Red Mosquito • View topic - bitcoin, the blockchain, and cryptocurrency

tragabigzanda · **Posted:** Thu December 02, 2021 8:42 pm

wease wrote:

tragabigzanda wrote:

wease wrote:

How do you mine bitcoin?

To do it effectively, you need lots of very large computers. But really anyone can try to do it, you just won't be successful (and you might break your computer)

So where does coal come into this?

to mine coin, you need very powerful computers to execute like a trillion calculations a second. To be profitable, you need lots of these computers. It's incredibly energy-intensive -- coin mining is already consuming the total annual energy needs of some small countries (I'm not kidding).

So there's a new crop of companies trying to mine coin in environmentally sustainable ways. And this particular company is using remediated coal in these anaerobic chambers (or something like that) that does not contribute negatively to the atmosphere, and actually has a beneficial byproduct in ash fertilizer.

wease · **Posted:** Thu December 02, 2021 9:39 pm

tragabigzanda wrote:

wease wrote:

tragabigzanda wrote:

wease wrote:

How do you mine bitcoin?

To do it effectively, you need lots of very large computers. But really anyone can try to do it, you just won't be successful (and you might break your computer)

So where does coal come into this?

to mine coin, you need very powerful computers to execute like a trillion calculations a second. To be profitable, you need lots of these computers. It's incredibly energy-intensive -- coin mining is already consuming the total annual energy needs of some small countries (I'm not kidding).

So there's a new crop of companies trying to mine coin in environmentally sustainable ways. And this particular company is using remediated coal in these anaerobic chambers (or something like that) that does not contribute negatively to the atmosphere, and actually has a beneficial byproduct in ash fertilizer.

What does it mean to “mine” bitcoin? You’re describing a process that seems to take incredibly powerful computers that need an incredibly powerful fuel source. It actually sounds like some sort of physical process is involved. Isn’t it a virtual money? Can’t whoever is over bitcoin just declare there to be more bitcoin and there is? This whole thing is mindboggling.

tragabigzanda · **Posted:** Thu December 02, 2021 9:56 pm

All transactions are recorded in a public digital ledger. The ledger is comprised of a series of blocks; each block contains the record of the most recent transactions, and doesn't get created until there are enough recent transactions to fill the block (it requires a specific number of transactions to be generated as a new block).

The creation of each block includes a randomly generated "hash" number (basically a long serial number), which needs to be matched to the same number generated by a miner; this matching of hashes serves as a sort of digital handshake that confirms the block is legit, it's entered into public record, and the next block can begin generation.

The matching of a block's hash awards currency to the miner. The miner wins the right to create that block, and reap the coin award, by basically having their computer shake a bunch of digital dice a trillion times until it gets the hash number that the block is expecting.

"Mining bitcoin" just means that you're running a powerful computer(s) in hopes of coming up with the correct hash number so that you can claim authorship of the most recent block and get some coin. I believe once bitcoin is currently worth around $65K.

tragabigzanda · **Posted:** Sun December 12, 2021 12:54 am

Just finished this book:

Key takeaways:

1. The promise of public blockchain to rewrite the world economy is an extremely uphill battle that will likely not materialize.

2. Private blockchain has much greater practical use, but of course loses some of the cornerstones of the technology by virtue of being private (namely democratic, decentralized transparency).

3. Bitcoin is a volatile bubble based on already outdated technology, with the majority market in control of a small handful of wealthy people.

4. Ethereum and it’s derivative alt-coins offer much more promise of utility, but the market is a clusterfuck of competing/redundant/speculative interests.

5. If you’re looking to invest, unless you’re extremely comfortable with risk and/or a bazillionaire, stick to SEC-approved currencies (Reg A+ waiver or an actual SEC-approved ICO under the new Security Token Offering guidelines, which I don’t think has even happened yet), or invest in an ETF as part of a larger portfolio.

This concludes my TRAG Talk.

96583UP · **Joined:** Sun September 15, 2013 5:50 am **Posts:** 22269

tragabigzanda wrote:

I put $200 into Bitcoin and Ethereum a few weeks back while I read up on the technology. Made a bunch of minuscule plays in some other alt-coins, that all offer white papers and promises of revolution, but very little beyond that. Overall, my coin value over the last three weeks tends to fluctuate wildly +/- 3%.

Meanwhile on Robinhood, the same amount put into crypto-adjacent securities is up almost 6% today.

I don't want to read too much into this based on one day of trading on Robinhood, but it seems like unless you're a total cryptogeek, the better approach to short gains is with conventional stocks in established companies that actually know how to make money on crypto tech.

check out @muratpak

E.H. Ruddock · **Joined:** Tue January 01, 2013 2:48 pm **Posts:** 47143

So now you can invest in crypto through your investment broker, or on apps like Venmo. As an outsider who knows nothing about crypto, it certainly has lost its futuristic, maverick appeal when you can call up Charles Schwab and pick up some bitcoin. I know this is a rube-ish, naive take , but it is just weird to hear traditional investment marketing talk about crypto now. Can't wait for Sotheby's to offer up some super rare NFTs.

tragabigzanda · **Posted:** Thu January 06, 2022 3:57 pm

Oh it’ll 100% happen.

IMO, the long term benefits of the tech will be:

1. Private blockchain implementation by Fortune 500 companies to maximize efficiencies

2. Establishment of new financial instruments for developing and destabilized nations

3. New international trading options for the 1% who want to avoid government oversight and transaction fees (not sure this counts as a benefit, but I do think it will be part of the long term usage)

4/5 · **Joined:** Thu December 20, 2012 4:45 pm **Posts:** 6645

4. Inflation hedge?

tragabigzanda · **Posted:** Thu January 06, 2022 6:47 pm

4/5 wrote:

4. Inflation hedge?

It's certainly demonstrated its ability to do this, but at $65K/btc, only the wealthiest investors are able to make that play to a meaningful extent, I'd think...

My guess is that Eth-derivative alt-coins could also serve as an inflation hedge, but they're just so volatile. An ETF would probably serve as the better hedge.

4/5 · **Joined:** Thu December 20, 2012 4:45 pm **Posts:** 6645

tragabigzanda wrote:

4/5 wrote:

4. Inflation hedge?

It's certainly demonstrated its ability to do this, but at $65K/btc, only the wealthiest investors are able to make that play to a meaningful extent, I'd think...

My guess is that Eth-derivative alt-coins could also serve as an inflation hedge, but they're just so volatile. An ETF would probably serve as the better hedge.

Well, you just nailed one of the reasons the burden of inflation falls disproportionately on the poor. But there are other coins and you can own fractions of coins. So if, and it's a big if, bitcoin is an inflation hedge it'll protect my $10k just as well as it protects somebody else's $10m, won't it?

tragabigzanda · **Posted:** Thu January 06, 2022 7:11 pm

4/5 wrote:

tragabigzanda wrote:

4/5 wrote:

4. Inflation hedge?

It's certainly demonstrated its ability to do this, but at $65K/btc, only the wealthiest investors are able to make that play to a meaningful extent, I'd think...

My guess is that Eth-derivative alt-coins could also serve as an inflation hedge, but they're just so volatile. An ETF would probably serve as the better hedge.

Well, you just nailed one of the reasons the burden of inflation falls disproportionately on the poor. But there are other coins and you can own fractions of coins. So if, and it's a big if, bitcoin is an inflation hedge it'll protect my $10k just as well as it protects somebody else's $10m, won't it?

yes, but do you have another $10k to put into traditional securities to protect against the volatility of btc? And if not, and you're just doing $5K in btc and $5k in stocks, neither loss is going to dramatically change your life.

lennytheweedwhacker · **Joined:** Wed January 02, 2013 3:21 pm **Posts:** 42065

I understand everything being discussed on this page.

Bammer · **Posted:** Fri January 07, 2022 6:19 am

tragabigzanda wrote:

All transactions are recorded in a public digital ledger. The ledger is comprised of a series of blocks; each block contains the record of the most recent transactions, and doesn't get created until there are enough recent transactions to fill the block (it requires a specific number of transactions to be generated as a new block).

The creation of each block includes a randomly generated "hash" number (basically a long serial number), which needs to be matched to the same number generated by a miner; this matching of hashes serves as a sort of digital handshake that confirms the block is legit, it's entered into public record, and the next block can begin generation.

The matching of a block's hash awards currency to the miner. The miner wins the right to create that block, and reap the coin award, by basically having their computer shake a bunch of digital dice a trillion times until it gets the hash number that the block is expecting.

"Mining bitcoin" just means that you're running a powerful computer(s) in hopes of coming up with the correct hash number so that you can claim authorship of the most recent block and get some coin. I believe once bitcoin is currently worth around $65K.

Jesus Fucking Christ.

OUT

4/5 · **Joined:** Thu December 20, 2012 4:45 pm **Posts:** 6645

tragabigzanda wrote:

4/5 wrote:

tragabigzanda wrote:

4/5 wrote:

4. Inflation hedge?

It's certainly demonstrated its ability to do this, but at $65K/btc, only the wealthiest investors are able to make that play to a meaningful extent, I'd think...

My guess is that Eth-derivative alt-coins could also serve as an inflation hedge, but they're just so volatile. An ETF would probably serve as the better hedge.

Well, you just nailed one of the reasons the burden of inflation falls disproportionately on the poor. But there are other coins and you can own fractions of coins. So if, and it's a big if, bitcoin is an inflation hedge it'll protect my $10k just as well as it protects somebody else's $10m, won't it?

yes, but do you have another $10k to put into traditional securities to protect against the volatility of btc? And if not, and you're just doing $5K in btc and $5k in stocks, neither loss is going to dramatically change your life.

Forgot to reply yesterday. I don't think crypto is currently an inflation hedge because of the extreme volatility. If any of them are, it's btc or ethereum, but as we've seen again this week there's just a ton of volatility there and now we'll see how cryptos perform in a rising interest rate environment.

I'm still not in crypto at all yet, but I'll probably buy this dip and get my feet wet. I mostly look forward to dropping like $100 each into a few meme cryptos and seeing if I can turn a hundo into a milly by luck.

BurtReynolds · **Posted:** Tue January 11, 2022 7:49 pm

McParadigm · **Joined:** Wed January 02, 2013 1:56 am **Posts:** 21789

I spend money I’ve never seen on digital music services by putting my thumb on an iPhone. So yes?

BurtReynolds · **Posted:** Tue January 11, 2022 7:53 pm

Reese Witherspoon is a prophet.

E.H. Ruddock · **Joined:** Tue January 01, 2013 2:48 pm **Posts:** 47143

Can’t wait to decide between getting the Norton or McAfee vaccine when i get digital COVID

elliseamos · **Posted:** Wed January 12, 2022 12:18 pm

E.H. Ruddock wrote:

Can’t wait to decide between getting the Norton or McAfee vaccine when i get digital COVID

I bet it will have a tracking device in it! :idea:

simple schoolboy · **Joined:** Wed January 02, 2013 3:41 am **Posts:** 5580

Those crypto exchanges getting pwned (Mt Gox, etc) is not unexpected, but doesn't this thing have traditional banking backing? Do they just not understand this space, security wise?

Only the dedicated crypto nerds avoid losing their shirts with their cold storage or hand stamped seed phrases or whatnot. Mass adoption seems fundamentally incompatible with crypto.

bitcoin, the blockchain, and cryptocurrency

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