Author Topic: Cryptocurrencies  (Read 178 times)

cherrypoptart

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Cryptocurrencies
« on: January 06, 2018, 10:34:12 PM »
I'm just wondering what people are thinking about cryptocurrencies including bitcoin but also all the altcoins springing up. I'm a bit impressed by how many seem to be dedicated to helping financially underserved peoples without access to traditional banking resources although I wonder how much of that is lip service as opposed to an authentic desire to help the poor around the world. Maybe it's a bit of both. It seems like there is a lot of opportunity here along with risk but of course the big money will often be made by the founders of these new altcoins. I wish I had the first clue how to make one. I'd probably call mine gnomes and make a trillion gnomes, locking up about half for the founders including myself and hope to see it go up from half a cent per gnome to over a dollar for each gnome at which point we'd all be multibillionaires. If anyone wants to start a cryptocurrency and wants some founders maybe we could all pull our resources and do it. It would have to have some sort of purpose, preferably altruistic. They already have one for micropayments to authors. That was a pretty good idea. That idea is probably just dreaming though as I understand you basically need a team of basically post-doctorate level programmers and engineers, but it's fun to dream. Whatever the long shot odds of getting rich on cryptocurrencies are they are probably better than the lotto. Of course there is the risk that it could all crash too and whatever you put in is lost but it seems like, for instance with bitcoin, even a small investment has the potential to make an awful lot of money. Is this the next tech bubble or is it legit?

TheDrake

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Re: Cryptocurrencies
« Reply #1 on: January 07, 2018, 03:53:07 PM »
I think it is only a matter of time before governments start cracking down on this.

G7 already made this statement a few years ago:

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In 2013 the G7's Financial Action Task Force issued the following statement in guidelines which may be applicable to companies involved in transmitting bitcoin and other currencies, "Internet-based payment services that allow third party funding from anonymous sources may face an increased risk of [money laundering/terrorist financing]." They concluded that this may "pose challenges to countries in [anti-money laundering/counter terrorist financing] regulation and supervision"

I think if enough people started actually making transactions in bitcoin or other crypto-currencies, what will happen is governments will start missing out on tax revenue that they normally expect to trace through centralized banking. This is the same reason that India removed large bills from circulation. They will then lean on the idea of stopping organized crime and terrorism to introduce curbs on its secretive nature. They will insist on having the "keys" to the money trail. The Swiss finally caved under this same pressure and agreed to open their books to international tax collectors.

Lots of the newer cryptocurrencies are trying to bank on making things even more anonymous than bitcoin. Bitcoin largely relies on obfuscation - you can't link an account with a user, but if you figure that out, you can find everyone they do business with. ZCash, Monero, Dash - they all seek to remove the traceability.

Personally, I wouldn't touch it as supplier or user. There just isn't enough history of stability. It's really just being treated as a commodity right now, but the demand side is just too hard to figure out. Gold has real uses for making products. Bitcoin (or other such) could one day just be supplanted by yet another crypto currency. So holding them would seem highly dangerous to me.

Making them? Unsurprisingly, you're not the first one to think of it. According to this site, there are 1384 of them.

https://coinmarketcap.com/

My favorite name might be Useless Ethereum Token

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The UET ICO transparently offers investors no value, so there will be no expectation of gains. No gains means few investors, few investors means few transactions, and few transactions means no Ethereum network lag—not to mention no depressing posts on /r/ethtrader about people losing all their savings!

I learned all about Ethereum smart contracts and Solidity over a weekend so I could launch this ICO. Most of the smart contract contract code is copied from GitHub and Stack Overflow posts, so it should be pretty much right… right?

and:

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Wait… is this a joke? Is it a scam?
Neither! This is real—and it's 100% transparent. You're literally giving your money to someone on the internet and getting completely useless tokens in return.

Will there be more chances to buy UET?
That's a great question! It totally depends on how the ICO performs in the beginning. If I don't make enough money to buy at least one flat-screen television, I'll probably keep the ICO open longer than initially stated.

According to the webpage, their crowdsale gathered $339,822.

For tokens that can't be used for anything, anywhere. Now, all those people had to do was to click through to the fully transparent web page. But they couldn't even manage that. No way I'm going near that kind of mania with real dollars to invest. BTW, just look at the chart for that garbage over the past week.


cherrypoptart

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Re: Cryptocurrencies
« Reply #2 on: January 09, 2018, 03:13:09 PM »
I appreciate all of that but I'm wondering if the same things couldn't have been said about bitcoin itself, and yet even if it wasn't rational to invest in it look at how much it has gone up anyway. This stuff doesn't seem to make any sense at all. Just making a currency out of nothing? And yet...

yossarian22c

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Re: Cryptocurrencies
« Reply #3 on: January 09, 2018, 04:21:52 PM »
I appreciate all of that but I'm wondering if the same things couldn't have been said about bitcoin itself, and yet even if it wasn't rational to invest in it look at how much it has gone up anyway. This stuff doesn't seem to make any sense at all. Just making a currency out of nothing? And yet...

Yep bitcoin is going to crash but the creator of it doesn't get the cash from new bitcoins, that goes to the miners.

TheDrake

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Re: Cryptocurrencies
« Reply #4 on: January 10, 2018, 09:57:51 AM »
It's the tulip craze all over again. Speculative bubbles can give you great returns. Some of the Dutch probably bought one bulb, sold quickly, and did great. Those that bought late and held on too long - some lost homes over it.

We'll wait and see, but I imagine that as the novelty of the opportunity wears off, there are going to be a lot of sad people holding at 5% of what they paid.

Seriati

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Re: Cryptocurrencies
« Reply #5 on: January 10, 2018, 11:29:41 AM »
I think if enough people started actually making transactions in bitcoin or other crypto-currencies, what will happen is governments will start missing out on tax revenue that they normally expect to trace through centralized banking.

Be very careful here.  Really you should report the income and pay taxes.   The way block chain works essentially provides a proven record of your transactions and income that is publically available.  Once a tax authority connects you to an account, they can literally look back through your entire income history and levy fines and put you in jail.

Also, lots and lots of scams in the space.  If it looks too good to be true, it literally is too good to be true.

TheDrake

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Re: Cryptocurrencies
« Reply #6 on: January 10, 2018, 12:58:09 PM »
True, bitcoin isn't very anonymous for the reasons you state.

The others are all working to solve this "problem" including Verge. Of course the flipside of public chain is that a Bad Guy can also unravel everything you did with bitcoin. Another reason not to use it.