Bitcoin: Mitigating the Risks - BankInfoSecurity

Just two individuals control ~61.11% of the BCH hashrate. It's not "decentralized", it is a 51% attack by a single group of collaborating selfish miners. They will steal coins and distribute them amongst themselves. Bitcoin (BCH) cannot take this risk.

Also keep in mind that the reason they went from 40% to 60-70% is because hashrate moved away to mine BTC (more profitable by 30%). This hashrate should return by the 15th if those miners see BCH as valuable.
I do believe that BSV has a right to exist on its own chain. If they want to open themselves up to poisonous blocks by increasing their forked blocksize to 128mb, they should be allowed to. BCH is too valuable to risk something like that until testing shows that it will be safe to do.
submitted by masterD3v to btc [link] [comments]

Solving security and central authority control issue on VOIP Zoptax is taking the next step of launching its Mobile Phone which will only have zoptax embedded application making it first of its kind 0% security risk-free phone. zoptax.com #Zoptax #zoptaxnetwork @ZoptaxApp #bitcoin #altcoin @crypto

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submitted by Citya22 to Zoptax_ [link] [comments]

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submitted by Citya22 to Zoptax_ [link] [comments]

Solving security and central authority control issue on VOIP Zoptax is taking the next step of launching its Mobile Phone which will only have zoptax embedded application making it first of its kind 0% security risk-free phone. zoptax.com #Zoptax #zoptaxnetwork @ZoptaxApp #bitcoin #altcoin @crypto

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submitted by Citya22 to Zoptax_ [link] [comments]

Solving security and central authority control issue on VOIP Zoptax is taking the next step of launching its Mobile Phone which will only have zoptax embedded application making it first of its kind 0% security risk-free phone. zoptax.com #Zoptax #zoptaxnetwork @ZoptaxApp #bitcoin #altcoin @crypto

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submitted by Citya22 to Zoptax_ [link] [comments]

Solving security and central authority control issue on VOIP Zoptax is taking the next step of launching its Mobile Phone which will only have zoptax embedded application making it first of its kind 0% security risk-free phone. zoptax.com #Zoptax #zoptaxnetwork @ZoptaxApp #bitcoin #altcoin @crypto

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submitted by Citya22 to Zoptax_ [link] [comments]

Solving security and central authority control issue on VOIP Zoptax is taking the next step of launching its Mobile Phone which will only have zoptax embedded application making it first of its kind 0% security risk-free phone. zoptax.com #zoptax #zoptaxnetwork #bitcoin #altcoin @crypto #zpt @zopt

Solving security and central authority control issue on VOIP Zoptax is taking the next step of launching its Mobile Phone which will only have zoptax embedded application making it first of its kind 0% security risk-free phone. zoptax.com #zoptax #zoptaxnetwork #bitcoin #altcoin @crypto #zpt @zopt submitted by Citya22 to Zoptax_ [link] [comments]

Solving security and central authority control issue on VOIP Zoptax is taking the next step of launching its Mobile Phone which will only have zoptax embedded application making it first of its kind 0% security risk-free phone. zoptax.com #Zoptax #zoptaxnetwork @ZoptaxApp #bitcoin #altcoin @crypto

Solving security and central authority control issue on VOIP Zoptax is taking the next step of launching its Mobile Phone which will only have zoptax embedded application making it first of its kind 0% security risk-free phone. zoptax.com #Zoptax #zoptaxnetwork @ZoptaxApp #bitcoin #altcoin @crypto


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submitted by Citya22 to Zoptax_ [link] [comments]

Solving security and central authority control issue on VOIP Zoptax is taking the next step of launching its Mobile Phone which will only have zoptax embedded application making it first of its kind 0% security risk-free phone. zoptax.com #zoptax #zoptaxnetwork #bitcoin #altcoin @crypto #zpt @zopta

Solving security and central authority control issue on VOIP Zoptax is taking the next step of launching its Mobile Phone which will only have zoptax embedded application making it first of its kind 0% security risk-free phone. zoptax.com #zoptax #zoptaxnetwork #bitcoin #altcoin @crypto #zpt @zopta


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submitted by Citya22 to Zoptax_ [link] [comments]

PwC is expanding auditing services to include verification crypto asset ownership and to bring risk-management and process controls expected by traditional finance companies. https://buff.ly/2LmXGT1 #pwc #audit #institutions #adoption #legitimacy #trust #controls #bitcoin

submitted by balance_now to balance_now [link] [comments]

Just two individuals control ~61.11% of the BCH hashrate. It's not "decentralized", it is a 51% attack by a single group of collaborating selfish miners. They will steal coins and distribute them amongst themselves. Bitcoin (BCH) cannot take this risk. /r/btc

Just two individuals control ~61.11% of the BCH hashrate. It's not submitted by ABitcoinAllBot to BitcoinAll [link] [comments]

Control risk and position sizes /r/Bitcoin

Control risk and position sizes /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Gold’s Most Controlled Range in a Decade Faces Dollar, Risk and Bitcoin - The Fx Crush

Gold’s Most Controlled Range in a Decade Faces Dollar, Risk and Bitcoin - The Fx Crush submitted by _finder to thefxcrush [link] [comments]

[Bitcoin Wisdom] How to control your emotions and manage your risk in the face of manipulation

[Bitcoin Wisdom] How to control your emotions and manage your risk in the face of manipulation submitted by ActualAdviceBTC to BitcoinTradersHQ [link] [comments]

Why I'm not worried about a resurgence of inflation

TL/DR: Despite massive fiscal stimulus packages and seemingly never-ending quantitative easing programs, I don't believe we're headed towards a world of out-of-control inflation. Why? The prospect of permanent economic scarring in certain sectors due to extended lockdowns coupled with rapid technological adoption are two factors that are likely to keep price pressures low.
Investors seem quite concerned about rising inflation risk, which is likely supporting the strong bid for inflation-hedging assets like gold and bitcoin year to date. Adding fuel to the fire, top money managers, like Bridgewater and BlackRock, have been vocal in financial media lately about the risk of a high-inflation regime down the road. A high-inflation regime would be a remarkable departure from the past decade, where inflation was relatively tame even despite ultra-low interest rates and the introduction of unconventional monetary policy tools, like quantitative easing (see chart here: https://ibb.co/Dt8nVFC).
Similar to what was observed over the past cycle, I don't see recent policy action leading to sky-high inflation in the future.
Lastly, as a professional investor focused on global macro, predicting where the global economy is headed is hard and an incredibly humbling exercise. I prefer preparing my own portfolio for a range of outcomes - so while I personally hold some gold and bitcoin, I wouldn't bet the farm on a resurgence of inflation in the future.
submitted by CanadianStrategist to investing [link] [comments]

Does the complexity of Bitcoin make it easier to censor and control information about it? Or: Why the complicated nature of a BitCoin economy could leave the masses open to new and serious risks of misinformation.

tl;dr - Bitcoin and other cryptocurrency economies would have added complexity, relative to traditional fiat-based ones, because they rely on a broader range of systems. How much of a risk does this pose in terms of potential for misinformation, given that governments and other actors can use complexity to censor and otherwise manipulate information?
To arrive at a full (i.e. exhaustive, or complete) understanding of modern economics requires a broad array of knowledge. To start with, you obviously need to understand much of the established theory and schools of thought that surround traditional fiat currencies and global finance.
Further, you need knowledge of economics and its relation to politics; how currencies interact with governments and societies and so on. It also helps to understand the role of psychology. And on the list goes.
Any exhaustive understanding of traditional currencies requires a very broad range of knowledge that pulls from many different disciplines. The subject of economics is labyrinthine, nebulous and (as technology enables new paradigms and scenarios) ever-growing.
These days, even an expert within a particular area of economics can be reliant upon another expert of another field to understand a given subject (much in the same way a marine biologist might defer to an astrophysicist to explain the rings on Saturn). Even as it stands currently, a full and complete knowledge of economics (including traditional fiat currencies) is therefore not really attainable for one person due to the volume and complexity of information, ideas and realities. Due to this, there is already a great reliance on experts to explain away the complexity (and this reliance extends even to experts within economics).
One risk inherent to such complexity is that it enables a sort of censorship (and in turn, a shift of power to the experts and those who control them). If the knowledge of a given reality is only fully understood by a (relative) handful of people – because it is so complex – then the dissemination of that information can be compromised. Put simply, the experts are able to distort, or otherwise alter their explanations in order to progress a given agenda and we, the ignorant masses who rely on such explanations, are susceptible to accepting these distorted explanations as fact.
To give some more context to the idea, I’d recommend reading just a few paragraphs from this lengthy discussion here. It's Julian Assange on “censorship through complexity”, excerpted from a larger talk he had with then-CEO of Google, Eric Schmidt. Read on past the highlights to get further into the definition.
In that example, Assange focuses on offshore bank accounts and the myriad tax laws that surround them. Here are the most relevant parts for the click-shy:
...that is basically the offshore financial sector. Censorship through complexity. Censorship of what? Censorship of political outrage. With enough political outrage there is law reform and enough law reform you can't do it anymore. So why is it that all these careful tax structuring arrangements are so complex? I mean, they may be perfectly legal, but why are they so god damn complex? Well, because the ones that weren't complex were understood and the ones that were understood were regulated, so you're only left with the things that are incredibly complex.
With that in mind, let’s now consider Bitcoin and potentially other similar future cryptocurrencies. They incorporate all (or at least “much”) of the traditional economics complexity, but then heap further complexity on to the situation.
Put crudely; you could know absolutely everything there is to know about economics, but you still wouldn’t understand all there is to know about Bitcoin. For that, you’d also need to understand peer-to-peer networking, cryptography, computer science basics, and on the list goes. In a financial system dominated by cryptocurrencies, the reliance on experts to explain away the complexities is vastly increased. Now, to arrive at even a “slightly-complete” understanding of the system, you need input from experts in an even broader range of fields.
Consider the risks of this situation. Previously (in a traditional, fiat-based financial system) in order to fight against the “censorship via complexity”, you only need to combat it with financial expertise of your own. In the new paradigm, to combat against that same censorship, you need far more expertise than just financial. You need a team of economists, but also cryptographers, computer science wizards, and on the list goes (and grows).
To frame that in a “people vs government” context only makes the risks even more apparent; for it is governments (and not “the people”) who typically have greater access to such a broad range of experts, and who typically hire the very best among them. Cryptographic experts, for example, are more accessible to the government (and the private sectors that often times overlap with the government) than they are to the people. For the masses to understand a highly complex cryptographic issue with Bitcoin – and one that is equally intertwined with economic issues – they need experts from a wide range of areas who will in most cases already be dedicated to either private sector work or government work – and in either situation are therefore largely unavailable, inaccessible or otherwise occupied.
Assume a worst-case scenario for a moment: A government with its own enormous staff of cryptographers, network gurus, economists, etc is actively working to misinform and promote a given agenda relating to a cryptocurrency.
In such a situation, to protect against this sort of censorship will rely on cryptographers, network gurus, economists, and others, to devote time to explain this to the masses to that they can be aware of the issues. Effectively, they must work “pro bono” for the people, to inform them and explain away the complexity.
In a “post-fiat” economy where cryptocurrencies, with all their new complications, are the dominant mode, the work of maintaining government transparency and accountability risks becoming vastly more difficult than it has been in the past.
Or does it? What do you think, Reddit?
Edited to fix link.
submitted by BitCoinResearch to Bitcoin [link] [comments]

Putting $400M of Bitcoin on your company balance sheet

Also posted on my blog as usual. Read it there if you can, there are footnotes and inlined plots.
A couple of months ago, MicroStrategy (MSTR) had a spare $400M of cash which it decided to shift to Bitcoin (BTC).
Today we'll discuss in excrutiating detail why this is not a good idea.
When a company has a pile of spare money it doesn't know what to do with, it'll normally do buybacks or start paying dividends. That gives the money back to the shareholders, and from an economic perspective the money can get better invested in other more promising companies. If you have a huge pile of of cash, you probably should be doing other things than leave it in a bank account to gather dust.
However, this statement from MicroStrategy CEO Michael Saylor exists to make it clear he's buying into BTC for all the wrong reasons:
“This is not a speculation, nor is it a hedge. This was a deliberate corporate strategy to adopt a bitcoin standard.”
Let's unpack it and jump into the economics Bitcoin:

Is Bitcoin money?

No.
Or rather BTC doesn't act as money and there's no serious future path for BTC to become a form of money. Let's go back to basics. There are 3 main economic problems money solves:
1. Medium of Exchange. Before money we had to barter, which led to the double coincidence of wants problem. When everyone accepts the same money you can buy something from someone even if they don't like the stuff you own.
As a medium of exchange, BTC is not good. There are significant transaction fees and transaction waiting times built-in to BTC and these worsen the more popular BTC get.
You can test BTC's usefulness as a medium of exchange for yourself right now: try to order a pizza or to buy a random item with BTC. How many additional hurdles do you have to go through? How many fewer options do you have than if you used a regular currency? How much overhead (time, fees) is there?
2. Unit of Account. A unit of account is what you compare the value of objects against. We denominate BTC in terms of how many USD they're worth, so BTC is a unit of account presently. We can say it's because of lack of adoption, but really it's also because the market value of BTC is so volatile.
If I buy a $1000 table today or in 2017, it's roughly a $1000 table. We can't say that a 0.4BTC table was a 0.4BTC table in 2017. We'll expand on this in the next point:
3. Store of Value. When you create economic value, you don't want to be forced to use up the value you created right away.
For instance, if I fix your washing machine and you pay me in avocados, I'd be annoyed. I'd have to consume my payment before it becomes brown, squishy and disgusting. Avocado fruit is not good money because avocadoes loses value very fast.
On the other hand, well-run currencies like the USD, GBP, CAD, EUR, etc. all lose their value at a low and most importantly fairly predictible rate. Let's look at the chart of the USD against BTC
While the dollar loses value at a predictible rate, BTC is all over the place, which is bad.
One important use money is to write loan contracts. Loans are great. They let people spend now against their future potential earnings, so they can buy houses or start businesses without first saving up for a decade. Loans are good for the economy.
If you want to sign something that says "I owe you this much for that much time" then you need to be able to roughly predict the value of the debt in at the point in time where it's due.
Otherwise you'll have a hard time pricing the risk of the loan effectively. This means that you need to charge higher interests. The risk of making a loan in BTC needs to be priced into the interest of a BTC-denominated loan, which means much higher interest rates. High interests on loans are bad, because buying houses and starting businesses are good things.

BTC has a fixed supply, so these problems are built in

Some people think that going back to a standard where our money was denominated by a stock of gold (the Gold Standard) would solve economic problems. This is nonsense.
Having control over supply of your currency is a good thing, as long as it's well run.
See here
Remember that what is desirable is low variance in the value, not the value itself. When there are wild fluctuations in value, it's hard for money to do its job well.
Since the 1970s, the USD has been a fiat money with no intrinsic value. This means we control the supply of money.
Let's look at a classic poorly drawn econ101 graph
The market price for USD is where supply meets demand. The problem with a currency based on an item whose supply is fixed is that the price will necessarily fluctuate in response to changes in demand.
Imagine, if you will, that a pandemic strikes and that the demand for currency takes a sharp drop. The US imports less, people don't buy anything anymore, etc. If you can't print money, you get deflation, which is worsens everything. On the other hand, if you can make the money printers go brrrr you can stabilize the price
Having your currency be based on a fixed supply isn't just bad because in/deflation is hard to control.
It's also a national security risk...
The story of the guy who crashed gold prices in North Africa
In the 1200s, Mansa Munsa, the emperor of the Mali, was rich and a devout Muslim and wanted everyone to know it. So he embarked on a pilgrimage to make it rain all the way to Mecca.
He in fact made it rain so hard he increased the overall supply of gold and unintentionally crashed gold prices in Cairo by 20%, wreaking an economic havoc in North Africa that lasted a decade.
This story is fun, the larger point that having your inflation be at the mercy of foreign nations is an undesirable attribute in any currency. The US likes to call some countries currency manipulators, but this problem would be serious under a gold standard.

Currencies are based on trust

Since the USD is based on nothing except the US government's word, how can we trust USD not to be mismanaged?
The answer is that you can probably trust the fed until political stooges get put in place. Currently, the US's central bank managing the USD, the Federal Reserve (the Fed for friends & family), has administrative authority. The fed can say "no" to dumb requests from the president.
People who have no idea what the fed does like to chant "audit the fed", but the fed is already one of the best audited US federal entities. The transcripts of all their meetings are out in the open. As is their balance sheet, what they plan to do and why. If the US should audit anything it's the Department of Defense which operates without any accounting at all.
It's easy to see when a central bank will go rogue: it's when political yes-men are elected to the board.
For example, before printing themselves into hyperinflation, the Venezuelan president appointed a sociologist who publicly stated “Inflation does not exist in real life” and instead is a made up capitalist lie. Note what happened mere months after his gaining control over the Venezuelan currency
This is a key policy. One paper I really like, Sargent (1984) "The end of 4 big inflations" states:
The essential measures that ended hyperinflation in each of Germany,Austria, Hungary, and Poland were, first, the creation of an independentcentral bank that was legally committed to refuse the government'sdemand or additional unsecured credit and, second, a simultaneousalteration in the fiscal policy regime.
In english: *hyperinflation stops when the central bank can say "no" to the government."
The US Fed, like other well good central banks, is run by a bunch of nerds. When it prints money, even as aggressively as it has it does so for good reasons. You can see why they started printing on March 15th as the COVID lockdowns started:
The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals.
In english: We're going to keep printing and lowering rates until jobs are back and inflation is under control. If we print until the sun is blotted out, we'll print in the shade.

BTC is not gold

Gold is a good asset for doomsday-preppers. If society crashes, gold will still have value.
How do we know that?
Gold has held value throughout multiple historic catastrophes over thousands of years. It had value before and after the Bronze Age Collapse, the Fall of the Western Roman Empire and Gengis Khan being Gengis Khan.
Even if you erased humanity and started over, the new humans would still find gold to be economically valuable. When Europeans d̶i̶s̶c̶o̶v̶e̶r̶e̶d̶ c̶o̶n̶q̶u̶e̶r̶e̶d̶ g̶e̶n̶o̶c̶i̶d̶e̶d̶ went to America, they found gold to be an important item over there too. This is about equivalent to finding humans on Alpha-Centauri and learning that they think gold is a good store of value as well.
Some people are puzzled at this: we don't even use gold for much! But it has great properties:
First, gold is hard to fake and impossible to manufacture. This makes it good to ascertain payment.
Second, gold doesnt react to oxygen, so it doesn't rust or tarnish. So it keeps value over time unlike most other materials.
Last, gold is pretty. This might sound frivolous, and you may not like it, but jewelry has actual value to humans.
It's no coincidence if you look at a list of the wealthiest families, a large number of them trade in luxury goods.
To paraphrase Veblen humans have a profound desire to signal social status, for the same reason peacocks have unwieldy tails. Gold is a great way to achieve that.
On the other hand, BTC lacks all these attributes. Its value is largely based on common perception of value. There are a few fundamental drivers of demand:
Apart from these, it's hard to argue that BTC will retain value throughout some sort of economic catastrophe.

BTC is really risky

One last statement from Michael Saylor I take offense to is this:
“We feel pretty confident that Bitcoin is less risky than holding cash, less risky than holding gold,” MicroStrategy CEO said in an interview
"BTC is less risky than holding cash or gold long term" is nonsense. We saw before that BTC is more volatile on face value, and that as long as the Fed isn't run by spider monkeys stacked in a trench coat, the inflation is likely to be within reasonable bounds.
But on top of this, BTC has Abrupt downside risks that normal currencies don't. Let's imagine a few:

Blockchain solutions are fundamentally inefficient

Blockchain was a genius idea. I still marvel at the initial white paper which is a great mix of economics and computer science.
That said, blockchain solutions make large tradeoffs in design because they assume almost no trust between parties. This leads to intentionally wasteful designs on a massive scale.
The main problem is that all transactions have to be validated by expensive computational operations and double checked by multiple parties. This means waste:
Many design problems can be mitigated by various improvements over BTC, but it remains that a simple database always works better than a blockchain if you can trust the parties to the transaction.
submitted by VodkaHaze to badeconomics [link] [comments]

What r/fatFIRE can learn from the book, Psychology of Money

My favorite author, Morgan Housel, released his new book, The Psychology of Money, last week. In the book, Housel discussed many interesting psychological phenomenon, through the lens of finance. As I flipped through the pages, I started to realize so much of what's happening in fatFIRE are examples of what's discussed in the book.
No One's Crazy
The book begins with how your personal experiences with money make up maybe 0.000000001% of what's happened in the world, but maybe 80% of how you think the world works.
For example, if you were born in 1970, the S&P 500 increased almost 10-fold, adjusted for inflation, during your teens and 20s. That's an amazing return. If you were born in 1950, the market went literally nowhere in your teens and 20s adjusted for inflation. Two groups of people, separated by chance of their birth year, go through life with a completely different view on how the stock market works.
Takeaways for fatFIRE:
When you read other posts and comments about what stocks to buy, what startups to join, what's the economy going to be like, what's the best asset allocation, etc., remember that is just a single person's point of view. That person may be from a different generation, earns different incomes, upholds different values, keeps different jobs, and has different degrees of luck.
And remember, don't be mean to others. A view about money that one group of people thinks is outrageous can make perfect sense to another.
Luck & Risk
The next chapter discusses the big role luck and risk plays in someone's life. Luck and risk are two sides of the same coin.
Examples from the book: Countless fortunes (and mistakes) owe their outcomes to leverage. The best (and worst) managers drive their employees as hard as they can. "The customers are always right" and "customers don't know what they want" are both accepted business wisdom. The line between "inspiringly bold" and "foolishly reckless" can be a millimeter thick and only visible with hindsight. Risk and luck are doppelgängers.
Takeaways for fatFIRE:
Be careful who you praise and admire. That commenter who joined a unicorn at Series A may look like a genius on the outside, but they may just be lucky and cannot repeat it again.
Be careful who you look down upon and wish to avoid becoming. That poster who joined WeWork may look like a fool, but they made the best decision based on the information they had at a time. They took a risk and got unlucky.
Therefore, focus less on specific individuals and case studies and more on broad patterns.
Furthermore, when things are going extremely well, realize it's not as good as you think -- like the stock market right now.
On the other hand, we should forgive ourselves and leave room for understanding when judging failures -- like the stock market in March.
Never Enough
The hardest financial skill is getting the goalpost to stop moving. It gets dangerous when the taste of having more -- more money, more power, more prestige -- increases ambition faster than satisfaction.
Social comparison is the problem here. A rookie baseball players who earns $500k a year envies Mike Trout who has a 12-year, $430 million contract envies a hedge fund manager who makes $340 million a year envies Warren Buffett who had a $3.5 billion increase in fortune in 2018.
There are many things never worth risking, no matter the potential gain. Reputation is invaluable. Freedom and independence are invaluable. Friends and family are invaluable. Being loved by those who you want to love you is invaluable. Happiness is invaluable. And your best shot at keeping these things is knowing when it's time to stop taking risks that might harm them. Knowing when you have enough.
Takeaways for fatFIRE:
When you make a big gain, it's totally okay to take profit, as long as you keep your ambition down and acknowledge the possibility that it may go higher. If that happens, no need to play the would've should've could've game, because it very well might've gone the other way.
When you see someone who got 20x return on Shopify or bet big into Ethereum in 2016, remember they may envy the pre-IPO employees at Shopify or the genius who held Bitcoin since 2010.
At the end of the day, do not risk more than what's comfortable in your life for the sake of making huge amount of money, because even if you do make it, you may not find it worth it.
Tails, You Win
Skipping a few chapters to talk about the prominence of tail events.
At the Berkshire Hathaway shareholder meeting in 2013 Warren Buffet said he's owned 400 to 500 stocks during his life and made most of his money on 10 of them. Charlie Munger followed up: "If you remove just a few of Berkshire's top investments, its long-term track record is pretty average."
In 2018, Amazon drove 6% of the S&P 500's returns. And Amazon's growth is almost entirely due to Prime and Amazon Web Services, which itself are tail events in a company that has experimented with hundreds of products, from the Fire Phone to travel agencies.
Apple was responsible for almost 7% of the index's returns in 2018. And it is driven overwhelmingly by the iPhone, which in the world of tech products is as tail--y as tails get.
And who's working at these companies? Google's hiring acceptance rate if 0.2%. Facebook's is 0.1%. Apple's is about 2%. So the people working on these tail projects that drive tail returns have tail careers.
Takeaways for fatFIRE:
When we pay special attention to a role model's successes we overlook that their gains came from a small percent of their actions. That makes our own failures, losses, and setbacks feel like we're doing something wrong.
When you accept that tails drive everything is business, investing and finance you will realize that it's normal for lots of things to go wrong, break, fail and fall. If you are a good stock picker you'll be right maybe half the time. If you're a good business leader maybe half of your product and strategy ideas will work. If you're a good investor most years will be just OK, and plenty will be bad. If you're a good worker you'll find the right company in the right field after several attempts and trials. And that's if you're good.
Freedom
The highest form of wealth is the ability to wake up every morning and say "I can do whatever I want today." The ability to do what you want, when you want, with who you want, for as long as you want, is priceless. It is the highest dividend money pays.
Research has shown having a strong sense of controlling one's life is a more dependable predictor of positive feelings of wellbeing than any of the objective conditions of life we have considered.
People like to feel like they're in control -- in the drivers' seat. When we try to get them to do something, they feel disempowered. Rather than feeling like they made the choice, they feel like we made it for them. So they say no or do something else, even when they might have originally been happy to go along.
Takeaways for fatFIRE:
Most of you probably are working thought-based and decision job, your tool is your head, which never leaves you. You might be thinking about your project during your commute, as you're making dinner, while you put your kids to sleep, and when you wake up stressed at three in the morning. You might be on the clock for fewer hours than you would in 1050. But it feels like you're working 24/7.
If this feels like you, and you do not like it, it is totally fine to switch to a job that pays less but gives you more freedom and independence, because freedom and independence are what FatFire is all about.
---
I'm only half way into the book, but I can tell this will be one of the best finance book of 2020. If you guys find this useful, happy to come back next week with more insights once I've gotten to the end. I like talking about these things on Twitter too.
Edit: here's part 2 and here's a Twitter thread of the best snippets
submitted by uDontLifeForBeSad to fatFIRE [link] [comments]

Move your coins off exchanges

I’ve recently seen way too many people advocating for keeping coins on exchanges.
I don’t know when people started forgetting about ‘Not your keys, not your coins’, but it could be due to an influx of new bitcoiners jumping on board.
It’s important to know that there absolutely are security and responsibility trade offs for owning your coins, but it’s also important to remember that there have been many exchange hacks every time the bitcoin price increases.
There are numerous reasons for these thefts, but they all boil down to the root of the problem; centralized control.
This centralized control can also contribute directly to price manipulation and suppression by large exchanges.
Bitcoin solved this with the ability to be the only custodian of YOUR money, and if you ignore this, you ignore the inherent risk of being a victim of one of these ‘hacks’.
Yes, gaining the knowledge of how to safely be the only one in charge of your funds takes some time and effort, but you should always be cognizant of whether or not that knowledge is worth it for your particular situation.
Do you trust centralized entities? I don’t and it’s what got me interested in bitcoin in the first place.
submitted by ElephantGlue to Bitcoin [link] [comments]

A single global economy of FAIL

I had a lot of fun with Jo_Bones insane vomit yesterday, that retarded chimp is a special one for sure. He inspired me to write some satire of his delusional CSWesque rant. I list some hilarious quotes from him at the end as well from the comment chain.
The original delusional rant

If all governments could agree on any single thing at any point in time, it would be an unprecedented moment in history. A "unicorn moonshot" so to speak. If the unicorn moonshot were to manifest as every government suddenly desiring to throw their already digital currencies into complete disarray and chose a technically inferior and non-compliant product in the process, then you can bet your ass they would use BSV for their fiscal policies. At the moment, here is what came up when I googled Central Banks for the first time today. Here's what came up when I googled fractional reserves. I then googled what reconciled means, and after my eyes rolled back in to my head out of sheer inability to digest the information I was reading, I decided BSV was the blockchain to solve all of this because I personally think this thing is an awesome high-school comp sci project.

If every central bank suddenly decided to relinquish state control of their monetary policy, and instead decided that the security model of 7 amateur software developers paid by an ex-felon hiding in Antigua who controls the #11 cryptocurrency on coinmarketcap was the answer, we could have the opportunity to use a strictly worse version of our current banking software and IT infrastructure. Instant transactions between bank accounts you own? Screw that, welcome to 10 minute block times! Did you fat finger that bill payment to the wrong sender? Too bad, it's gone forever! Welcome to immutability! It's a feature not a bug!

If you extrapolate how bad this is, suddenly taxes would be lower because digital monetary transactions would come to a screeching halt. Can't pay taxes on money you don't have, right? Suck that statists! The world would benefit from one giant economy of scale even though that phrase makes no sense in this context, and in reality is another buzzword I just simply don't have the time to try to understand. I forgot to Google that one I guess. This means prices around the globe would be out of control because we'd have to revert to a primal barter system! My chicken for your box of peaches! The possibilities to fuck over literally the entire world are endless!

Additionally, there would now be a high degree of transparency to how poorly BSV scales, since blocks take hours to propagate at 1GB sizes and that would only represent the hourly transactions of a town of 10,000 people, which would inevitably lead everyone to understand what 99.99% (AKA the non-mentally retarded "subset" of the population) already know.


In the comments I decided to change potential use cases from the utter nonsense I listed above to a couple different things.
https://www.reddit.com/bsv/comments/j9u2jt/a_single_global_economy_of_scale/g8ppeq7/?utm_source=share&utm_medium=web2x&context=3
Here I am demonstrating that I know currency lives in a database today:
The point is that they centrally issue and control their own tokens on the bitcoin network. I don’t see what’s so hard to understand about this. They already issue tokens on their own network. It’s just a different database.
Here I am 7 comments later saying those databases don't allow for digital cash when I just stated they did.
Your SQL databases don’t really allow for digital cash.
Shit maybe token issuance on BSV won't work time to pivot to:
But bank transfers still take days between Europe and Asia and have high fees precisely because all the banks maintain their own networks.
Think of the possibilities guys. You totally can't do this today, right?
so they can (for example) sell a YouTube video directly to the whole world, for their native national token... on the bitcoin network.
Crap, maybe there are some good points there. At least Bitcoin can push transactions out in seconds despite having a 10 minute block time! And wait until you see the block times if anyone ever does try to send a billion tx in a second!
These hashes cost bitcoin, but you can sell billions of them per second.
What do you mean risks of minority hash rate on BSV? Nobody has ever done a 51% attack and not been arrested! THEY'LL LOSE THEIR MINING EQUIPMENT!
Except that it’s illegal to attack another chain, and it’s public, and traceable and the punishment would be your company loses all its mining equipment.
I'm running out of use cases since they're getting shot down so fast. Here's a good one. Why pay $80 a month for internet in 1 transaction, when you can pay for internet 1.7trillion times every month for every data packet you get?
And the advantage of sending 0.0011p to someone might be that they’re providing a service to you, like a data packet.
But think of all the UnIqUe AnD gReAt FeAtUrEs on BSV. Really cutting edge stuff that SQL Server doesn't have due to being obsolete in the 90s, like the ability to append only instead of modify data elements! Also, watch the blockchain desync if you ever tried 1billion tx/sec!
The network scales to handle billions of TX/sec and the ledger is append only so it matches the criteria for keeping accurate records and/or updating them as needs be.
Time to pivot again since I'm being dismantled at every turn. What haven't I mentioned yet?
you haven’t solved the issue of the US dollar being the worlds default currency on which global trade relies.
Here is me doing my best Craig Wright technobabble nonsense impression. I know this is technically English but the words being strung together make no sense!
Once again you’ve really missed the point of all this. A data commodity that comes about through consensus of the network on ‘what value is’ contains a fraction of every part of the global economy.
Time to revert to some Craig Wright technobabble bullshit again:
Those in charge of producing dollars ultimately have an unfair advantage over those who don’t and they can game the system.
That’s a peer to peer internet model where producers get paid directly by consumers for the data they consume and miners get paid according to how fast and how efficiently and how accurately they can deliver the data.

Have I mentioned the fact I don't understand that blockchains are literally distributed databases?
Finally, you can send any kind of data in a bitcoin transaction. Not just fiat currencies issued by a government but audio, video, text, a webpage, etc.
And finally:
It’s very smart. Unlike you.
My transformation is complete.
submitted by pointedpointything to bsv [link] [comments]

Ultimate glossary of crypto currency terms, acronyms and abbreviations

I thought it would be really cool to have an ultimate guide for those new to crypto currencies and the terms used. I made this mostly for beginner’s and veterans alike. I’m not sure how much use you will get out of this. Stuff gets lost on Reddit quite easily so I hope this finds its way to you. Included in this list, I have included most of the terms used in crypto-communities. I have compiled this list from a multitude of sources. The list is in alphabetical order and may include some words/terms not exclusive to the crypto world but may be helpful regardless.
2FA
Two factor authentication. I highly advise that you use it.
51% Attack:
A situation where a single malicious individual or group gains control of more than half of a cryptocurrency network’s computing power. Theoretically, it could allow perpetrators to manipulate the system and spend the same coin multiple times, stop other users from completing blocks and make conflicting transactions to a chain that could harm the network.
Address (or Addy):
A unique string of numbers and letters (both upper and lower case) used to send, receive or store cryptocurrency on the network. It is also the public key in a pair of keys needed to sign a digital transaction. Addresses can be shared publicly as a text or in the form of a scannable QR code. They differ between cryptocurrencies. You can’t send Bitcoin to an Ethereum address, for example.
Altcoin (alternative coin): Any digital currency other than Bitcoin. These other currencies are alternatives to Bitcoin regarding features and functionalities (e.g. faster confirmation time, lower price, improved mining algorithm, higher total coin supply). There are hundreds of altcoins, including Ether, Ripple, Litecoin and many many others.
AIRDROP:
An event where the investors/participants are able to receive free tokens or coins into their digital wallet.
AML: Defines Anti-Money Laundering laws**.**
ARBITRAGE:
Getting risk-free profits by trading (simultaneous buying and selling of the cryptocurrency) on two different exchanges which have different prices for the same asset.
Ashdraked:
Being Ashdraked is essentially a more detailed version of being Zhoutonged. It is when you lose all of your invested capital, but you do so specifically by shorting Bitcoin. The expression “Ashdraked” comes from a story of a Romanian cryptocurrency investor who insisted upon shorting BTC, as he had done so successfully in the past. When the price of BTC rose from USD 300 to USD 500, the Romanian investor lost all of his money.
ATH (All Time High):
The highest price ever achieved by a cryptocurrency in its entire history. Alternatively, ATL is all time low
Bearish:
A tendency of prices to fall; a pessimistic expectation that the value of a coin is going to drop.
Bear trap:
A manipulation of a stock or commodity by investors.
Bitcoin:
The very first, and the highest ever valued, mass-market open source and decentralized cryptocurrency and digital payment system that runs on a worldwide peer to peer network. It operates independently of any centralized authorities
Bitconnect:
One of the biggest scams in the crypto world. it was made popular in the meme world by screaming idiot Carlos Matos, who infamously proclaimed," hey hey heeeey” and “what's a what's a what's up wasssssssssuuuuuuuuuuuuup, BitConneeeeeeeeeeeeeeeeeeeeeeeect!”. He is now in the mentally ill meme hall of fame.
Block:
A package of permanently recorded data about transactions occurring every time period (typically about 10 minutes) on the blockchain network. Once a record has been completed and verified, it goes into a blockchain and gives way to the next block. Each block also contains a complex mathematical puzzle with a unique answer, without which new blocks can’t be added to the chain.
Blockchain:
An unchangeable digital record of all transactions ever made in a particular cryptocurrency and shared across thousands of computers worldwide. It has no central authority governing it. Records, or blocks, are chained to each other using a cryptographic signature. They are stored publicly and chronologically, from the genesis block to the latest block, hence the term blockchain. Anyone can have access to the database and yet it remains incredibly difficult to hack.
Bullish:
A tendency of prices to rise; an optimistic expectation that a specific cryptocurrency will do well and its value is going to increase.
BTFD:
Buy the fucking dip. This advise was bestowed upon us by the gods themselves. It is the iron code to crypto enthusiasts.
Bull market:
A market that Cryptos are going up.
Consensus:
An agreement among blockchain participants on the validity of data. Consensus is reached when the majority of nodes on the network verify that the transaction is 100% valid.
Crypto bubble:
The instability of cryptocurrencies in terms of price value
Cryptocurrency:
A type of digital currency, secured by strong computer code (cryptography), that operates independently of any middlemen or central authoritie
Cryptography:
The art of converting sensitive data into a format unreadable for unauthorized users, which when decoded would result in a meaningful statement.
Cryptojacking:
The use of someone else’s device and profiting from its computational power to mine cryptocurrency without their knowledge and consent.
Crypto-Valhalla:
When HODLers(holders) eventually cash out they go to a place called crypto-Valhalla. The strong will be separated from the weak and the strong will then be given lambos.
DAO:
Decentralized Autonomous Organizations. It defines A blockchain technology inspired organization or corporation that exists and operates without human intervention.
Dapp (decentralized application):
An open-source application that runs and stores its data on a blockchain network (instead of a central server) to prevent a single failure point. This software is not controlled by the single body – information comes from people providing other people with data or computing power.
Decentralized:
A system with no fundamental control authority that governs the network. Instead, it is jointly managed by all users to the system.
Desktop wallet:
A wallet that stores the private keys on your computer, which allow the spending and management of your bitcoins.
DILDO:
Long red or green candles. This is a crypto signal that tells you that it is not favorable to trade at the moment. Found on candlestick charts.
Digital Signature:
An encrypted digital code attached to an electronic document to prove that the sender is who they say they are and confirm that a transaction is valid and should be accepted by the network.
Double Spending:
An attack on the blockchain where a malicious user manipulates the network by sending digital money to two different recipients at exactly the same time.
DYOR:
Means do your own research.
Encryption:
Converting data into code to protect it from unauthorized access, so that only the intended recipient(s) can decode it.
Eskrow:
the practice of having a third party act as an intermediary in a transaction. This third party holds the funds on and sends them off when the transaction is completed.
Ethereum:
Ethereum is an open source, public, blockchain-based platform that runs smart contracts and allows you to build dapps on it. Ethereum is fueled by the cryptocurrency Ether.
Exchange:
A platform (centralized or decentralized) for exchanging (trading) different forms of cryptocurrencies. These exchanges allow you to exchange cryptos for local currency. Some popular exchanges are Coinbase, Bittrex, Kraken and more.
Faucet:
A website which gives away free cryptocurrencies.
Fiat money:
Fiat currency is legal tender whose value is backed by the government that issued it, such as the US dollar or UK pound.
Fork:
A split in the blockchain, resulting in two separate branches, an original and a new alternate version of the cryptocurrency. As a single blockchain forks into two, they will both run simultaneously on different parts of the network. For example, Bitcoin Cash is a Bitcoin fork.
FOMO:
Fear of missing out.
Frictionless:
A system is frictionless when there are zero transaction costs or trading retraints.
FUD:
Fear, Uncertainty and Doubt regarding the crypto market.
Gas:
A fee paid to run transactions, dapps and smart contracts on Ethereum.
Halving:
A 50% decrease in block reward after the mining of a pre-specified number of blocks. Every 4 years, the “reward” for successfully mining a block of bitcoin is reduced by half. This is referred to as “Halving”.
Hardware wallet:
Physical wallet devices that can securely store cryptocurrency maximally. Some examples are Ledger Nano S**,** Digital Bitbox and more**.**
Hash:
The process that takes input data of varying sizes, performs an operation on it and converts it into a fixed size output. It cannot be reversed.
Hashing:
The process by which you mine bitcoin or similar cryptocurrency, by trying to solve the mathematical problem within it, using cryptographic hash functions.
HODL:
A Bitcoin enthusiast once accidentally misspelled the word HOLD and it is now part of the bitcoin legend. It can also mean hold on for dear life.
ICO (Initial Coin Offering):
A blockchain-based fundraising mechanism, or a public crowd sale of a new digital coin, used to raise capital from supporters for an early stage crypto venture. Beware of these as there have been quite a few scams in the past.
John mcAfee:
A man who will one day eat his balls on live television for falsely predicting bitcoin going to 100k. He has also become a small meme within the crypto community for his outlandish claims.
JOMO:
Joy of missing out. For those who are so depressed about missing out their sadness becomes joy.
KYC:
Know your customer(alternatively consumer).
Lambo:
This stands for Lamborghini. A small meme within the investing community where the moment someone gets rich they spend their earnings on a lambo. One day we will all have lambos in crypto-valhalla.
Ledger:
Away from Blockchain, it is a book of financial transactions and balances. In the world of crypto, the blockchain functions as a ledger. A digital currency’s ledger records all transactions which took place on a certain block chain network.
Leverage:
Trading with borrowed capital (margin) in order to increase the potential return of an investment.
Liquidity:
The availability of an asset to be bought and sold easily, without affecting its market price.
of the coins.
Margin trading:
The trading of assets or securities bought with borrowed money.
Market cap/MCAP:
A short-term for Market Capitalization. Market Capitalization refers to the market value of a particular cryptocurrency. It is computed by multiplying the Price of an individual unit of coins by the total circulating supply.
Miner:
A computer participating in any cryptocurrency network performing proof of work. This is usually done to receive block rewards.
Mining:
The act of solving a complex math equation to validate a blockchain transaction using computer processing power and specialized hardware.
Mining contract:
A method of investing in bitcoin mining hardware, allowing anyone to rent out a pre-specified amount of hashing power, for an agreed amount of time. The mining service takes care of hardware maintenance, hosting and electricity costs, making it simpler for investors.
Mining rig:
A computer specially designed for mining cryptocurrencies.
Mooning:
A situation the price of a coin rapidly increases in value. Can also be used as: “I hope bitcoin goes to the moon”
Node:
Any computing device that connects to the blockchain network.
Open source:
The practice of sharing the source code for a piece of computer software, allowing it to be distributed and altered by anyone.
OTC:
Over the counter. Trading is done directly between parties.
P2P (Peer to Peer):
A type of network connection where participants interact directly with each other rather than through a centralized third party. The system allows the exchange of resources from A to B, without having to go through a separate server.
Paper wallet:
A form of “cold storage” where the private keys are printed onto a piece of paper and stored offline. Considered as one of the safest crypto wallets, the truth is that it majors in sweeping coins from your wallets.
Pre mining:
The mining of a cryptocurrency by its developers before it is released to the public.
Proof of stake (POS):
A consensus distribution algorithm which essentially rewards you based upon the amount of the coin that you own. In other words, more investment in the coin will leads to more gain when you mine with this protocol In Proof of Stake, the resource held by the “miner” is their stake in the currency.
PROOF OF WORK (POW) :
The competition of computers competing to solve a tough crypto math problem. The first computer that does this is allowed to create new blocks and record information.” The miner is then usually rewarded via transaction fees.
Protocol:
A standardized set of rules for formatting and processing data.
Public key / private key:
A cryptographic code that allows a user to receive cryptocurrencies into an account. The public key is made available to everyone via a publicly accessible directory, and the private key remains confidential to its respective owner. Because the key pair is mathematically related, whatever is encrypted with a public key may only be decrypted by its corresponding private key.
Pump and dump:
Massive buying and selling activity of cryptocurrencies (sometimes organized and to one’s benefit) which essentially result in a phenomenon where the significant surge in the value of coin followed by a huge crash take place in a short time frame.
Recovery phrase:
A set of phrases you are given whereby you can regain or access your wallet should you lose the private key to your wallets — paper, mobile, desktop, and hardware wallet. These phrases are some random 12–24 words. A recovery Phrase can also be called as Recovery seed, Seed Key, Recovery Key, or Seed Phrase.
REKT:
Referring to the word “wrecked”. It defines a situation whereby an investor or trader who has been ruined utterly following the massive losses suffered in crypto industry.
Ripple:
An alternative payment network to Bitcoin based on similar cryptography. The ripple network uses XRP as currency and is capable of sending any asset type.
ROI:
Return on investment.
Safu:
A crypto term for safe popularized by the Bizonnaci YouTube channel after the CEO of Binance tweeted
“Funds are safe."
“the exchage I use got hacked!”“Oh no, are your funds safu?”
“My coins better be safu!”


Sats/Satoshi:
The smallest fraction of a bitcoin is called a “satoshi” or “sat”. It represents one hundred-millionth of a bitcoin and is named after Satoshi Nakamoto.
Satoshi Nakamoto:
This was the pseudonym for the mysterious creator of Bitcoin.
Scalability:
The ability of a cryptocurrency to contain the massive use of its Blockchain.
Sharding:
A scaling solution for the Blockchain. It is generally a method that allows nodes to have partial copies of the complete blockchain in order to increase overall network performance and consensus speeds.
Shitcoin:
Coin with little potential or future prospects.
Shill:
Spreading buzz by heavily promoting a particular coin in the community to create awareness.
Short position:
Selling of a specific cryptocurrency with an expectation that it will drop in value.
Silk road:
The online marketplace where drugs and other illicit items were traded for Bitcoin. This marketplace is using accessed through “TOR”, and VPNs. In October 2013, a Silk Road was shut down in by the FBI.
Smart Contract:
Certain computational benchmarks or barriers that have to be met in turn for money or data to be deposited or even be used to verify things such as land rights.
Software Wallet:
A crypto wallet that exists purely as software files on a computer. Usually, software wallets can be generated for free from a variety of sources.
Solidity:
A contract-oriented coding language for implementing smart contracts on Ethereum. Its syntax is similar to that of JavaScript.
Stable coin:
A cryptocoin with an extremely low volatility that can be used to trade against the overall market.
Staking:
Staking is the process of actively participating in transaction validation (similar to mining) on a proof-of-stake (PoS) blockchain. On these blockchains, anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Surge:
When a crypto currency appreciates or goes up in price.
Tank:
The opposite of mooning. When a coin tanks it can also be described as crashing.
Tendies
For traders , the chief prize is “tendies” (chicken tenders, the treat an overgrown man-child receives for being a “Good Boy”) .
Token:
A unit of value that represents a digital asset built on a blockchain system. A token is usually considered as a “coin” of a cryptocurrency, but it really has a wider functionality.
TOR: “The Onion Router” is a free web browser designed to protect users’ anonymity and resist censorship. Tor is usually used surfing the web anonymously and access sites on the “Darkweb”.
Transaction fee:
An amount of money users are charged from their transaction when sending cryptocurrencies.
Volatility:
A measure of fluctuations in the price of a financial instrument over time. High volatility in bitcoin is seen as risky since its shifting value discourages people from spending or accepting it.
Wallet:
A file that stores all your private keys and communicates with the blockchain to perform transactions. It allows you to send and receive bitcoins securely as well as view your balance and transaction history.
Whale:
An investor that holds a tremendous amount of cryptocurrency. Their extraordinary large holdings allow them to control prices and manipulate the market.
Whitepaper:

A comprehensive report or guide made to understand an issue or help decision making. It is also seen as a technical write up that most cryptocurrencies provide to take a deep look into the structure and plan of the cryptocurrency/Blockchain project. Satoshi Nakamoto was the first to release a whitepaper on Bitcoin, titled “Bitcoin: A Peer-to-Peer Electronic Cash System” in late 2008.
And with that I finally complete my odyssey. I sincerely hope that this helped you and if you are new, I welcome you to crypto. If you read all of that I hope it increased, you in knowledge.
my final definition:
Crypto-Family:
A collection of all the HODLers and crypto fanatics. A place where all people alike unite over a love for crypto.
We are all in this together as we pioneer the new world that is crypto currency. I wish you a great day and Happy HODLing.
-u/flacciduck
feel free to comment words or terms that you feel should be included or about any errors I made.
Edit1:some fixes were made and added words.
submitted by flacciduck to CryptoCurrency [link] [comments]

🔥Not your keys, not your coins : Why you should not use Paypal for Bitcoin

Today, PayPal announced that they will be launching a cryptocurrency digital wallet for buying, selling and storing Bitcoin, Ethereum, Bitcoin Cash and Litecoin.
This confirms rumors which circulated earlier this year, and it is seen as a significant milestone by many in the community.
A milestone it may be, but it will impact millions of daily users who have, until now, never considered getting into cryptocurrency. For them, PayPal will be the leading authority in a space that it has long sought to discredit.
Over 221 Billion dollars were transacted in Q2 of 2020 using Paypal. That represents a rise of 10% in volume in just six months. PayPal is growing and dominating online payments as well as other services such as credit and insurance.
It has a long-established reputation of occasionally freezing user funds and censoring payments that conflict with its outlook but the payments giant continues to hold relevance where Bitcoin should have long overtaken it. Perhaps this news marks the beginning of a transition?
Is PayPal’s announcement good news for Bitcoin? Until very recently, PayPal was anti-crypto. Writing in 2018, ex-CEO Bill Harris called Bitcoin “the greatest scam ever”, so what’s changed?
This sudden turnaround is encouraging, especially as private companies like Microstrategy and Square make grandiose announcements about their own crypto diversification.
Should the community embrace them with open arms? After all, this is the start of mass adoption we’ve all been waiting for, right?
When a household brand like PayPal starts selling Bitcoin, it’s probably not because they want to spur healthy adoption. In the press release announcing their new cryptocurrency service, PayPal sends out mixed messages.
On one hand, the service will be entirely custodial, meaning users will not have the key to their own coins, while on the other they intend to “provide account holders with educational content to help them understand the cryptocurrency ecosystem”. The idea that anyone informed about bitcoin would agree to not holding their private keys might indicate that this educational content will overlook the fundamental rule of “Not your keys; not your coins”.
If millions of newcomers are onboarded to Bitcoin by PayPal, there could be a very serious information gap that jeopardizes their experience and undermines key principles of cryptocurrency.
This statement from their FAQ is, in practical terms, false: “You own the Cryptocurrency you buy on PayPal but will not be provided with a private key.” No-one should consider money held entirely by a third party as owned by them.
Time after time, exchanges have lost user funds, often leaving them with no recourse. A benefit for some will be a promise of greater regulation, where funds can be insured and new users may feel more comfortable than dealing with cryptocurrency exchanges directly, but they will be restricted from actually utilizing their coins. The only reasons to own Bitcoin which cannot be used, would be to invest for the long term, which is incredibly reckless to do when your funds are held by a third party, or speculate on its price, which again, would be introducing the masses to financial mechanisms they do not understand.
Is PayPal positioned to be a cryptocurrency leader? As it steps into the forefront, PayPal will be closely watched by companies, institutions, and consumers. While they can boast of “digital payments expertise”, they have historically taken an aggressive stance against users who bought cryptocurrency on exchanges, citing their acceptable use policy, forbidding transactions which “involve currency exchanges or check cashing businesses”.
The fact that this clause remains in their policy suggests that they intend to limit users to use only their platform for cryptocurrency, stifling competition and preventing users from ever withdrawing their cryptocurrency to the safety of a wallet they control the keys to. That said, there is something to be said for PayPal’s statement that they will “enable cryptocurrency as a funding source for digital commerce at its 26 million merchants”. Currently, the options for cryptocurrency funding are in their infancy, and Bitcoin loans could see future growth. There is only one thing about PayPal’s announcement that long-term hodlers will be celebrating today: the pump in price. Long-term, if PayPal proceeds without consulting the community and letting their users control their own keys, it offers no value to the space.
The greatest risk is that the clout they carry in traditional electronic payments will be interpreted as expertise in crypto. This would threaten the expert advice so carefully crafted by our community, which could be drowned out by the misinformed masses that PayPal brings to the space. For now, no-one can tell how it will turn out, but there are big concerns to address before informed users will turn to PayPal.
Welcome PayPal’s initiative with open arms, but by no means look to them for leadership. At best, this announcement indicates that they may fear sinking into irrelevance.
*Do not use PayPal for Bitcoin; there are many other places to buy crypto which will let you keep ownership of your coins. *
PayPal is conceding to Bitcoin, and the many other aspirational, educational projects within the community should be highlighted to prevent newcomers from falling into a trap of trusting one of Bitcoin’s greatest long-term adversaries.
Source : https://blog.trezor.io/why-you-should-not-use-paypal-for-bitcoin-f6e2d436ca96
submitted by mohiemen to CryptoCurrency [link] [comments]

Bitcoin to 6k!? Why? China Wants Control of BTC!! Bitcoin Get Woke On Cryptocurrencies: Epic-7.com - YouTube Bitcoin 101: Breaking Down The Cryptocurrency Bitcoin BEARS ARE IN FULL CONTROL?! - LIVE Crypto Trading Analysis & BTC Cryptocurrency Price News Should The Bitcoin Block Chain Be Regulated? Juan Llanos Talks About Bitcoin Compliance In The US

Banking institutions that are considering whether to accept virtual currencies, such as Bitcoin, must consider the risks involved, including money-laundering. Learn Virtual currencies also faces some serious security concerns and risks, such as the safety of wallets, double-spending, growing vulnerability to orchestrated attacks on Bitcoin exchanges, and fears of rogue miners engaging in selfish mining. These concerns that can be destructive towards Bitcoin are also real towards any other cryptocurrency, though not particularly in the same manner. Bitcoin Risks. Buying, selling and using bitcoins carry numerous risks: Digital currency such as Bitcoin is not legal tender. No law requires companies or individuals to accept bitcoins as a form of payment. Instead, Bitcoin use is limited to businesses and individuals that are willing to accept bitcoins. If no one accepts bitcoins, bitcoins will become worthless. Platforms that buy and sell ... Proponents hype the benefits of Bitcoin transactions as being faster and cheaper than traditional methods; however, concerns around the lack of a central governing agency, lack of controls over Bitcoin exchanges, and the volatility of the virtual currency persist. Therefore, a company’s use of Bitcoin, as a medium of exchange or as an investment, involves risks and internal control concerns ... Proponents hype the benefits of Bitcoin transactions as being faster and cheaper than traditional methods; however, concerns around the lack of a central governing agency, lack of controls over Bitcoin exchanges, and the volatility of the virtual currency persist. Therefore, a company's use of Bitcoin, as a medium of exchange or as an investment, involves risks and internal control concerns ...

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Bitcoin to 6k!? Why? China Wants Control of BTC!!

Bitcoin Technical Analysis: Bulls Are Fighting For Control (July 2020) Bitcoin bulls are getting ready to push the price out of the ascending triangle towards $9.4k or higher levels. We have been ... Trading and/or investing in Bitcoin (BTC), Ethereum (ETH) or any other type of cryptocurrency, altcoin or asset of any kind is extremely high risk and the market + price of any asset can crash or ... The price of Bitcoin ended up shooting past $9.5k as we expected to complete the head and shoulders formation. The bears remain in control and as long as we don't have a higher high and a higher ... We talk about cryptocurrency all the time, but do you know the history of this digital phenomenon? Trinity Chavez breaks down the history of Bitcoin and how far it’s come. Find RT America in ... Close. This video is unavailable.

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