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JoelDeze
JoelDeze
Joined: Apr 20, 2016
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Thanks for this post from:
Zuga
June 4th, 2017 at 3:29:26 PM permalink
Do not search online for the answers.

Here are the questions. Let's see how much you know.

1. When you see 0.00000001, what unit of measurement in BTC is this called?


Answer: It's called a Satoshi, named after Satoshi Nakamoto, the creator of Bitcoin. It's also a unit of measurement that's called out often when you buy or sell on a BTC market exchange. You may hear someone say, XYZ is going to reach 8000 SATs or Satoshi today. In this case, it means it will reach the equivalent of 0.00008000 BTCs. 100,000,000 Satoshi equal 1 Bitcoin (BTC).


2. For currencies that allow mining, what is the current progression one uses to actively mine coin with in terms of hardware? And, do you need to be a miner to make money?


Answer: The general progression is CPU, followed by GPU, followed by ASIC. Some currencies can only be mined now with ASIC, otherwise, you end up losing money due to the cost of electricity (unless you live in China). Luckily, you don't need to mine a single currency at all because trading is much easier to work with these days. The number two currency in terms of market volume, Ethereum, does not allow ASIC mining and is ASIC resistant.


3. Will the U.S. government jump into the cryptocurrency market? If so, what would the currency be called? And, why?


Answer: The answer is yes. Research is already being done on a centralized cryptocurrency "currently nicknamed FEDCoin". The main reasons for FEDCoin popularity is that it allows the IRS to track transaction movements, allows the Banking industry to better handle transaction processing as well as international exchange rates, and it replaces the dollar, which has declined every year since the FED opened in 1913.

NASDAQ Article


4. When you see the names Coinbase, Poloniex, Bitrex, what are these commonly referred as?


Answer: Cyrptocurrency Exchanges and temporary wallets. While most people use Coinbase to begin purchasing, a lot of people actively trade on Poloniex and Bitrex. However, if you plan to sit on crypto coins for a long time, it is much safer to move them into cold storage wallets. My favorite wallet of all right now is Exodus, however, I store coins in other wallets like Stratis, DigiByte, Ledger Nano, etc. The only time I keep currency on a trading exchange like Poloniex is if I'm actively buying/selling.


5. If you had a choice to use only two of the following exchange services, Shapeshift or Changelly, which would you choose?


Answer: Shapeshift. If you chose Changelly, you are probably still waiting for your coin to be exchanged right now. Even if it did miraculously get exchanged, all of the money may never show up.


6. Three cryptocurrencies listed in the top 20 of market cap jumped over 50% in price during at least one 24-hour timeframe this weekend? What were they?


Answer: DigiByte (DGB), Stratis (STRAT) and Siacoin (SC). I had more than 100,000 coins in both DGB and SC. I have more than 500 coins in STRAT.


7. If you are brand new to crypto and actively buying/selling on Poloniex or another exchange, why are you automatically at a disadvantage? And, how can you overcome it?


Answer: Fees. Unless you actively have a ton of Bitcoin in your possession and you have been trading for awhile, the fees may go from 0.15 to 0.25 per buy/sell. The best way to handle that is to use an average plus (0.21) fee and account for that into your buys/sells when placing open orders. You may have to wait a bit in order to get the price you want for a particular coin, but luckily you can place many open orders and they are in place until cancelled. The only gotcha? You need to pay close attention to the price of the currency market you are active in. If you are in a BTC market, make sure BTC is stable while orders are open. Otherwise, you may lose money.


8. What is happening on June 9th?


Answer: DigiByte (DGB) is actively presenting to CITI after being selected as a finalist in it's Tech challenge. They were selected out of 1,200 companies to present to Microsoft, Facebook, Intel, and a lot of other companies. It is primarily why there is a lot of hype surrounding the currency.


9. Why is Ethereum so popular?


Answer: Ethereum is the heavy favorite in blockchain solutions for Enterprise architecture. The EEA (Enterprise Ethereum Alliance) connects and advises Fortune 500 companies such as Microsoft, Intel, J.P. Morgan, ING, UBS, and more. After its break with unscrupulous investors (which grouped and formed Ethereum Classic), Ethereum has grown substantially in terms of market value. Enterprise companies trust the development of the blockchain.


10. If you bought $4,800 of Bitcoin (the equivalent of 10 coins) in April of 2016 and sold it in April of this year, then moved all of that into Ethereum, how much USD conversion would you currently have today? (basically just over a 1-year time frame)


Answer: More than $70,000. And, if you aren't investing in cryptocurrency, you should ask yourself why not?
“Know where to find information and how to use it; that is the secret of success.” – Albert Einstein
JoelDeze
JoelDeze
Joined: Apr 20, 2016
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June 6th, 2017 at 3:34:03 PM permalink
If you are interested in a high riser portfolio by the way, here's my recommended allocation for the next 3-months:

54.27% - Ethereum
18.63% - Stratis
15.68% - Golem
11.42% - DigiByte

That will keep you within an avg top 10 rank for market cap and will provide you the strongest risers in the short to mid-term.
“Know where to find information and how to use it; that is the secret of success.” – Albert Einstein
DJTeddyBear
DJTeddyBear
Joined: Nov 2, 2009
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June 6th, 2017 at 4:38:26 PM permalink
Cool. I knew all but ten answers.
Superstitions are silly, childish, irrational rituals, born out of fear of the unknown. But how much does it cost to knock on wood? Note that the same could be said for Religion. I.E. Religion is nothing more than organized superstition.
JoelDeze
JoelDeze
Joined: Apr 20, 2016
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June 10th, 2017 at 9:24:12 AM permalink
Ethereum has gone from $170 over 17 days ago to finally topping $300 as of today.
“Know where to find information and how to use it; that is the secret of success.” – Albert Einstein
Wizard
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Wizard
Joined: Oct 14, 2009
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Thanks for this post from:
RogerKint
June 10th, 2017 at 3:23:35 PM permalink
Quote: JoelDeze

Ethereum has gone from $170 over 17 days ago to finally topping $300 as of today.



All these crypto-currencies have fad written all over them. The great pop is coming.
It's not whether you win or lose; it's whether or not you had a good bet.
JoelDeze
JoelDeze
Joined: Apr 20, 2016
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June 10th, 2017 at 7:24:19 PM permalink
Quote: Wizard

All these crypto-currencies have fad written all over them. The great pop is coming.



While I greatly respect your knowledge with the IRS and with math/probability, I have been working with programming and technology (software/hardware) for more than 28 years.

Most people can't wrap their heads around a decentralized cashless system such as cryptocurrency but it works very well. Transactions are confirmed and don't require centralized servers or middlemen to be completed.

The advances of Ethereum based contracts bridges a huge gap in enterprise software development.

Putin is already moving Russia's economy towards implementing Ethereum. When meeting with Buterin, he said he envisions Ethereum to process many different types of transactions. This includes bets, option deals, insurance contracts, the government registration of property rights and copyright -- pretty much any kind of deal that requires validation or that can be automatically executed when certain conditions become right.

It's one of the reasons for this latest push.

Blockchain development is going to increase and any fork or application that uses Ethereum based contracts will just cause the value to increase.
“Know where to find information and how to use it; that is the secret of success.” – Albert Einstein
rxwine
rxwine
Joined: Feb 28, 2010
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June 10th, 2017 at 7:35:36 PM permalink
Looks like people are already asking the question I was about to ask.

For instance:

https://www.cryptocoinsnews.com/quantum-computers-will-destroy-bitcoin-scientists-warn/

Thoughts on this.
prisoner of gravity
prozema
prozema
Joined: Oct 24, 2016
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June 10th, 2017 at 8:15:35 PM permalink
Quote: rxwine

Looks like people are already asking the question I was about to ask.

For instance:

https://www.cryptocoinsnews.com/quantum-computers-will-destroy-bitcoin-scientists-warn/

Thoughts on this.



I said to a few Bitcoin advocates that hardware advancement, specifically quantum computing, was a risk over a year ago. They just rolled their eyes.

The bigger risk with Bitcoin and similar equivalents is limiting the ability to expand and contact the money supply.

All this is little more than revisiting the gold standard vs fiat currently debate. The only real difference is that BC is infinitely divisible but I don't think that's meaningful enough to make a difference.
I love it when a plan comes together.
JoelDeze
JoelDeze
Joined: Apr 20, 2016
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June 11th, 2017 at 5:50:39 AM permalink
Quote: prozema

I said to a few Bitcoin advocates that hardware advancement, specifically quantum computing, was a risk over a year ago. They just rolled their eyes.

The bigger risk with Bitcoin and similar equivalents is limiting the ability to expand and contact the money supply.

All this is little more than revisiting the gold standard vs fiat currently debate. The only real difference is that BC is infinitely divisible but I don't think that's meaningful enough to make a difference.



This will not make a bit of difference. Developers are already changing cryptography standards so that bitcoin and other currencies will phase in quantum-proof technologies.

I personally do not care about bitcoin, nor do I invest in it, but I do give it the respect it has earned.

As for your bigger risk argument, that's fairly inaccurate. I'll use what I know about Ethereum (as that is what I trade in) as a basis for rebuttal. Ethereum has what is called an ERC 20 standard. Any application that is created with this standard can interact with the token. See this link for more information. What is the money supply? Generally, the total amount of money in circulation or in existence in a country. So, how does one handle the issue you briefly touched on?

In terms of Government centralized currency, like FEDCoin, the U.S. will issue E-Currency and "force" Americans to use it. Just do some research on "Doug Casey", who is a highly respected currency guru to understand more about the research. Basically, the Fed would premine all of the currency that they want to use on the blockchain. Then, the Fed would just exchange the fedcoin for a dollar each.

If you just think about transactional tracking and money conversion rates you would already know why cryptocurrency is faster and more reliable than banking today. Keep in mind that it would literally take the U.S. 30 years of non-stop money minting to represent the amount of monetary debt we currently have in the country. And, the U.S. may not be the first country to implement cryptocurrency. I believe that Russia and China will be first. The U.K. may beat the U.S. into the market as well.

This is not a restrictive paradigm. It will go beyond the box. The bigger question is how will centralized cryptocurrency work alongside decentralized cryptocurrency.
“Know where to find information and how to use it; that is the secret of success.” – Albert Einstein
Wizard
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Wizard
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June 11th, 2017 at 6:53:20 AM permalink
Quote: JoelDeze

While I greatly respect your knowledge with the IRS and with math/probability, I have been working with programming and technology (software/hardware) for more than 28 years. ...



Yes, I admit I'm just a common schmoe when it comes to this topic with no special knowledge. I'd definitely take whatever I say on it with more than a pinch of salt.

As a math wonk, I fully appreciate the mathematical beauty of cryptocurrency and think that the way it works is brilliant. What bothers me is that there is nothing behind it. It is based on nothing. Not even a tulip or a Beanie Baby.

If Russia were to base Ethereum on the rubble I would respect it much more. The day a country or even a large business backs a cryptocurrency I'll say that will be the one to rise above the rest.
It's not whether you win or lose; it's whether or not you had a good bet.

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