Stop using words "Bitcoin", "Crypto", "Blockchain" interchangeably.

[hatshepsut93]

I see that very often people here start talking about blockchain or crypto or Bitcoin only to later use one of the others as a synonym to the former. This is seriously wrong, because there a huge difference between them, and they most likely have different future.

First, Bitcoin and cryptocurrencies. Bitcoin is a cryptocurrency, but just because it is working so well, it doesn't meant that all other cryptocurrencies are as good as Bitcoin or even better than it. Cryptocurrency requires big proof of work, network and community to be secure, it needs talented developers who write quality code. Almost all altcoins lack those things, they only exist because of the hype.

Second, cryptocurrency and blockchain. People think that those things are the same, that all these tokens and coins with platform is the same blockchain technology that is being praised by corporations and governments. But in reality, they are talking about their own centralized, private blockchains, and they are unlikely to support decentralized, open platforms. Also, most of this blockchain technology either exists only in whitepapers or in early stages of development or just disappointing.

So, the main point here is that Bitcoin is not just a cryptocurrency or an application of blockchain technology, it's overall the best cryptocurrency and the best use case of blockchain (guess why? because blockchain was invented as a part of Bitcoin). Don't talk about them like they are the same thing.

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[franky1]

overall i would agree.
when it comes to corporations private networks. they are beginning to use the term DLT (distributed ledger technology) so even corporations are in agreement to want to define their closed networks as something different to open networks(blockchains). but yes i still see some corporations closed networks still defining thier centralised networks as blockchains. but its good to see some corporations are making good definitions to separate themselves

blockchains and cryptocurrencies are different. because a blockchain is the format of the data and how it is distributing the database/ledger
cryptocurrency is the data inside the database/ledger being financial.
for instance a blockchain could be used idendity/medical records. so although it uses blockchain/DL technology the data is not a currency, so the data and the database/ledger have nothing to do with currency, thus should not be defined as cryptocurrency

also people are now starting to move to the bitcoin token units of 'bits' (100 sat) which will reduce the confusion between bitcoin protocol and bitcoin token unit of currency

but in a world of billions of people there will always be misundertandings of these words.
even now after hundreds of years when people hear the word "dollar" they still think there is only one dollar and that its related to america. they dont think about australia or canada or other countries unit of account of the same name. we just have to kep trying to educate people until the majority us the terms correctly

[classictee]

With due respect, I think you should at least make more explanation to justify your claim, because most people knew bitcoin is part of crypto currency but you said bitcoin itself is crypto currency. Do mean crypto is bitcoin as well or bitcoin is crypto like ethereum and all other coins?

[o_e_l_e_o]

even now after hundreds of years when people hear the word "dollar" they still think there is only one dollar and that its related to america. they dont think about australia or canada or other countries unit of account of the same name.

Not even that, but most people throughout the world have minimal knowledge about the fiat monetary system that they use every day, that they are paid their wages in, that they save in, trade in, pay their mortgages in, etc. A lot of people don't understand basic concepts like APR, compound interest and inflation. I not infrequently hear young people talking about how they are stopping their pension contributions because they "need the money now, and I'll contribute in my 40s when my salary is higher so it will be fine" - completely failing to understand how compound interest works. People talk about receiving a 2% pay rise when inflation is at 3% - that's not a rise, that's a 1% pay cut.

Although I completely agree with OP that we should be using these terms correctly, given that half the forum struggle to shill some worthless altcoin effectively, the confusion around these terms will continue indefinitely.

[sheenshane]

....
So, the main point here is that Bitcoin is not just a cryptocurrency or an application of blockchain technology, it's overall the best cryptocurrency and the best use case of blockchain (guess why? because blockchain was invented as a part of Bitcoin). Don't talk about them like they are the same thing.

I was awakened on this statement from being lack of knowledge regarding Bitcoin, yes, overall of the OP statement is true and very informative especially newbies and those felling newbie here. So, what is the best name that Bitcoin had?
Many people misunderstanding these both scenarios that the blockchain system was wrapped up together with it and with the same solution in Bitcoin. And since Bitcoin was the first application of blockchain, people often inadvertently used “Bitcoin” to mean blockchain. People have well known the name of Bitcoin as cryptocurrency and it might be inherent to the next generation which is not correct.

[Nanacoin]

I find this post very educative because most of us our confused with these terms- bitcoin, Crypto and blockchain. We use them anyhow.

[boakyei]

It is lack of a systematic education that has caused the this adoption of wrong use of these words interchangeably. As more people come to know these in the near future, this mistake will be avoided.

[colvis]

Well you have done a great observation in this.  Even in the articles writers it has become very obvious for them inter-changing the worlds putting crypto where bitcoin is meant to be.. But sometimes it is the easiest way to describe the crypto world is by making use of that three world.  There is no how u will make mention of one of it that someone will not know what u are talking about

[BrewMaster]

it is just another way of advertising altcoins.
last year they tried "we are better than bitcoin and will replace it soon" tactics to advertise and then pump them, but this year ever since bitcoin had a smaller drop while altcoins continued dumping for months they also changed their tactics to now implying "there is no difference between bitcoin and their shitcoins". pretty soon we may even hear them categorize bitcoin as an altcoin too!

[rabinot]

completely agree with the author. I believe that technology itself can safely exist without bitcoin and crypto currency in general

[franky1]

completely failing to understand how compound interest works.

but when interest is only 0.05%.. compounding it.. is a mega laugh.. its stil nothing
yet put the funds in a bank.
next year 1.0005
10 years  1.005011

10 year compound interest and they only get out $1.005 (banks would round down the sub-cent so its still only $1)
if you put $1 a year in. after 10 years youll have $10 plus.. wait for it.. 2 cents interest


so its still better to just buy and enjoy a loaf of bread now while you can afford it. instead of putting $1 into a bank and realising in 10 years you can only buy 75% of a loaf (inflation makes loaf $1.34)
as for those saying waiting for 40's for a bettr paid job.. well yea. $15k a year mcdonalds job. vs $40k career after training, promotions puts you in a better place than saving a bit of your mcdonalds wage per year

even if you stayed at mcdonalds and just took a inflation matching pay rise. in 10 years youll be at $20k
now if you know that bread at this year is one 15,000th of your salary.
and in 10 years at your inflated mcdonalds salary you divide that by one 15000th .. you have enough to buy a whole loaf. no gain no loss based on labour time vs loaf cost

which is why putting it in a bank doesnt earn you more. infact you can buy less by banking it. hense better to spend it.
after all if a mcdonalds job is $15k and you put in 10% salary ($1.5ky1... 1.545ky2...) even with interest it only amounts to mid $17k after 10 years with $44 interest,
you might aswell spend your 10% a year when you get it.
then challenge yourself to retain/get promotions to be in a $40k job by the age of 40. and tell yourself to just save 6 months of your $40k career salary when your older. which would be $20k
10% over 10 years is more than a whole year of your initial salary.. but only 6months of your future career salary...

plus ofcourse only getting $15k initially 10% is a big hit.. but when at $40k you can easily live your back to basics lifestile for 6 months(live with parents for 6 months) and put $20k aside

after all would you prefer to live 10 years with only $13.5ky1 13.9ky2.... or for just 6 months when your older living on only $20k


now to be more smart... invest it into something like bitcoin which year on year is better than 3%
2015 never dropped below $170
2016 never dropped below $350 (>200%)
2017 never dropped below $900 (>250%)
2018 never dropped below $5800 (>600%)

[franky1]

It is lack of a systematic education that has caused the this adoption of wrong use of these words interchangeably. As more people come to know these in the near future, this mistake will be avoided.

though i do not like people using bitcoin the protocol and bitcoin the currency in the same sentance. id prefer people to say btc in reference to the currency. (or near future, 'bits' and 'sats')

the other funny conversational buzzword pet hate is 'wallet'.
a crypto wallet does not hold funds. it holds the keys to sign transactions to move the funds.
we should use a analogy word like a 'keyring'
or if the conversation is about the function of making a transaction.. an analogy of a electronic cheque book

but thats just going down the rabbit hole of the misconception that bitcoin shouldn't be a 'coin' but be bitcheques and mining should be the cheque clearing house.

[hatshepsut93]

Mostly i agree

But this happens because people actually don't care about these technology or never do proper research. Blockchain is used as buzzword by various tech companies/ICO while another cryptocurrency compared themselves with Bitcoin and claim they're better without telling the trade-off.

It's true, and they are shooting themselves in the foot with their refusal to take a deeper dive into these technologies. They think that they understand crypto because they read some articles every day, but in reality they just blindly trust crypto authors who have only slightly better understanding of the field. Because of that, people invest in scams, poor projects, lose money in trading and instead of getting rich quick, they become poor quick. Tons of people have lost their sleep because they've jumped into crypto during the bubble, and they did so because they haven't done proper research, even if they think that they did.

[o_e_l_e_o]

as for those saying waiting for 40's for a bettr paid job.. well yea. $15k a year mcdonalds job. vs $40k career after training, promotions puts you in a better place than saving a bit of your mcdonalds wage per year

Well yes, it's obviously easier to save a percentage of your income when you have a larger income, but you are missing the point that by starting to save earlier, you can make exponential returns on your savings. Look at the following graph:



Investing less money in your 20s gives you a bigger pension at 65 than investing triple that amount in your 30s-60s as it has less time to grow. Everyone should be paying in to some sort of retirement plan as early possibly in your life.

[Crypto Girl]

completely failing to understand how compound interest works.

but when interest is only 0.05%.. compounding it.. is a mega laugh.. its stil nothing
yet put the funds in a bank.
next year 1.0005
10 years  1.005011

10 year compound interest and they only get out $1.005 (banks would round down the sub-cent so its still only $1)
if you put $1 a year in. after 10 years youll have $10 plus.. wait for it.. 2 cents interest


so its still better to just buy and enjoy a loaf of bread now while you can afford it. instead of putting $1 into a bank and realising in 10 years you can only buy 75% of a loaf (inflation makes loaf $1.34)

Yet we can't deny the fact that people still choose banks over bitcoin since it doesn't backed by anything plus volatility is inevitable. They just had a mindset that it's just fine to put their $10k in bank rather than be at risk in bitcoin, meanwhile little did they know that 10 years after their $10k will just have a value of $8k.

So all in all, same have the risk but people had already conditioned their mind in inflation, and this is unjustly.

as for those saying waiting for 40's for a bettr paid job.. well yea. $15k a year mcdonalds job. vs $40k career after training, promotions
now to be more smart... invest it into something like bitcoin which year on year is better than 3%
2015 never dropped below $170
2016 never dropped below $350 (>200%)
2017 never dropped below $900 (>250%)
2018 never dropped below $5800 (>600%)

These people should be waking up their asses and stop dreaming with their altcoins.

[salinaangel]

Bitcoin, Blockchain, Crypto each feature are different. So all of them should not be tied in one thread, and we should not be expressed these things in the same sense. So, we should be carefull about this.

[Salikha]

I don't understand how can people participate in discussions without knowing these basic terms. I hope every new comers will learn these things so that they can develop themselves here.

[EscapePlanETH]

You did a good job explaining the whole thing here. I have many newbies have confusions about these terms. And often they just use the terms anyways which can cause misunderstandings.

[franky1]

as for those saying waiting for 40's for a bettr paid job.. well yea. $15k a year mcdonalds job. vs $40k career after training, promotions puts you in a better place than saving a bit of your mcdonalds wage per year

Well yes, it's obviously easier to save a percentage of your income when you have a larger income, but you are missing the point that by starting to save earlier, you can make exponential returns on your savings. Look at the following graph:

https://i.imgur.com/NKwEpDX.jpg

Investing less money in your 20s gives you a bigger pension at 65 than investing triple that amount in your 30s-60s as it has less time to grow. Everyone should be paying in to some sort of retirement plan as early possibly in your life.

READ SMALL PRINT: "this example assumes 7% returns"
LOL.. bank account offering 7% interest.. pfft

dare you to open excel and do a chart with REAL interest rates.
ill give you a hint at 0.05% interest Chris would invest $200k and get $200,390 bank balance after 40 years
imagine above is chris was on $15k a year for 40 years and put in a 3rd($5k)

then imagine he had inflation rate increasing payrise of 3% a year. but didnt start paying a 3rd of salary for first 20 years
at the 20th year his salary would be $27k so if he the put in a 3rd of salary. he would have a balance of over $240k

compounding bank interest is only good if the interest is better than inflation.. but with banks you wont get inflation beating interest rates. so you wont be better off banking your money

anyway we are going off topic

we need to educate people better and stop jumping on the unrelated 'memes'
EG since when did remote hosting have anything to do with evaporated water in the sky (the cloud)

[Sact]

That is done by people who doesn't have the basic knowledge about these things. I think people should be prepared before entering this world otherwise they can take wrong decisions.