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This is a discussion on Bitcoin Advice within the Cryptocurrencies forums, part of the Markets category; Originally Posted by bigdatascience To do this justice I would need literally hundreds of pages since it encompasses the intricacies ...

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Old Mar 28, 2015, 7:20pm   #17
 
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Quote:
Originally Posted by bigdatascience View Post
To do this justice I would need literally hundreds of pages since it encompasses the intricacies of IT security, encryption and financial engineering. In layman's terms:

1. Cold storage (not connected to the internet) is the only safe way to store BTC. Unfortunately if the BTC was intercepted in some way to the cold storage then can still be stolen (double spent).

2. Hot storage (online) is high risk, irrespective of the vendor for reasons which cover social engineering, 0-day exploits, criminality, lack of over-sight.....

3. Even if BTC was safe to store, it is so volatile as an asset price that you can literally lose 10-50% of it's value overnight. To manage the risk of asset price volatility you really need it in a hot storage but as I have said this is far to dangerous.

It is a great concept, the technology will revolutionise FinTech and Trading, it's just not something that I would recommend folks swapping FIAT currency while it's still in a alpha state of development. I have blogged more in-depth analysis but not allowed to refer you to my website from here.

Best,

A

Hi Alan,

Great, thanks for the clarification. I found your website and it is a useful resource.
I felt this was your point its just I wasnt sure what aspect of your comment was about hot/cold storage etc.
I agree that online wallets are not yet to be trusted, maybe never, and I am waiting for a more reliable system to be developed before I change the way I save and transact with BTC now.
My knowledge about BTC is not as technical but I also advise people that its not to be treated as a speculative tool, and is highyl volatile/uncertain.

I am a hobbyist miner so I have a very small stake at the moment running around 500GH and am not investing anything beyond my mining gear.
However I dont think "asimpleplan" has to forget the idea of buying some BTC;
if they understand clearly that its a volatile digital cryptocurrency, and they know they can lose any investment, they could assess the risk with the help of people like yourselves and others on this thread.
I see bitcoin not as an investment tool but as a potential future micro-economy and more. Holding bitcoin is simply a way to hold a stake in that possible future which remains highly uncertain and dependent on factors including tech innovation, entrepreneurship, politics, law and societal acceptance (among other things), and of course the bitcoin and crypto mining/exchange community.

According to what I understand about bitcoin, its not really possible for it to diappear as it would be technically impossible to delete/regulate all global bitcoin wallets, although I agree the price could drop out of the sky and may never return.
I am also interested in it as a potential decentralised ledger and tool for more transparent democratic transactions (e.g. Bitcoin 2.0)...
So I am willing to take the risk of my small mining investment to be part of this possible future.
And if it happens to develop as an economy I would consider swapping out by directly purchasing some other asset (e.g. technology, company shares, metals) rather than back to a fiat currency!

Thanks again Alan, I would love to hear your thoughts on this (and anyone elses).
CW.
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Old Mar 29, 2015, 10:57am   #18
 
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Quote:
Originally Posted by ColdWallet View Post
Hi Alan,

Great, thanks for the clarification. I found your website and it is a useful resource.
I felt this was your point its just I wasnt sure what aspect of your comment was about hot/cold storage etc.
I agree that online wallets are not yet to be trusted, maybe never, and I am waiting for a more reliable system to be developed before I change the way I save and transact with BTC now.
My knowledge about BTC is not as technical but I also advise people that its not to be treated as a speculative tool, and is highyl volatile/uncertain.

I am a hobbyist miner so I have a very small stake at the moment running around 500GH and am not investing anything beyond my mining gear.
However I dont think "asimpleplan" has to forget the idea of buying some BTC;
if they understand clearly that its a volatile digital cryptocurrency, and they know they can lose any investment, they could assess the risk with the help of people like yourselves and others on this thread.
I see bitcoin not as an investment tool but as a potential future micro-economy and more. Holding bitcoin is simply a way to hold a stake in that possible future which remains highly uncertain and dependent on factors including tech innovation, entrepreneurship, politics, law and societal acceptance (among other things), and of course the bitcoin and crypto mining/exchange community.

According to what I understand about bitcoin, its not really possible for it to diappear as it would be technically impossible to delete/regulate all global bitcoin wallets, although I agree the price could drop out of the sky and may never return.
I am also interested in it as a potential decentralised ledger and tool for more transparent democratic transactions (e.g. Bitcoin 2.0)...
So I am willing to take the risk of my small mining investment to be part of this possible future.
And if it happens to develop as an economy I would consider swapping out by directly purchasing some other asset (e.g. technology, company shares, metals) rather than back to a fiat currency!

Thanks again Alan, I would love to hear your thoughts on this (and anyone elses).
CW.
We are starting a new Coin in the next few months which will be an integral part of a platform we are also releasing. It's aim is to develop a coin value without having to be benchmarked against FIAT currency. Will let you know when it's ready to be mined.

Best,

Alan
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Old Apr 8, 2015, 12:07am   #19
2be
 
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I prefer to buy apartments rather than bitcoins. At least apartments are rented out and yield residual income, on the top of capital appreciation, which sounds nice but has to be managed with care due to taxation.
So no bitcoin for me, neither any consideration as to where to store the virtual value.
I think it is time to welcome back some alchemists of old to perform metal transmutation, and then we can trade the digital pictures of gold bars created from iron.
One can always print a picture...
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