Cryptocurrency

[Mercer]

When is a good time to buy?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There are no mistakes, just happy little dips.

 

Scoop profits, rinse, and repeat.

[LastBoyScout]

Keep in mind that though every transaction is stored in the blockchain in the form of a hash... And that hash is created dynamically from the signature that in turn was verified by a private key that literally nobody but the owner knows... Even the addresses for private wallets are rotated with every transaction. So if 10 people send crypto to my jaxx wallet, its in fact recorded to the blockchain as distinct hashes that describe the transaction with no easy way to describe the sender or recipient since its just long fuckin alphanumeric strings with very little context. Plus I can always print out the key and literally hand that to someone.

 

I can see them hacking communications and hard drives and watching spending patterns long before they'll ever be able to decipher the blockchain.

 

 

There are some companies already specializing in and using AI for blockchain forensics and I’m sure would be happy to sell services to the feds. But they will going to go after the big fish not people making a few grand here and there

[misteraven]

Still hodling the little amount of coins I have (i have the big 3).

 

Which is the easiest and best exchange. I'm on coinbase now but want to get into the alts. Heard Binance is good.

 

@Mercer @misteraven Thanks for the knowledge (wisdom and understanding). I'm about to cop some more during this dip. Are you guys HODLing?

 

@Mercer Haven't seen you in IG for a minute. I'm assuming it's because you're getting all this CREAM. My handle is CLICKCLACKONER.

 

Yeah man, its an exciting time and this convo was way past due. Wish we'd done this 5 years ago and we'd likely be having this discussion over pina coladas off the coast of monaco instead of here on the forum. Better late than never and glad to see the activity on the forums. This is how shit got big back in the days.

 

The two big exchanges I'm most aware of are www.binance.com and www.bittrex.com - keep in mind most registrations are free, so I suggest registering an account on as many as you can as they often close down registrations at the popular ones. In fcat, been considering registering several and selling the logins for crypto for the desperate traders that show up late.

 

And glad to see you back brother!

[misteraven]

There are some companies already specializing in and using AI for blockchain forensics and I’m sure would be happy to sell services to the feds. But they will going to go after the big fish not people making a few grand here and there

 

Yes, indeed but keeping in mind that every transaction is recorded, including those that are a fraction of a cent. It simply wont be cost effective to pursue and that assuming you can still track it back to an individual which I find unlikely. Plus you got altcoins like Monero that are specifically engineered for keeping transactions private and no doubt the first time anyone gets nailed in a public way, all the coins will simply adopt that feature or lose ground to the ones that do.

[misteraven]

Those wondering about the lows we're seeing... There's a lot of bad media out there looking to discredit crypto and hold off its acceptance for as long as possible. News that South Korea was in the process of banning crypto, that Russia would be heavily regulating and that the USA was considering banning is what tanked it this week. When you consider how this is going to rock the establishment, you can see how they'll no doubt pull out the big guns to try and fight this. There's no holding back the tech and you new jacks should see this as an opportunity to get down and make up for lost time.

[Mercer]

Yes, indeed but keeping in mind that every transaction is recorded, including those that are a fraction of a cent. It simply wont be cost effective to pursue and that assuming you can still track it back to an individual which I find unlikely. Plus you got altcoins like Monero that are specifically engineered for keeping transactions private and no doubt the first time anyone gets nailed in a public way, all the coins will simply adopt that feature or lose ground to the ones that do.

 

The IRS was willing to spend 20 million, to collect 6.7 million in taxes. By their logic it creates a "deterrent" resulting in more people paying without direct enforcement. If you have an account on any exchange that trades cryptocurrencies for fiat, you're not anonymous. Because of KYC laws, they can see when you transferred from your bank into the exchange, and what wallet address you sent it to, or when you cashed back out into Fiat.

 

It's a safe bet that it would cost them pennies on the dollar to let Bitfury (company known to do such work) process the data for them, and serve it up to the IRS so they can send you a notice. I've been fucked by underestimating the IRS before. Taxes are a bitch, but penalties suck even more. I'm obviously not adverse to "gambling" fucking with crypto. That said, I think it's a pretty safe bet to claim anything done through a KYC exchange, especially in you have transactions over 4 figures.

[LastBoyScout]

Yes, indeed but keeping in mind that every transaction is recorded, including those that are a fraction of a cent. It simply wont be cost effective to pursue and that assuming you can still track it back to an individual which I find unlikely. Plus you got altcoins like Monero that are specifically engineered for keeping transactions private and no doubt the first time anyone gets nailed in a public way, all the coins will simply adopt that feature or lose ground to the ones that do.

 

If the transactions are private in monero how do you know the system isn’t being gamed, it’s the public ledger keeps the BT honest.

[misteraven]

The IRS was willing to spend 20 million, to collect 6.7 million in taxes. By their logic it creates a "deterrent" resulting in more people paying without direct enforcement. If you have an account on any exchange that trades cryptocurrencies for fiat, you're not anonymous. Because of KYC laws, they can see when you transferred from your bank into the exchange, and what wallet address you sent it to, or when you cashed back out into Fiat.

 

It's a safe bet that it would cost them pennies on the dollar to let Bitfury (company known to do such work) process the data for them, and serve it up to the IRS so they can send you a notice. I've been fucked by underestimating the IRS before. Taxes are a bitch, but penalties suck even more. I'm obviously not adverse to "gambling" fucking with crypto. That said, I think it's a pretty safe bet to claim anything done through a KYC exchange, especially in you have transactions over 4 figures.

 

No doubt, but again when you crypto can be fractionalized up to 21 decimal places so you can literally trade for a thousandth of a cent, coupled with exponential growth in interest and use, it's a losing proposition. They won't see a return anywhere near that. Plus like I said, several coins are being developed to keep it altogether anonymous.

 

That said, I'm not advocating anyone breaking law (disclaimer). And yes, you are correct, they'll raid the exchanges that convert to fiat. That said, they have no jurisdiction outside the USA and would need international cooperation to hit those exchanges. And as you know, once it shifts between personal wallets that are even connected to exchanges or services, its lost into the void for the most part. And as stated, you can shift the crypto to a lot of stuff besides fiat as well. Government (at least the legislative part) is clueless about tech. Best they can hope for is to listen to the discussion and nail people that way. just don't see them fishing through hashes trying to decrypt whats happening and then trail it back to a source. Especially when it's hopping all over the place, including internationally.

[misteraven]

If the transactions are private in monero how do you know the system isn’t being gamed, it’s the public ledger keeps the BT honest.

 

Consensus is reached when the majority agree to the transaction logged at which time it gets recorded to the new block in the chain. Because the signature is what connects the public and private keys, with the private key never being seen outside the owner, there's no way to confirm it without seeing it. Also, you guys know that the address changes after each transaction so you can't even run an algorithm to match that up. Needle in the haystack my dude.

[misteraven]

@LastBoyScout Oh yeah, the public ledger is the block chain. That's all it actually is for the most part.

[misteraven]

Just a helpful hint to those of you getting down and even some of you OGs... Dont use a freakin gmail to trade. Be smart and setup something like http://www.protonmail.com where your shit isn't going to be read by bots and reported to the alphabet agencies.

[Guest]

Yeah man, its an exciting time and this convo was way past due. Wish we'd done this 5 years ago and we'd likely be having this discussion over pina coladas off the coast of monaco instead of here on the forum. Better late than never and glad to see the activity on the forums. This is how shit got big back in the days.

 

The two big exchanges I'm most aware of are www.binance.com and www.bittrex.com - keep in mind most registrations are free, so I suggest registering an account on as many as you can as they often close down registrations at the popular ones. In fcat, been considering registering several and selling the logins for crypto for the desperate traders that show up late.

 

And glad to see you back brother!

 

Good to be back. Site looks great.

 

My wife and I always do the quick maths on what coulda, shoulda, woulda...

 

Good idea with the making multiple logins. I was reading on another forum, some dude is building a bot to arbitrage trade. That seems like free money to me.

 

Haven't sold anything for FIAT yet, just been buying at the dips and holding. Fucked up last night tho, bought a fraction of btc at 11,400 and that shit went below 10,000 last night and today. I'm tight but at least it was lower than the last time i bought.

 

I need time for research for the alts but work is getting in the way. need to work to buy coins. catch 22.

 

Asia is about to wake up in an hour. Are they buying or selling???

[misteraven]

Yeah man, I feel you. And thanks for the kind words regarding the site.

 

I scooped some BTC at 10.4 which I pretty pleased with. I believe BTC is a long term play really. Obviously its the blue chip stock of crypto and I'll be surprised if in 10 years we wont see it up above $250k.

 

I think the get rich quick opportunities are in the new coins that pop up at a fraction of a cent. Most will go nowhere, but then some will turn into NEO. Not offering financial advice, but personally I'm taking a sort of VC approach to it... Watch for the new alts, quickly research what team is behind it, if its a straight fork or has some new feature or plan and then spread some money around. Nothing big, but maybe $100 - $500 between about a dozen or so of them. I'll keep a close watch, pull my investment as soon as I see a good rise and let the profits run until I feel like dumping. Honestly I expect most to straight fail, but my guess is that there will always be one or two that will push from a fraction of a sent to maybe a few dollars or more. Its still the way early days of crypto and I seriously doubt we'll see opportunities like this once it stabilizes. Lot of people comparing it to .com and like that, there will always be amazing opportunity, but this wild west shit where you can become a millionaire in a short period of time... Cant see that lasting.

[Guest]

after all this my profit margin is still at 99% so I guess I shouldn't be upset. I have such little stake that it's hardly life changing.

[misteraven]

That said, I was considering making a 12oz altcoin. Mainly I'd like to research and understand the deeper workings on the tech side, but who knows, if I can think of a feature and somehow build it, perhaps it'll get some attention. Anyone have an ideas of a shortcoming or feature we can exploit to differentiate a oontz coin? Anyhow try forking a coin or messing with actual blockchain?

 

Also, I'm running a bit of a social experiment on the @12ozprophet instagram... Last batch of shirt we dropped sold out in minutes and I've had tons of people hitting me up since. I did some reprints to fill orders that slipped in when our server got borked at launch and wound up with some extras. Anyhow, I offered them up for no markup but you have to pay in crypto... Got dozens of emails asking how to set it up, dozens more begging to pay in Paypal (including a few offering a good bit over the price I've offered it at). So far only one kid actually paid in crypto amongst the dozens that have been sending emails asking how to set shit up.

 

Anyhow, the very interesting (if not not quite conclusive) lesson is that so few people are up[ on this. Most have heard of it, but so few are actually buying / trading. You'd assume our audience is young and up on shit, good with social, savvy, etc... Trend setters perhaps. Yet very few seem to actually be up on this. I've heard a stat somewhere that about 2.5% of the USA is dealing in crypto and honestly I'm not believing that at all. We might be passed the days of sub $1k BTC, but this is still the early formative years of crypto so stake your claim!

[Hua Guofang]

Not really correct. The dollar isn't backed by anything. In fact, its a note of debt.

 

That's just another way of saying what I said (without going into the rest of your post regards the Fed, etc.).

[misteraven]

That's just another way of saying what I said (without going into the rest of your post regards the Fed, etc.).

 

Ha! Not quite... You related it to the size of our GDP. Got nothing to do with that. Just some dudes behind closed doors working in cooperation with some massive banks and huge players to do what they think will make them the most money and keep the game going for longer.

[misteraven]

Anyone buying TRON or RDD?

 

Thoughts?

[misteraven]

Oh yeah, and VERGE?

[Mercer]

That said, I was considering making a 12oz altcoin. Mainly I'd like to research and understand the deeper workings on the tech side, but who knows, if I can think of a feature and somehow build it, perhaps it'll get some attention. Anyone have an ideas of a shortcoming or feature we can exploit to differentiate a oontz coin? Anyhow try forking a coin or messing with actual blockchain?

 

The best way to do this is to Create an ERC20 token. 30-40% of the top 100 cryptocurrencies are ERC20 tokens. They're basically a cryptocurrency that's built on top of the Ethereum blockchain using a smart contract. You should research it, but pro's: you get the benefit of being on the 2nd largest, and #1 most decentralized distributed ledger network in existence. You won't have to worry about security, hardware, or starting a network of miners from scratch. The tokens can be distributed to anyone with an Ethereum address.

 

In the future, if you can come up with a utility for the tokens, create a market for them, and get some traction it could blow up. If not, it would still be fun to own some oontz-coin or whatever. I'm a proud hodler of Dogecoin, and cryptokitties, not because I, or anyone else thinks they're a good investment. It's just for fun, like digital collector items for nerds like myself. I've got a "friend of a fiend" that works at Consensys, a Brooklyn based company that specializes in writing smart contracts for Ethereum, which is probably the most reputable one out there if interested.

[Guest]

Niketalk’s crypto thread is 600+ pages. But the majority of the site consists of young kids buying and reselling kicks so it would make sense that they would get that much traffic.

[Hua Guofang]

Ha! Not quite... You related it to the size of our GDP. Got nothing to do with that. Just some dudes behind closed doors working in cooperation with some massive banks and huge players to do what they think will make them the most money and keep the game going for longer.

 

Ok.....

 

You own a part of the national economy, by whichever way anyone sees it to be determined/defined/divined.

 

Bottom line is that the currency is backed by something, it's doesn't float in the air (ok, it floats on a group of faceless old white men who manipulate the world, if you'd like) and it can be measured against something to define it's value as perceived by the market.

[diggity]

Anyone buying TRON or RDD?

 

Thoughts?

 

[diggity]

Its getting cozy up in here...

Feel like alot of us are having the same thoughts - Wish I had bought this when I wanted to long time ago.

 

I think the largest hurdle for it is getting over the fact that at a glance it gets compared to digital beanie babies and in some cases, looks like a total ponzi scheme..

 

That said, I picked up some via coinbase right after Christmas. My brother started fucking with it 4-5 months ago and turned some serious profits in the high risk ICOs.

While I kind of understand how the ICOs work, buying in at ground level, can someone please explain how the lending works on them after they go public?

The returns he is seeing on crypto lent out is like 1% a day.

 

I'm also interested to hear why is it an ICO isnt really allowed for americans to buy.

 

Whats you guys thoughts on South Korea banning it?

[diggity]

Suggest using the Exodus wallet, don't hold all of your investment on any exchange including coinbase.

When signing up, make sure to WRITE DOWN your 16 word mnemonic passphrase.

Don't print it, don't save it anywhere on your computer, and for sure as fuck don't save it online or in the cloud.

Just write it down and practice memorizing it.

 

Exodus has shapeshift built into it so you can change between cryptocurrencies very easily.

 

Also, as a matter of opinion from a somewhat seasoned altcoin investor, I don't recommend buying into any altcoin that's had a huge runup recently which includes ripple.

 

Questions for you since your a bit more of a vet.

Exodus- Explain this a little more like i'm and idiot. I checked out Exodus, looks suitable. What happens if the computer I have it on dies? how does one recover? the same question goes for those little USB Drive wallets. If you were to lose them, are you just fucked? It doesnt seem like that could be true but again, I'm new to this.

 

 

Does exodus take a cut when you exchange from Bitcoin to Lite or others?

 

Why you no fuck with the alt coins? I read good things on Ripple and a couple of others.

[misteraven]

Questions for you since your a bit more of a vet.

Exodus- Explain this a little more like i'm and idiot. I checked out Exodus, looks suitable. What happens if the computer I have it on dies? how does one recover? the same question goes for those little USB Drive wallets. If you were to lose them, are you just fucked? It doesnt seem like that could be true but again, I'm new to this.

 

 

Does exodus take a cut when you exchange from Bitcoin to Lite or others?

 

Why you no fuck with the alt coins? I read good things on Ripple and a couple of others.

Personally I’m using a Jaxx wallet which seems to be the same idea. Even has the string of words to recover. I have it synced from iPhone to desktop and believe that it stores the data on their servers in addition to your devices. Can’t see how you’d sync or recover otherwise. Jaxx also has shapeshift.

 

As for the hardware wallet, yes if you lose it or break it you are fucked. As such, I usually see people suggest having two that are mirrored. One is used, the other gets stored. The stored one never touches a networked device so when you sync, you literally take your computer offline while doing so. I don’t own a hardware wallet but will probably buy two when I start seeing the need for it (like have huge money stashed). Will likely keep a paper copy as well. No idea about exodus but there are almost always transaction fees when sending crypto. As you probably know they’re tiny and easily hidden within the fluctuation of value. Sent my kid $100 of btc and he received $99.99.

[misteraven]

Ok.....

 

You own a part of the national economy, by whichever way anyone sees it to be determined/defined/divined.

 

Bottom line is that the currency is backed by something, it's doesn't float in the air (ok, it floats on a group of faceless old white men who manipulate the world, if you'd like) and it can be measured against something to define it's value as perceived by the market.

 

You still seem to put a lot of faith in fiat. Technically crypto is actually fiat as well, but considering it has a defined scarcity and growth rate that can’t be changed, unlike the dollar, I’d have a tough time accepting why anyone would put more faith in it just because Uncle Sam promises to back it. There’s nearly zero transparency with the US Dollar and they’ve been playing games with it endlessly almost since inception, but especially with the founding of the federal reserve (which in itself is a crazy story). The fed literally lends money to the central banking system to in turn buy bonds just to keep from overtly lending the US government money since it’s run at a massive deficit and the big debt holders (China and Russia) aren’t buying. They can do shit like that because they can just move some decimal points around and create the money from thin air at their convenience. Meanwhile diluting the purchasing power of the dollar at an admitted rate of 4% a year (more like 7 - 8% according to shadow stats, which I don’t doubt). The government stopped reporting unfunded liabilities back during the Clinton administration because it was impossible to hide how deeply they’ve raided the pockets of the American tax payers. Meanwhile, we’ve doubled the national debt that they do acknowledge during the last administration.

 

Sorry man, hard to see why anyone would trust that racket but be skeptical of the validity of crypto once you understand what it is, how it works and then piece together the impact it’s going to have on global economics.

 

Not to say the establishment will fight it tooth and nail and pull out every trick in the book before realizing there’s no putting that genie back in the bottle and start embracing it fully.

 

Best analogy I can think of is the world going back to flip phones after using iPhones simply because the US government says the old phones are reliable and thereby deciding to discredit smart phones up until making them illegal and believing every other country will follow suit.

[misteraven]

The best way to do this is to Create an ERC20 token. 30-40% of the top 100 cryptocurrencies are ERC20 tokens. They're basically a cryptocurrency that's built on top of the Ethereum blockchain using a smart contract. You should research it, but pro's: you get the benefit of being on the 2nd largest, and #1 most decentralized distributed ledger network in existence. You won't have to worry about security, hardware, or starting a network of miners from scratch. The tokens can be distributed to anyone with an Ethereum address.

 

In the future, if you can come up with a utility for the tokens, create a market for them, and get some traction it could blow up. If not, it would still be fun to own some oontz-coin or whatever. I'm a proud hodler of Dogecoin, and cryptokitties, not because I, or anyone else thinks they're a good investment. It's just for fun, like digital collector items for nerds like myself. I've got a "friend of a fiend" that works at Consensys, a Brooklyn based company that specializes in writing smart contracts for Ethereum, which is probably the most reputable one out there if interested.

 

Will definitely look into all this. Thanks for the knowledge.

[Hua Guofang]

You still seem to put a lot of faith in fiat.

 

Dude, you are totally reading something I'm not writing.

 

I'm not saying I like it, trust it want it or that I'm even passing any kind of value judgement at all.

 

I'm only saying that national currencies, of ANY country with a floating currency is an investment in the viability of that national economy. The central and ONLY point I am making is that currencies ARE backed by something and that is the net worth and potential of the applicable national economy.

 

You have a point to make regards monetary/fiscal/economic policy in the US and I don't have a problem with that point. I just have no idea why you keep on trying to have that discussion with me when it's not what I'm talking about or relevant to the point that I was making that currencies are backed by something (whether that something is good or not is irrelevant to this point).

[Dirty_habiT]

Crypto currency is backed by whatever form of money you exchange it for and it's current exchange rate for that currency.

 

A search yielded this (incomplete) list of things that determine the value of a cryptocurrency's units:

 

• Limited Supply and supply/demand.
  
• Energy put in in the form of electricity to secure the blockchain.
  
• Blockchain difficulty level.
  
• The utility of the currency, and how easy it is to use and store.
  
• Perceptions on its value by the public.
  
• Price of Bitcoin.
  
• Media.
  
• Investors.
  
• Scams.
  
• Market dilution.
  
• Innovation.
  
• Confidence in traditional systems.
  
• Legal/Governmental issues.
  

The energy used to work with cryptocurrency definitely costs money. I haven't seen any energy companies accepting cryptocurrency as a form of bill payment yet so you're still paying with your "backed" currency to create crypto currency. The value of gold or any precious metal is determined by supply/demand. The same rules govern cryptocurrency and there's no way to "create gold" or "create bitcoins" without expending something that costs resources to do it.

 

I don't understand how people get so hung up on comparing US dollars that are backed by gold to crypto currencies that are "backed by nothing". As soon as the dollar isn't worth as much you just change the crypto currency into some other currency that is worth the exchange. You wouldn't trade a bitcoin for $1000 right now if you had one, nobody would. Even if someone gave it to you, you wouldn't just give it away saying it's not worth anything because it's virtual right?