Bitcoin worth $41m stolen in huge hack - BBC - Homepage

The Story Of My First Bitcoin. (Late 2013)

Please don’t take this as financial advise. Just my own thoughts on the market. The story of my first Bitcoin. I feel as it’s an important time to tell again. Hopefully others can learn from my mistakes.
In late 2013 (I was 22 at the time) my brother told me all about this new type of internet money, that no single entity controlled, it intrigued me. I decided to cash in the change I had been collecting for the past year to buy my first bitcoin at $740 Canadian. Saw it rise to over $1000 USD then the Mt.Gox hack happened.. It nose dived to $200 USD and for about 2 years it felt like it did absolutely nothing.. Then it started to rise like a phoenix from the ashes. But I was uneducated on bitcoin and it’s halvings at the time. It hit around $1000 USD again, I had decided I would sell out of .7 because I was in profit and wasn’t sure if a huge hack would happen again. I bought CSGO skins sigh (digital video games skins) this was early 2017. I had to watch bitcoin triumphantly rise to $20,000 USD, thinking what have I done!! I held this thing for years!! The point I’m trying to make is don’t make the same mistake I did. Our previous ATH will be crushed just like every past one. I thought I would never be able to buy another bitcoin again but I was blessed with this bear market. $20,000 will be just like $1,000 was in 2017. I took it as an opportunity to rewrite my past mistake. If you can financially, please Hodl strong my friends. We are so close to something spectacular.
submitted by iambabyjesus90 to CryptoCurrency [link] [comments]

𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008* 𝖂𝕰 𝖆𝖘𝖘𝖎𝖘𝖙 𝖞𝖔𝖚 24 𝕳𝖔𝖚𝖗𝖘.

𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
Coinbase gives the USD Wallet and moreover Hosted Cryptocurren
cy Wallet Service to no
CRYPTO Wallet - safely shop, convey and furthermore get Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), Ether Classic (ETC), Litecoin (LTC), ERC20 and XRP tokens, and furthermore ERC721 collectibles. You stay in charge of your keys, spared exclusively on your unit utilizing Secure Element know-how. We never have consent to get to the assets of yours.
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
• Web three DAPP Browser - Access Web three Decentralized Applications (DApps) driven by Ethereum reasonable agreements. Find and access renowned DApps.
• CRYPTO PAYMENTS - Send cryptographic money installments to anyone, anyplace inside the world.
• BACKUP Private Keys to THE CLOUD - Backup your Wallet 's keys to Google Drive to assist you with avoiding losing your assets on the off chance that you drop the gadget of yours or even lose your recuperating expression.
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*

Different features include:
• Generate an imaginative Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Litecoin (LTC) just as XRP funds in secs • Connect your Coinbase.com financial balance and furthermore rapidly move crypto to the individual guardianship
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
• See the current cost of advantages in the wallet of yours inside your local money
• Automatically incorporate well known ERC20 tokens and furthermore ERC721 collectibles in your wallet • Browse Web three DApps like decentralized trades, person to person communication, collectibles and games, commercial centers, employments, crowdfunding, and different things.
detriment. This implies we are going to store your computerized cash and USD at zero expense to you. "Computerized cash" connotes some cryptographic cash right now maintained by Coinbase. We don't charge for moving computerized cash from one Coinbase wallet to one more.
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
Coinbase realizes and moreover pays mastermind trade costs, like digger's costs, for trades on computerized cash frameworks, i.e., moves of cryptographic cash on the Coinbase stage. For such a trades, Coinbase will charge you a cost subject to our estimation of the system trade costs that we predict spending for each purchase. In unequivocal conditions, the charge that Coinbase pays may differentiate from that estimation. All costs we charge you'll be revealed at the hour of your trade.
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
Advanced cash Transactions General Alongside getting or sending computerized money through Coinbase, buyers can
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
(1) Buy or even development one advanced cash (a cryptographic cash buy or even computerized money bargain).
(2) Turn one kind of advanced cash into another sort of cryptographic cash (a computerized cash change). Ensuing to checking inside to Coinbase.com, pick the blue Trade catch to see the feature screen.
Exactly when you demand a computerized cash trade, Coinbase will attempt to pack that demand through one or maybe certainly more demands on Coinbase's trading wedge, Coinbase Pro. Coinbase sets up the exchange number for advanced cash trades (customer exchange cost) by including an edge, or potentially spread (the spread), with the business community exchange rates on Coinbase (Pro exchange charge).
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
Coinbase may in like manner charge an alternate charge (in add on the range), possibly a level cost, or maybe a piece on the trade (the Coinbase Fee), as more discussed underneath inside the walkway entitled Buy/Sell Transactions.
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
Coinbase Fees could change reliant on the zone of yours, various conditions, and portion technique. Sometimes, we may charge an extra cost on moves forward and backward from your's money related parity. We'll generally advise you regarding all Coinbase (disdain the edge) and other help costs which impact each trade soon before you con? Rm each arrangement shouldn't something be said about the receipt we issue to empower you to legitimately after each purchase has handled.
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Coinbase spares the perfect to decay a trade if Coinbase can't pack a relating purchase on Coinbase Pro as there have a lot of changes in the market cost of an advanced money. An endeavor outperforms the most raised solicitation estimations on Coinbase Pro, or maybe a solicitation timing out in light of moderate server response time.
The Pro exchange charge likely won't be available in astonishing conditions on account of power outages or even standard help. To effortlessly you with constant providers at such time, we may get promote esteeming data from dangerous? Recorded cash switches. Exchange costs refered to in these conditions are needy upon a refered to spread outperforming fifty basic core interests.
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
How Coinbase base become notable To keep up the crypto excitement, Coinbase needs to help genuine employments of crypto assets - and not just theory.
Coinbase is seen as the most standard client going up against crypto-asset exchange inside the United States. Working after 2011, customers are allowed by the association to purchase, advance, and store crypto assets, as ethereum and bitcoin.
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
The association likely has noteworthy detectable quality with customers in an area that was once only the district of crypto-asset devotees. In mid-December, the business' flexible application goes to the best area on Apple's App Store.
Coinbase's customers regularly can be sorted as one of 2 social affairs: (one) theorists and (two) every single one of those executing with crypto-assets. For theorists, Coinbase inclinations moving money to its "cool amassing" vaults, that it ensures against Coinbase hacking. These vaults are isolated from on the web, and they offer extended security. For every single one of those executing (or trading on various exchanges), customers are allowed by Coinbase to introduce money from Coinbase on different various wallets.
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
Coinbase has taken off in affirmation and traded itself into the on-ramp for standard crypto theorists by placing itself in a protected harbor among crypto-asset switches. The association has never been hacked, not typical for a huge amount of its opponents. Coinbase has furthermore twistedly looked for after consistence with existing laws and law execution, putting it on the right piece of the law - another immense favored situation in a segment that residual parts inside wild enthusiasm of regulatory assistance.
Taking everything into account, while Coinbase is notable because of its crypto assets exchange, its more noteworthy goals than helping individuals purchase and sell crypto. The association's communicated target echoes crypto assets fans' central vision: to convey a recently out of the crate new, "open budgetary structure."
For the second being, notwithstanding the way that, Coinbase looks a phenomenal course of action like a standard fiscal organizations player. Coinbase can acquire money by charging costs considering its exchange and agent. Likewise, it supervisors customer money, for instance, a record, and picks what crypto assets for list, for instance, the NYSE or NASDAQ.
Coinbase, as needs be, winds up caught in universes: it is apparently the most especially financed blockchain association inside the United States, anyway it is a united association, not a decentralized record. The affiliation once promoted crypto assets since the "destiny of money" in any case positions itself as an approach to "buy and advance modernized cash." In habits that are many, Coinbase is the united on-ramp to some decentralized organic framework.
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
Coinbase has redesignd its illuminating notwithstanding customer experience to exploit this model, using its essential page right presently consoling supporters of "procurement and advance modernized money," correctly where it as of late welcomed endorsers of "the probable destiny of money." Thiswill make a great deal of feeling as a business: Coinbase makes salary on every single exchange (taking into account volume). It is thusly helped to help ordinary trading and theory decision.
Advantages of Coinbase
Coinbase is the means by which the world used crypto. In 2012, Coinbase had the underlying thought that anyone - anyplace - ought to positively safely and effectively get to Bitcoin. We notice digital currency as the likely eventual fate of money and an impetus for building an open budgetary technique around the planet.
These days, more than thirty-5,000,000 people in more than Coinbase are trusted by 100 nations to purchase, store, sell, use, and get digital money.
Coinbase's interface that is straightforward intends to make it basic for first-time clients to buy bitcoins. The most utilized installment techniques for Coinbase customers are purchasing having a Visa or perhaps a charge card and utilizing a bank move.
Coinbase Wallet joins different amazing abilities:
• Secure USER CONTROLLED
• Backup and recapture wallet utilizing standard 12 words BIP39 recuperating phrases (perfect with Cipher) and MetaMask
• Sign messages cryptographically along with your basic individual Coinbase is by all accounts focusing on novice bitcoin fans/casual brokers who like effortlessness. Moreover, they organize US shoppers and USD exchanging. Simultaneously, they're endeavoring to create past the "Purchase Bitcoin and have a charge card" specialty area of Circle.
Coinbase gives off an impression of being sensibly secure (no indications of disappearing with purchaser cash ala Mt. Gox). There have been various issues of records being shut and installments deferred/dropped, so be careful they consider a forceful, hands-on present towards each stage use, which might be associated with potentially sketchy action.
They appear to get particular treatment originating from US specialists and no doubt like to keep it as such by means of surpassing Policing clients and KYC prerequisites themselves.
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
Coinbase gives the USD Wallet and moreover Hosted Cryptocurrency Wallet Service to no detriment. This implies we are going to store your computerized money and USD at zero expense to you. "Computerized cash" means some cryptographic cash right now maintained by Coinbase. We don't charge for moving advanced c
coinbase support number.
coinbase technical support number.
coinbase toll free number.
coinbase helpline number.
coinbase customer care number.
𝕮𝖔𝖎𝖓𝖇𝖆𝖘𝖊 🅃🄾🄻🄻 🄵🅁🄴🄴 𝕹𝖚𝖒𝖇𝖊𝖗 +1**833**905**2008\*
submitted by SnooPets2527 to u/SnooPets2527 [link] [comments]

So you want in on bitcoin?

Guide for Noobs

Simple and Not A Lot of Money

Guide for Not Noobs

Less Simple

-setup an account on coinbase.com, move dollars into your account, setup an account on gdax.com (same company, same login), move your cash from coinbase to gdax, buy your coins on GDAX at Market, fees are cheaper 0.25% versus 1.5%
-consider buying alternative coins supported by coinbase

No Fees

-all of the above but use GDAX's Limit/Buy, zero fees, but you have to wait for the market to dip below your buy price

More Money Available

-setup several Limit/Buy orders at different price points to capture dips when you are away

More Control but More Complex

-it's possible coinbase could go out of business, move some or most of your coins to a personal hardware wallet like a Trezor or Ledger Nano S, made in Czech Republic and France respectively
-consider using other exchanges with different fees and coin support
-consider buying other alternative coins supported by other exchanges

You Are Very Responsible

-create a paper wallet, put it in a safe, be warned it's like a visual bearer instrument, if you lose it or someone takes a picture of it...it's gone, but you have complete control over your money/asset

DO NOT EVER

-buy more than you can lose, it's early wild west days, the market could easily come crashing down
-panic sell, the market fluctuates regularly by 20%, thus far it has ALWAYS recovered, people that try to sell during a fall/dip and buy at the bottom usually miss time it and lose
-store your keys on your computer or phone unless its small amount, these are the two most vulnerable routes to hacking and simple hardware failure resulting in loss
-attempt to daytrade and time the best prices unless your real life job is day trading
-get addicted to watching the market, pay attention watch for dips, but don't let it crowd out your work or free time
-keep a LOT of cash or coin in an exchange, it is very easy to mistype and buy or sell far more than you meant to, exchanges can disappear with your coins
-buy a hardware wallet from anyone other than the company who makes it, i.e. do not buy one on Amazon, it is possible some third person hacked it and could steal your coin

PROBABLY DON'T

-limit sells until the far future when market volatility is down, flash crashes have happened and recovered, if you had all your coin in limit sells it would be gone
-margin trade unless your real life job is day trading
-stop buys or stop sells unless your real life job is day trading

DO

-hold your coins, your coin may be worth x10 or more in value in the future, e.g. if bitcoin replaced gold, bitcoin would be worth ~x70 the current value
-buy small amounts over time DCA, this might not seem intuitive but it spreads your risk out, reduces risk of buying at all time highs (ATH) and more likely to catch lows (dips), a fluctuation of $100 in price is small if the eventual value is worth x10 or more in the future
-keep a small amount of cash on an exchange always, when there is a lot of traffic/trading which happens during dips, you are much more likely to be able to make trades on an exchange rather than with your own wallet

REMEMBER

-if you don't have your coin in your own wallet, it's not your coin. this is not a problem until you have a lot of value and you want to keep it safe from a bankruptcy, unscrupulous people/exchanges, or unforeseen acts. if it's a small amount compared to your income it's an acceptable risk, if not then move it to a wallet
-in the days of fake news not everything you read is true, in fact there are armies of people shilling for 'pick a random coin'; some are malicious, some uninformed, and some willfully uninformed
-if your value starts to become large, dig deep into how your asset/currencies work just like you would for any other purchase, understanding how it works helps you understand if it will be a success, e.g. understand the difference between PoW vs PoS or what a hard fork is
-some coins especially newer ones are scams, a good indication of if it is not a scam is how long the coin has been around
-most bitcoin hard forks so far have not been successful with some exceptions
-btc is the accepted short-name for bitcoin on most (but not all) exchanges, xbt is also common in EUR-land

Other Risks

-holding your own coin requires personal responsibility, it is easy to lose and not be able to recover it if you are not careful
-again, do not buy more coin than you can lose
-transaction speeds which are slow are a serious problem in bitcoin scaling
-there is less innovation and more argument going on in bitcoin than some other coins, bitcoin is large enough that consensus is difficult, future change is less likely than with some other coins, there are other side solutions to bitcoins problems that may not require bitcoin to change much
-bitcoin.org IS the generally accepted bitcoin website, NOT bitcoin.com
-important other risks compiled by themetalfriend
-coinbase has insurance up to $250k USD for you USD Wallet which DOES NOT cover your bitcoins or other crypto currencies, they claim to have separate insurance for your crypto currency but it is unclear how much

Community

there are a lot of memes
-hodl, GameKyuubi mistyped hold and it spread
-to the moon, where everyone hopes the price will go
-coin on a rollercoaster, it is highly volitile market you will see this during fluctuations
-this is gentlemen, via Liquid_child , here
-lambo/roadster, a car people want to buy when they get rich
-the cost of pizza, early days someone bought a pizza for 10,000btc which is worth over ~80million USD today
-tesla/vehicle with a bitcoin chart, cytranic posted a picture that spread
-intersting guide by stos313 , here. I do not agree with everything but it has a lot of useful information.

CORRECTIONS

Edit: Adding in user comments.
Edit: Crosslinking to a more Beginner Version.
Edit: Note in an earlier edit of this guide I said.
note that most of the development on bitcoin is by employees of one company, it is open source but their priorities may not align with the community
This is not true. Blockstream appears to have a high representation but not an overwhelming amount. You can compare blockstream's employee page and bitcoin's commits in the last year. Thank you to lclc_ , trilli0nn , and Holographiks for pointing this out. See this for a detailed break down.
Edit: Clarification that FDIC insurance does NOT cover crypto currency/assets.
Edit: Clarity on who owns bitcoin.org

Good Luck and Hodl.

Please comment if your experience is different. Or call out things I missed.
submitted by cryptocurrencypeople to Bitcoin [link] [comments]

I got fired 3 week ago and got into depression, one of my best friends is a crypto trader. Instead of feeling shitty he want to teach me everything about crypto and he said that it might help me to understand the normal 9-6 job life is not the only way. here are the tips and resources he gave me:

i’m sharing it here because i’m sure that there are other people in my situation too and it will be great if i can help you exactly like how my friend helped me.
What i’m sharing here is what i wrote on my notebook while he was pitching the basics of crypto trading, I summarized it into few lists so it will be easier for you to follow:
General tips:
  1. If your mom send you a message asking “how to buy bitcoin”? it means you need to sell yours (not to her of course :P)
  2. Don’t put all your money on the exchange (he lost in the past some money on mt.gox).
  3. If you’re too lazy to print a paper wallet or so cheap you can’t buy Trezor, so don’t cry if you make some stupid mistakes and lose your login details/ get hacked.
  4. Don’t be afraid from charts, After you will get into trading you will find technical analysis like a children’s game, you just need to look for shapes and mark a line to understand where the risk is and than use your instincts, your brain(he claimed i don’t have any) and some useful new resources (i share them later on).
  5. there is too much information, if you will try to focus everything it will kill you and you will spend most of your profits on Advil. arrange yourself a useful resources and a comfortable working environment.
  6. Listen to Lofi while you trade/make decisions.
  7. don’t join random telegram groups or pump and dump groups. no-one open a traders group and invite you just because you have a beautiful smile. 97% of them have hidden interest. Try to attend for a local bitcoin meet up in your hometown or near by and than meet REAL people and REAL traders. Ask them if they have a friends traders group and ask to join, If they don’t agree say the
Trading tips:
  1. Altcoins - Vs. Bitcoin and Vs. USD: it's important to analyse the price against Bitcoin and against USD as well. Most major altcoins have huge USD trading
  2. What goes down – does not necessarily go up again: “I’ve seen Altcoins like Aurora which came down 99.99% of its record”.
  3. Day trading is a job. Consider the time spending on it when calculating your gains and losses.
  4. Don’t put all of your eggs in one basket: Diversify your crypto portfolio, and it's not shame to hedge to cash sometimes
  5. don’t risk something you can’t afford to lose.
resources:
“Give a man a good signal and he made profit for day, Teach him how to trade and will make a profit for a day “ (I made it now… And I wonder why I got fired) :P
He shared with me many of his resources and said that I need to check them to understand which one are useful for me and which isn’t.
News & Educational Websites:
Educational, Learn about real companies that using smart contracts - https://medium.com/swarmdotmarket/5-companies-already-brilliantly-using-smart-contracts-ac49f3d5c431
BitcoinWiki* - It’s like wikipedia, but for bitcoins… https://en.bitcoin.it/wiki/Main_Page
CryptoCoinChart - a cool alternative to coinmarketcap https://cryptocoincharts.info/
ICO’s - Before investing in ICO you need to check few things:
Whitepapaer- Before you buy electronic product on Amazon do you read about it? do you do the research? Do the same when you invest in ICO. Read the Whitepaper to fully understand the idea and the potential
submitted by leftycatchersmit to CryptoCurrency [link] [comments]

CRYPTOCURRENCY BITCOIN

CRYPTOCURRENCY BITCOIN
Bitcoin Table of contents expand: 1. What is Bitcoin? 2. Understanding Bitcoin 3. How Bitcoin Works 4. What's a Bitcoin Worth? 5. How Bitcoin Began 6. Who Invented Bitcoin? 7. Before Satoshi 8. Why Is Satoshi Anonymous? 9. The Suspects 10. Can Satoshi's Identity Be Proven? 11. Receiving Bitcoins As Payment 12. Working For Bitcoins 13. Bitcoin From Interest Payments 14. Bitcoins From Gambling 15. Investing in Bitcoins 16. Risks of Bitcoin Investing 17. Bitcoin Regulatory Risk 18. Security Risk of Bitcoins 19. Insurance Risk 20. Risk of Bitcoin Fraud 21. Market Risk 22. Bitcoin's Tax Risk What is Bitcoin?
Bitcoin is a digital currency created in January 2009. It follows the ideas set out in a white paper by the mysterious Satoshi Nakamoto, whose true identity is yet to be verified. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies.
There are no physical bitcoins, only balances kept on a public ledger in the cloud, that – along with all Bitcoin transactions – is verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity. Despite it not being legal tender, Bitcoin charts high on popularity, and has triggered the launch of other virtual currencies collectively referred to as Altcoins.
Understanding Bitcoin Bitcoin is a type of cryptocurrency: Balances are kept using public and private "keys," which are long strings of numbers and letters linked through the mathematical encryption algorithm that was used to create them. The public key (comparable to a bank account number) serves as the address which is published to the world and to which others may send bitcoins. The private key (comparable to an ATM PIN) is meant to be a guarded secret and only used to authorize Bitcoin transmissions. Style notes: According to the official Bitcoin Foundation, the word "Bitcoin" is capitalized in the context of referring to the entity or concept, whereas "bitcoin" is written in the lower case when referring to a quantity of the currency (e.g. "I traded 20 bitcoin") or the units themselves. The plural form can be either "bitcoin" or "bitcoins."
How Bitcoin Works Bitcoin is one of the first digital currencies to use peer-to-peer technology to facilitate instant payments. The independent individuals and companies who own the governing computing power and participate in the Bitcoin network, also known as "miners," are motivated by rewards (the release of new bitcoin) and transaction fees paid in bitcoin. These miners can be thought of as the decentralized authority enforcing the credibility of the Bitcoin network. New bitcoin is being released to the miners at a fixed, but periodically declining rate, such that the total supply of bitcoins approaches 21 million. One bitcoin is divisible to eight decimal places (100 millionths of one bitcoin), and this smallest unit is referred to as a Satoshi. If necessary, and if the participating miners accept the change, Bitcoin could eventually be made divisible to even more decimal places. Bitcoin mining is the process through which bitcoins are released to come into circulation. Basically, it involves solving a computationally difficult puzzle to discover a new block, which is added to the blockchain and receiving a reward in the form of a few bitcoins. The block reward was 50 new bitcoins in 2009; it decreases every four years. As more and more bitcoins are created, the difficulty of the mining process – that is, the amount of computing power involved – increases. The mining difficulty began at 1.0 with Bitcoin's debut back in 2009; at the end of the year, it was only 1.18. As of February 2019, the mining difficulty is over 6.06 billion. Once, an ordinary desktop computer sufficed for the mining process; now, to combat the difficulty level, miners must use faster hardware like Application-Specific Integrated Circuits (ASIC), more advanced processing units like Graphic Processing Units (GPUs), etc.
What's a Bitcoin Worth? In 2017 alone, the price of Bitcoin rose from a little under $1,000 at the beginning of the year to close to $19,000, ending the year more than 1,400% higher. Bitcoin's price is also quite dependent on the size of its mining network since the larger the network is, the more difficult – and thus more costly – it is to produce new bitcoins. As a result, the price of bitcoin has to increase as its cost of production also rises. The Bitcoin mining network's aggregate power has more than tripled over the past twelve months.
How Bitcoin Began
Aug. 18, 2008: The domain name bitcoin.org is registered. Today, at least, this domain is "WhoisGuard Protected," meaning the identity of the person who registered it is not public information.
Oct. 31, 2008: Someone using the name Satoshi Nakamoto makes an announcement on The Cryptography Mailing list at metzdowd.com: "I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. The paper is available at http://www.bitcoin.org/bitcoin.pdf." This link leads to the now-famous white paper published on bitcoin.org entitled "Bitcoin: A Peer-to-Peer Electronic Cash System." This paper would become the Magna Carta for how Bitcoin operates today.
Jan. 3, 2009: The first Bitcoin block is mined, Block 0. This is also known as the "genesis block" and contains the text: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks," perhaps as proof that the block was mined on or after that date, and perhaps also as relevant political commentary.
Jan. 8, 2009: The first version of the Bitcoin software is announced on The Cryptography Mailing list.
Jan. 9, 2009: Block 1 is mined, and Bitcoin mining commences in earnest.
Who Invented Bitcoin?
No one knows. Not conclusively, at any rate. Satoshi Nakamoto is the name associated with the person or group of people who released the original Bitcoin white paper in 2008 and worked on the original Bitcoin software that was released in 2009. The Bitcoin protocol requires users to enter a birthday upon signup, and we know that an individual named Satoshi Nakamoto registered and put down April 5 as a birth date. And that's about it.
Before Satoshi
Though it is tempting to believe the media's spin that Satoshi Nakamoto is a solitary, quixotic genius who created Bitcoin out of thin air, such innovations do not happen in a vacuum. All major scientific discoveries, no matter how original-seeming, were built on previously existing research. There are precursors to Bitcoin: Adam Back’s Hashcash, invented in 1997, and subsequently Wei Dai’s b-money, Nick Szabo’s bit gold and Hal Finney’s Reusable Proof of Work. The Bitcoin white paper itself cites Hashcash and b-money, as well as various other works spanning several research fields.
Why Is Satoshi Anonymous?
There are two primary motivations for keeping Bitcoin's inventor keeping his or her or their identity secret. One is privacy. As Bitcoin has gained in popularity – becoming something of a worldwide phenomenon – Satoshi Nakamoto would likely garner a lot of attention from the media and from governments.
The other reason is safety. Looking at 2009 alone, 32,489 blocks were mined; at the then-reward rate of 50 BTC per block, the total payout in 2009 was 1,624,500 BTC, which at today’s prices is over $900 million. One may conclude that only Satoshi and perhaps a few other people were mining through 2009 and that they possess a majority of that $900 million worth of BTC. Someone in possession of that much BTC could become a target of criminals, especially since bitcoins are less like stocks and more like cash, where the private keys needed to authorize spending could be printed out and literally kept under a mattress. While it's likely the inventor of Bitcoin would take precautions to make any extortion-induced transfers traceable, remaining anonymous is a good way for Satoshi to limit exposure.
The Suspects
Numerous people have been suggested as possible Satoshi Nakamoto by major media outlets. Oct. 10, 2011, The New Yorker published an article speculating that Nakamoto might be Irish cryptography student Michael Clear or economic sociologist Vili Lehdonvirta. A day later, Fast Company suggested that Nakamoto could be a group of three people – Neal King, Vladimir Oksman and Charles Bry – who together appear on a patent related to secure communications that were filed two months before bitcoin.org was registered. A Vice article published in May 2013 added more suspects to the list, including Gavin Andresen, the Bitcoin project’s lead developer; Jed McCaleb, co-founder of now-defunct Bitcoin exchange Mt. Gox; and famed Japanese mathematician Shinichi Mochizuki.
In December 2013, Techcrunch published an interview with researcher Skye Grey who claimed textual analysis of published writings shows a link between Satoshi and bit-gold creator Nick Szabo. And perhaps most famously, in March 2014, Newsweek ran a cover article claiming that Satoshi is actually an individual named Satoshi Nakamoto – a 64-year-old Japanese-American engineer living in California. The list of suspects is long, and all the individuals deny being Satoshi.
Can Satoshi's Identity Be Proven?
It would seem even early collaborators on the project don’t have verifiable proof of Satoshi’s identity. To reveal conclusively who Satoshi Nakamoto is, a definitive link would need to be made between his/her activity with Bitcoin and his/her identity. That could come in the form of linking the party behind the domain registration of bitcoin.org, email and forum accounts used by Satoshi Nakamoto, or ownership of some portion of the earliest mined bitcoins. Even though the bitcoins Satoshi likely possesses are traceable on the blockchain, it seems he/she has yet to cash them out in a way that reveals his/her identity. If Satoshi were to move his/her bitcoins to an exchange today, this might attract attention, but it seems unlikely that a well-funded and successful exchange would betray a customer's privacy.
Receiving Bitcoins As Payment
Bitcoins can be accepted as a means of payment for products sold or services provided. If you have a brick and mortar store, just display a sign saying “Bitcoin Accepted Here” and many of your customers may well take you up on it; the transactions can be handled with the requisite hardware terminal or wallet address through QR codes and touch screen apps. An online business can easily accept bitcoins by just adding this payment option to the others it offers, like credit cards, PayPal, etc. Online payments will require a Bitcoin merchant tool (an external processor like Coinbase or BitPay).
Working For Bitcoins
Those who are self-employed can get paid for a job in bitcoins. There are several websites/job boards which are dedicated to the digital currency:
Work For Bitcoin brings together work seekers and prospective employers through its websiteCoinality features jobs – freelance, part-time and full-time – that offer payment in bitcoins, as well as Dogecoin and LitecoinJobs4Bitcoins, part of reddit.comBitGigs
Bitcoin From Interest Payments
Another interesting way (literally) to earn bitcoins is by lending them out and being repaid in the currency. Lending can take three forms – direct lending to someone you know; through a website which facilitates peer-to-peer transactions, pairing borrowers and lenders; or depositing bitcoins in a virtual bank that offers a certain interest rate for Bitcoin accounts. Some such sites are Bitbond, BitLendingClub, and BTCjam. Obviously, you should do due diligence on any third-party site.
Bitcoins From Gambling
It’s possible to play at casinos that cater to Bitcoin aficionados, with options like online lotteries, jackpots, spread betting, and other games. Of course, the pros and cons and risks that apply to any sort of gambling and betting endeavors are in force here too.
Investing in Bitcoins
There are many Bitcoin supporters who believe that digital currency is the future. Those who endorse it are of the view that it facilitates a much faster, no-fee payment system for transactions across the globe. Although it is not itself any backed by any government or central bank, bitcoin can be exchanged for traditional currencies; in fact, its exchange rate against the dollar attracts potential investors and traders interested in currency plays. Indeed, one of the primary reasons for the growth of digital currencies like Bitcoin is that they can act as an alternative to national fiat money and traditional commodities like gold.
In March 2014, the IRS stated that all virtual currencies, including bitcoins, would be taxed as property rather than currency. Gains or losses from bitcoins held as capital will be realized as capital gains or losses, while bitcoins held as inventory will incur ordinary gains or losses.
Like any other asset, the principle of buying low and selling high applies to bitcoins. The most popular way of amassing the currency is through buying on a Bitcoin exchange, but there are many other ways to earn and own bitcoins. Here are a few options which Bitcoin enthusiasts can explore.
Risks of Bitcoin Investing
Though Bitcoin was not designed as a normal equity investment (no shares have been issued), some speculative investors were drawn to the digital money after it appreciated rapidly in May 2011 and again in November 2013. Thus, many people purchase bitcoin for its investment value rather than as a medium of exchange.
However, their lack of guaranteed value and digital nature means the purchase and use of bitcoins carries several inherent risks. Many investor alerts have been issued by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the Consumer Financial Protection Bureau (CFPB), and other agencies.
The concept of a virtual currency is still novel and, compared to traditional investments, Bitcoin doesn't have much of a long-term track record or history of credibility to back it. With their increasing use, bitcoins are becoming less experimental every day, of course; still, after eight years, they (like all digital currencies) remain in a development phase, still evolving. "It is pretty much the highest-risk, highest-return investment that you can possibly make,” says Barry Silbert, CEO of Digital Currency Group, which builds and invests in Bitcoin and blockchain companies.
Bitcoin Regulatory Risk
Investing money into Bitcoin in any of its many guises is not for the risk-averse. Bitcoins are a rival to government currency and may be used for black market transactions, money laundering, illegal activities or tax evasion. As a result, governments may seek to regulate, restrict or ban the use and sale of bitcoins, and some already have. Others are coming up with various rules. For example, in 2015, the New York State Department of Financial Services finalized regulations that would require companies dealing with the buy, sell, transfer or storage of bitcoins to record the identity of customers, have a compliance officer and maintain capital reserves. The transactions worth $10,000 or more will have to be recorded and reported.
Although more agencies will follow suit, issuing rules and guidelines, the lack of uniform regulations about bitcoins (and other virtual currency) raises questions over their longevity, liquidity, and universality.
Security Risk of Bitcoins
Bitcoin exchanges are entirely digital and, as with any virtual system, are at risk from hackers, malware and operational glitches. If a thief gains access to a Bitcoin owner's computer hard drive and steals his private encryption key, he could transfer the stolen Bitcoins to another account. (Users can prevent this only if bitcoins are stored on a computer which is not connected to the internet, or else by choosing to use a paper wallet – printing out the Bitcoin private keys and addresses, and not keeping them on a computer at all.) Hackers can also target Bitcoin exchanges, gaining access to thousands of accounts and digital wallets where bitcoins are stored. One especially notorious hacking incident took place in 2014, when Mt. Gox, a Bitcoin exchange in Japan, was forced to close down after millions of dollars worth of bitcoins were stolen.
This is particularly problematic once you remember that all Bitcoin transactions are permanent and irreversible. It's like dealing with cash: Any transaction carried out with bitcoins can only be reversed if the person who has received them refunds them. There is no third party or a payment processor, as in the case of a debit or credit card – hence, no source of protection or appeal if there is a problem.
Insurance Risk
Some investments are insured through the Securities Investor Protection Corporation. Normal bank accounts are insured through the Federal Deposit Insurance Corporation (FDIC) up to a certain amount depending on the jurisdiction. Bitcoin exchanges and Bitcoin accounts are not insured by any type of federal or government program.
Risk of Bitcoin Fraud
While Bitcoin uses private key encryption to verify owners and register transactions, fraudsters and scammers may attempt to sell false bitcoins. For instance, in July 2013, the SEC brought legal action against an operator of a Bitcoin-related Ponzi scheme.
Market Risk
Like with any investment, Bitcoin values can fluctuate. Indeed, the value of the currency has seen wild swings in price over its short existence. Subject to high volume buying and selling on exchanges, it has a high sensitivity to “news." According to the CFPB, the price of bitcoins fell by 61% in a single day in 2013, while the one-day price drop in 2014 has been as big as 80%.
If fewer people begin to accept Bitcoin as a currency, these digital units may lose value and could become worthless. There is already plenty of competition, and though Bitcoin has a huge lead over the other 100-odd digital currencies that have sprung up, thanks to its brand recognition and venture capital money, a technological break-through in the form of a better virtual coin is always a threat.
Bitcoin's Tax Risk
As bitcoin is ineligible to be included in any tax-advantaged retirement accounts, there are no good, legal options to shield investments from taxation.
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Related Terms
Satoshi
The satoshi is the smallest unit of the bitcoin cryptocurrency. It is named after Satoshi Nakamoto, the creator of the protocol used in block chains and the bitcoin cryptocurrency.
Chartalism Chartalism is a non-mainstream theory of money that emphasizes the impact of government policies and activities on the value of money.
Satoshi Nakamoto The name used by the unknown creator of the protocol used in the bitcoin cryptocurrency. Satoshi Nakamoto is closely-associated with blockchain technology.
Bitcoin Mining, Explained Breaking down everything you need to know about Bitcoin Mining, from Blockchain and Block Rewards to Proof-of-Work and Mining Pools.
Understanding Bitcoin Unlimited Bitcoin Unlimited is a proposed upgrade to Bitcoin Core that allows larger block sizes. The upgrade is designed to improve transaction speed through scale.
Blockchain Explained
A guide to help you understand what blockchain is and how it can be used by industries. You've probably encountered a definition like this: “blockchain is a distributed, decentralized, public ledger." But blockchain is easier to understand than it sounds.
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By Satoshi Nakamoto
Read it once, go read other crypto stuff, read it again… keep doing this until the whole document makes sense. It’ll take a while, but you’ll get there. This is the original whitepaper introducing and explaining Bitcoin, and there’s really nothing better out there to understand on the subject.
“What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party

submitted by adrian_morrison to BlockchainNews [link] [comments]

Some thoughts on the blocksize from a longtimer

People need to realize, that at the current (and still raising) popularity of Bitcoin, bigger blocks wouldn't help much if at all.
The thing is, it is very easy to fill blocks. If blocks aren't consistently full, users can effectively set fees to as low as they want and miners will include them anyway. Maybe there's going to be some delay, maybe not. Nice and dandy, but it doesn't work for long. It worked for BTC because the number of users was tiny. And it will work for altcoins, as long as they are tiny. But as soon as a given altcoin gets popular enough to be even remotely significant, it will hit the same wall.
As soon as there is more demand than room on the blockchain, some transactions will be left-over and start piling up: the mempool will keep raising until some people are priced out. Some users will say: "well, that's too much, I'm not going to do that test transaction" or "I'm going to use an altcoin for this". There is a "cut-off cliff of pain". I estimate that this pain-price point to be around $10-$20 and kind-of fixed. Exactly between "too expensive for paying for any coffee" and "super-cheap way to make international wires". Where rich users are fine paying, but smaller users have been cut-off. Bitcoin got there already. That's why it's nearing $20k/BTC. That's what many of you wanted, right?
Tip for people with small amounts stuck: get your wallets ready and maybe, if you're lucky, there will another time when network will calm-down a bit (around new year maybe? or maybe when Coinbase finally start supporting SegWit, etc) and either: consolidate all your small outputs into one bigger TXO (segwit one!), or send to an exchange during that time so at least you can sell it. Just three weeks ago we had a period of 2-5sat/B transaction clearing out.
Anyway, there is no other way. We can't have billions of people on-chain. If we had 8MB blocks, we would still fill them up, until some people wouldn't be able to compete with the fees. Maybe we would buy ourselves a month or two.
Also: I've heard many people complain that using the coins is most important, and better for Bitcoin than holding it. It's absolute rubbish. The value of Bitcoin is set by how many people are willing to HODL it at a given price-point, not how many people are willing to spend it. "Spending" Bitcoin is just a transfer of Bitcoin from person A, to person B - nothing in the system changed except current owner of some coins. It's even worse if B automatically sells for fiat immediately. Holding BTC means that your consider it worth more than a current market price. Bitcoin could totally work and be worth millions per piece, even with transactions at $100, as long as people consider it safe and worth holding. As long as I can spend $100 once a year to increase my BTC-retirement-fund, and then spend $100 once a year, once I retired to cash out to some local currency, I'm all good.
Now, I now it sucks if you're not rich, and you can't toy with it, and keep sending between wallets etc. And you feel like altcoins are better etc. And it's true - ATM many altcoins a cheaper way to send small sums of money around. But saving / investing... let me tell you how it looks from my perspective...
I am a software engineer in Sillicon Valley. I have a well-paying job, I eat $20-worth of sushi for dinner, pay $10 every time I trade stocks, pay $3k each month for rent. I can invest $10k in BTC without thinking too much about it. And I'm not telling you this to make you jealous. The wealth inequality is so vast! That's just reality and I think it gives some perspective. I know as I wasn't born here. And I'm no one special here. I'm a nobody. I can't even afford a decent house here. (hindsight is always 20/20, ha)
And there are thousands of software engineers like this. They receive and trade stocks on a weekly/monthly basis, worry about the overpriced stock market, overpriced housing, pilling up cash that they have no idea what to do with. Do you think they care if Bitcoin transaction costs $10? No, they don't. And how many people who complain about $1 fees will take to invest as much as a person like me can? Hundreds. And as I said - I'm nobody. A CEOs here can drop $1MM on Bitcoin, just because they feel playful a given day, or they got jealous of some other CEO friend told them how awesome they are doing with BTC, during a golf game on Saturday. And they wouldn't worry about 50% correction much if at all. And do you think these people buy value-phones and look for good deals on economy-class cars? Do you think they have time to research which altcoin of the day has low transactions? Come on. They will all think something like: "let's put 0.1% of my cash into this magic internet money and see what happens. I want that Bitcoin thing too.".
So, you're free to have your own opinion, but if you ask me, for time being, the people who can not afford to transmit Bitcoin too often will and should just hold it, transferring it when it's relatively cheaper, and use altcoins for playfull spending etc. Just don't expect too much return on your altcoin holdings. I expect Bitcoin to consistently keep growing the fastest, while altcoins keep multiplying. It is a self-fulfilling prophecy. Or an iPhone vs hundreds of Android spin-offs thing. I use Android, but do I believe someone will dethrone iPhone? Nope.
In a sense... you want to invest in Apple stocks, even if you can't afford to drop $1k on an iPhone yourself. Because of people richer than you that can, and will.
And if it makes it any better, I know that LN will solve it all for us. We just need to wait a couple of months.. a year maybe for it to be more common. And I've been through all the early hacks, crashes, MtGox, great depression, forking drama... years and years of problems. And Bitcoin being too popular is like the smallest problem I've seen so far. The problem that smaller coins would like to have, haha. Being patient and some educated faith is what you are rewarded for.
Edit: I woke up, and I have to work, so I'm just going to address some common themes.
Obviously I created this account as throw-away. Duh.
I already can send quickly money for free. I send my friends money with Google Wallet every day. And in many countries in Europe free wires were a thing for like 10 years now. And for purchasing stuff I am very happy with credit cards. They give me points and stuff. If someone thinks Bitcoin can compete as a "payment processor", then I don't know what to say... Wake up, Bitcoin in itself was never really that great at it. Bitcoin won't be a payment processor for the masses. It will be an alternative monetary and banking system. And on top of it, we will get cheap payments and such.
The reason why I hold Bitcoin is that I have something that can't be taken away from me. Through theft, inflation, confiscation, economic crisis, banking collapse, unjust court order, you name it. Noone can prove I have it, noone can take it away. I can keep 1% of my wealth in this weird thing and sleep better at night. Other reasons are secondary, though sure... speculation on the price is a nice thing.
LN networks are going to work. As a software engineer, I understood how Bitcoin works since I've read the whitepaper and did some research. I've