I can't really expand any of my substanitial thoughts now, but let me leave my favorite literary-bitcoin conundrum here:. Was Ellen Ullman's cypherpunk boyfriend described in her amazing memoir "Close to the Machine," a proto-bitcoin guy? She describes him working on crypto-currency Some of us would disagree, profoundly with that statement.
I would have to leave my home of 65 years, because I could not afford the tx. You know what you can do with your suggestion. I actually don't have any particular issue with the underlying concept behind Bitcoin; in fact I think at least two of Charlie's points the underlying ideological basis being dubious at best and the mechanism for determining its worth making no sense whatsoever could be just as fairly applied to the twenty-pound note I just exchanged for some Christmas spirit.
From the off-license. But where it's gone wrong, I feel, is that nearly everyone doing anything serious with it appear to be using it as a get-rich-quick cheme instead of an actual currency. See the ridiculously unpredictable exchange rate. The point about power consumption may be true. The difference seems rather too large to be plausible, but I'm no expert. And I have no idea if you are. So, cite please. And what does a suitable ASIC cost? I know, in a general sense, what you're talking about.
Which is a heck of a lot of kWh. Watts oer gigahash is a useless number to quote. Allow for profit, too. But that company offers deals of up to gigahashes per second. It also takes down the state's ability to wage illegal wars and spy on its citizens. This would be a good thing.
How about a pure purchase tax? Which implies that you see a certain equivalence or perhaps prioritise the spying and war thing. Of course the biggest country to engage in such also has the lease social safety nets Undetectable by any means, IIRC. Please try to remember this - that your parochial state's rules are not universal.
The linked article does not measure the Gini coefficient for the Bitcoin economy. It looks at the distribution of Bitcoin amongst wallets. There is not a one-to-one mapping of wallets to humans. One large wallet may serve thousands of people, for instance - a trading exchange with thousands of clients.
And multiple wallets may be owned by an individual, as a method of reducing the risk of loss. I know of no study that measures the real Gini coefficient of the Bitcoin economy. I have no doubt that there are individuals with great personal Bitcoin fortunes, but have no way of knowing how that compares with the traditional economy.
Just to say where I come from on the Bitcoin issue: I'm a practical, selfish American lefty, that is, I prefer some collective social welfare to the idea of having to defend the homestead myself against the hungry masses. I generally favor Bitcoin. I can find nothing in Bitcoin that is incompatible with modern finance and governance except that it removes the capacity of a government to print more money.
And it provides a benefit of a fully transparent ledger of all transactions everywhere. For comparison consider the substantial intersection between libertarians and proponents of Universal Basic Income. I think you are heading into a spherical economist mode of thinking.
A limited supply of digital tokens would only work if they were used for every transaction, so that the value of everything could be counted. And that would mean it would have to be the only medium of exchange. No barter, and no gifts. No unwanted Christmas presents may be sold on eBay. Your idea depends on perpetually perfect knowledge, which is impossible, as we understand physics today.
If I may derail the conversation for a moment, I'd like to point out that OGH has refuted Godwin's Law with that comment, to the point that he has won the argument as Mr. Satoshi subsequent posts clearly show while mentioning a certain Charlie Chaplin lookalike from Austria. I thought BitCoin was a bad idea. I did think it was a form of cognitive dissonance for my fellow libertarians to blast fiat currency as worthless paper, then embrace money that consists of nothing more than 1's and 0's.
And what is to stop other private entities from designing their own currency systems at will? Money ceases to have value when it is no longer scarce. Doesn't make much less sense than embracing currency that consists of rare, aesthetically pleasing but not ultimately very useful metal, though. Not if you're deluding yourself it's any less of a fiat currency, anyway. A little over half of all possible BTC have been mined so far.
Imagine those who currently hold those BTC just hold onto them until all BTC have been mined, and don't do any further mining. They just sit on their massively deflationary asset, like you DO when you have a massively deflationary asset. Now imagine that everyone, every single person on Earth, simultaneously decides to go with BtC for their transactions. Since the people holding the current half are just sitting on them, the rest of the world has to mine, distribute, and then use the remaining half of the BTC space, to run the world's economy.
Assume that by the time the BTC space is mined out, the entire world economy is being denominated entirely in BTC itself. In this sense, BTC bugs and goldbugs are pretty much hoping for the same thing. If their little pet boutique currency becomes a dominant currency, then the demand for the currency goes WAY up, making it massively deflationary even beyond any internal deflationary nature the currency may have baked in.
They are hoping for everyone else to get suckered into the market they have already stockpiled. This hasn't really happened with BTC. What I learned about statistics and probability also puts me ahead of some politicians. Pretty much all currency has no real value in itself, the value comes from other people being willing to trade things for it. It problem comes with money supply, and the ability to increase it by fiat.
Libertarians have concerns with governments being able to create money at will, and feel that gold is more reliable since it is difficult to increase the supply rapidly. Though that has problems of its own, which we saw in the US in the 19th century with the whole gold vs.
I suggest to you that the people of Iraq and Afghanistan, not to mention the families of all the western combatants who dies or were maimed, would be more than happy to make that trade. I'm a libertarian, and I'm one of those who thinks the hype around bitcoin is silly.
I'm all for private currencies, but the price of bitcoin is nonsense - pure speculation. And since you mention basic income, I'm one of the libertarians who supports that too, for various reasons. Though I know others who think it is the worst idea ever. One interesting angle is that the time required to confirm a Bitcoin transaction as part of the blockchain imposes a time limit on transactions of the kind envisaged by a Tobin tax - I wonder about the ratio of wasteful computation used in bitcoin mining compared to high speed trading in conventional stock and currency markets.
Looking at Coinbase, the VC-backed bitcoin to dollars exchange company, they make it about as easy to sign up as etrade - somewhat cumbersome, and requiring bank and credit card details, as well as a US SSN. Possibly more than are alive today, if we allow for the millions slaughtered in the 20th century by governments. Well, they will run out of coins to mine in the foreseeable future, correct? And I think the inherently deflationary nature of bitcoins will kill them off as anything other than an exchange medium, and that will also keep them volatile.
And it seems that they can be tracked. What I would worry about is the next one, something that isn't inherently deflationary perhaps mildly inflationary? Frankly, I expect a better grade of rant from you, even if I think you are wrong. Or will the current trilogy put you into an even darker mood? The problem is that the banks create money by fiat too, so which is to be master? So far it's the banks most of the time, which doesn't help normal people much.
Bitcoin is a piece of software which tries to implement a particular SFnal future. One in which the world currency is de-centralized, deflationary, and all early bitcoin adopters own their own planetoids, and all visitors are automatically charged for the air they breath. Thing is, the real world is more complicated than that. Assuming Bitcoin did manage to become an important currency, countries would naturally try to regulate it. In 30 years, by the time bitcoin mining has slowed right down the legal system will be fully caught up to the internet.
Bitcoin tries to make its code the law as Lessig used to say , but the law can certainly affect its code. The law could, for example, require that bitcoin be changed to stop increasing the difficulty of mining new blocks.
Then bitcoin is suddenly an inflationary currency. This would be a hard fork in the block chain, but one enforced by financial regulators. Miners would be tracked down and forced to comply. Some would perhaps go underground and run the deflationary bitcoin network on TOR hidden services.
Lots of possible ways it could play out. That's only one scenario, covering one of the many problems with Bitcoin. So it seems to me that Bitcoin should be a gold mine for Science Fiction authors, if nothing else.. It's not Bitcoin; it's a different type of cryptocurrency, designed to promote a different political agenda -- intsterstellar colonization in a no-FTL, no-relativistic-travel universe.
First let me say that i'm no expert on taxes and related laws so consider this as my amateur opinion derived from the current state of affairs and i'm open to constructive critique. Also let me apologize to other readers for this slightly offtopic comment as i thing it is only remotely related to bitcoin. When thinking about how to make a good tax system i consider several points: 1 what is the purpose of taxes, 2 how much should we pay and 3 how to best collect them.
If you own such resources, you should utilize them for the benefit of the whole society, earn money for the services you provide using them and pay taxes. If you fail to earn enough you should sell the resources to someone else as it means that you are not using them effectively enough. Second purpose is to fund government and services it provides.
This can also be accomplished by other means state owned companies come to mind Third purpose is to to some extent help decrease differences in wealth distribution among people. But how high should it be exactly?
I can't answer that. I'd like effective government which provides socialized education, healthcare, welfare, which supports culture and sport activities and other more basic services like infrastructure building, law enforcement, justice system, defense etc. The problem today is that there is no tax limit. Governments are constantly increasing taxes and introducing new taxes to compensate for their own inefficiencies, the lack of economic growth and their inability to properly collect taxes.
I think that government fiscal responsibility should be part of the constitution. If government fails to reach balanced budget it should decrease its own spending and not increase taxes. System we have today is far from that. It basically depends on the honesty of every citizen to report his income and tax it. Of course the tax office do some checks so if you buy a house with no reported income they'll probably go after you.
But generally for large companies it is very easy to avoid paying taxes using tax heavens, shell companies, hollywood accounting, paying for bogus consultant services, using bitcoin etc. This is IMO not sustainable and fair system. Also there are too many taxes. From ethical point of view taxes are very questionable. I can agree to pay honest tax from my income or property, but taxing my habits like smoking or drinking? Or money transactions and sales? Or whatever random activity someone in the government dislikes?
This is IMO too much. I talked about scarce resources - the good thing about them is that they are scarce. Some central authority can keep track of them and their owners. If we payed taxes from them, they would be hard or impossible to avoid. The payment should be annual and progressive. Tax from land needed for personal living should be very low or even zero, but if you own big industrial complex you should pay much more.
There could be other factors to determine the correct amount - for example how lucrative the resource is land in countryside is cheaper than in city center etc. But again, don't expect exact amounts from me, there are many things that must be considered and i don't imagine that i know them all. Also i mentioned houses and other property in my previous post.
That was probably a mistake as houses are no scarce resources, the land below them is. So the houses and other physical property like the pen in your pocket you mentioned don't fit well in my tax scheme and should be extempt:. Off-topic: Charlie, please bring Freya back. She was way funnier than Neptune's Brood protagonists. Curiously history does NOT support the assertion that the modern nation state is more violent; today you are far less likely to die by violence state-administered or otherwise than you were in the 18th century.
The difference appears to be the ubiquity of violence in those days, arguably from the absence of a state enforcing its monopoly on the legitimate use of force. Thank you, Herr Weber. It would appear then that a stateless society does not reduce violence but rather shifts violence from a relatively few incidents of mass-produced tragedies to many more artisanal, bespoke, hand-crafted tragedies.
Charlie, You must like stirring up the hornets nest. Between this and your comments on space colonization, I'm surprised the Promethean awards even list your books. Anyway, to all those that said bitcoin mining via malware isn't that profitable comments 16, 28, 42 and 53 , have you ever heard the phrase "stolen goods are never sold at a loss?
I agree with you mostly, but want to point out that there is no need to change the modern western taxation process in any way to accommodate the use of Bitcoin in place of government issued currency. Imagine if Bitcoin were "The Coin of the Realm", that is, you are paid in it and you use it for most of your purchases.
My government would simply require my employer to withhold a percentage prior to the delivery of my pay and to provide accurate payroll books to the revenue service on pain of legal action. Far easier for a government to regulate a thousand companies than audit a million taxpayers. And for the minority that work "off the books", a system of self-reporting, audits and penalties for tax cheats will suffice.
I've had reservations about Bitcoin, mostly related to the long term issues of deflationary currency as medium of exchange, however, it may actually make sense as a store of value. I am interested in the development of demurrage currencies like Freicoin, although I think the problematic thing would would be in mass adoption. Bitcoin may have enough advantages first mover, transaction cost, non-fiat to offset its theoretical structural disadvantage.
I guess we'll have to see. Regarding the energy costs of mining, the current lowest-economically-feasible calculated by the ability to breakeven from mining ASIC is 1. The flip side of all this mining compute power is that it's economically undesirable to use zombie networks for mining vs other more profitable ventures. These are dependent mostly on the questionably anonymous properties of Tor and cash. What we're seeing now like the China regulation you started out with!
Bitcoin-to-Bitcoin transactions, by protocol, are completely traceable as every single transaction is stored in the blockchain forever. The same techniques used to bring down something like Silk Road and things like existing CP operations will be just as effective against other illegal markets. To me, Dogecoin points to the future - a world where it's ridiculously easy to instantiate and use semi-private Rushkoffian barter currencies, which nicely sidesteps a lot of the unsolved macro-economic issues.
Start with a low rate tax on real estate owned plus a large allowance a few million or so applicable only to your primary residence and associated farmland. Every year raise the real estate tax rate and the income tax personal allowance. Lower the allowance for your personal residence as property prices fall.
While income tax is in theory progressive it is also much easier to game than a property tax. Beyond a certain point tax avoidance turns it regressive. More to the point, it's fundamentally wrong. The basic purpose of taxation is to fund government expenditure, so any equitable system of taxation should raise no more than is required to balance the budget after allowing for interest and repayments on borrowings. While bitcoin supporters tend to hate the idea of inflation, there are others coins that have inflation built in to encourage spending -- a kind of progressive version of bitcoin.
There's something fundamentally wrong in using an object of speculation as the exchange currency, in that when it's going deflationary the velocity slows or stops as people start speculating rather than spending it. I've had this argument with people who are serious Libertarian to the Extropian extreme, and most don't get it, and the ones that do tend to be more concerned with the political agenda Bitcoin was aimed at I think, and Charlie is suggesting.
I think this makes that set of people incompetent to plan an economy 2. There may well be deeper economist-capable serious L's out there. Szabo and May aren't on the list of those I've had this discussion with. Thanks for this rant. Up to now I was open-minded and mildly curious about Bitcoin; after reading this I think Bitcoin is obsolete.
Main point that did it for me is that Bitcoin appears to promote hoarding instead of getting things done. IMHO money should undergo inflation at the same rate as society produces goods. I'm not convinced by that argument either. I can't find the original source now :- but I've seen it argued that, since the invention of income tax, inflation is a mechanism whereby governments take more of your money, whilst pretending to take less. See also "fiscal drag" in this context. I don't think so.
The purpose of taxation is suppress certain economic behavior and favor other. That's way it's called "Steuer" in German, which means "steer". It's also a way to redistribute wealth. Not according to the entire history of taxation of the UK, what with medieval parliaments voting kings the money to keep him in the correct style and defend the nation, through to income taxes being introduced to fight Napoleon.
But anyway, both definitions are not mutually exclusive. The UK government currently collects taxes so that it can spend it on people's pensions, for instance. Growing and selling narcotics is economic activity. By your argument any sensible government should allow and regulate this activity since only by doing so can they tax, and hence direct it. Do you think one of them will give a shit redact if you like about the carbon footprint of bitcoin mining, contemplating this amusing fact on the wooden planks on his yacht near St.
In another corner some traders from a shadow bank, wondering about a "utter lack of regulation". And of course our corrupt governments, always longing for "stable governance". All of them feasting on money backed by seven billion happy believers Andreas Vox writes: I don't think so. It has many, many possible purposes, and people tend to see the ones they disagree with when they're objecting to it.
Liberals scream about wars funded, and tax breaks for oil companies; conservatives, about wealth transfer to the poor etc. Until the recent medicare increases, California was roughly 4 parts school funding, 1 part prison funding, 1 part roads funding, 1 part medicare, 1 part everything else.
One can have detail arguments across the liberal-conservative-libertarian spectra about any parts of those, but those are all widely acknowledged to be legitimate things the government should fund. Several of the contentions seem to fit just as well with cash. It has long been preferable to do dubious things like tax evasion and paying for immoral things whether pornography, sexual favours or hit-people using cash.
I kind of doubt that Bitcoin is, in practice, as anonymous as cash. The complaints about energy footprint don't seem to fit well with what's actually going on. So it appears to me that something's off with the numbers here. The ASIC-based miners seem to get several orders of magnitude of improved hash rates, which seems like it isn't being accounted for.
Further, I don't think that the "stolen computing infrastructure" part is of much ongoing relevance. If Bitcoin difficulty rates go up further, that drops the profitability from pennies per day to pennies per year, and will make a botnet builder look for activities with higher payoffs.
At some point, forwarding spam is more worthwhile. Governments, the powerful, and the rich which tend to end up being the same people tend towards draconian control and oversight which both stifles any real freedom and turns everyone into practical slaves. Anything that unsettles them helps to slow that process; maybe even reverse. This is a good thing, no matter the strawman of OGH as to what might happen if it went all the way in the other direction.
Since they tended to be techies, and the people piling in now tend to be libtards, that constitutes a transfer of cold hard cash from the libtards to the techies. Eventually either the government will screw up bitcoins, or people will realise there is no inherent value tulips and the libtards will end up holding nothing.
Thus I approve of them giving the techies their money in exchange for nothing. Now THAT would be disruptive - unseating bankers from their place wallowing in the trough I think there are other good reasons why it's a good idea to legalize narcotics and regulate the market.
I would use a more direct regulation though licensed sellers, procedures to bring medical help to users , not through taxes. Why would a democratic government want to have a budget surplus? Any gains in the public sector are balanced by losses in the private sector, and people who experience losses are poor voters.
Government debt means private wealth. If you wish to level that, it's easier to allow inflation. And the computer would be pretty much visibly infected and locked up at full cycle, i. The question becomes: will this botnet-controlled computer be worth more to me as a bitcoin miner or as a spambot? I think your understanding of society is lacking.
Societies tend to be a little more complex than a "tug of war". Also, why do you think taxes are evil? Are you against roads, schools and social security? What about laws? Do you want to see them enforced? Oh there are so many many many many many problems with just property taxes Plus not everybody owns property, and it makes owning property in retirement practically impossible. If you're stupid enough to have a system whereby the government can't borrow or print money itself, then the prudent thing to do is for a government to run up reserves of capital so they can deal with emergencies.
Anything else would be a potential problem. One of the problems we're facing is we're in a recession after decades of imbecilic fiscal management during which trillions of dollars have been transferred to smaller and smaller numbers of private citizens all while reducing the ability of the governments to deal with collapses in demand.
After a bit of thought:- 1 Agreed, but I think the argument about taxes still stands actually, making it a source of tax revenue rather than a cost in terms of police time etc works for both our arguments. Wait, aren't the reliance on property taxes in local government in the USA causing problems with stuff, e. Since you're quoting me, you're "preaching at the choir"; Andreas is the one who's arguing for a system where taxation is used as a means of "punishing bad activity" rather than of funding spending programmes.
That's not to say hat I believe that accumulating more and more when you atlready have more than you can ever spend short of giving it away is a moral thing to do. Well, I'm actually ok with both. Imposing high taxes on things you want to stop people doing does work.
Tobacco, alcohol, etc But then my libertarian with a very tiny tiny l side comes out and I think it would make sense to prohibit less things and tax and regulate them instead. RE: It's not Bitcoin; it's a different type of cryptocurrency, designed to promote a different political agenda -- intsterstellar colonization in a no-FTL, no-relativistic-travel universe. Also I've recently heard of an maybe dodgy depending on your opinion of Foreign exchange controls interesting use-case for Bitcoin.
A friend invited me to come with him to a Bitcoin Meetup and there I met a guy who said that he used Bitcoin to bypass his countries exchange controls to get all his money out after he emigrated and just put it into a bank right here apparently the bank just asked him for proof that it was legitimately earned and after that was established, said "OK, it's not our job to enforce other countries export controls".
I'm still a bit skeptical, but looking a the policies of the various Bitcoin exchanges, there don't appear to be any show-stoppers. Anyone care to comment? The real fun with bitcoins is once you get over the whole "it's a new currency!
That can only be "sold" and converted to actual money by selling to someone else who believes the "bitcoin dream". The hope bitcoiners seem to harbour is that one day bitcoin will be usuable for all the things they want to buy aside from all the child prostitute drug-mule assassins they're presumably currently buying the stuff, which paints the most hilarious picture coming out of the concept of bitcoins.
Did the bank BUY the bitcoins off him or something? The problem, from an investor's standpoint, with bitcoins is that you can only "turn" it into real money by convincing someone to buy your bitcoins FOR real money. It's why a lot of bitcoiners are such fervent evangelists, they NEED you to buy bitcoins off them to make any money, otherwise they're just people with a load of useless hash-strings and less money than they started with.
Actually, the German term for steering would be "das Steuer", e. Though there might be variantly gendered variants of both I'm not aware of. If you follow some of the links in this article, you arrive at Grimm's dictionary, where both have seperate entries, e.
Actually, both go back to the Old High German stiurna , which meant something like "help, buttress, carrying structure, pale, support". You have some remnants of this in the German verb "beisteuern", e. One nitpick: bitcoin transactions aren't hard to trace. In fact, they are extremely easy to trace It's just that a lot of people some of whom are journalists, and most of whom either don't have a strong background in cryptography or haven't paid much attention to the specs believe it to be hard to trace.
As a result, people who would otherwise be buying or selling illegal services with difficult-to-trace bills or coins are instead essentially writing their entire transaction history into the public domain and broadcasting it to the world. As soon as law enforcement gets a bit more hip to the mechanics of it, I suspect parsing the blockchain to track down attempted money laundering and to track down the sale of narcotics and child porn will become commonplace since it's much easier to do than other mechanisms of tracing the flow of funds.
Honestly BtC was somewhat acceptable to me when I started hearing the "it's a commodity" retort from the BtC zealots. Problem is: they use that argument or imply it and then a mere few minutes later tout Coinbase as the economical messiah - which treats BtC as a currency. The problem with us computer nerds is that we have this false belief that being a nerd in this industry qualifies you as one in another.
Sadly, it doesn't. After acknowledging my general ignorance, the bare basics I learnt in high school told me that one thing a currency should strive to be is representative of the volume of an economy "volume" basically means "number of transactions" for the uneducated. BtC is too volatile to represent any form of transaction; in fact the only volume I believe it is representing is that of our greed. Either way I have seen more people agreeing with you in the comments than bigots I am sure more bigots will be arriving shortly though , which gives me some hope in the human race.
I dono. I have two ,, dollar Zimbabwe notes pinned above my desk. They came with expiration dates. A significant issue with BtC is that the transfer points between the Bitcoin world and the 'regular economy' are extremely susceptible to DDOS and associated manipulation due to their small size and lack of government sanction while people can and have attempted to DDOS the NYSE, they piss off a lot of economically and politically powerful people when they do so, plus the NYSE has way more resources than a typical BtC exchange to mitigate attacks.
This means that the barrier to entry for market manipulation is way lower than it is to manipulate, say, the international copper market. I'm not sure bitcoin is deflationary in the way you state. Sure, the number of bitcoins is limited. I wrote the above before I read by finagi Maybe the latter should have chosen a more appealing name. Apparently he just told them that it was his money that he got out of the country via Bitcoin and provided proof via bank statements, etc. This is the bit that I find worthy of skepticism, but on the other hand, as far as I can tell, Western banks have no duty to enforce third world exchange controls.
This is a problem, but it goes way deeper than this. Bad mining nodes can insert spurious or incorrect transactions into the system; while they'll be caught and rolled back, a fairly small number of nodes could slow transaction confirmation down to a crawl. Any reasonably sized botnet could make BitCoin essentially unusable for everyone. Is Usenet archived properly anywhere? I know Google Groups bought out Deja, but every time I look there for old stuff I remember posting there are huge holes.
Jim Bell, author of "Assassination Politics", referenced in one of the creepier links above. Well, I say 'argument' - my side of it consisted mainly of polite variations on "are you fucking kidding? It made an interesting introduction to the wide world of anarchists, or at least people who play them on the Internet. Err, down? Since I consider it a dynamic equilibrium, I consider them a good thing - although a functioning democracy where the GMP couldn't get away with those tricks would be preferable.
We don't live in that world. I guess you're right. I admit I just repeated something a teacher said once and didn't look it up How would that happen? The logic of the Bush II tax cuts was the surplus was money belonging to the people that had to be paid back, except, there was a debt that needed paying down and then Bush II went on a spending spree that would make a drunken sailor blush.
The fact is the private sector can't handle collapses in demand as well as a government and having access to emergency funds above and beyond the cost of running a government can be useful. I agree completely here. I think we're arguing the same points but your quotes are better to link through :.
Whenever I read anarchically minded people taking about how the victims of state violence around the world would of course much prefer some anarcho-capitalist world of ubiquitous firepower and all, I think of things like this picture of Kabul, Afghanistan, in I grew up knowing a lot of refugees: boat people from Vietnam, the families of judges and administrators targeted by the big drug gangs in Columbia and Venezuela, the families of Chilean academicians targeted by Sendero Luminoso, fascists, or both, and so on.
That Kabul scene is what they pretty much all wanted. The women aren't packing heat; they're unarmed and confident. The scene is clean. Everybody has clothes that fit and are in good condition. And in practice, this is the fruit of good government and a pretty strong measure of social order.
The desired opposite, for lots of people, isn't the state removed but the state improved. I think pro-bitcoin and anti-bitcoin sentiments predicated on the idea that it will destroy governments by tax starvation are mistaken. The government doesn't need to track down your crypto-identity and unmask your transactions to get you for tax evasion, just show that your spending is inconsistent with declared income and savings.
How can you pay for life's necessities and niceties with a large quantity of bitcoin? Surely no more easily than you can do so with cash in the local currency. If you're renting housing the revenue service can bust you if you're not declaring the source of your ability to pay that rent. If you're buying real estate you have to pax property taxes in local currency and there's a public record of you owning it, so again they can make sure you are paying taxes annually and declaring the income that went to the original purchase.
Paying for cable TV, internet access, phone service water, sewer, electricity, and natural gas utilities creates records. Paying for medical services and prescription drugs creates records if you are so unfortunate to live in a place where this is how things are done. How much tax can a middle class or richer household dodge after we've placed housing, transportation, education, utilities, insurance, and investment in the normal economy as off limits for anonymous spending opportunities?
All of life's major expenses leave records that can show you are spending more than you've declared in income. I'm left with comparatively minor expenses like groceries, gasoline, appliances, and clothing as opportunities to spend undeclared income. I'll still be paying sales tax on those things -- the only dodge is the payroll, income, or investment taxes that should have been paid on the money used to purchase the goods.
To get the undeclared buying power in the first place you either have to be a successful bitcoin speculator or conduct business in bitcoin with another tax dodger, aware that you will have no recourse to the law if the arrangement goes sour. Oh, and you have to get the BTC converted to your local currency without raising money laundering alerts, since most walk-in businesses don't accept BTC directly.
That sounds like a large increase in risk and effort for a very modest reduction in taxation. I don't think it's a problem that should keep revenue officials awake at night. But it's a bit more than that. Income taxes also go down. And local and state governments can't really print money. Yes they can issue bonds but if you are already in deep dodo then the bonds come at a high price and are a tough sell. Which is why some will argue that the federal government should finance schools country wide.
Which gives heart burn to some and at least pause to me. Refer back to CS's comment about trading a system with problems for one that appears all nice and shiny but not yet implemented. Many in Texas are all for it. Many outside of California are all for them leaving. But they really don't get it. I think you've got the realities of bitcoin right, but I think you've got the motivations of the creator s wrong.
I don't think bitcoin was designed out of some Libertarian ideal. I think it was designed to appeal to those sensibilities, to make it easy to create some particularly zealous advocates, but I'm convinced the whole thing is a cynical money-making scheme at its heart. That's the only explanation for the extreme deflationary nature of bitcoins that makes sense to me. The creator s must have known that it would make it a terrible currency; it's a pretty huge disincentive to spend your money when you know it's going to be worth substantially more tomorrow.
But moreover, bitcoins are going to fade out of existence entirely in not that long. Their intangible nature makes bitcoins really easy to entirely destroy, and since there's a cap on the number of bitcoins that will ever exist, they'll just dwindle away as they're lost in hard drive crashes or forgotten and destroyed in computer upgrades.
Meanwhile, the creator and very early adopters are swimming in the things from the early days when they were trivial to create and no one else was doing it. They were banking on enough suckers buying into the promises of their broken system to make them rich; sadly, they were right. The Bitcoin network collects a small fee for each transaction, paid to the miners that maintain the network.
Bring plenty of money if you are planning on a DDoS attack. It's just that everytime an purported etymology is used as an argument, my spider sense goes. Having some close family members into the teaching persuasion going off about some plain or social pedagogue chanting words or purporting etymologies and thinking it explains something about their hidden meaning makes for us thinking it as a practice little above dancing your name.
BTW, I have to get some more informations about the fundamentals of bitcoins to make some comments, e. Another factor is the resilience concerning advances in new algorithms and hardware. For the carbon foot-print, it depends somewhat on the type of electricity generation used, and this is likely to reflect pricing somewhat. For a similar example, look at aluminium production,. Historically, there has been a tendency to use cheap energy sources for processes like this, including exporting said processes to regions with cheap energy.
For a breaakup of costs of electricity generation by type, see:. As we see, one of the cheapest kinds of electricity is natural gas, where the advent of fracking might play into the price of natural gas. If fracking is curtailed, that'd mean natural gas generated electricity becoming more expensive, making other ways of generating electricity competitive.
On another note, producing and exporting bitcoins needs little infrastructure, e. So maybe some of the unpractical renewable scenarios we're talking about, e. Yes, I know that one has a host of other problems, but it's just as a starting point. Or we could get India to finally build its thorium fuelled reactors.
Come on, I'm approaching middle age, leave me some dreams, OK? Actually, later on other energy-intensive industries could follow suit BTW. For the unsupervised markets, as I guess most of us here, I'm in favour of decriminalization and legalization of all drugs, though I'd prefer some supervision, e. Also, there might be some problems with nefarious uses of potent pharmaceuticals, e. Looking at the screenshots from SilkRoad et al. On the child pornography market, going after the news section, many of those seem to use a mixture of barter and gift economy, e.
And there is a quite sick idea of getting media to barter, though according to some of the discussions on the relation of the persecution of child pornography to the curtailing of child sexual abuse, little of the media coming up with said sharing is new, most is quite old, with some showing no minors at all and quite some exploiting some grey areas:. Still, we might argue that with the alternative of motivating further child sexual abuse to produce child pornography to share, it would be preferable to not outlaw all alternative ways of paying for it.
Of course still persecuting it with full force. For the assasination market, well, theoretically there is also the barter economy alternative, though I'm not aware of that one happening outside Books by Patricia Highsmith and adaptations. BTW I guess most of the guys involved don't know what they are playing with, it seems like they think it's a way to scare of politicians; now the politicians in question already are on quite some hitlists, and we didn't need bitcoins to motivate one Lee Harvey Oswald to shoot Kennedy.
So politicians are already somewhat hardened targets, with bodyguards and tight security. OTOH, there is nothing inherently dissuading people from going after the usual Right Libertarian poster guys. Plus they are much softer targets. Afaik clonidine has quite a therapeutic index, but 32 mg a day, with maximum dosage for adults 1,2 mg?
Speaking about Dunning-Kruger Charlie, there's an odd emphasis here on the destructive power of having each Bitcoin acquire an increasingly high nominal dollar value. It's hard to imagine that happening fast enough to really be a problem for debtors. It's also a self-correcting problem as long as there are competing currencies -- if you need to borrow money, but you worry that Bitcoin deflates too fast to be safe for you to borrow in, then don't borrow in Bitcoins -- borrow in dollars, and repay your loans in dollars, and then if you wish convert your dollars to bitcoins when you actually go and buy something.
The gardeviance piece you link to as evidence of a threat to stable governance reads almost as if gardeviance believes that the more a currency deflates, the more it tends to push out competing currencies and make them less relevant. However, this is simply untrue -- when people speak of a currency "increasing in value," they simply mean that one unit of the currency can be exchanged for a larger volume of goods than before -- they do not mean that the currency will be more useful, popular, high-traffic, or trusted than it was before.
I cannot think of any reason why deflation in and of itself would actually tend to help an electronic currency supplant paper currencies. Perhaps one should stop thinking of taxation in terms of the peak nationalism of the s and more in terms of social yields from frictionless markets. Maybe so, though whether that's necessarily a disadvantage is up for debate. But the fact remains that the main reason gold has any value is because a large group of people have made a collective decision to assign one to it based on Well, I don't really know; force of habit probably.
One aspect — both the original article and the bulk of the discussion are based on what might be called the official bitcoin narrative. However, it's not the truth — it's more of a cover story, really Worse, it's hard to come up with any reason for this design choice, other than the obvious one of allocating big chunks of wealth to early adopters, as suggested. The standard story glosses over this to an astonishing degree. These "mining pools" can and do make decisions to manage the currency, for instance when a new release of the software inadvertently causes problems.
Other parties, such as the authors of the standard client, are also pretty powerful and have also publicly used their power to manage the currency. So far I've only heard of motivated individuals tracking single exceptionally large transfers, but bulk statistical deanonymisation should be pretty successful if anyone can be bothered.
A pyramid scheme designed to appeal to libertarians is the most likely explanation. As such schemes go it was clever and wildly successful, but hardly a civilisation-level threat. This is a good post about how badly bitcoin misses the point of what make up the majority of the world's problems with banking.
My own takeaway is that bitcoin vs. Alas, your ideology denies you from seeing this. Libertarianism was designed to work with real messy humans and to correct the problems of idealism that have utterly failed us so far- for instance, the travesty that is "governance" in "democracies" like the USA. In fact, libertarianism, properly understood, is the one weapon against poverty that has actually worked with "messy" humans.
Unlike, for instance, Marxism, Libertarianism is based on science, specifically the science of economics In 20 years, when bitcoin is as successful as the internet has been, your essay will long be forgotten. Ironically, the first people who will be helped by bitcoin are not the drug peddlers and "evil" tax evaders that have your nickers in a bunch No, the people most helped by bitcoin will be the poor peasants in countries ruined by Marxism which inevitably results in currency controls.
Venezuelans will be able to protect their income. Argentinians will be able to trade for dollars at a real exchange rate. Chinese will be able to preserve their money. Indians who have long been forced to use gold jewelry due to currency controls, and have paid a high cost for doing so, will be able to save even more of their money. At some point, constantly seeing socialists rail against every technology that gives humans more freedom, you have to ask.
I proposed replacing income tax graually to prevent people being caught in negative equity. The large allowance for your personal residence I proposed should prevent most of the other problems you suggest. Own your own home pay no tax.
Rent it and your landlord has to pay the full amount and pass the cost on to you. You are apparently not sufficiently educated on economics or how Bitcoin works - and doesn't - to understand the nature of the criticism. We must of necessity turn to the degree to which Bitcoin fails utterly at the design and implementation level at being a viable currency within a functioning economic system. It fulfills all the characteristics of a speculative commodity, not a currency.
Its velocity tendency is regressive; the entire POINT of a currency is that the value of the economy is money supply times velocity. Deflation, due both to speculative behavior and the limiting nature, is absolutely the worst thing you can do for velocity. This aspect of Bitcoin's design - or anti-design - makes it a horrible awful viciously self-destructive thing to try and use as a currency. It's so bad that it brings to mind the question of whether that was an intentional design feature of a malign designer, cloaked in extropian libertarianism, or merely an incomplete understanding of the use case and needed features or, possibly, the best solution they could come up with at the time, intending that it be a 1.
Please don't go all slavishly libertarian on us. I'm libertarian, but I understand economy. I'm libertarian, but I understand the value of an organized society and rule of law in stabilizing and growing economies, societies, and individual liberty. Out-libertarianing me is kicking yourself in the balls. I'm a libertarian and I don't really see Bitcoin as an issue at all. It is just one more competing commodity in a huge marketplace. Personally, I suspect Mr. Stross is having a bit of fun with the people he anticipates showing up for this post.
How many dead? Yes, each indicidual one may be a tragedy, but what proportion of the country or world population? Now compare with previous times. Please don't do it again, huh? Distribution through your local pharmacies.
What's not to like? Who steals my purse steals trash; 'tis something, nothing; 'Twas mine, 'tis his, and has been slave to thousands; But he that filches from me my good name Robs me of that which not enriches him, And makes me poor indeed. But this split is artificial. There is no real reason why we can't buy a coffee at Starbucks with 0. This is just a software and legal problem. With Bitcoin, this artificial split is removed. I can save for pension with Bitcoin, AND buy an ice cream with it.
Same same. Pretty please? Where do I suggest otherwise? Not only do I understand the issue; I was the one who started from the position that the purpose of taxation was to fund expenditure rather than to make money for the government. Unlike, for instance, Marxism, Libertarianism is based on science, specifically the science of economics So few words, so many FAILs it's hard to know where to start. Possibly with the implied claim that Libertarianism isn't just another political theory?
Maybe the statement that economics is a science rather than a branch of political theory? How about the obvious failure to understand that Marxism is not only a theory, but one which was not even supported by Marx himself as an organisational paradigm for an actual society? Thanks Greg, an excellent summary of the advantages of a legalised and regulated narcotics trade. Charlie And I wear black. In the early days Hitler mostly wore suits in various colors, or very occasionally the Schutzstaffel black uniform for SS functions.
After he exclusively wore the brown Party uniform, which he said he would wear for the duration of the war. Funny thing is, most Marxists would say the same, since part of Marxism derives from an economical analysis. A heterodox one, but then, the economic schools Right Libertarians use are not that orthodox either. Of course, add in some philosophy, where both have a pedigree going down to Hegel, if we assume Right Libertarians mangled Stirner somewhat.
Add that Marx was somewhat into the "dieing off of the state" in his early writings, and there is some room for strange bedfellows. BTW, may I remind some of our friends not that versed in political history that bolshevism is a part of, not including all of marxism, and marxism is a part of, not including all of what is called "the political Left", though there are some quite "rightist" writers quite indepted to Marx, so there is even some overlap with "the political Right".
Actually, historically quite a few of the guys calling for protectionism, wsome degree of workers' protection and a solid taxation base in Europe were not called Marxists, but something else. Namely Conservatives Seems some of his fans got into a fracas with Hirschfeld about the idea of Homosexuality, negating his idea of a "third sex" and going for a somewhat "Ancient Greek" model.
If you are that way inclined. Actually, I guess quite a few pharmacists wouldn't be that happy, though then, others might welcome the added profit. I know of one case where a pharmacist in Italy denied a guy with a prescription for finasteride against male pattern baldness, to be paid by the guy himself, of course. Funny thing is, at least in this case there might have been a psychosocial indication, CBT is nice and all, and IMHO most people grow somewhat more accepting of their bodies in the long run, but putting the midlife crisis some years ahead is an important option On that assumption, wouldn't it be better to reduce the prison population which this does and allow us to train said warders in skills which they could then pass on to the remaining inmates, starting with skills in teaching basic literacy and numeracy.
Yes, prison warders non-native English here. My comment was tongue-in-cheek. I generally approve of drug legalization and see finding new jobs for prison personnel as a minor problem AFAIK the majority of prison inmates are there for drug related crimes, so you'd have to close a lot of prisons if you legalize drugs.
The poster-child for imprisonment of drug users is the USA, and it's hard to avoid thinking that the US prison system has no room for rehabilitation. Somebody who leaves school functionally illiterate isn't a problem you need blame on a prison system. That primary failure mode needs fixing. But a prison system that cannot act to remedy the problem is a failure too. Neither are true.
Uh, no? However, bitcoin itself is mostly just about fast, easy, verifiable money transference. It happens to also be sorta anonymous. You know, like cash. Of course, there's times as much cash just in the United States as all the current bitcoins in the world, so it's really a drop in the bucket of anonymous transactions. Not infinitely Is gold deflationary?
There's a point where people just won't pay more for it. Same is true for bitcoin. It's not going to drag any country's economy into a standstill because it is increasing in price So do banks. Except there's specific economic pressure on miners to make their rigs as efficient as possible Mining has gotten a few orders of magnitude as energy efficient today as it was in the beginning.
Miners can't just charge fees and raise interest rates to make more money. The only reason it has been economically viable to mine is because bitcoin has skyrocketed What the Lots of things are malware, why does that make bitcoin bad? It abuses Android Debug Bridge ABD , a command-line tool that facilitates various functionalities, such as installing and debugging applications.
Cyberespionage campaign PZChao was recently seen deploying custom-built information stealers and remote access Trojans that also mines bitcoins. The surge of malicious cryptocurrency mining activities would only translate to cybercriminals looking for more ways to zombify devices — from abusing legitimate services and exploiting vulnerabilities and system weaknesses to using tried-and-tested techniques such as phishing.
These incidents highlight the significance of defense in depth, or arraying defenses at each layer of the infrastructure to mitigate and lessen exposure to threats. The sender's display names can also reveal phishing red flags. Bee Token investors were duped by scammers using fake email addresses instead of ones officially used by the Bee Token team. Phishing emails, like those used in Business Email Compromise attacks, are also written with a sense of urgency.
Social engineering is a vital component in phishing, so users and businesses should be more security-aware: If the phishing email offers something that seems too good to be true, it usually is. Given how the phishing scam used on Bee Token used email as an entry point, organizations need to secure the email gateway to mitigate this kind of threat.
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They have facilities in Iceland and Georgia. Minex Review : Minex is an innovative aggregator of blockchain projects presented in an economic simulation game format. Users purchase Cloudpacks which can then be used to build an index from pre-picked sets of cloud mining farms, lotteries, casinos, real-world markets and much more.
Minergate Review: Offers both pool and merged mining and cloud mining services for Bitcoin. Hashnest Review : Hashnest is operated by Bitmain, the producer of the Antminer line of Bitcoin miners. HashNest currently has over Antminer S7s for rent.
You can view the most up-to-date pricing and availability on Hashnest's website. NiceHash Review: NiceHash is unique in that it uses an orderbook to match mining contract buyers and sellers. Check its website for up-to-date prices. Eobot claims customers can break even in 14 months. Some miners available for rent include AntMiner S4s and S5s. Currently, based on 1 price per hash and 2 electrical efficiency the best Bitcoin miner options are:.
Once you've received your bitcoin mining hardware, you'll need to download a special program used for Bitcoin mining. There are many programs out there that can be used for Bitcoin mining, but the two most popular are CGminer and BFGminer which are command line programs. You may want to learn more detailed information on the best bitcoin mining software. Step 3 - Join a Bitcoin Mining Pool Once you're ready to mine bitcoins then we recommend joining a Bitcoin mining pool. Bitcoin mining pools are groups of Bitcoin miners working together to solve a block and share in its rewards.
Without a Bitcoin mining pool, you might mine bitcoins for over a year and never earn any bitcoins. It's far more convenient to share the work and split the reward with a much larger group of Bitcoin miners. Here are some options: For a fully decentralized pool, we highly recommend p2pool. The following pools are believed to be currently fully validating blocks with Bitcoin Core 0. Copay is a great Bitcoin wallet and functions on many different operating systems.
Bitcoin hardware wallets are also available. Bitcoins are sent to your Bitcoin wallet by using a unique address that only belongs to you. The most important step in setting up your Bitcoin wallet is securing it from potential threats by enabling two-factor authentication or keeping it on an offline computer that doesn't have access to the Internet.
Wallets can be obtained by downloading a software client to your computer. For help in choosing a Bitcoin wallet then you can get started here. You will also need to be able to buy and sell your Bitcoins. Local Bitcoins - This fantastic service allows you to search for people in your community willing to sell bitcoins to you directly. But be careful! Coinbase is a good place to start when buying bitcoins.
So make sure to make the right choice in order to optimize your rewards. While Antpool does not directly charge fees, it also does not disclose the Bitcoin transaction fees that are collected. Basically, clients are left in the dark. Currently, every Bitcoin block has a Lately, however, Bitcoin transaction fees have been rising and an additional bitcoins are collected per block by pools. At this time, Antpool keeps bitcoins form transaction fees for itself, which are not shared with miners who have hash power pointed toward the pool.
It can be argued that these rates prevent the service from being usable for small-time and big-volume users. Consequently, some users on bitcointalk. Antpool had refused to enable arguably beneficial upgrades to Bitcoin for reasons that have been largely disproven. More specifically, the controversy revolved around Segwit — a feature that required miner activation to be enabled. Despite the fact that most Bitcoin users wanted this feature activated, Antpool, among other pools, was attempting to block it.
This eventually resulted in the Bitcoin Cash hardfork and the ultimate activation of Segwit on Bitcoin. The main difference between the Bitfury pool and other mining pools is that Bitfury is a private pool. Bitfury, the company, makes its own mining hardware and runs its own pool. So, unlike Slush or Antpool, Bitfury cannot be joined if you run mining hardware at home.
Although Bitfury controls a large portion of the Bitcoin network hash rate, its committed to making Bitcoin decentralized:. BitFury is fundamentally committed to being a responsible player in the Bitcoin community and we want to work with all integrated partners and resellers to make our unique technology widely available ensuring that the network remains decentralized and we move into the exahash era together. Slush Pool is a name you probably heard if you ever researched mining pools.
Slush Pool has been around since and is one of the oldest Bitcoin mining pools in existence. Since the launch, the pool has had its ups and downs but things have been mostly positive recently. Satoshi Labs run Slush Pool. You may also know Satoshi Labs from their work on Trezor , the first Bitcoin hardware wallet and Coinmap, a world map outlining which merchants accept Bitcoin.
In terms of fees, Slush Pool is very similar to other mining pools on the market. Customer support is at a high level. Of course, the users can send emails to the network officials if they have any problems. In most cases, a customer support agent will respond in less than 24 hours.
However, you can also talk to customer support agents instantly if you have an emergency problem. The company has a dedicated website, where you can start a conversation with customer support if you have questions about your mining setup, user account, or rewards. Security levels are more than satisfactory.
You have 2-factor authentication and wallet address locking for emergency cases. You get a read-only token that allows you to log into your account, in case someone tries to hack your account or steal your identity. In addition to that, the company only uses highly-secured servers, which guarantee the safety of your Bitcoin wallets.
In conclusion, is Slush Pool worth your time and effort? The short answer is yes, Slush Pool is a good choice if you want to start mining. Plus, it gives awards to some of its most active users. Our guide on the best bitcoin wallets will help you pick one. Read it here!
Long-time miners will also be satisfied. The service is always at the top of mining trends. The company officials never stand still, issuing constant updates that make their service fresh and up-to-date at all times. Keep in mind though that while Slush is the oldest pool, it is by no means the biggest or the cheapest, and keeping fees low is crucial for any mining operation.
F2Pool was originally launched in in Beijing. Due to its popularity, it soon expanded to other continents. The service is now available in Russia, Canada, and the United States, among other countries. Today, with And keep in mind, F2Pool could potentially become the biggest pool soon.
Just for reference, Poolin , the biggest pool, holds only 0. In addition to Bitcoin, F2Pool miners can also mine for Litecoin, Ethereum, and multiple other cryptocurrencies. All in all, you can mine for more than 40 cryptocurrencies in this pool. Although the website was originally created just for the Chinese market, the company now has an English language version of its website and the interface is extremely easy to use for miners of all experience levels.
For most people, the services offered are what makes or breaks a mining pool. The biggest downside of F2Pool is their fee. In fact, this is double what slush charges. However, many miners clearly fee the fees are worth it, given the size of the pool. For instance, they offer daily payments and every time you reach 0. They operate on a PPS system, which means they reward the people who mine the most on their network. Having good support is crucial for both experienced and inexperienced users.
You need to talk to a knowledgeable person if you have any doubts or questions about your account or payments. They guarantee a response to all inquiries in less than 24 hours. However, you can contact them instantly through their chat if you have a real emergency. The website has the HTTPS protocol and the service comes with a wallet-lock feature, which protects your investment in case your account gets hijacked.
The company forbids it for security reasons to prevent identity theft on their network. Should you use F2Pool or not? You already know that the answer is yes if you read the review carefully. However, considering the rewards and services offered, the fee is definitely worth it.
Poolin is a multi-currency mining pool that includes popular and profitable coins, including Bitcoin, Litecoin, Bitcoin Cash, and Zcoin. It was started by the same founders of BTC. It is a Chinese-based mining pool with many miners from China, but it is open to everyone around the world. Poolin has its own proprietary software that acts as a proxy between miners and the pool.
It helps reduce network traffic and allows miners to sync their settings, create sub-accounts, and balance the electrical load. This feature is available for Bitcoin, Litecoin, and Zcash. It helps the Bitcoin network and provides supplemental income for miners within the pool. Custom software to turn off the miners in case of a network blackout to prevent hardware damage and save electricity.
Mining hardware used at full capacity is known to degrade at a more advanced pace, so this can help save your investment. This is useful for larger-scale operations. While most miners prefer to mine a handful of the top coins, Poolin supports some experimental altcoins. For those wanting to monetize their graphics cards, the pool also supports Ethereum mining. This is the new mining protocol for Bitcoin that supports decentralization, fewer limitations while using ASIC hardware, and allows miners to make their own blocks.
This is useful due to the wild swings in price on crypto exchanges, and is beneficial if one overtakes the other. They have a minimum payout of 0. There is a 0 minimum payment if using a Bixin or Mixin wallet. Upon request, users may make manual withdrawals. They were the former owners and founders of BTC.
Poolin hosts nodes using cloud servers, so there is variance in which server you will connect to. This is contrary to a centralized server approach, which would have poor worldwide latency and security. For example, the main mining pool server is btc. Investments are subject to market risk, including the loss of principal. Mining can be very profitable but only if you have the right software, choose the right pool, have the necessary ASIC mining hardware, and can find a great deal on power prices.
Getting all of these right is extremily difficult and unless you plan on making this your job, you will likely not be competitive. Disclaimer: Buy Bitcoin Worldwide is not offering, promoting, or encouraging the purchase, sale, or trade of any security or commodity.
Buy Bitcoin Worldwide is for educational purposes only. Every visitor to Buy Bitcoin Worldwide should consult a professional financial advisor before engaging in such practices. Buy Bitcoin Worldwide, nor any of its owners, employees or agents, are licensed broker-dealers, investment advisors, or hold any relevant distinction or title with respect to investing. Buy Bitcoin Worldwide does not promote, facilitate or engage in futures, options contracts or any other form of derivatives trading.
Buy Bitcoin Worldwide does not offer legal advice. Any such advice should be sought independently of visiting Buy Bitcoin Worldwide. Only a legal professional can offer legal advice and Buy Bitcoin Worldwide offers no such advice with respect to the contents of its website.
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|Fx spread betting explained definition||That is turkeys nest mining bitcoins problem, as stated by OGH. When the brush turkey first invaded my backyard, I would run at it with my arms flailing in the air to scare it turkeys nest mining bitcoins. Click on the box below. If their little pet boutique currency becomes a dominant currency, then the demand for the currency goes WAY up, making it massively deflationary even beyond any internal deflationary nature the currency may have baked in. I was just providing the people any easy way to dispose of their coins to fuel the fire that bitcoin can die in.|
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|Betting tips nhl 15||I can't really expand any of my substanitial thoughts now, but let me leave my favorite literary-bitcoin conundrum here:. Lack of regulation can easily be fixed. It problem comes with money supply, and the ability to increase it by fiat. Not at all. Szabo and May aren't on the list of those I've had this discussion with. It's not going to drag any country's economy into a standstill because it is increasing in price Tell that to the spanish.|
All datacenters are Tier 4 certified and provide advanced fire and intrusion protection combined with enterprise networking hardware. With its simple interface and customizable infrastructure, you can easily make mining without any problems. Our system works very stable. Our support team is ready to help at any time with a quick return if you have a question or need. The session is active. Completely Free Bitcoin mining is completely free. Regular Payments All members who reach the payment limit and submit the payment request are paid on a regular basis every month.
Safe Cold Storage Your digital assets are stored in the offline wallets that have been physically secured. Secure Infrastructure All datacenters are Tier 4 certified and provide advanced fire and intrusion protection combined with enterprise networking hardware. Note: If you do find a legitimate one, you'll need a wallet to receive payouts to. A secure hardware wallet like the Ledger Nano X is a good option. It depends what your goals are with cloud mining.
If your goal is to obtain bitcoins, then there is really no reason to cloud mine or even mine at all. If you find a legitimate cloud mining operation and you are making profit, you will very likely need to pay taxes on that profit. The best way to determine the taxes you owe is to use a crypto tax software.
The reason there are so many cloud mining scams is because it is very easy for anyone in the world to setup a website. The company can act legit by sending initial payments to its customers. But after that it can just keep the already received payments for hash power and then make no further payments. Two of the most famous cloud mining companies have already been exposed as scams: HashOcean and Bitcoin Cloud Services.
Even as recently as September of , cloud mining scams are stealing people's money. The SEC equivalent of the Phillipines just issued a warning to customers of Mining City to get out now and have told promoters of the company that they could go to jail for up to 21 years if they don't stop immedietely. Cloud mining scams are not a thing of the past. They very much so still happen today, so be vigilant or, better yet, just avoid them. If you beleive you have found a legitimate clound mining company, you can really make sure by putting it to the test.
NOTE: the following are taken largely from Puppet's Cloud Mining reddit post, which is a great supplement to this post. If you have purchased options for the right to some amount of hashing power, there is no reason why you shouldn't be able to direct that hashing power to any pool that you want. There are only a handful of ASIC manufacturers who could service a large scale mining operation with hardware.
Any cloud mining operation would not only allow an ASIC manufacturer to disclose a large ASIC purchase, but they'd also want them to do so to prove they are serious. So far, no cloud mining operation we are aware of has has an ASIC manufacturer acknowledge they are selling hardware to a cloud mining company.
Bitcoin mining is very competitive and has incredibly thin margins. There would be no way to mine profitably if they were paying not only you, but also the person who referred you. If there is no way to the know idenntity of the cloud mining operation, there is no way to hold them accountable if they run with the money.
It also makes it harder to catch the person who stole your money. WARNING: Just because a cloud mining website boasts a famous person as an investor or advisor does not mean that person is actually investing or advising. Anyone can throw up a picture of Elon Musk on their site. The real proof is if Elon Musk himself says in a news clip that he is a founder.
Investments should never be a one-way transaction. If you can easily give the cloud miner money, but there is no obvious way to sell your position and get it back, then that is a good indication you will never get your money back. Any investment that guarantees profits is a scam. If the cloud miner has so far made good on delivering its guarantees, it is because they are using funds from new investors to pay off old ones and appear solvent.
Ponzi schemes work this way. Eventually, they are going to run with the money, but you never know when it will happen. The other point to consider is: if a miner could guarantee profits, why would they sell that right to you?
Why wouldn't they take teh guaranteed profits for themselves? If the amount of shares for sale in the cloud mining operation appear infinite, then they are definitely running a scam. No miner has an unlimited amount of hashing power. Most cloud mining companies accept Bitcoin, PayPal, and credit cards.
If a cloud mining company accepts bitcoins then there is a good chance it is a scam. This is because Bitcoin payments cannot be reversed. Once the scam company receives your bitcoin payment you have no way to get your coins back. Any company offering free trials, especially if they require payment information, is most likely a scam. Our guide on the best bitcoin wallets will help you pick one. Read it here!
Cloud mining means a host company owns Bitcoin mining hardware and runs it at a professional mining facility. You pay the company and rent out some of the hardware. Based on the amount of hash power you rent, you will earn a share of payments from the cloud mining company for any revenue generated by the hash power you purchased. In most cases, though, there is no mining facility or hardware. There is just a guy taking your money and paying part of it to someone who signed up before you did.
Eventually he runs away with the money, and you are left with nothing. Mining software is something you download on your computer. It is required when you OWN mining hardware. Software connects your hardware to the internet so that it can make hashes and communicate with the network.
Just find an exchange in your country and buy some bitcoins. If you're still a bit confused about what Bitcoin mining is, that's okay. That's one reason I built this site, to make it easier to understand! One common question people ask is if they can just invest in the mining companies instead of trying to mine themselves. The answer is: yes, you absolutely can. And you wouldn't be the only ones investing in these companies. Fidelity, Vanguard, and Charles Schwab Funds have all been buying these stocks en masse.
So when Jamie Dimon, CEO of Chase, denigrates Bitcoin , just remember that many of his friends at the big banks are loading up on these stocks themselves. Disclaimer: Buy Bitcoin Worldwide is not offering, promoting, or encouraging the purchase, sale, or trade of any security or commodity.
Buy Bitcoin Worldwide is for educational purposes only. Every visitor to Buy Bitcoin Worldwide should consult a professional financial advisor before engaging in such practices. Buy Bitcoin Worldwide, nor any of its owners, employees or agents, are licensed broker-dealers, investment advisors, or hold any relevant distinction or title with respect to investing.
Buy Bitcoin Worldwide does not promote, facilitate or engage in futures, options contracts or any other form of derivatives trading. Buy Bitcoin Worldwide does not offer legal advice. Any such advice should be sought independently of visiting Buy Bitcoin Worldwide. Only a legal professional can offer legal advice and Buy Bitcoin Worldwide offers no such advice with respect to the contents of its website.
Buy Bitcoin Worldwide receives compensation with respect to its referrals for out-bound crypto exchanges and crypto wallet websites. Bitcoin mining seems crazy! Computers mining for virtual coins? Is Bitcoin mining just free money? Well, it's much, much more than that! If you want the full explanation on Bitcoin mining, keep reading Jordan Tuwiner Last updated January 17, Chapter 1 What is Bitcoin Mining? Bitcoin mining is the backbone of the Bitcoin network.
Miners provide security and confirm Bitcoin transactions. Without Bitcoin miners, the network would be attacked and dysfunctional. Bitcoin mining is done by specialized computers. The role of miners is to secure the network and to process every Bitcoin transaction. For this service, miners are rewarded with newly-created Bitcoins and transaction fees. What is Bitcoin mining actually doing? Miners are securing the network and confirming Bitcoin transactions.
Miners are paid rewards for their service every 10 minutes in the form of new bitcoins. What is Bitcoin Mining Actually Doing? What is the point of Bitcoin mining? This is something we're asked everyday!
There are many aspects and functions of Bitcoin mining and we'll go over them here. They are: Issuance of new bitcoins Confirming transactions Security Mining Is Used to Issue new Bitcoins Traditional currencies--like the dollar or euro--are issued by central banks. Bitcoin is different. With Bitcoin, miners are rewarded new bitcoins every 10 minutes. Miners Confirm Transactions Miners include transactions sent on the Bitcoin network in their blocks. A transaction can only be considered secure and complete once it is included in a block.
More confirmations are better for larger payments. Here is a visual so you have a better idea: 0 Payments with 0 confirmations can still be reversed! Wait for at least one. Most exchanges require 3 confirmations for deposits. Six is standard for most transactions to be considered secure. Chapter 3 How to Mine Bitcoins. Actually want to try mining bitcoins?
Most Bitcoin mining is done in large warehouses where there is cheap electricity. To be real: Most people should NOT mine bitcoins today. Most Bitcoin mining is specialized and the warehouses look something like this: Source ieee. Step 1: Get Bitcoin Wallet When earning bitcoins from mining, they go directly into a Bitcoin wallet. You can't mine without a wallet. Popular Exchanges. Coinbase High liquidity and buying limits Easy way for newcomers to get bitcoins "Instant Buy" option available with debit card.
Bitbuy Popular. Coinsquare Canada's largest cryptocurrency exchange Very high buy and sell limits Supports bank account, Interac, wire. Coinmama Works in almost all countries Highest limits for buying bitcoins with a credit card Reliable and trusted broker. Our mining profitability calculator will help you figure out if mining will be worth it. Chapter 4 What is Bitcoin Mining Hardware. Bitcoin mining hardware ASICs are high specialized computers used to mine bitcoins. The ASIC industry has become complex and competitive.
Mining hardware is now only located where there is cheap electricity. However: Enterprising coders soon discovered they could get more hashing power from graphic cards and wrote mining software to allow this. Mining pools allow small miners to receive more frequent mining payouts. By joining with other miners in a group, a pool allows miners to find blocks more frequently. But, there are some problems with mining pools as we'll discuss.
Chapter 6 Inside the Bitcoin Mining Industry. The mining industry has come a long way since the early days of graphics card mining. What does a mining farm look like? Let's take a look inside a real Bitcoin mining farm in Washington state.
Miner Anyone who mines Bitcoins or any other cryptocurrency. Block Reward The block reward is a fixed amount of Bitcoins that get rewarded to the miner or mining pool that finds a given block. Mining Pool A collection of individual miners who 'pool' their efforts or hashing power together and share the blockreward.
Block Reward Halving Approximately every 4 years, the block reward gets cut in half. Hashing Power or Hash Rate How many calculations hashes a miner can perform per second. You can learn more about Hash Rate by reading our article about it. Difficulty Measured in Trillions, mining difficulty refers to how hard it is to find a block.
Difficulty Adjustment Bitcoin was designed to produce block reliably every 10 minutes. Kilowatt Hour A measurement of energy consumption per hour. The media constantly says Bitcoin mining is a waste of electricity. But, there are some problems with their theories as we'll discuss. Certain orthodox economists have criticized mining as wasteful.
It must be kept in mind however that this electricity is expended on useful work: Enabling a monetary network worth billions and potentially trillions of dollars! Not just of electricity, but of money, time and human resources! Mining Difficulty If only 21 million Bitcoins will ever be created, why has the issuance of Bitcoin not accelerated with the rising power of mining hardware?
Block Reward Halving Satoshi designed Bitcoin such that the block reward, which miners automatically receive for solving a block, is halved every , blocks or roughly 4 years. Honest Miner Majority Secures the Network To successfully attack the Bitcoin network by creating blocks with a falsified transaction record, a dishonest miner would require the majority of mining power so as to maintain the longest chain.
Just this week, a worm-like Monero-mining malware ADB. Miner is currently gaining ground in China and South Korea, which so far is affecting Android-powered devices. It abuses Android Debug Bridge ABD , a command-line tool that facilitates various functionalities, such as installing and debugging applications. Cyberespionage campaign PZChao was recently seen deploying custom-built information stealers and remote access Trojans that also mines bitcoins.
The surge of malicious cryptocurrency mining activities would only translate to cybercriminals looking for more ways to zombify devices — from abusing legitimate services and exploiting vulnerabilities and system weaknesses to using tried-and-tested techniques such as phishing. These incidents highlight the significance of defense in depth, or arraying defenses at each layer of the infrastructure to mitigate and lessen exposure to threats.
The sender's display names can also reveal phishing red flags. Bee Token investors were duped by scammers using fake email addresses instead of ones officially used by the Bee Token team. Phishing emails, like those used in Business Email Compromise attacks, are also written with a sense of urgency.
Social engineering is a vital component in phishing, so users and businesses should be more security-aware: If the phishing email offers something that seems too good to be true, it usually is. Given how the phishing scam used on Bee Token used email as an entry point, organizations need to secure the email gateway to mitigate this kind of threat.
Similarly for your information security, clearing away things of value means less damage will be done if you are compromised. Information including business secrets and personal information are of obvious value so these should be deleted if no longer needed. However, your computers themselves are valuable too as they can be used in spam botnets or for mining Bitcoin.
Hardening and patching your computers, both workstations and servers, will reduce your level of risk. Another way to reduce the damage caused by an intruder is to put up barriers. I have used heavy branches and logs to make it difficult for the turkey to extend its nest-making activities to the entire yard while a similar principle can be applied to your IT system.
Network segmentation through the use of LANs, internal firewalls and traffic flow control will mean that if one part of your network is compromised, the attacker does not automatically get access to your entire network. Limiting each server to a single function, e. Reducing the number of functions a computer provides also allows you to remove more software, reducing its attack surface.
Despite my efforts, the brush turkey ended up winning: he found love and now a cute brush turkey chick roams around our yard. Unfortunately, a cyber attacker is unlikely to be so benign and could easily end up causing catastrophic damage to your organisation in the form of a data beach, damaged systems or reputational damage.
Implement some good network security and keep the attackers out of your back yard. The purpose of this blog is to make available the real-world lessons, experience, observations and mistakes that are part of the daily life of a group of cyber security professionals. What Brush Turkeys Have Taught Me About Information Security It is that time of year again when a male brush turkey has made my backyard his home, tearing apart vegetation to make his nesting mound.
Finally, an actionable blog The purpose of this blog is to make available the real-world lessons, experience, observations and mistakes that are part of the daily life of a group of cyber security professionals.
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