Cryptocurrencies: Newbies Learning Zone

This is a discussion on Cryptocurrencies: Newbies Learning Zone within the Cryptocurrencies forums, part of the Markets category; Originally Posted by timsk Firstly, I've held the view for many years that the current financial system is on its ...

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Old Dec 23, 2017, 5:42pm   #9
 
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Originally Posted by timsk View Post
Firstly, I've held the view for many years that the current financial system is on its last legs and will almost certainly collapse sooner or later.
Tim, do you really believe if the world as we know it (the financial system) collapses tomorrow, somehow the internet will still be around, so we can use the tokens to order stuff from Amazon?

We'll be back to the stone age hunting with bows and arrows... you cannot eat bitcoins, gold and diamonds and won't help you one bit to survive...

If you are afraid, stockpile on medicine, food, water, guns and ammo and have a few trusted friends around...
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Old Dec 23, 2017, 5:56pm   #10
 
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while I understand(ish) in broad terms what a blockchain is, I wouldn't want (or be able) to explain it clearly and succinctly to someone who's never heard of the term before.
The technology has been around for let's say 8-9 years already, but can you name me one widely used product or service based on block chain?

Even more, do you think the hedge funds and traders will want all their transactions to be in one single block chain for every one to reverse engineer their methods?

For the "against the government type" people, do you want all your spendings and all your income to a cent be on a centralized block chain? Or your health records and meds you are taking - talking about a gold mine for the insurance companies...

This is like the gateway technology to 1984 and the total control of the population...
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My number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
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Old Dec 23, 2017, 6:42pm   #11
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Originally Posted by neil View Post
Tulipmania again.........if you don't understand it Tim, and you are no fool, then it probably belongs to those smoke like dreams that slip through your fingers because it is a virtual product as opposed to something solid like corn etc or even those bank notes with the queen upon it that at least carry a promise to pay the bearer. . .
Hi neil,
My philosophy is to try and keep an open mind and do my best to learn as much as possible about a market before deciding to trade it or, conversely, not to touch it with a barge pole. Certainly, I agree 100% that if one doesn't understand something then it's wise to avoid it until one does. On that basis, personally, I have no intention of investing in any crypto unless and until I've done just that. Even then, I may well steer clear of it altogether as I accept that it's waaaay more risky than almost all other markets.

As you know, T2W is intended to be a sort of one-stop-shop for newbie traders, a place where they can find a good amount of quality information on most aspects of trading. Regardless of whether you're a crypto evangelist or think the entire arena is populated by ne'er-do-wells out to con the gullible - the fact remains that at the time of posting it appears to be a major emerging market. One may not like it, but one can't ignore it. (Only last week a member posted stat's that showed the daily volume in cryptos is roughly equal to that traded on the NYSE.) It's for this reason that Sharky created this bespoke forum and why I think this thread could be a useful starting point for those that wish to understand it.
Tim.
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Last edited by timsk; Dec 24, 2017 at 11:04am.
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Old Dec 23, 2017, 7:01pm   #12
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. . .How many forks we have already and how many more are coming in just the next few week? Every fork doubles the tokens and gives the "creators" few percent "per-mined" coins to support the cause...
Hi Quantt,
Thanks for your posts, however, I don't propose to address the points you raise for two reasons. Firstly, the idea of the thread is not to discuss the merit - or otherwise - of cryptos. It's intended as a first base starting point for complete newbies who wish to get their heads around crypto basics. Think of it purely as the crypto equivalent of one of the First Steps threads in which newbies ask questions like 'what is a stop loss' or 'what does long and short mean' etc. The second reason leads on from this: you've used jargon that makes your posts tricky to understand. E.g. in the quote above you refer to 'forks', 'tokens' and 'per-mined' - all in one sentence. All good stuff no doubt - but best reserved for another thread!

Tim.
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Old Dec 23, 2017, 7:32pm   #13
 
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Originally Posted by timsk View Post
Hi Quantt,
Thanks for your posts, however, I don't propose to address the points you raise for two reasons. Firstly, the idea of the thread is not to discuss the merit - or otherwise - of cryptos. It's intended as a first base starting point for complete newbies who wish to get their heads around crypto basics. Think of it purely as the crypto equivalent of one of the First Steps threads in which newbies ask questions like 'what is a stop loss' or 'what does long and short mean' etc. The second reason leads on from this: you've used jargon that makes your posts tricky to understand. E.g. in the quote above you refer to 'forks', 'tokens' and 'per-mined' - all in one sentence. All good stuff no doubt - but best reserved for another thread!

Tim.
Hi Tim, as you wish, but those are the questions a newbies need to ask...

To use your example, "what is a stock" and "what is a stock market" would be more along the example...

"Long", "short" and "stop loss" type questions are to be asked down the line after the basics are understood...
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"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

My number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
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Old Dec 24, 2017, 2:05am   #14
 
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Originally Posted by timsk View Post
This question specifically relates to Bitcoin - but I suspect it would also apply to most (all?) other cryptos. I keep reading that the total number of Bitcoins is capped at around 21 million. Who - or what - dictates this figure and how did it come about?
Best answer I can find online.


Well when bitcoin was introduced for every block created one was awarded 50 bitcoins and that occurred every 10 minutes.

Because there are 1440 minutes (24x60) in every day, that means that 144 blocks were created so 144X50 = 7200 bitcoins per day

4 years are 1461 days (including the leap one) so the total bitcoins for the 1st 4 years is 1461 X 7200 = 10519200

Now .. since every 4 years we have to double-down the amount of bitcoins prize for every block found, the total bitcoins are 10519200 *(1 + 1/2 + 1/4+1/8 + … +1/2^n) = 10519200 *2 = 21038400 (its well know that 1+0.5+0.25+0.125+.. = 2 )

That number 21038400 is the theoretical limit since we cannot go forever mining a millionth trillionth of a satoshi. Actually (as for now) we cannot go less that 1 satoshi anyway. So the real number is just a little bit smaller than that, maybe 21038399.99999999 or 1 satoshi away from the theoretical calculation.

Now since every 4 years we have a double-down that means than in 40 years (in 2049) we will have 1/(2^10) = 1/1024 production of bitcoins, which means that since we started with 50 botcoins award after 40 yeras the prize of finding a new block will be aproximately 1/1000 of 50 bitcoin = 0.05 bitcoin per block (0.048828125 is the accurate result)


https://www.quora.com/Why-is-Bitcoin...ment-behind-it
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Old Dec 24, 2017, 9:30am   #15
 
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The day I get schmuzzled into buying botcr*p is probably the day it drops through the floor.
S0ds law and all that.
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Old Dec 24, 2017, 10:44am   #16
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. . .but those are the questions a newbies need to ask.
. .
Hi Quantt,
If you're referring to the questions that you posed in your post #10 above, I agree they are very good and warrant serious consideration. However, they concern the merits and viability - or otherwise - of cryptos in general and blockchain technology in particular. Surely, before one can provide satisfactory answers one must first have a reasonable grasp of what a blockchain is? That's the purpose of this thread. To attempt to address your points without first having a good handle on crypto basics is to put the cart before the horse IMO.
Tim.
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I'm New To T2W - Where Do I Start? - a must read for anyone new to T2W
I'm New To TRADING – Where Do I Start? - a must read for anyone new to TRADING
The Trading Plan Template - a must read for anyone without a proper TRADING PLAN
Please note: I am part of T2W Admin' Staff - I am NOT a Moderator!
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