █████████████████ ▄▄█▀
      ██████████████████████▀
       ███████████████████▀
        ▀██████████████████▀
    ▄█████████████████████▀
  ▄██████████████████████▀
 ██████████████████████▀
  ▀█████████████████▀▀
     ▀▀████████▀▀▀


  ▄████████████████████████▄
{}
Idrisu
Sr. Member
****
Offline Offline

Activity: 378



View Profile
February 12, 2017, 02:06:58 PM
 #11

For your information cryptocurrencies including bitcoin is a decentralized currency and the safety of it is in your hand. You can decided to keep your coin in a private wallet on your computer just as you can decided not to deposit your hard earned to bank. Coinbase, blockchain.info xapo and others wallets providers are just liked conventional Bank you do business with them based on trust.

Gembul
Sr. Member
****
Offline Offline

Activity: 266


View Profile
February 12, 2017, 02:34:58 PM
 #12

I will answer the question one by one of course this is just in my opinion.
Quote from: GetToTheTrenchLine link=topic=1787285.msg17822048#msg17822048
I am still asking myself is it really any good? I realize there are a lot more coins that just  "bitcoin" aside from their algorithms what is the difference? 
Bitcoin in my opinion is the most nice and stable criptocurrency among others coins. Because that just alternative coin, and altcoin without bitcoin of course going to die despite having a good algorithm.

Quote from: GetToTheTrenchLine link=topic=1787285.msg17822048#msg17822048
What I am caught up on is how are cryptocurrencys safe? I mean you put your coins into a wallet like Coinbase, so what if Coinbases servers go down..? your fucked ya?
Whats stopping the site creators from stealing all your coins? They could do that right? You wouldn't simply "trust" they wont do it...
I think this can be overcome by your use bitcoin wallet with private key. Because if you have the private key from the wallet you can control the wallet. You can use the services of blockchains.

Quote from: GetToTheTrenchLine link=topic=1787285.msg17822048#msg17822048
You want your transactions to be untraceable yet you have nodes that store each movement of a coin, that doesn't sound hard to trace.
And then to buy coins you would have to use your debit card to buy them online showing the very people you are trying to get away from where you are going. They now know where you are, they have all the data of every transaction because anyone can have a node(spell check), it just doesn't sound like cryptocurrencys are really all the "decentralized"
Do you know the bitcoin transaction is not entirely untracked. For example, law enforcement could somehow catch criminals who use bitcoin for illegal activities.

Quote from: GetToTheTrenchLine link=topic=1787285.msg17822048#msg17822048
Again this is what iv questioned myself with the two night of researching i have done. The point of the paper i am trying to make is 'why a local business should start accepting bitcoins as a form of currency'. I first have  to convince myself that is the case.

If I as a business owner, why should accept bitcoin. Due to follow trends could increase my sales. In times like these people want is facilitated by buying something online without having to leave the house, with low transaction fee without taxes.

Note :There is a question I do not answer, because i dont have any idea about that. Thank you
STFU!
Full Member
***
Offline Offline

Activity: 132


"Sometimes u Need to Stop,But Doesn't Mean u Quit"


View Profile
February 12, 2017, 02:39:34 PM
 #13

The point of the paper i am trying to make is 'why a local business should start accepting bitcoins as a form of currency'.

Bitcoin just a simple thing people need, Where we do not have to bother to fill out all kinds of stuff the administration and just to complete the daily Activity payment of the whole transaction. and bitcoin is believed to be a practical solution. what is people looking for is an alternative payment and bitcoin is the choices, but who know if there is another practical solution in the futures except Bitcoin as the alternative payment tool.

►►Thanks For The Tips! ฿◄◄
--------------------------------------
“Much silence and a good disposition, there are no two things better than these." - (B)
Soros Shorts
Donator
Legendary
*
Offline Offline

Activity: 1602



View Profile
February 12, 2017, 02:42:00 PM
 #14

"you should keep your coins locally"

What do you mean by that? How do I store my coins locally..?

That usually means that you store your coins on a wallet where the private key is controlled by you locally (as opposed to some third party server that somebody else controls). This could be a mobile wallet, a full node, an SPV client, etc. but the important thing is that is must be a wallet where only you have access to the private key. That way nobody can steal your coins.

Hint: you can even back up your private keys to a piece of paper which you can store in a safety deposit box so if your phone blows up you won't lose your coins in your mobile wallet.
carlfebz2
Hero Member
*****
Offline Offline

Activity: 574


Crypto-News.net: News from Crypto World


View Profile
February 12, 2017, 02:43:45 PM
 #15

The point of the paper i am trying to make is 'why a local business should start accepting bitcoins as a form of currency'.

Bitcoin just a simple thing people need, Where we do not have to bother to fill out all kinds of stuff the administration and just to complete the daily Activity payment of the whole transaction. and bitcoin is believed to be a practical solution. what is people looking for is an alternative payment and bitcoin is the choices, but who know if there is another practical solution in the futures except Bitcoin as the alternative payment tool.
As of now we could see that bitcoin is the closest one regarding on those possibilities but seeing on the current situation of adoption i dont think it would be an easy thing since people wont recognize it directly or being convinced totally on using it since bitcoin cant still be used anywhere on the globe.



              ▄▄▄██████▄▄▄
          ▄██████████████████▄
       ▄████████████████████████▄
 ▄▄  ▄████████████████████████████▄
███████████████████████████████████▄
 ▀▀█████████████████████████████████▄
   ██████████████████████████████████
   ██████████████████████████████████
   ██████████████████████████████████
   ██████████████████████████████████
   ▀████████████████████████████████▀
    ▀██████████████████████████████▀
     ▀▀██████████████████████████▀
        ▀██████████████████████▀
           ▀▀▀████████████▀▀▀
.
.....
.....
.....
.....
.....
.....





savioroshan
Sr. Member
****
Offline Offline

Activity: 420



View Profile
February 12, 2017, 02:43:51 PM
 #16

Hey buddy, if you dont want to trust coinbase, ok no problem . You can store your coins in your own wallet. Just download a wallet software like blocktrail or multibit and store your coins in that wallet. These types of wallets give full control of your bitcoins and you can save them on your desktop and no need to fear anyone because its in your control completely. Nowadays even bitcoin mixers are also available which are capable of removing any evidence of transactions that you made via bitcoin. So that no one will be able to trace your transactions also. So you can use bitcoins with full safety and anonymously.

█████████████████████████████████████████████████████
███▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄███▄▄▄███▄▄▄▄▄▄▄▄▄███▄▄▄▄▄▄▄▄▄▄███
█████████████████████████████████████████████████████
█████████████████████████████████████████████████████
█████████████████████████████████████████████████████
████████████▀███▀████████████████████████████████████
█████████████████████████████████████████████████████
████████████▄███▄████████████████████████████████████
█████████████████████████████████████████████████████
█████████████████████████████████████████████████████
█████████████████████████████████████████████████████
███▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀███▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀███
█████████████████████████████████████████████████████



██        ███         ███                         ███
███        ▀▀▀  ███    ███                         ▀▀▀
███████▄   ███  █████  ███     ▄█████▄   ▄█████▄   ███   ▄█████▄
██  ▀███  ███  ███▀▀  ███    ███▀ ▀███ ███▀ ▀███  ███  ███▀ ▀▀
██   ███  ███  ███    ███    ███   ███ ███   ███  ███  ███
███  ▄██▀  ███  ███    ███    ███▄ ▄███ ███▄ ▄███  ███  ███▄ ▄▄
███████▀   ███  ▀████  ▀████   ▀█████▀   ▀███████  ███   ▀█████▀
                                        ▄▄   ███
                                        ▀██████▀
||
b
COUPON CODE
[ OFIE-2AHG ]
for 100% First Deposit Bonus
|
amacar2
Legendary
*
Offline Offline

Activity: 882



View Profile
February 12, 2017, 03:03:29 PM
 #17

i am trying to make is 'why a local business should start accepting bitcoins as a form of currency'. I first have  to convince myself that is the case.
There are many reasons but few of the key benefits are as follows:
1. They don't have to pay high fees to POS service provider like in accepting credit card payments.
2. They don't have to buy expensive POS machine to accept bitcoin payments, their smart phone with bitcoin wallet will be enough to start.
3. There will be no issue of chargebacks on purchases like in card payments.

    ▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄   
   ████████████████████████████████  
     ▀██████████████████████████▀    
        ▀████████████████████▀       
          ████████████████▀         
            █████████████           
            ▀████████████▀           
             ▀██████████▀            
              ██████████             
               ████████              
               ▀██████▀              
                ██████               
                  ▀                  
.
.trade.io.
██████
██████
███
███
███
███
███
███
███
███
███
██████
██████

▄██████████████████▄
███       ▀███████
███       █████████
███       █████████
███       █████████
███              ██
███   ▄▄▄▄▄▄▄▄   ███
███   ▄▄▄▄▄▄▄▄   ███
███              ███
███▄▄▄▄▄▄▄▄▄▄▄▄▄▄███
██████████████████▀

▄██████████████████▄
███████████▀ ███████
█████████▀   ███████
███████▀     ██▀ ███
███ ▀▀       █▄▄████
███          █▀▀▀▀██
███ ▄▄       ███████
██████▄     █▄ ▀███
█████████▄   ███▄███
███████████▄ ███████
▀██████████████████▀

▄██████████████████▄
████████████████████
███████████████▀▀ ██
█████████▀▀     ███
████▀▀     ▄█▀   ███
███▄    ▄██      ███
█████████▀      ▄██
█████████▄     ████
█████████████▄ ▄████
████████████████████
▀██████████████████▀
██████
██████
   ███
   ███
   ███
   ███
   ███
   ███
   ███
   ███
   ███
██████
██████
.
.Join the Trading Revolution.
DannyHamilton
Legendary
*
Offline Offline

Activity: 1974



View Profile
February 12, 2017, 03:06:00 PM
 #18

I mean you put your coins into a wallet like Coinbase, so what if Coinbases servers go down..? your fucked ya?
Whats stopping the site creators from stealing all your coins? They could do that right? You wouldn't simply "trust" they wont do it...

Coinbase does not provide a "wallet".  They are a service that provides an "account". I know they like to call their "account" a "wallet", but that is a misleading thing for them to do.  They can get away with using that misleading term because it isn't regulated.

The difference is:

With a wallet (such as Core, Multibit, Electrum, etc) you have exclusive direct control over your bitcoins. You run wallet software that maintains the private keys under your control.  You are solely responisble for the security of your bitcoins.

With an account at a service (such as Coinbase, Bitstamp, GDAX, localbitcoins, etc) you give your bitcoins to someone else.  The bitcoins become THEIR bitcoins. In exchange they promise to send an equivalent amount of THEIR bitcoins wherever you ask them to whenever you ask them to.  You trust them to keep their promise. They may also decide to place restrictions and make up their own rules about letting you access the bitcoins.  How many of THEIR bitcoins you are able to request to be sent is maintained as a database entry in their system.

And iv read there is cap on how many coins can be produced..?

Correct.  The cap is a bit less than 21 million.

and from what it looks like there are some pretty big mining farms. So 5 years down the road what when some hotshots horde all the coins, whats left?

There is a limit to how fast the coins are created.  The protocol attempts to keep the average close to one block mined every 10 minutes.  The number of new bitcoins in a block is cut in half (and rounded down to the nearest 0.00000001) every 210,000 blocks (approximately every 4 years).

Right now, we are approximately at block number 453,000 so each block has 12.5 new bitcoins. That means in the next 5 years, only approximately 2,740,625 new bitcoins will be created.  That's only 7.66% of the total bitcoins that will ever be created.  In the meantime more bitcoins will continue to be created until approximately the year 2140 when the final 0.00000001 BTC will be created.

Hording all the coins is not a realistic thing to do.  The more of them that they buy, the more expensive they are to acquire (since they are creating a significant demand against a fixed supply.  Eventually they will run out of money. In the meantime, the bitcoins that everyone else still has become extremely valuable and can be split into very small pieces to be spent.


Move onto a new coin? It could never be a real currency if that's true. More coins would have to be put into circulation...

Nope.  We just continue to use the ones that are already in circulation.

You want your transactions to be untraceable yet you have nodes that store each movement of a coin, that doesn't sound hard to trace.

It's not.  Anyone that has told you that bitcoin transactions are untraceable has misled you.  It is possible to protect your identity using bitcoins, but it isn't easy.  It takes a significant effort to keep your identity disconnected from your bitcoin transactions and to keep your transactions from being linked together.

And then to buy coins you would have to use your debit card to buy them online

Nope.  I buy bitcoins with cash. You can also sell a product or service and accept bitcoins as payment.

showing the very people you are trying to get away from where you are going

Trying to get away from?  We are talking about money here.  What does that have to do with trying to get away from someone?  I'm not trying to get away from anyone, I'm just trying to use a more reliable and safer form of money that is currently available anywhere else.

They now know where you are, they have all the data of every transaction because anyone can have a node(spell check),

Who is this "they" that you speak of?  Why do "they" know who I am?  Why do "they" care who I am?  You are sounding a bit paranoid.  You may want to seek some professional help with that.

it just doesn't sound like cryptocurrencys are really all the "decentralized"

They are VERY decentralized.  They are not very anonymous.

Who gets to print your local currency?  Are you allowed to print it yourself if you want to spend the money?  You can mine your own bitcoins if you want to.

Who gets to create the rules about your local currency?  Can they change the rules if they want to?

How much of your local currency will be in circulation?  How fast is it released into circulation? Can either of those numbers change?  If so, who gets to change them?

Again this is what iv questioned myself with the two night of researching i have done.

Two nights?  You've got a lot of learning to do yet. I've been learning for 5 years, and I still feel like I've got a lot to learn.  

The point of the paper i am trying to make is 'why a local business should start accepting bitcoins as a form of currency'. I first have  to convince myself that is the case.

If a local business accepts cash (physcal paper bills) and that business catches fire (or is hit by a tornado, or flood, or other major disaster), what happens to that cash?  Can they create a backup copy of that cash as they receive it?  With bitcoins they can.  They can use addresses that are backed up off-site so that the bitcoins are still accessible even if the entire business is destroyed in a fire.

If a local business accepts cash and that business is robbed, can the thief see how much cash in in the register?  Can they physically take that cash without the assistance of an amployee?  Can they know when they have all the cash that's in the register?  It is much easier to hide the quantity of bitcoins that the business has and to protect those bitcoins from physical theft than it is to hide and protect cash.

Are there members in the local community that own bitcoins and would like to spend them? Accepting bitcoins would encourage those community members to visit the business over their competitors by providing a service that is desired.

Do local businesses have costs associated with accepting cash?  Transporting that cash securely to the bank, counting the cash, acquiring small bills and coin to keep in the register for change, securing that cash while it is on premises (both against theft by employees and theft by non-employees), dealing with counterfeit cash, etc.  The costs associated with accepting bitcoins may be significantly less.

Does the local business accept electronic orders for delivery (internet, fax, telephone, etc)?  Bitcoins can be a more secure and less costly solution for accepting remote payment than credit cards, debit cards, or invoicing.  Confirmed transactions cannot be reversed by the customer. No third party service is needed to process payment and see that payment has confirmed. The business doesn't need to receive and secure any personally identifying information about the customer nor anything that could be used to steal from the customer (such as account numbers, name, credit card numbers etc).

Quote
"if one person hoards bitcoin in great volumes, then that is good news for us since the price of bitcoin will soar up high and will tremendously increase"
With that being said, to be of any benefit to you, there has  to be another form of currency $$.

That depends on what you mean by "currency".  Would you consider a car to be a "currency"?  How about groceries, are they a "currency"?  Satellite TV service, is that a "currency"?  The bitcoins ARE a currency.  They can simply be spent for the things (products and services) you want to acquire.  You don't need to exchange them for some local currency first (as long as enough businesses accept them as payment).

One person hoards a lot of bitcoin, price of bitcoin sores, you sell, hoarder buys, now he has even more.

Why sell?  Why not just use the, now more valuable bitcoins, to pay for products and services?

Even if you do sell, and the hoarder buys, that just means that the available supply is even smaller while the demand is even higher. The remaining bitcoins will become even more valuable, and therefore even more difficult for the hoarder to acquire.

This is called "cornering the market" and everytime in history that anyone has ever tried to corner the market on a resource that has a limited supply, the hoarder has failed and it has resulted in a disaster for the hoarder. 

The possibility for  one person/organization to have all bitcoins is do-able.

No.  It isn't. Not in any realistic way.

And yes that is exactly what I am saying. I want to do some sketch business involving bitcoin (hypothesizing). Isn't that to be one of the perks to it? me being untraceable?

No.  If you've been told that, you've been misled.  You can make it very difficult (perhaps even impossible) to trace transactions back to you, but that will require quite a bit of knowledge and effort.

Pages: [1]
  Print  
 
Jump to:  

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!