The Bitcoin and cryptocurrency thread

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SteveFoerster
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Re: Happy and healthful 2022

Post by SteveFoerster » Sat Jan 08, 2022 5:27 am

Always buy crypto when it goes on sale? ;)
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Re: Happy and healthful 2022

Post by DavAdmin » Sat Jan 08, 2022 7:40 pm

Not always, but the saying "Be greedy when others are fearful and fearful when others are greedy" does come into play a lot. ;)

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Re: Happy and healthful 2022

Post by Doc » Mon Jan 10, 2022 8:29 am

DavAdmin wrote:
Thu Jan 06, 2022 6:17 pm
I have invested in both physical gold and crypto. There used to be a gold-backed digital asset called DigixDAO but it went south some time ago, shame as it was a good concept.

They are essentially viewed as a hedge against inflation and the debasement of fiat currency which is rampant at the moment (Turkey is a good example, but it is happening everywhere on different scales).
Yeah exactly, Both Gold and crypto are hedge against inflation. An insurance policy that you buy once. Gold has its problems like getting physical gold. But if you have gold and it loses all of its value you can still use it as a paper weigh. :D

The reason I am bring it up is I know of an example from the late 1800's. There was speculation in two Railroad stocks. The stocks climbed to 10 times what they were previously. then the bottom fell out, and almost took the US stock markets with them. That is because everyone was buying the Rail Road stocks on credit. people had to make their margin calls. Anyone that was interested in investing in the stock markets was already invested. so their was no more money available to come into the markets with the only exceptions being JP Morgan and David Rockefeller Which did do to save the markets and their own positions in the markets. The same thing happened in 1929 Speculation drove the rise of the markets people's greed convince everyone that would invest in the stock markets to borrow to invest That is when it crashed. Which it nearly always happens, as there is no money available to drive it higher.

People are not buying Crypto and gold on margin as far as I can tell.
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Re: Happy and healthful 2022

Post by DavAdmin » Mon Jan 10, 2022 3:50 pm

Doc wrote:
Mon Jan 10, 2022 8:29 am
People are not buying Crypto and gold on margin as far as I can tell.
People are buying a lot of crypto on margin. These massive dumps are caused by over-leveraged positions being flushed out resulting in a cascade in liquidations.

https://finance.yahoo.com/news/crypto-t ... 54827.html
https://www.nasdaq.com/articles/leverag ... dbox-today

Some exchanges offer up to 100x which is a quick way to get wrecked. These are just speculators, not investors though. Most who believe in the asset(s) will hold on to it, only taking profit now and then and riding out these volatile periods. The margin traders cause the 30% market crashes (though the Fed may have something to do with the current slump).

Edit: I moved all the crypto posts out of the HNY thread and into this one.

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Re: Happy and healthful 2022

Post by Doc » Fri Jan 28, 2022 9:07 am

DavAdmin wrote:
Mon Jan 10, 2022 3:50 pm
Doc wrote:
Mon Jan 10, 2022 8:29 am
People are not buying Crypto and gold on margin as far as I can tell.
People are buying a lot of crypto on margin. These massive dumps are caused by over-leveraged positions being flushed out resulting in a cascade in liquidations.

https://finance.yahoo.com/news/crypto-t ... 54827.html
https://www.nasdaq.com/articles/leverag ... dbox-today

Some exchanges offer up to 100x which is a quick way to get wrecked. These are just speculators, not investors though. Most who believe in the asset(s) will hold on to it, only taking profit now and then and riding out these volatile periods. The margin traders cause the 30% market crashes (though the Fed may have something to do with the current slump).

Edit: I moved all the crypto posts out of the HNY thread and into this one.
One thing that people are just starting to wake up to. There is a serious problem for Cryptocurrencies and digital property as a whole (Including the banking system). Quantum computing. BY 2030 quantum computing will most likely advance enough to break all crypto codes. Once that happens there will not be any secure means of means of making secure digital transaction until hardware for quantum computing is widely available for the masses. This is not speculation beyond what can easily happen. Computing power will drastically increase by magnitudes with Quantum systems. Leaving secure encryption far behind. Internet commerce will cease banking will go back to paper transaction. Weapons of war based on encryption will be useless. And it will happen literally over night.
“"I fancied myself as some kind of god....It is a sort of disease when you consider yourself some kind of god, the creator of everything, but I feel comfortable about it now since I began to live it out.” -- George Soros

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Re: The Bitcoin and cryptocurrency thread

Post by SteveFoerster » Fri Jan 28, 2022 9:40 am

That is a big deal, but people are already working on quantum-resistant encryption, both general purpose and for cryptocurrencies.
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Re: The Bitcoin and cryptocurrency thread

Post by Doc » Fri Jan 28, 2022 6:33 pm

SteveFoerster wrote:
Fri Jan 28, 2022 9:40 am
That is a big deal, but people are already working on quantum-resistant encryption, both general purpose and for cryptocurrencies.
They don't even know what Quantum computing will be capable of in a practical way. Mark Zuckerberg knows when you go to the bathroom. The only secrets that exist will be solely in the heads of people and never talked about. And even then there will be doubt as to whether the secret is actually secret.
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Re: The Bitcoin and cryptocurrency thread

Post by DavAdmin » Fri Jan 28, 2022 7:43 pm

Yes, there will be quantum-resistant encryption algorithms by then - blockchains also evolve! At the moment most of them use SHA-256 which is already nearly 2 decades old.

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Re: The Bitcoin and cryptocurrency thread

Post by Doc » Sat Jan 29, 2022 6:29 pm

DavAdmin wrote:
Fri Jan 28, 2022 7:43 pm
Yes, there will be quantum-resistant encryption algorithms by then - blockchains also evolve! At the moment most of them use SHA-256 which is already nearly 2 decades old.
Yeah they are working on it.

One thing I am not sure about What data is including in the current block Chains? Anything that can be directly or indirectly identify the person holding the account? I am asking because if the block chain is broken sometime in the future, then anything contained in the block chain would be subject to decryption.
“"I fancied myself as some kind of god....It is a sort of disease when you consider yourself some kind of god, the creator of everything, but I feel comfortable about it now since I began to live it out.” -- George Soros

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Re: The Bitcoin and cryptocurrency thread

Post by DavAdmin » Sat Jan 29, 2022 7:43 pm

Cryptocurrency blockchains do not hold personally identifying data - but many of the exchanges that handle the transactions do so there are ways of finding out who sent what if you dig deep enough and the person hasn't made efforts to hide their tracks using mixers. This can already be done without a 'broken blockchain'.

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