Hey Reddit help me button this up. I want a clean explanation to give to non-technical people interested in Bitcoin. I. Bitcoin is a digital currency with no central authority that is secured by cryptography and managed by an open source protocol anyone can review. II. Anyone who has internet access, or even only a phone, can transact in Bitcoin. III. The total number of possible Bitcoins is capped and the “minting” of new Bitcoins will occur roughly every 10 minutes as reward for a process called mining until the cap is reached. IV. The cap and algorithmically controlled rate of “minting” makes Bitcoin scarcity both real and predictable and is partially why Bitcoin is believed to hold value better than alternatives that do not force similar scarcity limits. V. Unlike traditional currencies or precious metals, Bitcoin is highly divisible making it capable of accommodating massive future adoption on a global scale even after all Bitcoin has been mined. VI. Bitcoin transactions are more similar to cash than credit cards, PayPal, or Bank Transfers in that they do not require an intermediary financial processing service. They are primarily person-to-person or person-to-business with no need for a financial institution to manage the transaction. VII. All Bitcoin transactions flow on a network that spans thousands of systems around the world. VIII. The network is resilient with no single point of failure and its cryptographic processing power from the mining exceeds the world’s top 500 supercomputers combined and is growing at an exponential rate. IX. The Bitcoin network keeps a ledger of all transactions called the Blockchain. X. To prevent anyone from falsifying or otherwise gaming transactions, cryptography is used to securely originate transactions from Bitcoin wallets. XI. Cryptography is also used by the network miners to function as a signing notary to prevent double spending and to make each transaction official in the ledger. XII. As with any currency Bitcoin’s worth is based on the market’s trust in its ability to hold and transfer value. XIII. People trust in Bitcoin because its open logic, tamper resilient nature, global adoption, and inherent digital advantages like instantaneous transportability and transfer make it better than any traditional currency or precious metal. DISCLAIMER: Bitcoin is still in its early stages and considered highly speculative. Bitcoins can be subject to theft and must be protected. Bitcoin is not legal tender under any sovereign jurisdiction and purchasing Bitcoin can result in serious regret, especially if you wait until a year from now before you get some. [Edit 1, Thanks: gox, TheMania and v-4]
[Request] A breakdown of what bitcoin is actually being used for?
Hey. I was wondering if anyone had found any original research done into the practical uses for bitcoin. We often see stats from companies saying people are using it to pay for items but realistically what is the majority of bitcoin transaction flow? I would assume that the bulk is simple trading on exchanges but is there a full breakdown including things like ecommerce purchases, dark web transactions etc. Thanks!
An interesting view into bitcoin exchange transactions
In a new write up published this week, there is eye opening information into how bitcoin transactions flow from bitcoin exchanges using blockchain intelligence software Chainalysis. http://bitcoinx.io/news/articles/an-interesting-view-into-bitcoin-exchange-transactions/ In reviewing the data, there were several bitcoin exchanges that were tracked including Bitfinex, Bitstamp, BTCC, BTC-e, Circle, Coinbase, Huobi, itBit, Kraken, LocalBitcoins, OKCoin, and Xapo.
A lot of people have used the analogy of a dam "blocking a stream" to describe efforts to keep the block size limit set at what they see as an artificially low level. (Example here.) Now, obviously this rhetoric is intended to be funny as a play on the name of a certain company. But I think it's actually also a really, really good analogy for our situation and thus merits some further consideration. The analogy first gives us the idea of pressure. If increased transactional demand causes the equilibrium "free-market" block size to be larger than the artificial limit allows, that's going to create well, "pressure." (We can think of the magnitude of that pressure as corresponding roughly with the triangle labeled "deadweight loss" in this graph.) Now some might hope that the pressure caused by blocking the stream(TM) will simply force more of Bitcoin's transactional flow to be diverted to their preferred off-chain solutions. But that can only work if the dam holds. So, focusing on another aspect of the analogy, what is this "dam" made of? Well, it turns out, nothing very substantial. We might think of one layer of the dam as the "inconvenience barrier" -- the fact that, until recently, it was kind of a pain for most users to modify the Core code to set their own block size limit parameters. Another layer (of equal if not greater importance) might be labeled the "psychological barrier." This one I think is well-illustrated by this cartoon. Note that in this metaphor the people crowded around the guy with the podium (obviously representing Core) don't all support Core's chosen direction. In fact, we can imagine that many of those signs say "Raise the Block Size Limit Now!" But those people are still part of the problem by failing to recognize that we don't need Core's permission to raise the block size. They're the people fretting on Reddit that "Core is killing Bitcoin" and threatening to sell all their bitcoins for alts. The guy walking away? He's the guy running (or coding up) an alternative implementation like Bitcoin Unlimited. Breaking down this barrier simply involves getting people to recognize that Core is not Bitcoin, we already have the power to change the block size limit ourselves by choosing what code we run, and we should exercise that power because allowing the decision about a key economic parameter to be made in a centralized manner is incredibly dangerous. If I had to name a third layer, I might say the "collective action barrier," i.e., we can all raise the limit if a substantial number of us act in concert, but no one can raise it by themselves. (I think this last one is pretty minor compared to the first two.) This provides a good summary of why I'm so optimistic that the limit will get raised. The pressure that's attempting to sweep away the dam is only going to increase (and increase dramatically) as blocks get fuller and fees start to rise significantly. (As far I can tell, as of right now, this pressure has barely even started.) In addition, the dam itself is beginning to weaken. The "inconvenience barrier" is being rapidly eroded by Bitcoin Unlimited. Bitcoin Unlimited and the ideas behind it are also contributing to the erosion of the "psychological barrier" -- as is leadership from companies like BitPay with their recent block size proposal. Maybe it's my own bias, but just based on what I've seen in the past week, BU seems to be starting to capture mind share very quickly. Finally, the "collective action barrier" is also being weakened by BU and the development of other tools and proposals that will make coordinated action on a block size limit change easier. (As an aside, this analogy also provides a nice visual for my thoughts on the frequently-voiced concern that the current obstruction will allow an alt-ledger to take over. To me, that would be sort of like our metaphorical river tunneling through a half mile of solid rock to flow through an alternate (and unblocked) channel. The market could do that if it had to. But it doesn't have to because it's not the path of least resistance. Again, our "dam" here is mostly an illusion. It will not hold.)
Can bitcoin be traded over Litecoin Lightning LND layer as a way to improve transaction flow for BTC?
I grasp some concepts but not a tech expert in crypto. I understand that Lightning allows you to create a channel with a committed LTC value (say equivalent to 10 BTC), can't you use LND cross-chain / side-chain to transact bitcoin over that LND layer and settle in LTC? If this is possible, I imagine it could bypass some of the BTC current challenges and be an amazing catalyst for LTC. If I understand correctly, the cross-chaining would require a compatible hash so ETH or many other crypto would not work. Am I stating the obvious here?
[uncensored-r/Bitcoin] Some wisdom from our mod /u/ThePiachu: Blockstream wants more transactions to flow through their ...
The following post by supremelummox is being replicated because the post has been silently greylisted. The original post can be found(in censored form) at this link: np.reddit.com/ Bitcoin/comments/7qcit2 The original post's content was as follows:
What will a transaction cost when Bitcoin is fully mined and integrated into the currency flow?
Although one of the basic ideas of bitcoin transactions is to be close to fee free I am wondering what the cost of electricity will be if bitcoin rises up to it's full potential. Correct me if I'm wrong - Mining = verification process of where every single bitcoin is right now, isn't it? Every transaction is confirmed and somehow put into the blockchain for everyone to see, right? The mining process as of today is already quite energy reliant. How will this play out when bitcoin hits an adoption like the current credit card companies or even more since it can be used for so many different purposes aswell. Can the blockchain somehow get "overcrowded" by layer upon layer of transaction, verification, contract, vote or are those layers somehow seperable?
Can bitcoin transactions become relatively pricey considering the need for energy, when it is adopted by the mainstream and fully mined around 2040?
Can it become too slow caused by gazillions of different actions that are taking place on the blockchain.
[uncensored-r/Bitcoin] Bitcoin transaction: The Flow
The following post by lunarocket is being replicated because some comments within the post(but not the post itself) have been silently removed. The original post can be found(in censored form) at this link: np.reddit.com/ Bitcoin/comments/77y2yi The original post's content was as follows:
11-09 13:13 - 'Meanwhile Blockstream and AXA calling all the shots is very decentralized? Blockstream wants transactions to flow through their proprietary service to collect fees. How does that fit into Satoshi's vision? Blockstream is a comp...' by /u/5heikki removed from /r/Bitcoin within 39-49min
''' Meanwhile Blockstream and AXA calling all the shots is very decentralized? Blockstream wants transactions to flow through their proprietary service to collect fees. How does that fit into Satoshi's vision? Blockstream is a completely unnecessary middleman. How is this good for anyone other than Blockstream? Not that I have dedicated much time to studying this, but it sure looks like the core devs sold out. Convince me that this isn't the case.. ''' Context Link Go1dfish undelete link unreddit undelete link Author: 5heikki
Bitcoin is protected by a combination of stock & flow. What is stock? And what is flow? In general terms, flow is defined as a quantity which is measured over a period of time. Flow is the rate of ... Chart 1: Stock to Flow Ratio of various commodities v/s Bitcoin . Source: PlanB (March 2019), Coin Metrics (April 2020). Any reference to specific securities should not be taken as a recommendation to buy, sell or hold these securities. Note: A Goldman Sachs report from 2015 estimated that the last of gold from known reserves will be mined by ~2035 and the last of platinum will be mined ~2055 ... Reid and Harrigan (2011) conducted temporal flow analysis, egocentric analysis and visualization of Bitcoin transactions based on the construction of a transaction network and a user network. Entities in the transaction network were formed by the clustering of multiple addresses via transactions with multiple inputs. External information from web sources was incorporated into the user network ... Go with the -Bitcoin- Flow, with Visual Analytics ARES ’17, August 29-September 01, 2017, Reggio Calabria, Italy. credentials) in the opening Web-page of BlockChainV is (the only. further ... Bitcoin transaction: The Flow . submitted 1 year ago by lunarocket. 124 comments; share; save; hide. report; all 124 comments. sorted by: best. top new controversial old random q&a live (beta) Want to add to the discussion? Post a comment! Create an account. humdinger44 55 points 56 points 57 points 1 year ago (32 children) What happens when the max number of bitcoins is created and Gary ...
Fake bitcoin Transaction software by jack - YouTube
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