Bitcoin questions thread

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Bitcoin questions thread

Postby Zeus Kabob » Wed Aug 09, 2017 9:56 am

While working on a project, I had to research Bitcoin in depth. Because I spent the time familiarizing myself with the system, I thought I could share information about it if people are interested.

For a basic introduction, Bitcoin allows people who don't trust each other to agree on what events happen. In particular, the events are monetary transactions, which are initially brought into existence through "mining", and subsequently spent. Since it's a system that allows you to handle money with a minimum level of trust, it's quite interesting.

I don't know if any of you would be interested, but might as well offer!
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Re: Bitcoin questions thread

Postby SilverFangGroup » Wed Aug 09, 2017 2:23 pm

Bitcoin always fascinates me.
I wanted to make an app for mining but too many people beat me to it long ago haha.
Besides, the algorithms seem too complex for my taste.

What sort of project is it?
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Re: Bitcoin questions thread

Postby Zeus Kabob » Wed Aug 09, 2017 6:02 pm

It's a fork to bitcoin that should hopefully retain its security while improving scalability of the network. At the current moment, bitcoin clients must remember every transaction that's ever been made. My idea allows people to store only the transactions that are relevant to them, and only process transactions relevant to them. Its scalability advantage increases as traffic increases and as the coin ages, which is in stark contrast to most other coins.
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Re: Bitcoin questions thread

Postby Ungawa » Sun Aug 13, 2017 8:54 pm

I've been investigating digital currency independently. Right now, just to let you know, there's debate to move California to a digital currency so as to allow them to provide cannabis from certain merchants who can't go to current banks that are aligned with pharmaceuticals.

You can see the tension of the new rise of small business. I think there's three major digital currencies and BC actually just forked. But it's certainly becoming something to look into, not only for gaming, but other investments besides what our dollar can currently do (or is doing in geopolitics)
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Re: Bitcoin questions thread

Postby Zeus Kabob » Mon Aug 14, 2017 6:32 am

I haven't done as much research about the bitcoin's use politically. As far as market cap and market share are concerned, I'm not sure how all the competitors stand.

The hard fork you're referring to is Bitcoin Cash (BCH), which as far as I can tell is a naked money grab by Chinese miners. Because of the nature of the fork, they opened a couple major security vulnerabilities.

As far as whether cryptocurrencies are a good investment: I wouldn't put my money on them. I'm a conservative investor, and I don't have confidence that even Bitcoin will continue to trend upwards. With how many different things are competing for attention (as my project will in the future), it's very likely that people will flit to and fro among cryptocurrencies, destabilizing their value.
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Re: Bitcoin questions thread

Postby MajorMajorMajorMajor » Fri Aug 25, 2017 1:51 am

Someone is an economics kid...

eww..
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Re: Bitcoin questions thread

Postby BlueLight » Mon Sep 04, 2017 12:08 pm

So lets say i own a bit coin in my virtual wallet, and i go to a shop that accepts Bitcoin (Microsoft), or maybe donate to a friend some spare cash; why is this even viable when each coin is worth i believe over 1k?
Are you able to split the coins up in some form allowing you to decrease how much your paying, or is this only reasonable for large scale purchases?
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Re: Bitcoin questions thread

Postby evildumdum » Mon Sep 04, 2017 4:49 pm

Yeah, that always confused the hell out of me.
"If at first you don't succeed, try hitting it with a shoe."

Coder for Code Bunny Studio's working AOB: Monster Rising
viewtopic.php?f=35&t=7304
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Re: Bitcoin questions thread

Postby Zeus Kabob » Mon Sep 11, 2017 6:18 am

1 BTC can be split into 100,000,000 satoshis, or the smallest possible unit of measure in bitcoin. You can spend as little as 1 satoshi on something (.004 cents)

One large problem with bitcoin right now is that it's not viable to make small payments. The average transaction fee to make a purchase with bitcoin is about $5, which means buying a coffee would be more than twice as expensive with bitcoin than with cash. The reason for this is because there's an arbitrary limit on the amount of data that can be put in one block, and that amount is 1 MB, or about 2,000 transactions (over a period of 10 minutes, so about 3 transactions per second). This means that if people want to make more than 3 transactions per second, they have to compete with everyone else making transactions, and this has driven up the price of transactions immensely recently.
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Re: Bitcoin questions thread

Postby Vaniloth » Sat Sep 23, 2017 5:06 am

Ah this sheds some light on the Bitcoin. I just figured it was a sketchy currency used pretty much only on the deep web. And then the ransomeware virus came along which demanded some absurd amount of Bitcoints.
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