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    Bitcoin...a suckers paradise???

    We've all watched the eruptive mammoth rise in the cryptocurrency over the last year...

    At the beginning of 2014 it had hit $1000 per coin...and that was incredible in itself. But now we have a problem, an unprecedented rise never seen before has surpassed the 1987 stock market frenzy (for those that remember) and is equally unbelievable as the Tulip mania of 1620.

    Most crypto investors over the last 1-2 years are speculators, uneducated in the world of cryptocurrency, uneducated as to how and why it was invented in the late 2000's and displaying a foaming at the mouth frenzied buy up.

    Some of these speculators are so adamant in the continued almost vertical rise in the crypto, that they've sold the family home, borrowed capital, leveraged everything including families and friends value...(sold the 'get in and invest now mantra")

    There's a lot of info out there but below article sums it up well.

    Article

    ALEX could have been a millionaire.

    In late 2009, when the digital cryptocurrency bitcoin was still in its infancy and a single PC could “mine” a few coins in a day, the self-described technology enthusiast “got into it just for fun”.

    “In the tech community we didn’t think bitcoin would be that big,” said the Melbourne game developer, who asked not to use his real name because “if my wife knows I’m dead”.

    “It was just applying our PC hardware to a global network, something novel. In the early days of GPU [graphics processing unit] mining, a single card could mine quite a few coins per day.”

    As it progressed, the bitcoin program grew to gigabytes in size. “It kept on ballooning so eventually I deleted it [and] backed up the small encrypted wallet file to keep on my USB stick.”

    That “wallet” contained the unique cryptographic “keys” for thousands of bitcoins Alex had mined.

    “The thinking was that it’s offline, not on my PC, so in case something bad happened to the PC — [if] it blew up, or [was] hacked — I still had a backup,” he said.

    Around the end of 2013, when the bitcoin price peaked at just under $US980, he suddenly remembered his wallet.
    “[I plugged] the USB stick back in to try and access the file, but the stick died. It was one of those cheap made-in-China ones,” he said.

    Today, as the current price smashes through a new milestone of $US10,000, 1000 bitcoins works out to more than $US10 million ($13.2 million). Alex puts his losses in the “thousands, plural”. “Worst mistake of my life,” he said. “Never back up anything on a cheap Chinese-made disk or USB stick.”

    Unfortunately, Alex’s story is not unique. As bitcoin mania reaches fever pitch, attention is turning to bitcoin’s missing billions.

    Of the more than 16.7 million bitcoins in circulation, nearly 4 million could be lost forever, according to new research from digital forensics firm Chainalysis, based on a detailed empirical analysis of the blockchain — the “digital ledger” which records all bitcoin transactions, and which gives the currency its value.

    The study, reported by Fortune, concluded that between 2.78 million and 3.79 million bitcoins — 17 to 23 per cent of existing supply — are lost, amounting to more than $US30 billion.

    Long-term investors who mined coins in the early days — known as “hodlers” — own the vast majority of lost bitcoins, according to the analysis, which also assumed all of the one-million-plus “original” bitcoins belonging to its inventor “Satoshi Nakamoto” are lost forever.

    One big source of uncertainty is whether out-of-circulation coins in the hodler category are actually lost or just being hoarded.

    “It’s very easy to lose crypto,” said Martin Davidson, co-founder of Melbourne-based not-for-profit Blockchain Centre and business development director at Blockchain Global.

    “Bitcoin is a predetermined currency issuance system, so there will only ever be 21 million bitcoins created up to the year 2140.

    “It started in 2009 with the currency issuance of 50 bitcoins every 10 minutes, and every four years it goes down by half. It went down to 25, now we’re in the third phase where it is 12.5 bitcoins every 10 minutes.

    “When bitcoins are produced, they have a private key associated with them. It works using key-pair cryptography — you have a public address and a private key that go together. The public address is what you use to send bitcoins, the private key is what you need to spend them.

    “If you lose the private key, because of the mathematics involved and the strength of the cryptographic system, which is what makes it so safe, it’s impossible to ever get it back. What’s commonly happened is people have just deleted the file off their computer — the text document that holds the private key.”

    While many have made analogies with burning a $100 note or losing a gold bar off the side of a pirate ship, Mr Davidson agreed that the ease with which bitcoins can be accidentally lost forever at the press of a button — particularly given how valuable they now are — can make people uneasy.

    “Absolutely, that is one of the largest barriers to adoption,” he said.

    “What people need to understand is this technology was born out of the cipher-punk movement, using cryptography for people’s individual freedom and privacy for protection against the state.

    “It was never designed to be user-friendly, but obviously now people are investing hundreds of billions of dollars into these systems that are still nascent with respect to the usability and design of the applications.”

    In order to keep their keys safe, some users literally print them out in what’s known as a paper wallet, but Mr Davidson said the best option was a Trezor USB wallet, which retails for about $170.

    “They’re known as the best in the world, the most secure. They have firmware on the device designed to keep your private keys safe, they can store bitcoin, Ethereum, some other currencies.”

    Bitcoin’s exponential 1000 per cent rise this year has captured imaginations and led to warnings of a “bubble”. Its current market capitalisation — the price multiplied by the number of bitcoins in circulation — is now nearly $US169 billion, according to Coinmarketcap.

    On Tuesday, IG Markets chief strategist Chris Weston described the massive influx of retail investors getting into the cryptocurrency as a “mania” fuelled by press headlines and fear of missing out.

    It came as Mike Novogratz, trader with Fortress Investment Group, told an industry conference investors should brace for “wild crashes”. “This is going to become the biggest bubble of our lifetimes by a long shot,” he was reported in the New York Post as saying.

    Meanwhile, legendary investor Jack Bogle, founder of Vanguard and pioneer of “passive investing” championed by the likes of Warren Buffett, also weighed in. “Avoid bitcoin like the plague,” he told a New York conference, according to Bloomberg. “Did I make myself clear?

    “Bitcoin has no underlying rate of return. You know bonds have an interest coupon, stocks have earnings and dividends, gold has nothing. There is nothing to support bitcoin except the hope that you will sell it to someone for more than you paid for it.”

    The 88-year-old said it was “crazy” to invest in the currency. “Bitcoin may well go to $US20,000 but that won’t prove I’m wrong,” he said. “When it gets back to $US100, we’ll talk.”

    AMP Capital chief economist Dr Shane Oliver last week warned that “every generation gets sucked in” to an investing craze like bitcoin, which Japan Post Bank chief investment officer Katsunori Sago has described as “worse than the IT bubble” of the late ’90s.

    Many have defended bitcoin, however, dismissing suggestions of a looming crash.
    Leigh Travers, chief executive of Perth-based digital currency and blockchain advisory group DigitalX, put the long-term value of bitcoin on par with gold — or over $US400,000 — while others are keen to prove its real-world usefulness.


    Brisbane-based start-up Living Room of Satoshi says Australians are already using bitcoin to pay $1 million worth of bills every week, and a growing number of properties are being offered up for sale in exchange for the currency.

    On Monday, a Cairns man put his massive 32 hectare property on the market for 100 bitcoin — nearly $1.3 million — while a $2.5 million Mount Macedon estate this week became the first Victorian property to join the crypto-craze.

    “Bitcoin is real money,” the vendor said in a written Q&A released by the real estate agent. “In fact, it’s better than most other monies. Bitcoin is deflationary which can be hard to spend because it is constantly rising in value.

    “I will accept the Australian dollar value [$2.5 million] at the time the property is settled. If the cost of bitcoin continues to rise then I will be getting less bitcoin. Because we already hold bitcoin, nothing could make me happier.”

    Alex, for his part, said if he “had the spare cash” he would consider getting back into bitcoin, which he believes is a “fantastic gold substitute for long-term storage of wealth” that also has many other useful applications.

    Earlier this year, he mined “a lot” of Ethereum, the now second most valuable cryptocurrency which has similarly soared in value. “One day, maybe Ethereum might restore what I lost with bitcoin,” he said.

    “I’ve invested in Ethereum, Ethereum Classic and a few other coins while they were still priced cheap. It’s been good. But some days it’s depressing to think of the thousands of bitcoins I lost because of stupidity.”

    ----------------------------------------------------------------------------------------------------------------------------

    So, interesting information and we must accept that the pro camp are crypto brokers and the con camp are tradition financial interests groups.

    So I'm of the mind that if you got in early, and understood the importance of secure storage, then you've ridden the unprecedented rise and you should be cashing out...today. Simply because frenzied speculators are willing to pay the current price.

    This currency is valued against one thing only and that 'value' is based solely on more people willing to pay more for it...that's it.

    Personally, I think anything valued on greed and speculation is fraught with a looming disaster and let's be clear...I'm not against cryptocurrencies at all...I'm all for it but only at a rational value...somewhere around the $100 per coin, which should only be used for the specific purpose of exchange, not speculative investment.

    For those that don't understand, any transactions that take place using BC as a purchase, are done as fragments of a BC...and if you were to invest and only had 2.5k, you'd get a portion, as of today's value that would be 0.25 of a BC.
    Last edited by Ross; 11-29-2017 at 02:22 PM.
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    Re: Bitcoin...a suckers paradise???

    Below you can learn all about Bitcoin...Everything you need to know...including above post if you're a current or prospective investor.



    Article:

    How Bitcoin Mining Works

    Where do bitcoins come from? With paper money, a government decides when to print and distribute money. Bitcoin doesn't have a central government.

    With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine.

    Bitcoin is Secure

    Bitcoin miners help keep the Bitcoin network secure by approving transactions. Mining is an important and integral part of Bitcoin that ensures fairness while keeping the Bitcoin network stable, safe and secure.

    -----------------------------------------------------------------------------------------------------------------------

    Or so it appears...

    Anyways, after reading below, you'll see that for the general speculator of the last year or so, they'll have little understanding regarding the world of Bitcoin.

    Read here
    Last edited by Ross; 11-30-2017 at 12:29 PM.
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    Re: Bitcoin...a suckers paradise???

    Latest surge as of 8/12/17

    Article

    ‘Wall of money’ pushes bitcoin over $US14,000

    A WALL of money is pouring into bitcoin, pushing the price of the cryptocurrency higher at an ever-increasing rate — but it’s not all good news.

    BITCOIN is smashing through milestones at an ever-increasing pace.

    Less than a day after cracking $US12,000, the cryptocurrency surged another 17 per cent to pass first through $US13,000 and then $US14,000 on Wednesday US time, according to research site CoinDesk.

    The volatile currency has now skyrocketed in value by more than 1300 per cent since the start of the year, bringing its total market capitalisation — the price multiplied by the number of coins in circulation — to just under $US244 billion, according to Coinmarketcap.

    “Bitcoin now seems like a charging train with no brakes,” ASR Wealth equities and derivatives adviser Shane Chanel said in a note on Thursay.

    “There is an unfathomable amount of new participants piling into the cryptocurrency market. It’s basic Economics 101, with such strong demand and limited supply, there’s only one way this can go. Exchanges are reporting that there are mountains of applicants waiting on verification documents and deposits.

    “Once these funds hit the market, what do you think the price will do? This is nothing like I have ever seen before. I have never seen so much greed and fear of missing out.”

    Analysts have put the latest frenzy of activity down to the imminent launch of two bitcoin futures markets, after the Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) both obtained regulatory approval.
    Bitcoin futures, through which investors can bet on the rise or fall of the digital currency, will add a layer of regulatory oversight and allow larger institutional investors to begin pouring money into the sector.

    “Onwards and upwards,” IG chief market strategist Chris Weston wrote. “And while a wall of money flows into this market every single day it seems the launch, this weekend, of the CBOE futures offering is being taken as a positive and not one where suddenly traders have a new avenue to short bitcoin.

    “Hedge funds do not short a market that is flying — it makes no sense. However, when price does turn and there is confusion, even panic and the bid dries up, then watch the short sellers come out in droves and this is only going to mean downside moves, when they happen, could be even bigger from here on in.”

    Mr Chanel said while there would “undoubtedly be small corrections along the way”, there was a good chance bitcoin would touch $US16,000 by the end of the year and he “wouldn’t be surprised” if bitcoin reaches $US40,000 by next year.

    But he warned that there would “most certainly” be a correction “once the hype slows down”. “Currently through most exchanges, in order to buy any cryptocurrency, you have to buy bitcoin first,” he said. “Imagine if you had to buy Google or Apple shares in order to buy any other shares on the market.

    “Is this likened to the dotcom bust? ... The blockchain technology is going to have a similar impact on the market like ... the internet did several years back.”

    While a growing number of merchants are accepting bitcoin as payment, the vast majority of interest in the cryptocurrency is undeniably as a speculative asset rather than a tool for day-to-day commerce.

    On Wednesday, the world’s largest online game store Steam said it would “no longer support bitcoin as a payment method on our platform due to high fees and volatility in the value of bitcoin”.

    According to Steam parent company Valve, transaction fees associated with bitcoin payments — passed on by third-party platform Bitpay — had surged from about 20 US cents when it first offered bitcoin payment last April to $US20 last week.

    “Unfortunately, Valve has no control over the amount of the fee,” the company said in a statement. “These fees result in unreasonably high costs for purchasing games when paying with bitcoin. The high transaction fees cause even greater problems when the value of bitcoin itself drops dramatically.”
    Ross
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    Re: Bitcoin...a suckers paradise???

    Latest surge as of 8/12/17

    Article

    ‘Wall of money’ pushes bitcoin over $US14,000

    A WALL of money is pouring into bitcoin, pushing the price of the cryptocurrency higher at an ever-increasing rate — but it’s not all good news.

    BITCOIN is smashing through milestones at an ever-increasing pace.

    Less than a day after cracking $US12,000, the cryptocurrency surged another 17 per cent to pass first through $US13,000 and then $US14,000 on Wednesday US time, according to research site CoinDesk.

    The volatile currency has now skyrocketed in value by more than 1300 per cent since the start of the year, bringing its total market capitalisation — the price multiplied by the number of coins in circulation — to just under $US244 billion, according to Coinmarketcap.

    “Bitcoin now seems like a charging train with no brakes,” ASR Wealth equities and derivatives adviser Shane Chanel said in a note on Thursay.

    “There is an unfathomable amount of new participants piling into the cryptocurrency market. It’s basic Economics 101, with such strong demand and limited supply, there’s only one way this can go. Exchanges are reporting that there are mountains of applicants waiting on verification documents and deposits.

    “Once these funds hit the market, what do you think the price will do? This is nothing like I have ever seen before. I have never seen so much greed and fear of missing out.”

    Analysts have put the latest frenzy of activity down to the imminent launch of two bitcoin futures markets, after the Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) both obtained regulatory approval.
    Bitcoin futures, through which investors can bet on the rise or fall of the digital currency, will add a layer of regulatory oversight and allow larger institutional investors to begin pouring money into the sector.

    “Onwards and upwards,” IG chief market strategist Chris Weston wrote. “And while a wall of money flows into this market every single day it seems the launch, this weekend, of the CBOE futures offering is being taken as a positive and not one where suddenly traders have a new avenue to short bitcoin.

    “Hedge funds do not short a market that is flying — it makes no sense. However, when price does turn and there is confusion, even panic and the bid dries up, then watch the short sellers come out in droves and this is only going to mean downside moves, when they happen, could be even bigger from here on in.”

    Mr Chanel said while there would “undoubtedly be small corrections along the way”, there was a good chance bitcoin would touch $US16,000 by the end of the year and he “wouldn’t be surprised” if bitcoin reaches $US40,000 by next year.

    But he warned that there would “most certainly” be a correction “once the hype slows down”. “Currently through most exchanges, in order to buy any cryptocurrency, you have to buy bitcoin first,” he said. “Imagine if you had to buy Google or Apple shares in order to buy any other shares on the market.

    “Is this likened to the dotcom bust? ... The blockchain technology is going to have a similar impact on the market like ... the internet did several years back.”

    While a growing number of merchants are accepting bitcoin as payment, the vast majority of interest in the cryptocurrency is undeniably as a speculative asset rather than a tool for day-to-day commerce.


    On Wednesday, the world’s largest online game store Steam said it would “no longer support bitcoin as a payment method on our platform due to high fees and volatility in the value of bitcoin”.

    According to Steam parent company Valve, transaction fees associated with bitcoin payments — passed on by third-party platform Bitpay — had surged from about 20 US cents when it first offered bitcoin payment last April to $US20 last week.

    “Unfortunately, Valve has no control over the amount of the fee,” the company said in a statement. “These fees result in unreasonably high costs for purchasing games when paying with bitcoin. The high transaction fees cause even greater problems when the value of bitcoin itself drops dramatically.”
    Ross
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    Re: Bitcoin...a suckers paradise???

    If you're like me, you've come across numerous ad's when online trying to market you into the investment of BitCoin or other Cryptocurrencies.

    These days it's everywhere, with all kinds of brokers vying for your business.

    Now, it has to be made very clear. BitCoin price increase over the last year (from $1000 a year ago and as of last night $17,000 USD) is due to one thing only. But first, it's not due to the fact it's been used as a currency for purchases, or use for everyday expenses. Some tiny amounts are being used in the mainstream but it's hardly worth mentioning. 99% of it's use as a purchasing currency is within the Dark Web for all manner of illegal exchanges. Everything you can imagine. Drugs, guns, sex traffickers, pedophilla rings and other...


    Here's some data as to daily use
    and it comes from the most accepted source, coindesk.com

    So, the recent unprecedented rise of BitCoin is due to two things only. speculation fuelled by greed and the fear of missing out, fuelled by greed

    Yup...I know folk who've invested and they're the same as every other recent investor...chasing the quick easy way to earn.

    But Houston, there's another problem...

    Article:

    We’re all at risk from Bitcoin...

    EVEN if you don’t know what Bitcoin is or have no intention of ever buying any, you’re at risk every time you go online.

    WEBSITES are using the power of your computer to tap into the current Bitcoin and cryptocurrency craze, hijacking your processor to ‘mine’ for coins while you are online.

    It’s called cryptojacking, and runs instantly when you go onto certain websites, with no real way to tell on the surface if your computer has been compromised for digital profit.

    If it has been compromised, not only is your information at risk, but your computer could overheat and eventually wear down over time if you continually get attacked.

    Even if you have never owned any Bitcoin or other cryptocurrency, your computer could still be used by hackers, as what they want from you is the power of your processor. With other people’s computers working for them, hackers will then use an algorithm to find Bitcoin or other digital currencies anywhere in the world.

    BUT I DON’T OWN BITCOIN. WHY IS MY COMPUTER BEING ATTACKED TO FIND IT?

    Doesn’t matter if you own Bitcoin or not. You’ve got a computer with processor. And that’s power that computer hackers want to use to mine for bitcoin around the world.

    These illegal cryptojacking operations need to build huge help to perform the algorithms needed to find the few Bitcoins left that aren’t being traded on the open market. And they can’t do that unless they build extremely expensive servers. So they need to find more power on the cheap, which is why they’re infiltrating websites that regular people visit all the time, and putting a script on there.

    If you go to that website, your computer will be infected.

    Websites such as Showtime, the official UFC streaming website and US political news website Politifacts.com were affected. Even in Australia, last month Subaru’s official merchandise website became victim to one of these attacks.
    While these attacks on websites are on the rise, websites are also putting the code in themselves as an extra way to earn money. One of the highest profile websites to do so has been The Pirate Bay, who has started to explore the idea as an alternative to advertising revenue.

    The website copped a lot of slack after their trial of the software resulted in many users’ computing power maxing out and heating up quickly when browsing.

    WHY ARE HACKERS ATTACKING THESE SITES?

    Michael Dunworth, CEO of Wyre, a company which uses blockchain technology (the stuff behind Bitcoin) to transfer money same day internationally, told news.com.au that hackers are likely to look to these sorts of techniques for easy money.

    “If you wanted to mine Bitcoin, you’d need a massive warehouse full of computers to have much success, so this is a much easier way for hackers to get access to cryptocurrency,” he said.

    The scripts are often placed on websites with outdated security, which hackers can easily scan, identify and then place their tools on without the site’s owner or browsers even knowing.

    Likewise, he said, it’s much easier for a hacker to inject a script into a poorly designed website than to try and social engineer a hack into someone’s Bitcoin wallet (where people often store their bitcoin).

    Nick Savvides, CTO of Symantec Pacific Region, told news.com.au that these scripts take advantage of parts of the web browser that have access to the GPU to render images and videos very quickly and essentially re-purpose the GPU to mine coins instead.

    If you are concerned about websites hijacking your computer’s processor to mine for coins, Mr Savvides says the best thing you can do is keep your security software up to date.

    “These tools will often block the code from running, the sites that run it and the sites that distribute it,” he said.
    “If you notice your computer getting very slow when browsing a site, it may be a sign that they are using a browser miner.

    “Clear your browser cache and scan your computer for threats.”
    The coin most of the scripts use your processing power to mine for is called Monero, and is one of hundreds of cryptocurrencies like Bitcoin which are popping up everywhere. The reason this coin is picked, rather than Bitcoin, is that it’s the easiest coin to mine with a standard computer processor, rather than relying on expensive graphics units which most every day computers don’t possess.

    WHY BITCOIN IS TODAY’S GOLD

    Think of Bitcoin as digital gold, it’s mined like gold, there’s a finite amount like gold, and the less gold there is left to find in the world, the higher its value. As Bitcoin is mined, people sell it on markets, where you buy it with “real world” currencies.

    Because there is only a finite amount of Bitcoin, it means it’s stored somewhere locally for you. Some people store theirs on their own computer’s hard drive, which actually has led to many people losing millions of dollars worth by throwing out their drives.

    These days, it’s mostly stored on “virtual wallets”, think of them like the iCloud of wallets. However, these have been vulnerable to hacks in the past and millions of Bitcoins have been stolen.

    The best method for storage is still up for debate from experts.

    CAN I MINE MY OWN BITCOIN?

    Probably not. It’s 2017, they’ve been around close to a decade and are now worth a fortune. It’s not like they’re lying around and can easily be found.

    Bitcoin will only ever have 21 million coins available due to the algorithm in which it was created, meaning the less there are left to mine, the greater the value until it eventually reaches its peak.

    Mr Dunworth’s way of explaining it is to think of it like limited edition shoes. Nike might only put up 10 sets of new limited edition sneakers, if someone destroyed a shoe, there would only be 9 left and those 9 would be worth more and so on.

    Like Bitcoin, when it first was released, there were 21 million, which were much easier to mine then and come across meant the value was much lower. Now, like the Jordans, as there are less and less Bitcoins to come across, value has skyrocketed.

    Generally, the rate in which Bitcoins are available halves every four years, until eventually all 21 million have been found.

    Years ago, (2009-11) to mine Bitcoin, you could have found some using your laptop in just a few hours, however these days due to the limited supply, it’s much harder. If you wanted to make serious money off Bitcoin mining these days, you’d need to invest in massive networks of computers with powerful graphics processors running day and night to get anything resembling a profit — which is why hackers are harnessing the power of personal computers. The cost in power usage has made it a liability and loss rather than a profit as miners race to find the last of them.

    However, other digital currencies such as Monero can still be mined if you have just a high end consumer grade computer. In these cases, if you have the right set up, you could mine almost a coin every couple of weeks, which at this stage has a value of about $300, and is increasing fast.

    Coins like Monero and Ethereum are based on blockchain and have limited amounts like Bitcoin.

    HANG ON. EXPLAIN BLOCKCHAIN.

    Blockchain is basically a decentralised computer system which can govern how information is sent across the internet, and is essential to cryptocurrencies. By decentralised, we mean there is no single computer, but rather information is verified across millions of different computers across the globe.

    While in the real world, I can just physically give you something and you now own it and I don’t, it’s not quite that simple digitally. Think about when you send someone a photo over email, you’re not really sending that photo itself, but creating a copy of it and sending that copy to someone. You both now have the photo. This wouldn’t work in a currency world, because no real value is being sent.

    So this is where the blockchain fits in, it allows people to send value (not just money) over the internet, by coming to an agreement on who owns it across millions of different computers. Think of it like Paypal, who could be the middleman in governing that yes you did send $100 to James, and now you have $100 less and James has $100 more. But with blockchain, there is no central company or organisation that looks over this that could potentially tamper with it.

    If you were to try and tamper with data on the blockchain, you’d need to do that somehow on all of the millions of computers in which the data needs to be verified across, making it an essentially unhackable way of sending goods.
    This lays the backbone for Bitcoin and other digital currencies, as it allows them to have an intrinsic value, as you can create a finite number. The blockchain will set up the agreement between its massive network that you sent those 2 Bitcoins to James, and that they are now his and you no longer have any ownership of them.

    The blockchain itself has huge value not just for sending Bitcoin, but could be used to send anything of value — think the deed to real estate, the ownership of your car or even to verify information in databases to help thwart hacks.
    While it currently is only really being talked about with Bitcoin, you’ll be hearing a lot more about blockchain as it starts to become more important in all our digital lives.
    Last edited by Ross; 12-08-2017 at 03:35 PM.
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    Re: Bitcoin...a suckers paradise???

    Latest stats are concerning over the mining and transactions of BitCoin.

    Article:

    Bitcoin mining using up so much energy it could cause blackouts.

    The virtual mining of Bitcoins is using up so much energy that it is causing electricity blackouts in some countries, it has been revealed.

    Experts say the high-tech activity is consuming a higher level of power than in 159 countries across the globe - amid fears it will use more than the world by 2020.

    Bitcoin mining hardware uses approximately 31 terawatt hours of energy per year - compared with 23 in Ireland and 309 for the whole of the UK, according to the Daily Mail.

    It is creating a "colossal" carbon footprint as the value of one coin surges to more than £12,000 ($23,489) amid violent swings in the cryptocurrency market.

    Analytics firm Digiconomist estimates that every Bitcoin transaction uses up enough energy to power nine home in the US for one day.

    The virtual currency is made up of lines of computer code which are digitally signed each time they travel from one owner to the next.

    Transactions can be made anonymously, making the currency popular with libertarians as well as tech enthusiasts, speculators - and criminals.

    Tech-savvy users called "miners" use their computers to make complex calculations in a bid to verify that a "block" of Bitcoin transactions are genuine.

    It is similar to cracking a code - and it takes more than 1.7 billion attempts each time using an enormous amount of computing power as well as electricity.

    Users often combine their processors virtually to work together completing millions of calculations per minute between them.

    In reward for their efforts, the miners who crack each code are rewarded with a share of the currency in the form of 25 newly created Bitcoins.

    But for the average person, the costs involved with mining are so high that it is no longer worth getting involved.

    One facility in China - where half of the world's Bitcoin miners are based - has 25,000 computers running up a daily energy bill of US$40,000 ($58,474).


    According to The Times, Eric Holthaus said: "In only a few months from now, at Bitcoin's current growth rate, the electricity demanded by the cryptocurrency network will start to outstrip what's available.

    "New stress on the grid means more facilities using dirty technologies.

    "By July 2019 the bitcoin network will require more electricity than the entire United States currently uses.

    "By February 2020 it will use as much electricity as the entire world does today."


    In Venezuela, Bitcoin mining has caused blackouts while experts say the mass amounts of energy consumed could instead be used to power homes and businesses.

    The virtual currency is in an extremely volatile phase following enormous value growth in recent weeks.

    Bitcoin lost almost a fifth of its value in 10 hours on Friday, having surged more than 40 per cent in the preceding 48 hours sparking fears the market may be heading for a price collapse.

    In a hectic day on Thursday, Bitcoin leapt from below US$16,000 ($23,389) to US$19,500 ($27,775) in less than an hour on the US-based GDAX, one of the biggest exchanges globally.

    Some market watchers attributed the lurch higher to the coming launch of Bitcoin futures on major exchanges.
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    Re: Bitcoin...a suckers paradise???

    Quote Originally Posted by Ross View Post
    Doesn’t matter if you own Bitcoin or not. You’ve got a computer with processor. And that’s power that computer hackers want to use to mine for bitcoin around the world.
    I posted above in post #5...

    Here's the latest discovery.

    Man discovers code used for Bitcoin mining after using Wi-Fi at Starbucks.

    A CUSTOMER was shocked to find a code used to mine for Bitcoin had been installed onto his computer after using the in-store Wi-Fi. The same could happen to you.

    DID you know that when you’re logging into the Wi-Fi at Starbucks, you could have code installed on your laptop that is used to mine for Bitcoin.

    This is what recently happened to one man who stumbled across the code after joining the store’s Wi-Fi.

    The complaint was addressed by Starbucks, with the company saying the issue has since been resolved.

    Despite the initial concerns, a Starbucks spokesman said the problem was with the internet service provider and not with the franchise itself.

    “Last week, we were alerted to the issue and we reached out to our internet service provider — the Wi-Fi is not run by Starbucks, it’s not something we own or control,” the spokesman told Motherboard.

    “We want to ensure that our customers are able to search the internet over Wi-Fi securely, so we will always work closely with our service provider when something like this comes up.

    “We don’t have any concern that this is widespread across any of our stores.”

    The act of Bitcoin mining is becoming more common, with hackers hijacking computer processors to search for cryptocurrency not being traded on the open market.

    To avoid using extremely expensive servers, hackers are putting a script on popular websites, which infect the computers of those visiting.

    Websites such as Showtime, the official UFC streaming website and the official merchandise website for Suburu have recently been victim to these attacks.

    Additionly, websites are also putting the code in themselves as an extra way to earn money — The Pirate Bay is one such example.

    As the CEO of a company that uses blockchain technology to transfer money, Michael Dunworth said even if you don’t have Bitcoin, hackers will use the power of your processor for an algorithm used to find digital currencies anywhere in the world.

    “If you wanted to mine Bitcoin, you’d need a massive warehouse full of computers to have much success, so this is a much easier way for hackers to get access to cryptocurrency,” he told news.com.au.

    CTO of Symantec Pacific Region Nick Savvides said the best way to avoid hackers hijacking your computer’s processor to mine for coins was to ensure your security software up to date.

    “These tools will often block the code from running, the sites that run it and the sites that distribute it,” he said.

    “If you notice your computer getting very slow when browsing a site, it may be a sign that they are using a browser miner.

    “Clear your browser cache and scan your computer for threats.”





    It's obvious to me that every possible site that's able to be hacked with inserting 'mining' codes will be far more widespread than realized.

    I personally use a decent antivirus with extra additional malware software but I also use malwarebytes, it's reasonably priced. It's excellent.
    Last edited by Ross; 12-13-2017 at 01:53 PM.
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    Re: Bitcoin...a suckers paradise???

    The plot thickens...and I'm of the view there's more truth to below article than not, based on the verified transaction currencies used.

    Article

    Are Japanese housewives fuelling the Bitcoin bubble?

    TO YOUR average punter, much of Bitcoin remains somewhat of a mystery. Even its creator who goes by the pseudonym Satoshi Nakamoto — who is believed to still hold billions of dollars worth of the currency — is not known to the public.

    However that hasn’t stopped the cryptocurrency from surging in value recently, becoming a mainstream investment frenzy. And at least one major Wall Street bank thinks Mrs Watanabe is behind the digital currency’s meteoric rise in price this year.

    But who is Mrs Watanabe?

    That term (which borrows a common surname in Japan) is actually used to describe the individual Japanese investor, traditionally a housewife who runs the family’s finances and became notorious for her involvement in the foreign exchange (forex) market during the country’s prolonged recession in the 1990s.

    As Time Magazine wrote in 2013: “Penalised by a tax system that didn’t encourage their participation in the labour force, many Japanese women found that they could bolster tight budgets by performing online forex trades in between chores and shopping for groceries.”

    These days the metaphorical Japanese housewife is trying to escape rock-bottom savings rates by investing in the cryptocurrency, or so the theory goes.

    Japan accounts for about 50 per cent of global foreign-exchange margin trading, according to Deutsche Bank. But in a note to investors this week, bank analyst Masao Muraki wrote: “We think that retail investors are shifting from leveraged foreign-exchange trading to leveraged cryptocurrency trading.”

    Forty per cent of Bitcoin trading in October and November was conducted in the Japanese currency yen, according to a Nikkei report cited in the note. In August, CryptoCompare reported Bitcoin trade in Japanese yen accounted for nearly 46 per cent of global trade volume.

    The in-vogue digital currency rose more than 60 per cent in May alone when it was reportedly driven higher in part by investors in Japan and South Korea who stepped in as China investment cooled after a central bank crackdown on unregulated digital currencies.

    At least anecdotally, the thrill of Bitcoin certainly seems to have intoxicated Japanese retail investors, such as Mutsuko Higo, a 55-year-old social insurance and labour consultant who bought around 200,000 yen ($A2322) worth of bitcoin in March to supplement her retirement savings.

    “After I first heard about the bitcoin scheme, I was so excited I couldn’t sleep. It’s like buying a dream,” she told Reuters this week.

    “Everyone says we can’t rely on Japanese pensions anymore,” she said. “This worries me, so I started bitcoins.”
    But according to Deutsche Bank, it might be more apt to blame Mr Watanabe for contributing to Bitcoin’s rise as Japanese men — mostly aged 30-49 — hold 79 per cent of foreign-exchange trading accounts.
    Last edited by Ross; 12-15-2017 at 01:32 PM.
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    Re: Bitcoin...a suckers paradise???

    The quadrillion dollar derivatives debt can be vanquished if no one recognizes it (e.g. trade hard assets on it).

    Similarly, Bitcoin value can be vanquished if no one recognizes it.

    The main problem is that those who recognize derivatives and bitcoins ... have disproportionate control of the machinery that issues economic policy.

    Bitcoin is a scam on par with the derivatives market. Get something for nothing. Get something using mathematics. That sorta thing.


    Pax

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    Re: Bitcoin...a suckers paradise???

    Quote Originally Posted by Zook_e_Pi View Post
    Bitcoin is a scam on par with the derivatives market. Get something for nothing. Get something using mathematics. That sorta thing.
    Indeed, though I'm of the mind it's a more dangerous scam due to the level of dumbassness greed and dumbassness ignorance...

    Read this below...Scam Scam Scam.

    Latest article

    Fees, FOMO and fine print: I bought $300 worth of bitcoin, and immediately regretted it.

    BITCOIN has been hailed as “Gold 2.0” due to its revolutionary technology which combines currency with payment system. But there’s a bit of a problem.

    FOR a currency supposedly designed to prevent the little guy getting ripped off by the evil banks, buying bitcoin sure feels suspiciously like a rip-off.

    Last week, as the cryptocurrency was marching towards a fresh record high of $US17,000, I figured I would join the Japanese housewives, North Korean spies and billionaire twins in buying a couple of these famous bitcoins.

    Or more accurately, 0.01298716 bitcoin. Three hundred dollars worth — because as it turns out, CoinBase, the world’s largest cryptocurrency exchange, sets arbitrary purchase limits on international customers.

    It also fails to mention, until after you sign up, that Aussie customers can only buy, not sell, on the platform — which one would think was a fairly important caveat. “Subscribe to our blog to be notified when we add support for your country!” the message read.

    The cheerful tone didn’t help to alleviate the feeling, as bitcoin’s value plummeted by more than 23 per cent that weekend and the “sell” button remained cheerfully greyed out, that I had just made a small contribution to a very, very large Ponzi scheme.

    Then there are the fees, fees and more fees. CoinBase charges eye-watering fees of nearly 4 per cent — on a $300 purchase, I paid $11.50 — although other exchanges are not much better.

    Some charge a percentage for trades, others charge a percentage or even a set number of bitcoin when you cash out, but all of them are making an absolute killing on fees and arbitrage.

    On bitcoin forums and message boards, one of the most common topics is fees — who has the lowest, how to avoid them. (Convert to ethereum, transfer to a local exchange, convert back to bitcoin.)

    As one online commenter noted recently, “Like Levi Strauss during the California gold rush, a few ‘smart’ people are realising the real money to be made is in supporting services rather than bitcoins themselves.”

    And if you want to move your bitcoin from CoinBase to a local exchange where you can actually cash out — or even from one “wallet” to another — be prepared to pay even more in fees.

    Over the past two weeks, the cost to complete a transaction has skyrocketed from about $US6 on average to $US26 last Friday, ArsTechnica reported, courtesy of the bitcoin network itself, which is struggling to process more than four transactions per second.

    Bitcoin users can choose to add an optional fee to a transaction. The higher the fee, the more likely the transaction will be accepted by “miners” — the computers which continually verify and add to the blockchain — and so make it into the next “block”.

    It’s possible to manually override the fee to zero, but that means the transaction will probably never go through, as miners will always choose transactions with the highest fees first. “This is a big headache for people trying to use bitcoin as a day-to-day payment network,” ArsTechnica writes.

    “In the network’s early days, bitcoin boosters would tout the network’s fast payments and near-zero fees. But now users sometimes have to choose between paying more than $US20 in fees or waiting hours — if not days — for their transactions to complete.”

    In a recent video, Wall Street Journal reporter Thomas Di Fonzo highlighted the problem when he attempted to buy a Domino’s pizza for bitcoin — and ended up paying $US76.16, including $US9.47 in fees.

    “I feel like I’ve been taken to the cleaners,” he said.

    RBA governor Philip Lowe also weighed in this week in a speech to the Australian Payment Summit. “In reality these currencies are not being commonly used for everyday payments and, as things currently stand, it is hard to see that changing,” Mr Lowe said.

    “The value of bitcoin is very volatile, the number of payments that can currently be handled is very low, there are governance problems, the transaction cost involved in making a payment with bitcoin is very high and the estimates of the electricity used in the process of mining the coins are staggering.”

    Since bitcoin isn’t much good for day-to-day use as a currency and ridiculous exchange fees make day trading a “great way to whittle down your holdings”, as one Reddit user pointed out, it seems like the only thing to do is hold on and ride the bubble.

    Let’s hope CoinBase fixes that “sell” button before it pops.
    Last edited by Ross; 12-16-2017 at 12:56 PM.
    Ross
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