Hola a todos. Voy a estar tippeando bitcoins a todo el que lo pida en este thread hasta agotar mis fondos, no sean tímidos y posteen. inb4 reset del contador Edit: ChangeTip está medio saturado hoy así que puede que tarde en verificar los tips. Edit 2: Santo patrono del thread (gracias romeroj) Edit 3: Ya estamos llegando a los últimas moneditas (al menos de mi parte). Me voy a tomar un descanso y a la vuelta reparto lo que me queda. Edit 4: Corto por hoy, ya se secó el pozo. A los que llegaron tarde: posteen igual, en una de esas alguien más se copa y les deja un tip. Non-Argies coming from other subs to ask for free bitcoins: you're welcome here, but I'm giving priority to Argentines for now. To all other bitcoiners helping out: thank you so much <3
Breadwallet (iOS) - no tengo un iPhone así que no lo probé, pero suele ser el que recomiendan
¿Dónde puedo gastar bitcoins? En Argentina:
Coinmap.org es un mapa con una buena cantidad de lugares que aceptan bitcoin en Argentina.
EnBitcoins te deja pagar facturas con bitcoin. Funciona para casi todos los servicios comunes del país (luz, agua, gas, teléfono, cable, internet, tarjetas de crédito, etc). Lo usé varias veces y funciona muy bien.
Avalancha.com es un retailer online de electrónica y artículos del hogar (entre otras cosas) y aceptan bitcoins. Por lo que tengo entendido hacen delivery a todo el país, con excepción de Ushuaia.
Trifl es un delivery de comida que acepta bitcoin. Hasta donde sé solo operan dentro de CABA.
Bitcoin Taxi son dos taxistas en CABA que aceptan bitcoin (asegurate de tener buena conexión 3G si pensás pagar así).
Spendabit es un buscador de productos que se pueden comprar con bitcoin en el mundo.
¿Dónde puedo aprender más sobre Bitcoin? No estoy al tanto de todas las guías de Bitcoin, así que no sé cuál es la mejor, pero WeUseCoins.com me parece bastante decente para empezar (no está disponible en castellano).
/r/Bitcoin is currently trending. If you're just visiting for the day, feel free to say hello and ask all your Bitcoin questions here!
We've got a lot of people around who enjoy sharing their Bitcoin knowledge, so don't be shy. If you want to learn more and feel like sticking around for a while, remember to subscribe. Here's an introductory and an FAQ link to pique your curiosity. Also, check out weusecoins.com if you're absolutely brand new to Bitcoin. Have fun!
The Great Bitcoin Bull Market Of 2017 by Trace Mayer
By: Trace Mayer, host of The Bitcoin Knowledge Podcast. Originally posted here with images and Youtube videos. I just got back from a two week vacation without Internet as I was scouring some archeological ruins. I hardly thought about Bitcoin at all because there were so many other interesting things and it would be there when I got back. Jimmy Song suggested I do an article on the current state of Bitcoin. A great suggestion but he is really smart (he worked on Armory after all!) so I better be thorough and accurate! Therefore, this article will be pretty lengthy and meticulous. BACKGROUND As I completely expected, the 2X movement from the New York Agreement that was supposed to happen during the middle of my vacation flopped on its face because Jeff Garzik was driving the clown car with passengers willfully inside like Coinbase, Blockchain.info, Bitgo and Xapo and there were here massive bugS and in the code and miners like Bitmain did not want to allocate $150-350m to get it over the difficulty adjustments. I am very disappointed in their lack of integrity with putting their money where their mouths are; myself and many others wanted to sell a lot of B2X for BTC! On 7 December 2015, with Bitcoin trading at US$388.40, I wrote The Rise of the Fourth Great Bitcoin Bubble. On 4 December 2016, with Bitcoin trading at US$762.97, I did this interview:
As of 26 November 2017, Bitcoin is trading around US$9,250.00. That is an increase of about 2,400% since I wrote the article prognosticating this fourth great Bitcoin bull market. I sure like being right, like usual (19 Dec 2011, 1 Jul 2013), especially when there are financial and economic consequences. With such massive gains in such a short period of time the speculative question becomes: Buy, Hold or Sell? FUNDAMENTALS Bitcoin is the decentralized censorship-resistant Internet Protocol for transferring value over a communications channel. The Bitcoin network can use traditional Internet infrastructure. However, it is even more resilient because it has custom infrastructure including, thanks to Bitcoin Core developer Matt Corrallo, the FIBRE network and, thanks to Blockstream, satellites which reduce the cost of running a full-node anywhere in the world to essentially nothing in terms of money or privacy. Transactions can be cheaply broadcast via SMS messages. SECURITY The Bitcoin network has a difficulty of 1,347,001,430,559 which suggests about 9,642,211 TH/s of custom ASIC hardware deployed. At a retail price of approximately US$105/THs that implies about $650m of custom ASIC hardware deployed (35% discount applied). This custom hardware consumes approximately 30 TWh per year. That could power about 2.8m US households or the entire country of Morocco which has a population of 33.85m. This Bitcoin mining generates approximately 12.5 bitcoins every 10 minutes or approximately 1,800 per day worth approximately US$16,650,000. Bitcoin currently has a market capitalization greater than $150B which puts it solidly in the top-30 of M1 money stock countries and a 200 day moving average of about $65B which is increasing about $500m per day. Average daily volumes for Bitcoin is around US$5B. That means multi-million dollar positions can be moved into and out of very easily with minimal slippage. When my friend Andreas Antonopolous was unable to give his talk at a CRYPSA event I was invited to fill in and delivered this presentation, impromptu, on the Seven Network Effects of Bitcoin. These seven network effects of Bitcoin are (1) Speculation, (2) Merchants, (3) Consumers, (4) Security [miners], (5) Developers, (6) Financialization and (7) Settlement Currency are all taking root at the same time and in an incredibly intertwined way. With only the first network effect starting to take significant root; Bitcoin is no longer a little experiment of magic Internet money anymore. Bitcoin is monster growing at a tremendous rate!!
SPECULATION For the Bitcoin price to remain at $9,250 it requires approximately US$16,650,000 per day of capital inflow from new hodlers. Bitcoin is both a Giffen good and a Veblen good. A Giffen good is a product that people consume more of as the price rises and vice versa — seemingly in violation of basic laws of demand in microeconomics such as with substitute goods and the income effect. Veblen goods are types of luxury goods for which the quantity demanded increases as the price increases in an apparent contradiction of the law of demand. There are approximately 16.5m bitcoins of which ~4m are lost, ~4-6m are in deep cold storage, ~4m are in cold storage and ~2-4m are salable. (http://www.runtogold.com/images/lost-bitcoins-1.jpg) (http://www.runtogold.com/images/lost-bitcoins-2.jpg) And forks like BCash (BCH) should not be scary but instead be looked upon as an opportunity to take more territory on the Bitcoin blockchain by trading the forks for real bitcoins which dries up more salable supply by moving it, likely, into deep cold storage. According to Wikipedia, there are approximately 15.4m millionaires in the United States and about 12m HNWIs ($30m+ net worth) in the world. In other words, if every HNWI in the world wanted to own an entire bitcoin as a 'risk-free asset' that cannot be confiscated, seized or have the balance other wise altered then they could not. For wise portfolio management, these HNWIs should have at least about 2-5% in gold and 0.5-1% in bitcoin. Why? Perhaps some of the 60+ Saudis with 1,700 frozen bank accounts and about $800B of assets being targetted might be able to explain it to you. In other words, everyone loves to chase the rabbit and once they catch it then know that it will not get away. RETAIL There are approximately 150+ significant Bitcoin exchanges worldwide. Kraken, according to the CEO, was adding about 6,000 new funded accounts per day in July 2017. Supposedly, Coinbase is currently adding about 75,000 new accounts per day. Based on some trade secret analytics I have access to; I would estimate Coinbase is adding approximately 17,500 new accounts per day that purchase at least US$100 of Bitcoin. If we assume Coinbase accounts for 8% of new global Bitcoin users who purchase at least $100 of bitcoins (just pulled out of thin error and likely very conservative as the actual number is perhaps around 2%) then that is approximately $21,875,000 of new capital coming into Bitcoin every single day just from retail demand from 218,750 total new accounts. What I have found is that most new users start off buying US$100-500 and then after 3-4 months months they ramp up their capital allocation to $5,000+ if they have the funds available. After all, it takes some time and practical experience to learn how to safely secure one's private keys. To do so, I highly recommendBitcoin Core (network consensus and full validation of the blockchain), Armory (private key management), Glacier Protocol (operational procedures) and a Puri.sm laptop (secure non-specialized hardware). WALL STREET There has been no solution for large financial fiduciaries to invest in Bitcoin. This changed November 2017. LedgerX, whose CEO I interviewed 23 March 2013, began trading as a CFTC regulated Swap Execution Facility and Derivatives Clearing Organization. The CME Group announced they will begin trading in Q4 2017 Bitcoin futures. The CBOE announced they will begin trading Bitcoin futures soon. By analogy, these institutional products are like connecting a major metropolis's water system (US$90.4T and US$2 quadrillion) via a nanoscopic shunt to a tiny blueberry ($150B) that is infinitely expandable. This price discovery could be the most wild thing anyone has ever experienced in financial markets. THE GREAT CREDIT CONTRACTION The same week Bitcoin was released I published my book The Great Credit Contraction and asserted it had now begun and capital would burrow down the liquidity pyramid into safer and more liquid assets. (http://www.runtogold.com/images/Great-Credit-Contraction-Liquidity-Pyramid.jpg) Thus, the critical question becomes: Is Bitcoin a possible solution to the Great Credit Contraction by becoming the safest and most liquid asset? BITCOIN'S RISK PROFILE At all times and in all circumstances gold remains money but, of course, there is always exchange rate risk due to price ratios constantly fluctuating. If the metal is held with a third-party in allocated-allocated storage (safest possible) then there is performance risk (Morgan Stanley gold storage lawsuit). But, if properly held then, there should be no counter-party risk which requires the financial ability of a third-party to perform like with a bank account deposit. And, since gold exists at a single point in space and time therefore it is subject to confiscation or seizure risk. Bitcoin is a completely new asset type. As such, the storage container is nearly empty with only $150B. And every Bitcoin transaction effectively melts down every BTC and recasts it; thus ensuring with 100% accuracy the quantity and quality of the bitcoins. If the transaction is not on the blockchain then it did not happen. This is the strictest regulation possible; by math and cryptography! This new immutable asset, if properly secured, is subject only to exchange rate risk. There does exist the possibility that a software bug may exist that could shut down the network, like what has happened with Ethereum, but the probability is almost nil and getting lower everyday it does not happen. Thus, Bitcoin arguably has a lower risk profile than even gold and is the only blockchain to achieve security, scalability and liquidity. To remain decentralized, censorship-resistant and immutable requires scalability so as many users as possible can run full-nodes. (http://www.runtogold.com/images/ethereum-bitcoin-scability-nov-2017.png) TRANSACTIONS Some people, probably mostly those shilling alt-coins, think Bitcoin has a scalability problem that is so serious it requires a crude hard fork to solve. On the other side of the debate, the Internet protocol and blockchain geniuses assert the scalability issues can, like other Internet Protocols have done, be solved in different layers which are now possible because of Segregated Witness which was activated in August 2017. Whose code do you want to run: the JV benchwarmers or the championship Chicago Bulls? As transaction fees rise, certain use cases of the Bitcoin blockchain are priced out of the market. And as the fees fall then they are economical again. Additionally, as transaction fees rise, certain UTXOs are no longer economically usable thus destroying part of the money supply until fees decline and UTXOs become economical to move. There are approximately 275,000-350,000 transactions per day with transaction fees currently about $2m/day and the 200 DMA is around $1.08m/day. (http://www.runtogold.com/images/bitcoin-transaction-fees-nov-2017.png) What I like about transaction fees is that they somewhat reveal the financial health of the network. The security of the Bitcoin network results from the miners creating solutions to proof of work problems in the Bitcoin protocol and being rewarded from the (1) coinbase reward which is a form of inflation and (2) transaction fees which is a form of usage fee. The higher the transaction fees then the greater implied value the Bitcoin network provides because users are willing to pay more for it. I am highly skeptical of blockchains which have very low transaction fees. By Internet bubble analogy, Pets.com may have millions of page views but I am more interested in EBITDA. DEVELOPERS Bitcoin and blockchain programming is not an easy skill to acquire and master. Most developers who have the skill are also financially independent now and can work on whatever they want. The best of the best work through the Bitcoin Core process. After all, if you are a world class mountain climber then you do not hang out in the MacDonalds play pen but instead climb Mount Everest because that is where the challenge is. However, there are many talented developers who work in other areas besides the protocol. Wallet maintainers, exchange operators, payment processors, etc. all need competent developers to help build their businesses. Consequently, there is a huge shortage of competent developers. This is probably the largest single scalability constraint for the ecosystem. Nevertheless, the Bitcoin ecosystem is healthier than ever before. (http://www.runtogold.com/images/bitcoin-ecosystem.jpg)(/images/bitcoin-ecosystem-small.jpg) SETTLEMENT CURRENCY There are no significant global reserve settlement currency use cases for Bitcoin yet. Perhaps the closest is Blockstream's Strong Federations via Liquid. PRICE There is a tremendous amount of disagreement in the marketplace about the value proposition of Bitcoin. Price discovery for this asset will be intense and likely take many cycles of which this is the fourth. Since the supply is known the exchange rate of Bitcoins is composed of (1) transactional demand and (2) speculative demand. Interestingly, the price elasticity of demand for the transactional demand component is irrelevant to the price. This makes for very interesting dynamics! (http://www.runtogold.com/images/bitcoin-speculation.jpg) On 4 May 2017, Lightspeed Venture Partners partner Jeremy Liew who was among the early Facebook investors and the first Snapchat investor laid out their case for bitcoin exploding to $500,000 by 2030. On 2 November 2017, Goldman Sachs CEO Lloyd Blankfein (https://www.bloomberg.com/news/articles/2017-11-02/blankfein-says-don-t-dismiss-bitcoin-while-still-pondering-value)said, "Now we have paper that is just backed by fiat...Maybe in the new world, something gets backed by consensus." On 12 Sep 2017, JP Morgan CEO called Bitcoin a 'fraud' but conceded that "(http://fortune.com/2017/09/12/jamie-dimon-bitcoin-cryptocurrency-fraud-buy/)Bitcoin could reach $100,000". Thus, it is no surprise that the Bitcoin chart looks like a ferret on meth when there are such widely varying opinions on its value proposition. I have been around this space for a long time. In my opinion, those who scoffed at the thought of $1 BTC, $10 BTC (Professor Bitcorn!), $100 BTC, $1,000 BTC are scoffing at $10,000 BTC and will scoff at $100,000 BTC, $1,000,000 BTC and even $10,000,000 BTC. Interestingly, the people who understand it the best seem to think its financial dominance is destiny. Meanwhile, those who understand it the least make emotionally charged, intellectually incoherent bearish arguments. A tremendous example of worldwide cognitive dissonance with regards to sound money, technology and the role or power of the State. Consequently, I like looking at the 200 day moving average to filter out the daily noise and see the long-term trend. (http://www.runtogold.com/images/bitcoin-price-200dma-nov-2017.png) Well, that chart of the long-term trend is pretty obvious and hard to dispute. Bitcoin is in a massive secular bull market. The 200 day moving average is around $4,001 and rising about $30 per day. So, what do some proforma situations look like where Bitcoin may be undervalued, average valued and overvalued? No, these are not prognostications. (http://www.runtogold.com/images/bitcoin-price-pro-forma.png) Maybe Jamie Dimon is not so off his rocker after all with a $100,000 price prediction. We are in a very unique period of human history where the collective globe is rethinking what money is and Bitcoin is in the ring battling for complete domination. Is or will it be fit for purpose? As I have said many times before, if Bitcoin is fit for this purpose then this is the largest wealth transfer in the history of the world. CONCLUSION Well, this has been a brief analysis of where I think Bitcoin is at the end of November 2017. The seven network effects are taking root extremely fast and exponentially reinforcing each other. The technological dominance of Bitcoin is unrivaled. The world is rethinking what money is. Even CEOs of the largest banks and partners of the largest VC funds are honing in on Bitcoin's beacon. While no one has a crystal ball; when I look in mine I see Bitcoin's future being very bright. Currently, almost everyone who has bought Bitcoin and hodled is sitting on unrealized gains as measured in fiat currency. That is, after all, what uncharted territory with daily all-time highs do! But perhaps there is a larger lesson to be learned here. Riches are getting increasingly slippery because no one has a reliable defined tool to measure them with. Times like these require incredible amounts of humility and intelligence guided by macro instincts. Perhaps everyone should start keeping books in three numéraires: USD, gold and Bitcoin. Both gold and Bitcoin have never been worth nothing. But USD is a fiat currency and there are thousands of those in the fiat currency graveyard. How low can the world reserve currency go? After all, what is the risk-free asset? And, whatever it is, in The Great Credit Contraction you want it! What do you think? Disagree with some of my arguments or assertions? Please, eviscerate them on Twitter or in the comments!
ArcaneWharf and I have put this post together quickly so that we have a resource which we can point newcomers towards in order to answer their frequently answered questions. This should serve as more of an overview or quick-start guide which is a jumping off point for beginners, rather than a comprehensive or complete guide. This is a work-in-progress (i.e., definitely not perfect) which, as a community, we could expand and improve upon over time. If you have something to contribute (either to this or something more detailed), do comment in this thread or contact the mods (by sending a message to /BitcoinUK).
How can I learn more about bitcoin?
There are already some links in /BitcoinUK’s sidebar which should help you get started. If that’s not enough, check out:
We'd encourage you to at least understand the basics before making your first bitcoin purchase. There are tons of fantastic resources out there, so there’s no excuse for ignorance.
How do I buy bitcoin?
The answer depends on your priorities, as there tends to be a trade-off between more convenient, quicker options (which are more expensive) and less convenient, slower options (which are cheaper).
Purchasing with a credit or debit card on Coinbase is the best starting point for beginners, as it offers a great user experience. There's a quick guide here, but you probably won't need it as the sign-up and purchase process is quite intuitive. If you're having issues with verification on Coinbase (or it's just taking too long), then you might want to check out the options described in the ‘high fees, but faster’ section below. For subsequent purchases, check out the options described in the next two sections. Although the ‘no fees, but slower’ purchase route is popular and well recommended on /BitcoinUK, you shouldn’t automatically rule out the options described in the ‘high fees, but faster’ section.
No fees, but slower
The Revolut to GDAX route is frequently recommended in the /BitcoinUK community, as it eliminates fees and allows you to purchase bitcoin at the best possible price. Keep in mind that this route won’t work on weekends, as SEPA transfers only get pushed through during normal working hours (i.e., Monday AM till Friday PM). If you’re looking to purchase on weekends, then you’ll have to use the options described in the following section. You can finds details about this purchase route in this text guide and this video guide Summary of this process:
Sign up for Coinbase and Revolut.
Transfer GBP into your Revolut GBP account.
Activate your EUR wallet
Convert GBP to EUR in Revolut (FREE)
Send EUR to Coinbase (FREE)
Transfer EUR from Coinbase to GDAX (FREE)
Buy bitcoin on the BTC/EUR market.
High fees, but faster
If you’re willing to pay a premium (i.e., pay above market-rate), then you can buy bitcoin quickly and conveniently with GBP UK bank transfers and debit/credit card purchases. The premium charged by these options is usually under 5%, but can extend beyond that during times of high demand and (positive) price volatility. Unlike the Revolut to GDAX route, these options also allow you to complete purchases on weekends. Popular, frequently recommended options which are quick and convenient include:
Prices offered across these services vary day-to-day. For an overview of your options (and their relative competitiveness), you should check out BittyBot.co. This provides a full list of merchants and marketplaces available, ordered by price (cheapest first). You can also filter the output by payment method by typing it into the 'Search' box. Some users may prefer to take this faster route if they are convinced the price of bitcoin will increase during the time it would take for a transfer to process from Revolut to GDAX (using the method detailed in the previous section). This can pay off, but be cautious. The volatility of bitcoin makes it a double-edged sword and its price could just as easily go down (drastically) as it could go up.
What's the best way to sell bitcoin?
You can sell bitcoins back to the majority of sites which you buy them from. As before, there's a trade-off between the quicker and slower options. If you're looking to get a price which is closest to the market rate (and pay as few fees as possible), then you'll want to sell through an exchange like GDAX, exchanging your bitcoin for euros. GDAX is preferable when you're selling, as the price you'll get per bitcoin is higher. Essentially, just reverse the process detailed earlier in the FAQ (see this text guide or this video guide). Alternatively, check out this quick 3-minute video which walks you through the process. Summary of this process:
On GDAX, click ‘Withdraw Funds’ while in the EUBTC market
Transfer to your Coinbase Account (FREE)
Go to Coinbase > Accounts > Euro Wallet > Withdraw
On Revolut, go into your Euro wallet > Top Up > Bank Transfer > EUR
Note down the IBAN and BIC from Revolut, and enter them into Coinbase. Also include the amount you wish to withdraw.
Withdraw funds into Revolut (15p charge)
Once funds are in your Revolut EUR account, exchange from EUR to GBP (FREE)
Go to GBP wallet > send funds. Add yourself as a beneficiary.
Send the funds! (free)
If you sell bitcoin on Localbitcoins, Solidi, etc., you can get it sorted same-day (usually in less than an hour) with a transfer directly to your UK bank account in GBP. For that convenience, you'll usually get offered an exchange rate which is below the market-rate (usually up to 5%, but sometimes more). You are able to set your own sell orders on Localbitcoins or BitBargain (so you’ll be able to sell above market rate). However, we would not advise doing this as a newcomer. Of course, you could always just withdraw directly from an exchange to your UK bank account. Again, you'll lose a percentage of your funds (>1%) in the foreign exchange conversion (from EUR to GBP) which your bank processes. Depending on the exchange rate charged by your bank, you might be better off selling through services which allow you to cash out in GBP instead.
How should I store bitcoin?
To simplify quite a broad topic, you essentially have two options: hot or cold.
A hot wallet is any wallet that is connected to the internet. Typically this will be in the form of a desktop program or a mobile app. Hot wallets rank high in convenience, but are not suitable for large holdings. They are extremely vulnerable to malware and backdoors, with hackers having strong financial incentives to target desktop wallets. Nevertheless, they are perfectly reasonable for storing small amounts of cryptocurrency. Some popular options:
Electrum: Open source, available on desktop and mobile, but more complicated.
Breadwallet: Simple and beginner friendly mobile wallet.
Exodus: Supports multiple cryptocurrencies, great user interface, and is suitable for beginners.
A cold wallet is a wallet that does not connect to the internet, and therefore cannot be affected by malware. There are multiple forms of cold storage, but beginners should first consider a hardware wallet. A hardware wallet is a small, USB device where you can keep your cryptocurrency. They are secure since all of the information is stored on the device, so you could plug it in to a computer riddled with malware, and the malware would have no way of interacting with your wallet. These generally aren’t considered as secure as cold-storage wallets, but are much better than a hot-wallet. Usage just requires plugging the hardware wallet into your computer. One drawback of a hardware wallet is the cost (£70-100). Although not a mandatory purchase, it is strongly recommended that you purchase a hardware wallet if you've accumulated (or plan to accumulate) coins which are worth more than between £500 - £1000. Popular, well-recommended options include the:
Both are reputable and will serve you well. At the time of writing this, the Ledger is slightly cheaper and offers support for more cryptocurrencies. Unless you need the greater cryptocurrency support, the choice between them doesn’t really matter. For an overview of the Ledger Nano S (with security recommendations and a small FAQ) see this post. For a tutorial on setting it up, check out this video.
For a more information on different wallets, check out:
When setting up a wallet, it’s advisable to not record your mnemonic seed (which allows you to restore the wallet) on a digital device. Instead, it’s recommended to record it (clearly) on paper or card.
Why can't I just leave my bitcoin in the exchange?
When you buy bitcoin on an exchange (such as GDAX), the bitcoin is in your account but still belongs to the company who runs the exchange. Until you withdraw to your own wallet (as described above), the bitcoin is not truly yours. The bitcoin does not belong to you unless you own the private key. This is very important. Do not leave large amounts of cryptocurrency in an exchange. Even if you trust that the company won’t run off with your bitcoin, an exchange is much more prone to getting hacked. Think about it from the perspective of a hacker: would you rather target a million individual users who only own a small amount of bitcoin each? Or would you target one exchange that you know is holding unfathomably large amounts of bitcoin? Don’t believe me? If you're purchasing through Coinbase, you can withdraw cryptocurrencies through GDAX (same company) to your own wallet for free. Check out this how-to post for details.
Revolut is a mobile banking app that has recently announced support for cryptocurrencies. Note this section only refers to their service that allows you to buy cryptocurrencies within their application - not the process detailed above. While more mainstream adoption is good, Revolut’s in-app cryptocurrency exchange - in its current state - does not allow you to withdraw your cryptocurrency from their application. This has all the same issues as leaving in exchange, as you don’t have the cryptocurrency in your own wallet. Revolut’s in-app cryptocurrency exchange should be rolled out to all customers, if their FAQ is still accurate, by the 21st or 22nd December. Early access is available if you have premium or invite 3 friends who subsequently sign up and use their app. See here for more details.
How do UK taxes work with bitcoin?
Please note: This is not professional tax advice. Conduct your own research to verify this information and/or contact a professional tax advisor. If you sell bitcoins at a higher price than you bought them for, or exchange them for something else (e.g., another cryptocurrency, and goods or services), you would be liable to pay capital gains tax. However, you have a capital gains allowance of £11,300 per year. If you generate profits from the sale or exchange of bitcoins which fall below this threshold, then no tax would be due. Additionally, no tax is due until you sell or exchange it for something else. You may also be able to reduce your capital gains liability by gifting cryptocurrencies to your partner so that they can take advantage of their capital gains allowance too (more details in this thread). It appears unclear how you would be taxed in the UK in other circumstances: such as mining, working for cryptocurrency, or proof of stake rewards. As these rules develop, it’s advised to document everything you do with cryptocurrencies. When the taxman comes knocking, you’ll be grateful that you did. IndeedHowlandReed has kindly putting together a more detailed guide about Bitcoin and UK tax. You can find part 1 here and part 2 here. If you have any questions not answered by their guide, post them in this thread (or upvote existing questions). Useful Links:
Have a question that’s not here? Search /BitcoinUK first.
If you don’t find the answer to your question here, please search this subreddit before submitting a new post.
Have a contribution or suggestion?
As noted at the start, this is a WIP (i.e., it's definitely not perfect) which, as a community, we could expand and improve upon over time. If you have something to contribute (or even just a suggestion), do comment in this thread or contact the mods.
never too late to know about blockchain tech wwww.fxtradingcorp.com
📷 JOIN NOW just click below the links or any link to sign up and start earning https://office.fxtradingcorp.com/signup/1029604hjgb8c086p ( RIGHT WING CLUB) OR https://office.fxtradingcorp.com/signup/1029604hjgb8c086p ( LEFT WING CLUB) WHAT IS BITCOIN MEANING ………… 📷 Bitcoin is a decentralized digital currency that enables instant payments to anyone, anywhere in the world. Bitcoin uses peer-to-peer technology to operate with no central authority: transaction management and money issuance are carried out collectively by the network. The original Bitcoin software by Satoshi Nakamoto was released under the MIT license. Most client software, derived or "from scratch", also use open source licensing. Bitcoin is the first successful implementation of a distributed crypto-currency, described in part in 1998 by Wei Dai on the cypherpunks mailing list. Building upon the notion that money is any object, or any sort of record, accepted as payment for goods and services and repayment of debts in a given country or socio-economic context, Bitcoin is designed around the idea of using cryptography to control the creation and transfer of money, rather than relying on central authorities. Bitcoins have all the desirable properties of a money-like good. They are portable, durable, divisible, recognizable, fungible, scarce and difficult to counterfeit. Why? Bitcoin is P2P electronic cash that is valuable over legacy systems because of the monetary autonomy it brings to its users. Bitcoin seeks to address the root problem with conventional currency: all the trust that's required to make it work -- Not that justified trust is a bad thing, but trust makes systems brittle, opaque, and costly to operate. Trust failures result in systemic collapses, trust curation creates inequality and monopoly lock-in, and naturally arising trust choke-points can be abused to deny access to due process. Through the use of cryptographic proof, decentralized networks and open source software Bitcoin minimizes and replaces these trust costs. Bitcoin Transactions are: Permissionless and borderless. The software can be installed by anybody worldwide. Do not require any ID to use. Making it suitable for the unbanked, the privacy-conscious, computers or people in areas with underdeveloped financial infrastructure. Are censorship-resistant. Nobody is able to block or freeze a transaction of any amount. Irreversible once settled, like cash. (but consumer protection is still possible.) Fast. Transactions are broadcasted in seconds and can become irreversible within an hour. Online and available 24 hours a day, 365 days per year. Bitcoin can also be a store of value, some have said it is a "swiss bank account in your pocket". Stored Bitcoins: Cannot be printed or debased. Only 21 million bitcoins will ever exist. Have no storage costs. They take up no physical space regardless of amount. Are easy to protect and hide. Can be stored encrypted on a hard disk or paper backup. Are in your direct possession with no counterparty risk. If you keep the private key of a bitcoin secret and the transaction has enough confirmations, then nobody can take them from you no matter for what reason, no matter how good the excuse, no matter what. If you still can’t figure out what the heck a bitcoin is, this simple explanation will help you! … 📷 We’re sitting on a park bench. It’s a great day. I have one apple with me, I give it to you. You now have one apple and I have zero. That was simple, right? Let’s look closely at what happened: My apple was physically put into your hand. You know it happened. I was there, you were there – you touched it. We didn’t need a third person there to help us make the transfer. We didn’t need to pull in Uncle Tommy (who’s a famous judge) to sit with us on the bench and confirm that the apple went from me to you. The apple’s yours! I can’t give you another apple because I don’t have any left. I can’t control it anymore. The apple left my possession completely. You have full control over that apple now. You can give it to your friend if you want, and then that friend can give it to his friend, and so on. So that’s what an in-person exchange looks like. I guess it’s really the same, whether I’m giving you a banana, a book, a quarter, or a dollar bill …But I’m getting ahead of myself. 📷 What if we gave this ledger to everybody? Instead of the ledger living on a Blizzard computer, it’ll live in everybody’s computers. All the transactions that have ever happened, from all time, in digital apples, will be recorded in it.You can’t cheat it. I can’t send you digital apples I don’t have, because then it wouldn’t sync up with everybody else in the system. It’d be a tough system to beat. Especially if it got really big. Plus, it’s not controlled by one person, so I know there’s no one that can just decide to give himself more digital apples. The rules of the system were already defined at the beginning. And the code and rules areopen source– kinda like the software used in your mom’s Android phone. Or kinda like Wikipedia. It’s there for smart people to maintain, secure, improve, and check. You could participate in this network too – updating the ledger and making sure it all checks out. For the trouble, you could get like25 digital applesas a reward. In fact, that’s the only way to create more digital apples in the system. I simplified quite a bit … But that system I explained exists. It’s called the Bitcoin protocol. And those digital apples are the bitcoins within the system. Fancy! So, did you see what happened? What does the public ledger enable? 1) It’s open source, remember? The total number of apples was defined in the public ledger at the beginning. I know the exact amount that exists. Within the system, I know they are limited (scarce). 2) When I make an exchange I now know that digital apple certifiably left my possession and is now completely yours. I used to not be able to say that about digital things. It will be updated and verified by the public ledger. 3) Because it’s a public ledger, I didn’t need Uncle Tommy (third-party) to make sure I didn’t cheat, or make extra copies for myself, or send apples twice, or thrice… Within the system, the exchange of a digital apple is now just like the exchange of a physical one. It’s now as good as seeing a physical apple leave my hand and drop into your pocket. Just like on the park bench, the exchange involved two people only. You and me , we didn’t need Uncle Tommy there to make it valid. In other words, it behaves like a physical object. But you know what’s cool? It’s still digital. We can now deal with 1,000 apples, or 1 million apples, or even .0000001 apples. I can send it with a click of a button, and I can still drop it in your digital pocket if I was in Nicaragua and you were all the way in New York. I can even make other digital things ride on top of these digital apples! It’s digital after all. Maybe I can attach some text on it – a digital note. Or maybe I can attach more important things; like say a contract, or a stock certificate, or an ID card … So this is great! How should we treat or value these “digital apples”? They’re quite useful aren’t they? Well, a lot of people are arguing over it now. There’s debate between this and that economic school, between politicians, between programmers. Don’t listen to all of them though. Some people are smart; some are misinformed. Some say the system is worth a lot; some say it’s actually worth zero. Some guy actually put a hard number on it:$1,300 per apple. Some say it’s digital gold; some say it’s a currency. Others say they’re just like tulips. Some people say it’ll change the world; some say it’s just a fad. I have my own opinion about it, but that’s a story for another time. Hey, you now know more about Bitcoin than most. FX TRADING OFFICE ADDRESS Company Registered in South Korea (99, Centum dong-ro, Haeundae-gu, Busan, South Korea) WHY FX TRADING CREATED? \They want to open an exchange in all around the World after 3 years with* 5 Million members.\* 14:42 ABOUT THE COMPANY FXTRADING CORPORATION is a global company with many investors and entrepreneurs in the World. Already developed by a team of professionals currently in the field of FX and CRYPTOTRADING and they created the software. It also helps many investors make money from mining companies in various places around the world with the following coins. Bitcoin, Etherium, Bitcoin in cash, Litecoin, etc. Even if you do not have experience in this market, it is an opportunity to earn profits automatically and gain a lot of growth. HOW ITS WORKS Our groundbreaking platform uses an automated arbitrage system that yields profits for customers based on real-time movements in the cryptocurrency market. Our proprietary algorithm buys bitcoin when it is cheaper, and sells when it is more expensive. FX-TRADING customers benefit by assuming the profit, which is deposited directly into their online account. WHEN IT WAS LAUNCHED fficial Launch on August 10th, 2018 in Busan – South Korea.Around 896.000 peoples already joined, and more than 183 countries opened. IF U WANT TO BECOME AN INVESTOR Great! for you as an investor is very simpleChose one of the Packages available:bot 100$ bot300$bot500$ bot1000$bot3000$botbot5000$bot10000$bot20000$bot30000$bot40000$bot50000$The company will pay you up to 2.5% from what you investedThey trade during the day and when comes midnight in South Korea, they pay whatever was that day’s profitsSome days are 1.45% or 2.2% or 1.1% The company can’t guarantee how much it will pay, as Trading is not guaranteedThe company pays Monday to Friday for 200 working daysThe only way to invest is using BitcoinYou can withdraw minimum of 50$Monday to Friday, and it will be paid only in Bitcoin 24h later,not counting weekends, so if you withdraw on a Friday, you will get paid on Monday. IF U WANT TO BE AN NETWORKER Great! being a networker means you can get more bonuses• Daily Payment• Binary• Residual• Career Plan1 - The daily Payment is up to 2.5% per day Monday to Friday, until you reach 400%2- Binary is 10% of what people invest but you first need to qualify for it, is very simple, just register one direct person to your left and one to your right! after these 2, the next person that you register or that comes from those who you already registered, you will get the binary bonus from them, we are always talking about the smaller side.3- Residual, this bonus is linked to the career plan, you need to qualify per stars, each star means you get 2% of each level from your network. So if you are star 3 for example, means you will receive 2% from 3 level from your network, everyday when they receive their daily payment, you get 2% of what they make.4- Career Plan, Dollars of investment to became ◊1 Dollar = 1 PointStar 1 you need 1.000 pointsStar 2 you need 4.000 pointsStar 3 you need 20.000 pointsStar 4 you need 50.000 pointsStar 5 you need 200.000 pointsStar 6 you need 500.000 pointsStar 7 you need 1.500.000 pointsStar 8 you need 3.000.000 pointsStar 9 you need 5.000.000 pointsStar 10 you need 10.000.000 pointsBlack Star you need 50.000.000 pointsAll this point needs to be on the smaller leg. DIFFERENCE BETWEEN INVESTOR AND NETWORKER First let me tell you about being an InvestorFor you as an investor is very simpleChoose one of the Packages available:100$300$500%1000$3000$5000$10000$20000$30000$40000$50000$The company will pay you up to 2.5% from what you investedThey trade during the day and when comes midnight in South Korea, they pay whatever was that day’s profitsSome days are 1.45% or 2.2% or 1.1% The company can’t guarantee how much it will pay, as Trading is not guaranteedThe company pays Monday to Friday for 200 working daysThe only way to invest is using BitcoinYou can withdraw minimum of 50$Monday to Friday, and it will be paid only in Bitcoin 24h later,not counting weekends, so if you withdraw on a Friday, you will get paid on Monday. Now as a networker you can get more bonuses• Daily Payment• Binary• Residual• Career Plan1 - The daily Payment is up to 2.5% per day Monday to Friday, until you reach 400%2- Binary is 10% of what people invest but you first need to qualify for it, is very simple, just register one direct person to your left and one to your right! after these 2, the next person that you register or that comes from those who you already registered, you will get the binary bonus from them, we are always talking about the smaller side.3- Residual, this bonus is linked to the career plan, you need to qualify per stars, each star means you get 2% of each level from your network. So if you are star 3 for example, means you will receive 2% from 3 level from your network, everyday when they receive their daily payment, you get 2% of what they make.4- Career Plan, Dollars of investment to became ◊1 Dollar = 1 PointStar 1 you need 1.000 pointsStar 2 you need 4.000 pointsStar 3 you need 20.000 pointsStar 4 you need 50.000 pointsStar 5 you need 200.000 pointsStar 6 you need 500.000 pointsStar 7 you need 1.500.000 pointsStar 8 you need 3.000.000 pointsStar 9 you need 5.000.000 pointsStar 10 you need 10.000.000 pointsBlack Star you need 50.000.000 pointsAll this point needs to be on the smaller leg. MOST IMPORTANTLY IS THAT The difference Between an investor and a networker is:Investor Will only receive the daily payment of up to 2.5%Networker Can get more bonuses such as:- Daily Payment of up to 2.5%- Indication of 6%- Binary of 10%- Residual Bonus- Career Bonus SOME INFO THAT YOU HAVE TO KNOW ABOUT GET SUPPORT FROM FXTRADING ACTIVATION: MY PLAN DOES NOT ACTIVATE AFTER WIRING FUNDS ANSWER IS … .- After a payment request is created, you have 24 hours to wire funds to a designated wallet. Based on the fluctuation of Bitcoin prices, posted amount of Bitcoin may be larger or smaller. Price updates commence every 30 minutes.- The system only validates your request to transfer when you pay the designated amount or more. If less bitcoin were submitted, the transfer request would be voided automatically… HOW LONG DOES IT TAKE TO ACTIVATE MY PLAN ANSWER IS .... - The time until the activation varies depending on processing speed of network or blockchain. Some exchange and wallet may take more time to transfer funds. However, the process generally does not exceed 6 hours. Therefore, if your plan does not activate after 6 hours, please contact the support centre. EARNINGS: WHICH DAYS OF A WEEK I RECEIVE MY EARNINGS ? - Daily earnings are processed and posted at midnight, Monday through Friday, Korean Standard Time. MY PLAN WAS ACTIVATED BUT NOT YET REICIEVE EARNINGS? - It takes 24 hours until your investments are processed through our system. You will be listed as an FXTRADING dividend recipient after 24 hours. I UPGRADED MY PLAN BUT RECEIVED EARNINGS FOR THE PREVIOUS PLAN? - The same rules apply for plan upgrades with the purchase of a new plan. Your upgrades will be in force after 24 hours. Until that point, you will receive the earnings on the previous plan. WITHDRAWAL: WHICH DAYS OF A WEEK I CAN WITHDRAW MY FUNDS? - You can withdraw your funds Monday through Friday. What is the minimum amount that I can withdraw? - The minimum withdrawal amount is currently $50. There is no limit on the maximum amount you can withdraw. How long does it take to process my remittance request? - Please allow 1 to 3 business days to process your withdrawal requests. I received payment confirmation o- It may take up to 24 hours after confirmation for requests to be processed in blockchain and posted on your wallet. Hash values I received by e-mail are not recognized by Blockchain. - It generally takes 24 hours for blockchain to recognize hash values. You can review the progress by the link provided in the e-mail message until then. Binary What should I do to get a binary bonus? - It generally takes 24 hours for blockchain to recognize hash values. You can review the progress by the link provided in the e-mail message until then. I made one referral member, but I did not receive a credit. - Please confirm if the new referral member is the first one on your left or right. First referral on each side only qualifies you for binary bonus program. They do not create credits and do not count as binary members.- Was your plan active when your referral members in lower tier activate their plans? Credits are provided only if your plan was active when lower tier members activate their plans.- Are your lower tier referral members’ accounts leadership accounts? Leadership accounts do not own earnings and do not get payments. Therefore, leadership members do not create binary credit. Amounts of my credit received seems not correct. - Created credits are 10% of the price of plans purchased. If a member in your network upgrades a plan, the member only creates credits on the difference between two plans, not on the entire amount of the plan the member bought. For instance, if a member upgrades to $500 plan from $300 plan, you would receive 10% of the difference between the two plans. The difference is $200 in this example so that you will get 20 credits in total. I received bonus less than created credits. - There is a rule for the binary program; no member shall receive binary bonus larger than the plan they are on. For instance, if you are using $100 plan, but have created 150 credits through the binary network, you will only receive $100 bonus, forfeiting the remaining $50.- You also need to be careful about 400% earning rule. You can never receive an amount four times more than the plan you are on. For example, if you are using $100 plan, have received $350 as earnings so far and you have 100 credits outstanding for a binary bonus, only $50 that matches your 400% ceiling will be paid to you as a binary bonus. Referral Bonus I did not receive my referral bonus while my referral member was activatated - To receive a referral bonus, your plan must be active when your referral’s plan comes activated. To ensure receipt of your bonus, please wait until your plan gets activated before providing referral codes.- Referral Bonus is subject to 400% earning rule. Bonus from referrals will be paid up until their earnings reach 400% of their plan price. Bonus ceases to be remitted when your referral member reaches the earning cap. An incorrect amount of bonus was paid The referral bonus is 6% of the plan price purchased. If your referral member upgrades their plan, it creates the bonus on the difference between the two plans, not the entire amount of the plan purchased. For example, if your referral member upgrades to $500 plan from $300 plan, you will receive a 6% bonus on the difference amount between the plans. In this case, you will receive a $12 bonus as the difference is $200.- You also need to be careful about 400% earning rule. You can never receive an amount four times more than the plan you are on. For example, if you are using $100 plan, have received $350 as earnings so far and you have 100 credits outstanding for a referral bonus, only $50 that matches your 400% ceiling will be paid to you as a referral bonus.
TIL why Newbies still download the Bitcoin-QT client!
Because we told them to. Newbies don't start with reddit or bitcoinforums (unless they are redditors, of course). They start with what looks like an authoritative source. (And journalists do the same.) Let's have a look. Bitcoin.org has a list of wallets and recommends two good options at the top, MultiBit or Schildbach, but if you take a look at the bottom, it prominently lists: Bitcoin-QT and Armory (which requires Bitcoin-QT/bitcoind). This is fine, I suppose, but it explains the popularity of Bitcoin-QT since most alternatives come with warnings. weusecoins, a website that is prominently featured as a first stop for newbies, sends users dierectly to Bitcoin-QT, without any explanation or alternatives. Bitcoin Wiki same same This guarantees some bad user experience. Can we fix it? Who edits weusecoins.com and bitcoin.it?
As requested: I trade bitcoins on a regular basis, AMA
in response to: http://www.reddit.com/IAmA/comments/holkw/ama_request_someone_who_trades_in_bitcoins_on_a/ I've been trading bitcoins for a while now, I bought my first 400 BTC back when the prices were around 0.20/USD per BTC. Didn't know this subject was so interesting, but anyway, AMA. Edit: I have to go attend a lecture in about 30 mins but I'll be back on later this afternoon! I had no idea there was such an interest in bitcoins! Anyway, if you have burning questions that need to be answered while I'm gone, you can always hit up #bitcoin-otc or #bitcoin on freenode IRC. See you guys in a few hours! edit #2: I'm back... trying to get caught up... seems that a lot of people don't know what bitcoin is, so I'll add this link that will hopefully clear things up: http://www.weusecoins.com/ edit #3: Verification... ok, so someone wanted verification... I have clearsigned the post asking for verification using my GPG key here: http://pastebin.com/nxNRmegA I used the gpg key I use for bitcoin-otc: http://bitcoin-otc.com/viewgpg.php You'll notice I"m user 23... they swapped to a new gpg system back in march... If you look at my rating, you'll see my first was back in december of 2010... before the new ratings came along and bitcoin exploded, my gpg key was registered with the OLD system... which was just listed in the wiki: http://wiki.bitcoin-otc.com/wiki/User_GPG_keys Anyway, my nickname (nick2day) is also the same nickname I use for btc stuff... so it should be fairly easy to verify everything with the information I've given... Does that work?
I'm only a tiny online retailer, but I've decided to offer bitcoin as a payment option at my store. Short story inside.
I know larger online retailers are finally adopting bitcoin (albeit at a slow pace), and I'm definitely not the first among tiny online retailers to be accepting bitcoin, but I'm ecstatic about finally being able to offer it at my store! I want to share with you my story in case any small retailers like me are still on the fence about adopting bitcoin. As a small business owner, I'm pressed for time and money. It's obvious that bitcoin will save me money on transaction fees because I travel often, but it wasn't until a few things started happening that finally allowed a small retailer like me to offer this exciting new currency.
There are ZERO transaction fees for Shopify stores. Shopify is one of the largest shopping carts out there and they charge a hefty transaction fee of 2.9% + 30¢. I automatically save more than 2.9% on every order. As a small store every cent counts!
Time is of the essence for people like me. Bitcoin services like (Coinbase or Bitpay) make it super easy to set up. The total time it took me to set up Shopify + Coinbase? 5 minutes.
A concern I had a couple of years ago as a merchant is the security of bitcoin wallet services. I don't know about Bitpay, but Coinbase offers almost an annoyingly secure level of security on your account. Every change I have to make, I need to go through a 2-factor verification process. This makes me feel confident about receiving and keeping btc in my account - though I will still move it instantly to my bank account, which is an automatic process with Coinbase by the way!
Paying my employees is always costly. I have Paypal fees to contend with, and checks take time to process. Bitcoin lets me pay them with a few clicks of a button and is instantaneous.
All the above addressed my concerns about adopting bitcoin for my business. So, if you are a small retailer still on the fence about accepting btc I hope my experience have made your decision clearer. Feel free to ask me any questions you may have here! ~ Speaking of bitcoin-exclusive discounts: My store, Postertext - Art prints for book lovers will be offering a whopping 25% off on your entire order this holiday season. If you have a friend who likes to read, then definitely check out our store. The designs are made entire out of text from your favorite books! EDIT: Thank you for all the support! It just dawned on me that you guys might be interested in our Linux poster - featuring Tux the penguin himself.
"Network consensus is not built on computing power but rather the faithful interpretation of a ruleset" ~ Blockstream co-founder Mark Friedenbach // "When did we get to the point of having people contributing to the reference implementation without even reading the bloody white paper?" ~ u/observerc
how (and why) Satoshi deliberatedly designed Bitcoin to be persmissionless, decentralized, scalable, and also non-Turing-complete
Today he displayed his shocking ignorance one more time, when he got slapped down for saying "the exact opposite of what the original white paper says" - as quoted in the OP. Blockstream Co-Founder Mark Friedenbach u/maaku7 perfectly fits the definition of a "useful idiot". If he weren't getting paid by the fiat banking cartel, then he would be ignored. And we should ignore him - because he doesn't understand Bitcoin, and he is actually working actively (although perhaps unconsciously / unintentionally, in his "blissful ignorance") to destroy Bitcoin. If Mark Friedenbach doesn't understand how Satoshi successfully designed Bitcoin to work, and if he wants to radically change Bitcoin into something totally different - then he should fork off to some alt-coin (like his failed Freicoin)... and he should stop trying to impose his radical, dangerous and ignorant ideas on the rest of the Bitcoin community - no matter how self-important he might feel getting paid all that "fantasy fiat" from AXA as Co-Founder of Blockstream. Details: This is now the fifth time in recent memory where Blockstream co-founder Mark Friedenbach or u/maaku7 has proudly and publicly displayed his profound misunderstandings about some of the most important aspects of Bitcoin. People are starting to ask serious questions about how and why an uninformed person like Mark Friedenbach has managed to get himself into a position of power at Blockstream where he now feels empowered to try to radical, misinformed and dangerous ideas on the rest of the Bitcoin community. Five shocking examples illustrating Mark Friedenbach's utter cluelessness about fiat, Bitcoin, Nakamoto Consensus, open-source software develompent, and the dangers of Turing-completeness are listed below: (1) Mark Friedenbach displayed his profound misunderstanding of how existing, central-banker-controlled fiat currencies work - when he ignorantly stated that he thinks fiat is run by "majority rule":
"I'm pationate about Bitcoin. I have zero passion for majority-vote to change the rules system. We have one of those already -- it's called fiat." - maaku7
"Core dev" maaku7 is on the front page today for saying he'd "quit" if users were the "boss" of Bitcoin. He was already being laughed at yesterday in another thread for saying he thought fiat was run by "majority-vote". Let him "quit". He never actually understood how Bitcoin works.
[u/maaku7] "Network consensus is not built on computing power but rather the faithful interpretation of a ruleset" [u/observerc] "WTF man... And you have been contributing for the most used implementation... Wow... Just... You just said the exact opposite of what the original white paper says. The whole point of the paper is too show how consensus can be built on hashpower distribution. Not only it demonstrates it conceptually, satoshi even made it idiot proof: one processor one vote. Wow... We are really screwed... When did we get to the point of having people contributing to the reference implementation without even reading the bloody white paper?"
does not understand how open-source software development of compatible implementations works
does not understand how and why Satoshi deliberately avoiding making Bitcoin Turing-complete in order to avoid the disaster of The DAO.
does not understand how Nakamoto Consensus works.
At this point, it's fair to ask whether Blockstream Co-Founder Mark Friedenbach understands anything about how Bitcoin works. And we should also be asking ourselves: Why is AXA paying someone this ignorant about Bitcoin to be a "Co-Founder of Blockstream"? What is going on here?? This is part of a ongoing pattern which we have been observing from Core/Blockstream: Evidently, once guys like...
...started getting paid hundreds of thousands of dollars per year (How much fiat do these fiat-rich, bitcoin-poor, anti-Bitcoin losers actually make? It would be interesting to know...) from the second-most powerful "legacy fiat financial" firm in the world - AXA... ... then apparently this makes them feel like they can go around dictating their ignorant ideas about how Bitcoin "should" work - attempting to override how Bitcoin actually does work, as designed by Satoshi. People are tired of these ignorant, misguided efforts on the part of Mark Friedenbach and the rest of his buddies at Blockstream to undermine Satoshi's highly successful design for Bitcoin:
This is why more and more Bitcoin nodes (about 25%) have un-installed Blockstream/Core's cripplecode and installed code which scales the way Satoshi intended - via bigger blocks. About 25% of the network is now running Bitcoin Classic and Bitcoin Unlimited - which (unliked BitcoinCore/Blockstream) follow the design of "p2p electronic cash" as designed by Satoshi - and the number blocks mined by these compatible clients (which support decentralized, market-based decision-making of blocksize for on-chain scaling) keeps reaching all-time highs. Bitcoin works differently from NASA It is true that Mark Friedenbach previously worked at NASA - so he's probably not an idiot about everything. But a decentralized, permissionless p2p currency like Bitcoin is radically different from a hierarchical, centralized, top-down organization like NASA. Bitcoin involves subtle concepts about markets, economics, consensus-building and collaborative open-source software development - stuff which is all clearly way over Mark Friedenbach's head. Just because he worked at NASA - and is now getting paid Lord-knows-how-much in fantasy fiat by the central bankers of AXA as Co-Founder of Blockstream - does not automatically mean that he has anything valuable to contribute to Bitcoin - as shown by his long history of clueless, damaging statements about Bitcoin. Mark Friedenbach's Freicoin scam abortion If Mark Friedenbach and his buddies at Core/Blockstream don't like how Satoshi designed Bitcoin, then they should feel free to fork off or design their own alt-coin Actually Mark Friedenbach already did design a failed alt-coin, called "Freicoin":
Conclusion With these repeated misguided, clueless statements from Mark Friedenbach, it is becoming increasingly clear that:
Blockstream Co-Founder Mark Friedenbach u/maaku7 has repeatedly demonstrated a profound nd shocking ignorance of almost all the important aspects of Bitcoin - including: how fiat works, how Nakamoto Consensus works, how open-source software development works, and how Satoshi protected Bitcoin by making it non-Turing-complete.
Regardless of how self-important he might feel as Co-Founder of Blockstream getting tons of fiat from AXA, Mark Friedenbach is not the "boss" of Bitcoin. If he doesn't like / understand how Bitcoin works, then he should go try to fix his failed Freicoin - and stop trying to force his radical, ignorant changes on the rest of the Bitcoin community.
Hey there, /r/Triangle. I've got some free bits for anyone who's never tried bitcoin and would like to see what all the fuss is about
The title sums it up pretty well. The /Bitcoin community has been getting pretty generous with the tips, and I've got a few thousand stacked up in my ChangeTip wallet. Don't get too excited, a few thousand bits is still a very small fraction of a whole bitcoin (one "bit" is actually a microbitcoin, or 0.000001 btc, meaning a hundred 'bits' is currently worth about three and a half cents). But this denomination is perfect for online tipping and micropayments (a friend of mine is about to launch a video site that has a micropayment pay wall, the vast majority of which goes to the content creator, rather than Google). So yeah. Who wants to experiment with a couple/few hundred bits and the ChangeTip wallet? What's ChangeTip? A online wallet app that allows you to tip other people with bitcoin on a variety of social media platforms like reddit, twitter, facebook, etc. All ChangeTip transactions take place off of the blockchain, so there is no transaction fee until you withdraw from the ChangeTip wallet. Last but not least, not so shameless plug for http://www.meetup.com/Triangle-Bitcoin-Meetup/ which meets next Nov 17th in the middle of Nash Square, next to the Fallen Fire Fighters Memorial I encourage my bitcoin loving Triangle brethren to join me in spreading the digital love. Edit: If you are new to Bitcoin, check out We Use Coins and Bitcoin.org. You can also explore the Bitcoin Wiki
How to Trade Bitcoin Part 1: Getting Ready to Trade
The first part of our bitcoin trading guide series explains the basics of bitcoin and trading terminology. Instructions are also provided for buying bitcoin and getting ready to trade on BTC.sx. We originally produced the first part of this guide for our own traders to get started with our platform. However, after some really good feedback we thought we should share it publicly too. So please bear with us if it is quite orientated to our own platform. Future parts will be much more applicable to trading in general. Here is what we have planned for the series: 1) Getting ready to trade (this post) 2) Making your first trade
How to read a chart (candle sticks, volume, log vs linear scales)
How to spot a trend (moving averages)
How to open and close a position
3) Basics of technical analysis
Assumptions / theory behind TA
Classic support / resistance patterns e.g. head and shoulders
4) Advanced TA
5) Developing a sustainable strategy
Timing entry and exit points
Managing multiple open positions
Avoiding emotional trading
Please let us know if there are any topics you would like specifically covered and whether or not articles are the best format for learning. Why should you listen to what we have to say? Our CEO turned $100 into $200k by trading bitcoin, our COO previosuly worked at senior management level at Deutsche Bank and UBS, and one of our advisers has a Wall Street background as a Portfolio Manager and is a Chartered Market Technician. http://i.imgur.com/G06P306.png This article begins with an overview of bitcoin, how to buy bitcoin and how to manage risk. The remainder of the article focuses on understanding trading terminology and creating a bitcoin trading account on BTC.sx. What is bitcoin? Bitcoin is a digital currency that uses encryption, rules of mathematics and a decentralized network to control the creation of more bitcoins and verify transactions. Bitcoin was designed to operate as ‘digital gold’ — it resembles a commodity but can be used as a currency. Bitcoin can be traded for fiat currency, like dollars or pounds, creating opportunities to profit from trading price fluctuations. http://i.imgur.com/hNnKxGE.png Why is bitcoin so volatile? Compared to the price of gold, the price of bitcoin has exhibited much larger price swings. Typically the price of gold will change by just a few percent each week, but bitcoin’s price often changes by 10% or more — even in a ‘flat’ market. Volatility is generally considered a good thing by bitcoin traders because it creates opportunities to buy lower and sell higher than flat markets. The primary reason why bitcoin is volatile is because it has a small market cap and low trading volume. Market cap is the number of units (bitcoin here) in circulation multiplied by the value (bitcoin price here). For example, bitcoin has a market cap of about $3 billion vs $31 billion for the a gold ETF (GLD is the most popular American gold investment vehicle). Additionally, the daily average trading volume for bitcoin is about $12 million vs approximately $939 million for the gold ETF. The result of this small market cap and low trading volume is that less trading less money is required to make a large difference in supply and demand. For instance, if a trader wants to buy $3 million worth of bitcoin this represents 33% of the daily trading volume and would push the price up approximately 14%, at the time of writing. However, buying $3 million worth of the gold ETF is just 0.3% of the daily trading volume and is nothing compared to the hundreds of millions of trades that influence gold’s price. http://i.imgur.com/NLtgVrX.png Further information The information we have provided about bitcoin is only the bare essentials a trader needs to know. If you are completely new to bitcoin, also consider exploring these external resources: We Use Coins Bitcoin.org Bitcoin Wiki 2. How to Manage Risk Risk of buying bitcoin As discussed above, bitcoin is an extremely volatile asset. Besides increasing in value, bitcoin’s price can also dramatically fall. When buying bitcoin, never invest more than you can afford to lose. You cannot lose more than you put in, so don’t put in more than you can afford to lose and you’ll be all right, even in the most negative case. - Rpietila, Bitcoin and commodity investor Risk of trading bitcoin Furthermore, investing more than one can afford to lose reduces a trader’s ability to make good decisions. In particular, there is a risk of ‘panic selling’ when the market declines slightly. Instead of holding throughout a market dip, someone who is over-invested may panic and sell-off their holdings for a low price — attempting to cut their losses. This tends to lead to losing more money when the market recovers and the trader buys back at a higher price. http://i.imgur.com/yrQbCsI.png Simply, the best way to manage your risk is to not invest more than you can afford to lose. At BTC.sx, losses cannot exceed your deposit — so simply make sure this is a comfortable amount for you to trade with. 3. Understand Basic Bitcoin Trading Terminology Trading Trading is the act of buying, selling or exchanging one asset for another. Exchanging Bitcoin for US dollars, for instance, is trading. Position A position is similar a trade, which can either be long (buying bitcoin) or short (selling bitcoin). Like a trade you profit from a long/buy position when the price rises; and you profit from a short/sell position when the price falls. Unlike a trade, a position has an open and close. At BTC.sx you begin by depositing bitcoin. Then you may acquire more bitcoin or US dollars by opening a position. When the position is closed you are left with just more or less bitcoin than the value deposited — this depends on how profitable your position was. Trading platform A trading platform, like BTC.sx, is a place where traders go to enter positions. Unlike an exchange, it is uncommon for to use platforms for exchanging one asset for another. Typically trading platforms also include more advanced features, such as leverage. Leverage http://i.imgur.com/Aik56aI.jpg Leverage is borrowing assets for the purposes of increasing potential trading returns. This is also known as margin trading. Trading with 10x leverage on BTC.sx, allows you to deposit 1 bitcoin and trade with 10 bitcoins. When you are done trading (closing a position) you return the 10 bitcoin and keep any profits made. For example, let’s say your trading has been going well and you are consistently making a 10% return each week. Trading with 1 bitcoin, your profit is 0.1 bitcoin. However, with 10 bitcoins your profit is 1 bitcoin — this is the power of leverage when used correctly. Although leverage does also increase trading risk exposure, your losses can never exceed your deposit at BTC.sx. Furthermore, your risk of an exchange failure is reduced because you are trading with 9 bitcoins that belong to BTC.sx and only 1 bitcoin of your own. Exchange Unlike trading platforms, investors use exchanges to swap an asset for another. For example, Bitstamp allows investors to trade their local currency for Bitcoin, or vice versa. Exchanges are the main determinants of bitcoin’s price because they contain an order book. At an exchange you can either be a market maker or a market taker. Market maker A market maker sets the price they wish to buy or sell at and waits for a market taker who agrees to that price. Market taker A market taker finds a market maker that is offering a desirable price and quantity then immediately trades with them. Order book An order book is a list investors wanting to buy and sell an asset at specified quantities and prices. These are the market makers. Below is an annotated explanation of a bitcoin exchange order book. Picture the order book as a very hectic auction and the concept should be easier to understand. http://i.imgur.com/DuRYrnx.png Sell orders: “Asks” This part of the order book lists the prices and quantities investors wish to sell bitcoin at. Here the cheapest seller is offering 2.3467 bitcoin at a price of $244.58. As these investors are asking for a price to sell at, these are called asks. Buy orders: “Bids” This part of the order book lists the prices and quantities investors wish to buy bitcoin at. Here the most expensive buyer is willing to purchase 0.5 bitcoin at a price of $244.43. As these investors are bidding for a price to buy at, these are called bids. Current bitcoin price This is the last price at which bitcoin was exchanged for US dollars. Given that buyers will fulfill the cheapest ask, and sellers will fulfill the most expensive bid, the price will always fall between the the cheapest ask and most expensive bid. In this example, the price is $244.39 — the same as the most expensive bid. This means that the last bitcoin trade was a market taker selling to a market maker. This is also a demonstration of a seller always wanting to sell to the highest bidder. Order book depth This depth graph visualizes the amount of asks and bids at various prices. The more bitcoins that are available at a price, the ‘deeper’ the graph is. Naturally, as sellers do not want to ask for cheap prices and buyers do not want to buy for expensive prices, the graph is normally shallow in the middle. If the chart is one-sided, it suggests that the market may be feeling bullish or bearish. In the above example, a lot of investors want to sell at $245 which would make it difficult for the price to rise beyond that. Conversely, the shallow graph on the bid side shows not many people want to buy bitcoin at these prices. This is typical of a bearish market. Order book execution An important feature of BTC.sx is that the positions our users open/close make buys and sells on exchange order books. In practice, when our users click buy, US dollars is used to buy bitcoin from the order book bids. Conversely, when our users click sell, bitcoin is sold for US dollars from the order book asks. http://i.imgur.com/1Dk8G0t.jpg Why is this important? Firstly, when you trade on BTC.sx you do so with leverage. This means you can have a larger impact in the market and move the price in your favour. In the above example using just 1.3 bitcoin at 10x leverage would create buy 13 bitcoin from the asks. This helps drives the price up because now the cheapest ask is $244.61. If the market sees this as a bullish sign then others may follow, sparking a price rally. Secondly, order book execution means that BTC.sx does not trade against our users. Trading platforms that do not offer this execution are acting as market makers and stand to profit from their traders losing money. At BTC.sx we want our traders to be profitable so they can keep trading. *4. How to Buy Bitcoin * As a bitcoin-only trading platform, BTC.sx only accepts bitcoin deposits. This allows you to begin trading in minutes and without verifying your identity. If you do not yet own any bitcoin there are a number of places that bitcoin can be bought from, including: Circle Coinbase LocalBitcoins Click here to see other ways to buy bitcoin in each region of the world. To store your bitcoin you will also need a wallet, such as MultiBit or Blockchain.info. 5. Create an Account on BTC.sx Once you have bitcoin, you are ready to start trading. Head over to BTC.sx to begin the registration process. 1. Click ‘Sign Up’ http://i.imgur.com/Fikj8Nd.png 2. Enter your details and read and agree with the terms of service http://i.imgur.com/AjnKzRY.png 3. Click on the email activation code http://i.imgur.com/lz5yBqK.png 4. Login to your account http://i.imgur.com/P6VJ0xm.png 5. Visit trade screen http://i.imgur.com/WjGockR.png 6. Send a deposit to BTC.sx You are now one step away from being ready to trade bitcoin. All that is required is to send a deposit by following these instructions: 1. Click on ‘Deposit’ in the trading screen http://i.imgur.com/1TxpgUh.png 2. Send bitcoin to your wallet address http://i.imgur.com/cTZim5t.png If you do not know how to send bitcoin please contact your wallet provider for assistance. Conclusion** ** You should now be in a position where you understand the basics of bitcoin, trading terminology and have an account on BTC.sx to begin trading. In part 2 we will be covering fundamental analysis, the basics of technical analysis and how to make your first trade. Like us on Facebook or follow us on Twitter for future updates. If you have not yet signed up for an account on BTC.sx click here. The registration process takes just two minutes and does not require any identity verification documents
I made a simple blockchain project and now wrote this guide for entrepreneurs interested in smart contracts
The following is the exact copy of my medium article. No need to go there if you prefer reddit. And please ignore my startup mentioned here. I spent a whole month writing this huge guide - it's far beyond a mere promotion. This post is about Ethereum blockchain. I do love it. As I'm an entrepreneur myself (with some humble programming skills) I think I managed to explain clearly the practical side of Ethereum smart contracts - what can be done and how. Think this sub is the best place for it. Hope you'll find this helpful. Will do my best to answer all your questions (please mind the time difference - I'm in Russia).
An entrepreneur, programmer and user walk into a smart contract - The ultimate Ethereum blockchain stratup guide.
Lifehack - you don't need to understand blockchain to build a smart contract startup.
I made my smart contract project and still feel as a total noob reading discussions on blockchain. There is so much to learn for me. But, hey, my project works! Why bother? Though blockchain is cool and it's cool to understand the technology, there is no need to understand everything. Take a look at smart contracts from an entrepreneurs point of view - focus on how you can benefit from it. What kinds of projects you can actually do? What business models are there? What an MVP would look like? What it takes to engage a user, find a programmer and build infrastructure? This guide with examples and exercises will show you the practical side of smart contracts and help you estimate your idea or generate a new one. Use it as a starting point for your further investigation.
What you do need to know about blockchain and what you may just skip
Mining. The first thing to skip. From an entrepreneur's point of view mining is more like playing the stock market - buy equipment, analyze reward price charts and decide which crypto currency to invest your computing power to. But if you are dealing with smart contracts, you don't have to care about mining for the same reason you don't care about Internet providers when visiting a web-site. Blocks, hashes, cryptography and all that math - we gonna ignore it too. The important practical outcome can be reduced to this mantra: "Everything that gets into blockchain remains there forever, anything can be verified, but nothing can be changed". In practice it means that data is stored permanently, transparently and securely. Now let's turn to the terms you cannot do without and explain them as if it's year 2005 now. Blockchain is like a BitTorrent network. A program on your computer downloads files and afterwards gives them away. But the program is called blockchain client rather than torrent client. And those files you download store transactions instead of videos and music. Sender, recipient, date-time and ammount - records are stored one after another (yes, they are stored in blocks, but who cares). Everybody who runs blockchain client has his own copy of the whole blockchain database and keeps all transactions that have ever been made. This database is huge. Ethereum blockchain is currently about 43 GB, Bitcoin is 125.78 GB. todo Cryptocurrency is a list of money transfers. In blockchain world your balance is not just a single record, but the sum of all your receipts and expenditures (the entire transactions history). If a blockchain stores transactions which only contain money transfers (sender address, recipient address and amount being sent), we call this type of blockchain a cryptocurrency. Bitcoin - is a cryptocurrency. But any transaction is just a string in a file, thus it may contain any information. An address in turn may not belong to a human... which gives us much wider opportunities then just a crypto currency. Smart contract is like a web site. A blockchain address may belong to a program. A program then is called a smart contract. It is called a contract just because the code is open. However it is simpler to compare it to a web site (or web service). For example, a classified advertisements service could be a smart contract. Its code would be stored at a particular address in the blockchain - just like a web site url. A transaction to this address would not contain money but an advertisement text. And the smart contract would publish this advertisement, i.e. saves to blockchain. Ethereum is like the Internet Ethereum - is exactly the kind of blockchain in which transactions may contain not only money, but data. The blockchain database (those files one downloads) stores transactions between people, transactions involving smart contracts and contracts source codes. This makes Ethereum kinda new type of the Internet, which is stored locally by everyone involved. And that's really enough for the theory. The rest you'll learn from what it all means in practice.
What is the difference between a smart contract and a conventional web site
What are the advantages (and disadvantages) of a smart contract driven service.
Openness and Encryption
A user doesn't have to trust you. "Everything that gets into blockchain remains there forever, anything can be verified, but nothing can be changed". The user sees exactly how your system works (smart contract code is open) and stays confident in the reliability of your database (database is transparent and unchangeable). Meaning there is no need to win users trust. For example, you can turn a classified advertisements service into an open auction with charity donations. The process of selling would look as follows. A seller sets the initial price and posts a lot. After that anybody will be able to track bets, see a winner, see how much seller earned and how much was deducted to charity and to platform commission. Everybody is confident there was no cheating. Where it benefits most. Gambling (Roulethvdice.io), prediction markets (Augur, Gnosis), voting, multilevel marketing (TheMillionEtherHomepage).
Payment processing "out of the box"
You don't have to deal with any payment processing services. Solidity language with which smart contracts are written incorporates all the necessary money (Ether cryptocurrency) operators. User balance is just another variable in your code. You can program any behavior to it - like triggering an event on receiving a certain amount of money or making a multisignature payment and much more. That is why Ether and other cryptocurrencies are often referred to as programmable money. Where it benefits most. Crowdfunding platforms (Weifund, Wings.ai), rent services Golem - rent unused CPU/GPU cycles.
You don't have to worry about DoS attacks and scalability. Every blockchain user has it's own smart contract copy locally on his computer, thus it will withstand any load, free of charge. Where it benefits most. Smart contracts gave rise to a totally new kind of companies - decentralized organizations (DAOs). DAO is a separate phenomenon worth studying. In the meantime, just ask yourself: "Why do we need an intermediary like Uber, if it is possible to connect a driver and a passenger through a smart contract directly?". What prospects does it opens? Have a look at this startups: Arcade city and Lazooz.
Lifehack: When googling for A DAO, ignore the hassle around THE DAO). The only reason THE DAO failed was braking some basic smart contract safety rules (we'll discuss them further).
Transaction delay and commission
A user have to pay for every transaction and have to wait a bit too. The average transaction is mined (read included) into Ethereum blockchain in 14-15 seconds. There is a high chance of reducing this delay down to 4 seconds in the near future. But even then we are all got used to a better responsiveness. Moreover a simple money transfer (two addresses involved, no contracts, minimal amount of data) would cost about 0.000861 ETH ($0.02 in March 2017). These "drawbacks" are tiny, but enough to build a heavy threshold for certain types of projects. Where it doesn't benefit. A chat for example. Each message chips a couple of weis (Ether denomination) off your balance and requires half a minute to reach the other end. This is probably a bad idea for a startup unless you are dealing with some official correspondence, which requires legal force and does not require privacy. With smart contracts you can choose almost any web service and make it blockchain. Plus you are free to create completely new blockchain-only types of projects. See what has already been done, mix it up with Internet of things, artificial intelligence, virtual worlds or fintech, and you'd most probably get a unicorn.
Note: You can make a smart contract with Bitcoin too, but it's like doing 3D in MS Excel. Kinda possible, but why?
What business models are there
You are free to use any business model. But first have a look at what have already become a new standard in Ethereum - tokens. In conventional terms tokens business model is like crowdfunding and IPO combined. The "crowd" buys shares of your company instead of products. And in the future the shares (tokens) may be sold or exchanged for your services. This became possible because Solidity (Ethereum smart contract language) allows issuing your own cryptocurrency. For example. You came up with a classified advertisement platform idea. You want it to have its own internal currency (tokens) called Advertisement (ADV). You want to charge 1 ADV for placing an advertisement, 2 ADVs for pinning it to the top and 0.2 ADVs for updating. You write a smart contract. All that it is capable of at this point is receiving money (ETH) and keeping users balances. Now you announce your platform in a way that crowdfunding projects usually do and offer to buy ADVs at low cost 1 ADV = 1 ETH. Later when your platform is live you'll set the ADV price to 10 ETH. After that those who invested in the very beginning will be able to sell their ADVs gaining income or place their ads 10 times cheaper than the current price. But for now you've earned your ETH to spend on development. Tokens are attractive enough on their own to start experimenting with smart contracts.
What it takes to engage a user
Ok. You published your first smart contract. But what it takes to engage a user with no blockchain experience to use it? And how can we lower the threshold? We can break user experience into two parts: interacting with blockchain (what a user has to do anyway) and interacting with your smart contract (ways we can make a user's life easier).
Interacting with blockchain
What a user has to do anyway. Get an address (a wallet). An address and a key to it is like username and password. There is no way to interact with blockchain without it. The easiest way to get it is to use generator at MyEtherWallet.com. It takes less than one minute and as a result, user receives an address and a key. The address is a 42 character sting and the key is a small file. The key file is used to sign transactions and has to be saved as securely as possible - there is no way to restore it. A user can use the same address to interact with any smart contract. IMG: Generate a wallet at MyEtherWallet.com Get some ether (ETH). Any transaction requires commission (0,001 to 0,01 ETH on average). A user has to fuel up his address with a sufficient sum to interact with your contract. Buying ether is possible through major exchanges. These exchanges require 1-3 day for identity approval and are available in a limited list of countries. Users from other countries and those not eager to wait (especially when buying Ether worth a couple of bucks) may use almost instant alternatives.
Access a blockchain client. Any interaction with blockchain and with any smart contract accordingly is done through a blockchain-client. As of March 2017 downloading Ethereum database to an HDD disk (70% are still using HDDs) requires 2-3 days and 43 GB of spare space. It makes computer unresponsive enough to start throwing things at it. Keeping blockchain in sync too requires about the same amount of resources as watching a movie online does.
Not to confuse the pros. For the sake of simplicity we call EthereumWallet, Mist browser, geth and parity the blockchain client. We are entrepreneurs here, it is only a programmer who should really know the difference.
There is also a so called light client. It doesn't require downloading the database. But it still requires installation and getting hands dirty with manuals. Our target audience is not willing to do it either. So let's be realistic our target audience will hardly install any blockchain client on their computers. Let's see how we can help. A necessary and sufficient minimum for a user to start interacting with any smart contract is an address (key file) and a tiny amount of ether on it.
Interacting with your smart contract
We got to simplify user experience with a graphical user interface (GUI). In Ethereum GUIs do not belong to smart contracts and are stored off the blockchain. There are several ways to "attach" GUI to a smart contract. Here are they from the least to the most user-friendly.
Smart contract with no GUI
Users can interact with smart contracts directly, with no GUI at all. Blockchain client can identify smart contract functions and let user work with it. The client provides auto-generated GUI so a contract looks and feels like a sign-in form of a website. This is a straightforward way of writing to and reading from contract. IMG: Access contract function through Ethereum Wallet But we agreed we won't force user to deal with blockchain clients. To set user free from it we can try to offer MyEtherWallet.com (an online client). Contract interaction will look just the same, but there is no need to download or learn anything. IMG: Access the same function through MyEtherWallet.com The contract without GUI has to be very well documented. It is also a good idea to make a landing page to display the current state of the contract. For example, TheMillionEtherHomepage.com displays the state of the underlying contract and offers users to work with it directly giving all necessary instructions. The same setup would likely be a minimum for a classified advertisements smart contract. So the user with no blockchain background would be able to grasp the idea of the service.
Decentralized application (DApp) - GUI in a browser
Look and feel exercise: Go to tokens exchange platform Maker Market, then install Metamask Chrome plugin and try Maker Market again. See how metamask brings blockchain functionality to the website.
DApp and Metamask browser plugin make your smart contract look and feel just like a web-site
We can make any GUI for mobile or desktop application and bring any feature to it. But in order to send transactions it has to communicate with a blockchain client too. The ways to do it without any locally installed client are: embedding a light client right into your application or communicating with a remote blockchain client (see infrastructure section further).
To engage a user with no blockchain background means to make him get an address, buy a bit of Ether and install your mobile app or Metamask browser plugin.
What it takes to build an infrastructure
Let's turn to even more practical (and technical) parts. First what will you have to buy. From the cheapest to the most expensive setup.
Smart contract with no GUI
For a mobile app you'd probably need a server with a running blockchain client to let your app communicate with the blockhain through it. Or you can embed light client right into your app. Or use Etherscan.io and Infura API. Depends on your features. A more detailed (and more technical) guide is here - Mobile: Introduction
Which developer skills are required
Smart contract with no GUI
Mobile apps and back-ends
Mobile and desktop applications can be written in any language. Recommendations are the same as for the DApp. To connect your app to a blockchain client (full, light or remote) there are ready-made libraries available. For example, python. To embed a light client, check out geth.
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