Bitcoin/Cryptocurrencies – Digital Gold or Tulip Bulb?


(Amit) #146

Bitcoin is worth what people are paying for it. The concept that it is a medium of exchange has been eliminated because you cannot do retail transactions with something so much volatile.

~ Stanley Druckenmiller, Legendary Investor


(Vivek) #147

The easiest way to do is buy bitcoin from any Indian exchange and then transfer the same to binance.com(no KYC needed) once its there trade it with XRP and then to store it buy a ledger wallet nano-s (available in amazon india) and store it offline.


(Harsh04) #148

I am using Rippex.

It’s ripple’s own desktop based wallet.


(Harsh04) #149

why would one want to do this when you can directly buy XRP on coindelta or koinex ?

The method you suggested sounds sensible only if one needs to buy Altcoins not offered by Koinex or Coindelta merely because there is no other alternative other than doing this.


#150

Does it download the full block nodes like Etheruem Desktop wallet? That’s more than 100 GB download.


(SkyWalker) #151

https://www.zerohedge.com/news/2018-01-04/anatomy-crypto-nightmare-ripple-ceo-now-richer-zuckerberg?

Lengthy read, but interesting. Throws light on some unknown insights like heavy cost of trading bitcoins, what traditional institutions can do in this space since this is unregulated.


(Alok Bhola) #152

IOTA Rose 464% In 2017, But Buyer Beware: Experts Have Major Security Concerns

Like Bitcoin, IOTA is a public ledger focused on moving information quickly and cheaply. It’s open-source, so anyone can see the code used to build it. But instead of using a blockchain, IOTA uses an alternative mathematical approach called a directed acyclic graph or “tangle.” According to the IOTA Foundation, a tangle can settle transactions more quickly than blockchains like Bitcoin by processing them “in parallel.” And transactions have no fees, although computational work is required to finalize them.

In September, a major security flaw was uncovered by MIT researchers (IOTA later fixed the flaw).

IOTA isn’t decentralized, even though IOTA makes that claim, because it has a central “coordinator node” that the network needs to operate. If a regulator or a hacker shut down the coordinator node, the network would go down


(Andre Vilas Boas) #153

I have been aware of bitcoin for quite a long time now, around five years or so. But I have never thought even in my wildest imagination that what I used to think to be a currency of the ‘underworld’ will have this much demand in the mainstream. I just wish I would have built more cognizance on the technology earlier and some foresight, then by now I would have been pretty rich!

I personally like the technologies and the ideas cryptocurrencies are built upon, though admittedly I still have a lot to learn. Now from an ‘investment’ perspective, I think (Bitcoin for example) their value are solely dependent on the notion of ‘supply and demand’, so their value is absolutely dependent on what people perceive their value to be at a certain point of time. I believe everyone here already knows that.

But what I found to be very interesting during my own analysis and attempt to understand crypto is that, there are so many things in the world that are same as cryptocurrencies in nature. Diamond for example, no intrinsic value, but still that rings still digs a pretty deep hole in our pockets, doesn’t it ? Same for Gold, but see how we love the shiny yellow metal so very much and it is one of the most favorite ‘investment’ of the average Indian household. So, the lack of intrinsic strength of crytpcurrencies shouldn’t be an issue.

As for utility and real life implications of these currencies, I learned that many leading companies such as Microsoft, Virgin Galactic and many others are already accepting it for transaction, I believe that number will increase as time passes. Also many leading international banks have already tied up with the crypto issuing companies and are in process to use their technologies in their own systems. So, the implications are there for us to see. However, the volatility is an issue which will continue for sometime I think and will be one of the major obstacle for it to become mainstream transactions.

To conclude, I think the future of cryptocurencies are bright but as always before putting your hard earned money in it, please do the due diligence on your part and dont just get swayed by some ‘expert’ advice.


(SkyWalker) #154

This one is funny, throws light on current state of crypto market.


#155

(Aman Vij) #156

Several other companies in recent weeks have been rewarded with sharp rises in share price after announcing their transformation into cryptocurrency businesses.

Riot Blockchain (RIOT.O) shares have tripled since October when the former biotechnology firm changed its name and said it was revising its business focus to bitcoins.

Soft drinks maker Long Island Iced Tea has more than doubled since it said it was shifting its focus to blockchain technology and changing its name to Long Blockchain Corp (LBCC.O).

Also on Tuesday, Inpixon (INPX.O) surged 9 cents or 40 percent to 31 cents per share after the data analytics company announced it would adopt blockchain technology.


(Alok Bhola) #157

(azardeen) #158

(Alok Bhola) #159

I won’t be surprised if there are many more such cases out there.


(SkyWalker) #160

Bitcoin around USD 9700, again dropping for no reason just like it went up for no reason.


(Alok Bhola) #161

(Alok Bhola) #162

Monero (XMR) appears to be the most interesting cryptocurrency out there. It very nicely meets the following objectives of the very idea of cryptocurrencies:

  1. Security: Transactions are cryptographically secure using the latest and most resilient encryption tools available.

  2. Privacy: The details of every transaction, including sender, receiver, and size, are recorded on a public ledger, but are obfuscated to make them untraceable.

  3. Decentralization: It is not run by any large group. An accessible “Proof of Work” algorithm makes it easy to mine Monero on normal computers, which makes it more difficult for someone to purchase a large amount of mining power.

  4. Limited Supply: Although theoretically Monero has unlimited supply, but the annual supply is capped at only about 158,000 coins once the total supply reaches about 18.2 million coins.

History

Monero was launched in April 2014. Much like bitcoin, Monero’s creator is anonymous. It has made several large improvements since launch. The blockchain was migrated to a different database structure to provide greater efficiency and flexibility.

Monero had no premine or instamine; It did not sell any token; It had no presale of any kind.

Monero continues to develop with goals of privacy and security first, ease of use and efficiency second.

Supply:

There are about 15.6 million coins currently in circulation. The initial supply target is about 18.2 million coins by the end of May 2022; thereafter, 0.6 coins per 2-minute block (about 158,000 annually), translating to <1% inflation, decreasing over time. This continuing supply is meant to provide an incentive to the miners to manage and secure the blockchain even after the original 18.2 million supply has been reached.

Other Details:

Monero is a decentralized cryptocurrency, meaning it is secure digital cash operated by a network of users. Transactions are confirmed by distributed consensus and then immutably recorded on the blockchain.

Monero does not have a hard block size limit. Instead, the block size can increase or decrease over time based on demand. It is capped at a certain growth rate to prevent outrageous growth. Block time is 2 minutes. May change in the future as long as the total supply target is preserved.

Owing to it’s strong privacy features, it’s often accused of being the favorite cryptocurrency of cybercriminals. The hackers behind the global ransomware incident WannaCry, which infected 230,000 computers running Microsoft Windows, reportedly converted their bitcoin payments to Monero.

Visit https://getmonero.org/ for further details.

How to buy Monero from India ?

The best option would be to first buy Bitcoin or Ethereum from an Indian exchange such as Koinex and then use them to buy Monero from an International Exchange such as Binance, Bitfinex, etc.

Disclosure:
I had put about 1% of my NW in a basket of cryptocurrencies. Thereafter, after the amount slightly more than doubled, I took back my original amount and the income tax payable. Hence, I am currently playing this cryptocurrency game with the “Casino’s Money”, as it is called :wink:. Within Cryptocurrencies, Monero is currently my third biggest holding, after Bitcoin and Ethereum.


(vaibhav) #163

What happens to cryptos like bitcoin when

  1. Let’s say in future, crypto dollar comes along (since crypto ruble is anticipated to be used by putin).
  2. Fed starts reducing balance sheet, in other words taking back the printed money… I read some estimates saying that balance sheet could be shrinked to 2.5trillion dollars from 4.5 trillion gradually…

(Alok Bhola) #164

How many of the four basic conditions of a proper cryptocurrency (please see post 158 for details) would be met by such fiat cryptocurrencies. In my opinion, only one - the first one mentioned in the post.

Besides, how would such cryptodollars or cryptorubles be different from the existing dollars or rubles, most of which anyways circulate in electronic form. Maybe they will slightly improve upon the technology (by using blockchain etc), reduce transactions fees a bit, and so on - these things are anyways a part of continuous technological improvements.


(vaibhav) #165

I meant crypto dollars having limited supply, because the whole point of adoption of bitcoins n other cryptos(for lawful purposes ) is the limited supply…