Let's Talk Bitcoin

I bought a little over a grand of BTC back when it was worth ~10k and it has been ripping since then. If you don't keep up with bitcoin it's around 13.6K a bitcoin now. Paypal just allowed bitcoin on their platform, Asian banks are beginning to allow crypto trading, companies like Square are literally putting tens of millions of bitcoin on their balance sheet - it seems like it won't be long before bitcoin explodes with institutional money flowing in and more acceptance by the mainstream. I'm considering putting a much more significant amount of money in.

What do you all think? Anyone else on the bitcoin train?

Comments (194)

  • Prospect in IB-M&A
Oct 27, 2020 - 1:04pm

Bitcoin transactions are insanely expensive. As the trading volume increase, mining fees increase, making adoption for everyday purchases unlikely. Whales can easily manipulate the market. Most miners are now Chinese, which means that CCP could launch a 51% attack and take control of the ledger book.

  • Analyst 1 in IB - Gen
Oct 27, 2020 - 1:07pm

Taking control of the ledger block is WAY harder than it sounds, if it was so easy it would've been done a while ago. And the more money that pours into bitcoin, the harder it gets 

  • Prospect in IB-M&A
Oct 27, 2020 - 1:13pm

Bitcoin's valuation doesn't really matter, as institutions and individuals buy bitcoins that have already been mined.

https://news.bitcoin.com/65-of-global-bitcoin-hashrate-concentrated-in-china/ this article is dated May 7, 2020. 65% of the global hashrate is concentrated in China.

:

About half of the country's hash rate is produced in just one place, the autonomous Xinjiang region, which makes up 35.76% of the global total.

Let's say JPMorgan AM buys billions of $ worth of bitcoins. CCP wants to fuck with JPM. CCP takes control of the mining centers, either through force or using pre-installed software or hardware backdoors. 51% attack, a new transaction is created, which leads JPM to send billions of $ to a Chinese wallet.

Oct 29, 2020 - 7:29am
TheBuellerBanker, what's your opinion? Comment below:

Given I have little to no exposure here, can you explain the relationship between transaction costs and what mining fees are and who incurs those fees? I'm genuinely curious about the flow which allows a single transaction to be made and priced at what it is.

Oct 30, 2020 - 12:47am
DBisntaBB, what's your opinion? Comment below:

On top of the other reasons above, you are forgetting bitcoin only has value because of its security due to the ledge. If the CCP invested enough resources to launch an attack like that and it was successful, their entire position would then be worth nothing. So even if it could happen, it would have no benefit

  • Analyst 1 in IB - Gen
Oct 27, 2020 - 1:29pm

I think we are seeing greater global acceptance though. Microstrategy put $165 million of bitcoin on their balance sheet, PayPal is allowing bitcoin transactions, etc. It isn't going to happen overnight, but it is a trend that isn't slowing down. I don't think it will ever replace fiat currency, but I think there will be a point where it is recognized as a legitimate store of value and a very effective way to transfer money (for example if you live in a nation that is falling apart and you need to flee with all your assets, what better way than to put it in bitcoin and simply remember your wallet and catchphrase?)

May 11, 2021 - 7:43am
AredLowes, what's your opinion? Comment below:

In June 2020, I bought Bitcoin for $ 11,000; it's not a lot of money, so I'm just wondering how this business works, why it goes up and down. I look at stocks to see if they have the opportunity to trade regularly. The cryptocurrency sector, as far as I know, is very unpredictable. A quick 30 second will empty your bank account easily. As a result, you should know very well where to place your stop loss. I even use various swing trading tactics that I find on the internet to understand the cryptocurrency industry. 

Oct 27, 2020 - 1:49pm
SoldMySoul, what's your opinion? Comment below:

I'm in for 10K so far, and taking my position up to 50k over the next 6 months. Buckle your seatbelts because it's going to be a bumpy ride

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  • VP in S&T - FI
Oct 27, 2020 - 1:55pm

Gold has a pretty large negative carry1-2% per year in normal times and 6% + back in March, unless you own the physical.physical gold is basically impossible to get out of the country, and you pay a large bid/offer and subject to the physical basis when selling. Countries like India have banned gold imports/exports and there's precedent for that to happen anywhere

I'm always surprised how few people are willing to put 1-5% of their portfolio into something when clearly it has the staying power and didn't fizzle out after 2017. Even JPM is putting out price predictions, and DBS (a large asian investment bank) is building a crypto exchange 

Happily long a few bitcoins from around 4500 and only regret not owning more

  • Analyst 1 in IB - Gen
Oct 27, 2020 - 1:59pm

I agree with the 1-5% entirely. Worst case scenario the value goes back to like 5k, best case scenario you make 10x, 100x, who knows how much

Oct 28, 2020 - 10:07pm
Memberberries, what's your opinion? Comment below:

I don't get gold. Gold has no intrinsic value (well, that's not entirely true since there are some industrial uses, but nothing that justifies the price of gold). If society collapses, owning gold in its electronic form is a worthless investment. If society collapses and you have physical gold 1) you'd need starving people to accept gold as a form of currency rather than food, water, and firearms and 2) you'd need to be able to defend your physical gold with violent force. If anything, gold ownership in a collapsed society is a liability--makes you at least marginally more likely to be killed. 

So, the #1 reason I hate gold investing is that I can't get passed the idea that it's one of the most ridiculous asset investments on this planet. My brain won't let me get passed that.

Array

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Nov 2, 2020 - 3:45pm
CuriousCharacter, what's your opinion? Comment below:

Right?

If you're worried about societal collapse, buy some guns and start a local militia on a secluded island with arable land & potable water, because no one is going to be bartering with gold and/or bitcoin :s

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  • VP in S&T - FI
Oct 27, 2020 - 2:26pm

My point is that if you buy a gold etf in your pa, or gold futures and roll yourself for 20 years, you're going to pay 20-40% in negative carry. Also take a look at gold performance in 2008 and and in March, it gets sold as collateral to meet margin calls. Of course btc didn't hold up either, but it's definitely more speculative and I'm not arguing it isn't

I'm not bearish gold or anything, but at the end of the day it's a real interest rates going lower trade, while bitcoin is some new asset class which which could be the backbone of a digital currency ecosystem

central banks from the ECB to the FED are researching their own digital dollars, and it's almost guaranteed some form of this will be adopted 

I'm not some bitcoin/crypto evangelist, I just think it's a great macro trade that i wouldn't want to miss 

Oct 28, 2020 - 5:01pm
Sil, what's your opinion? Comment below:

Here's what I think is going to keep Bitcoin and cryptos from going mainstream (at least for payment purposes): why would I buy a pizza with Bitcoin when that Bitcoin could be worth two pizzas by the time I am done paying? People bought and used Bitcoin for its intended purpose when Bitcoin first started, but now most people are buying Bitcoin for investment (gambling) purposes. That only leaves non-investors who would be willing to part with Bitcoin, and good luck getting them to go through the trouble of buying Bitcoin on Coinbase, transferring it to a Ledger, etc. That's too cumbersome.

Oct 28, 2020 - 6:41pm
VanillaGorilla, what's your opinion? Comment below:

This is a true story: https://cointelegraph.com/news/the-bitcoin-pizza-day-numbers-are-actually-worse-than-you-thought

Array

Oct 28, 2020 - 10:01pm
Memberberries, what's your opinion? Comment below:

This is exactly correct. For a currency to be "usable" it needs to keep a relatively steady value. As long as it rises and falls 30% in a month it will be nothing more than a speculative asset.

Array

Mar 8, 2021 - 8:03pm
aempirei, what's your opinion? Comment below:

The market decides what a technology's purpose is.  People haven't used bitcoin to buy a coffee since 2012-2013 and that is NOT it's long-term use case. It's found a product market fit with the digital store of value use case and that will only accelerate as more Fortune 500 institutions add it to their balance sheets, followed thereafter by pension funds and eventually sovereign nations. A Hong Kong based company just became the first company to add ether to their balance sheet and the long term implications of combing the money legos of ethereum with the pristine collateral of bitcoin are obvious.

My name is Nicky, but you can call me Dre.
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Oct 28, 2020 - 6:52pm
Nightman Cometh, what's your opinion? Comment below:

Who actually buys shit with bitcoin besides stuff from the deep web

Dayman?
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Mar 11, 2021 - 11:07pm
Isaiah_53_5 💎🙌💎🙌💎, what's your opinion? Comment below:

I don't buy bitcoin, but I receive bitcoin from poker winnings online. I buy in with a credit card. 

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Mar 12, 2021 - 12:44am
Nightman Cometh, what's your opinion? Comment below:

Yeah since I made that comment I've def changed my opinions a bit haha

Dayman?
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Oct 28, 2020 - 9:59pm
Memberberries, what's your opinion? Comment below:

I buy about $5 of BTC a week and have for a while just as an extreme hedge. BTC is really nothing more than a general asset and I don't think will ever become a widely accepted currency. There are other cryptos that are better for use in transactions. 

Array

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Oct 29, 2020 - 4:24am
Kardashev, what's your opinion? Comment below:

The problem with BTC is that the free float sucks. (think Saudi Aramco)

I don't particularly like the idea of investing into an instrument where other players have a significant leverage over me.

Unless you are a reddit level "BTC bro", I suggest staying away from BTC. The market is filled with opportunities now, why start 5 steps backwards when you can start on the starting line? 

  • Associate 2 in IB-M&A
Oct 29, 2020 - 4:59pm

I'm looking at alternative besides bitcoin, focusing on those that have a high level of liquidity, low to no transaction cost and viable use case for widespread adoption over the next decade. Many platforms/coins will and have surpassed bitcoin in functionality. Bitcoin is just the hot name that everyone knows making it the talk of the town. Bitcoin is great as speculative asset if you don't mid the risk but it is way too volatile to garner any widespread adoption as an everyday payment mechanism (for now). People don't want to have to check the price of Bitcoin to make sure they aren't in the red before making a transaction.

  • Investment Analyst in HF - Other
Nov 1, 2020 - 8:13pm

Have been involved w/ Bitcoin/crypto since 2011 from mining to node infra to trading.

Ran U.S. based crypto OTC desk for high growth startup and moved over to crypto hedge fund - can verify for mod. Paid for college on BTC, vacations, nice savings, live comfy etc. etc. 

The amount of outright false or just moronic comments in this thread is kind of lol. I can't tell if it's true ignorance or what, but reading the comments here makes me sadpepe.gif

Anyways, obv am Bitcoin bull.. BUY BTC and go do another round of reading kids. 

  • Quant in HF - Other
Nov 2, 2020 - 9:51am

I don't really give a shit about bitcoin and have never owned it, but it's hilarious seeing crypto startup bros pretend they're truly passionate about crypto technology to hide the fact they just wanna be the ones to create the next hot coin

  • Analyst 1 in IB - Gen
Jan 4, 2021 - 1:47pm

update from the OP: I ended up putting more than half my net worth in bitcoin after this post and am up over 100%. I do not intend on taking profits yet. Everyone who tried to tell me this was a bad idea can suck my dick :)

  • Prospect in IB-M&A
Jan 4, 2021 - 1:56pm

bubble

You may still want to cash out some of your gains now and reinvest when the price has crashed because that shit is 100% going down in the short term

Mar 8, 2021 - 7:56pm
aempirei, what's your opinion? Comment below:

bubble

You may still want to cash out some of your gains now and reinvest when the price has crashed because that shit is 100% going down in the short term

Using a linear scale on a Bitcoin chart betrays one's ignorance to the subject matter. 

My name is Nicky, but you can call me Dre.
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Jan 5, 2021 - 11:20am
trustmeimanengineer, what's your opinion? Comment below:

As someone who has quadrupled my net worth from crypto (since 2017), sell now. This shit is about to die. 30k will not hold, and the institutions have been lining up their shorts for weeks.

Sell now.

  • Analyst 1 in IB - Gen
Feb 8, 2021 - 1:08am

so how much did u put in and how much is it at now?

i put in like 30k last year and it's 80k now. net worth is like 130k so it's over half of mine as well haha

Feb 1, 2021 - 12:44pm
DanutsMorks, what's your opinion? Comment below:

That is very interesting. I am also investing in cryptocurrency. Almost whenever I have some money that I don't need at the moment I try to invest in cryptocurrency. This is a very good market. The main problem in investing in cryptocurrency is that it is hard to analyze them. There are a lot of e-money like bitcoin but they are not so expensive and maybe never will be. Whenever I decide to invest in a cryptocurrency I also try to consult bitcoin signals because they are also professionals and I want to have even a person that agrees with my choice.

Feb 7, 2021 - 9:50am
PhillRudd1, what's your opinion? Comment below:

I don't know what you think. But I believe that now is the best time to invest in bitcoin. I did this recently with a friend of mine. Well, there was one problem, you had to find a service where you could store bitcoin, and the most important thing is that everything was safe there and you could withdraw money at any time. And my friend showed this site bitcoin tumbler . He said that he has been engaged in cryptocurrency for a long time, and believes that the future of the economy is behind this. I didn't believe it at first, but then I decided to transfer money to bitcoin and now I see how it is growing, and I am incredibly happy about it ! :)

Feb 8, 2021 - 5:00pm
Isaiah_53_5 💎🙌💎🙌💎, what's your opinion? Comment below:

Tesla Buys $1.5 Billion in Bitcoin

Cryptocurrency's price soars after electric-vehicle maker says it soon expects to accept customer payments in bitcoin

https://www.wsj.com/amp/articles/tesla-buys-1-5-billion-in-bitcoin-11612791688

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Feb 8, 2021 - 5:26pm
Memberberries, what's your opinion? Comment below:

I wish I had the courage of my convictions. I've got a decent BTC position because I think long-term the price will be well into the 6 figures, but I hugely diversify, so this big jump the last few months has made almost no difference to my portfolio. :(

Array

  • Intern in VC
Feb 8, 2021 - 7:01pm

I'm a prospect so obviously take what I say with a heavy pinch of salt, but diversification will not build wealth for you.

Concentration builds wealth, diversification preserves it.

Applying this to my portfolio has led to a high conviction and concentrated approach producing superior returns over the past two years.

Feb 9, 2021 - 11:50pm
Isaiah_53_5 💎🙌💎🙌💎, what's your opinion? Comment below:

-

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Apr 21, 2021 - 3:56pm
Isaiah_53_5 💎🙌💎🙌💎, what's your opinion? Comment below:

Infinity isn't a limit in general. The word literally means 'no limit'. 

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Feb 9, 2021 - 11:54pm
WorldsGr8estKid, what's your opinion? Comment below:

People will continue to hold Bitcoin rather than use it for transactions as they believe it will increase in value. I believe this is due to the loss of confidence in the US Dollar which continues to decline in value and purchasing power.  

Apr 21, 2021 - 3:50pm
xgemone, what's your opinion? Comment below:

Maybe, but I think people should be encouraged to use bitcoins like the same dollar, for example to use cashbacks. Although, as for me, the Bitcoin system is quite difficult for ordinary people to understand.

Most Helpful
  • Business School in IB - Cov
Feb 21, 2021 - 10:31pm

The race to be apart of the 21 million is on. Only 4 million are actively traded. Roughly 2 million still to be mined and another 4 million are lost. The other 11 million have not moved in at least 12 months.

Don't forget the steps! Murad Mahmudov lays them out on his twitter and on the famous podcast episode with Anthony Pompliano. 

1. Collectible

2. Store of Value

3. Medium of Exchange

4. Unit of Account

5. Money

We are going from #1 to #2 right now, still early. Bitcoin is basically done competing with other cryptos, next up is gold and after that it's weak sovereign currencies. Gold's market cap is 12T USD, this puts BTC's price at 600k USD. Timeframe for BTC getting there is quicker than I thought. Was initially thinking 2030ish but it looks like it is going to be quicker. 

A couple tips for this bull run:

- Do not sell your BTC. This is a wealth transfer event. Don't lose your seat.

- Before BTC actually passes gold, governments will know they are up next. Take a look at where you store your BTC. Governments will try to ban/heavily regulate BTC on and off ramps.

- Finally!, do not be distracted from Bitcoin's ultimate value proposition. A new form of money. Anything else is noise, altcoins, blockchain, mining, volatility, transactions, volume, etc.  

Sit tight and enjoy the ride. 

Feb 21, 2021 - 11:00pm
Pizz, what's your opinion? Comment below:

Why would a fake currency be worth more or equal to gold. GTFO with ur BS

  • Analyst 1 in IB - Gen
Feb 22, 2021 - 10:46am

hahaha this guy is so triggered that he's late to bitcoin. gold is literally a dumb rock, bitcoin will be worth much more than it. have fun staying poor

Apr 21, 2021 - 3:46pm
xgemone, what's your opinion? Comment below:

When the one-year budgets of developed countries begin to spin in the system, people will quickly find a way to fix it.

Feb 22, 2021 - 12:01pm
Memberberries, what's your opinion? Comment below:

If governments move to ban BTC, won't that seriously undermine your $600k price target?

Array

Apr 21, 2021 - 3:44pm
xgemone, what's your opinion? Comment below:

Guys here the other day a good friend of mine advised me one site. He said there you can free bitcoin mining , but I can hardly believe that this is true. I searched on various forums about this site, and only recently found a topic where this site was discussed. The forum spoke well about the site, it turns out that you can actually mine there. In general, I am still trying, but I am in a very optimistic mood about this. Anyway, in general, for bitcoin the future, I believe, those who will not have bitcoin in the future, we will be poor. I think I'll open a new topic for discussion on this site. If you have any questions, write to your personal messages, I will try to answer you.

Feb 22, 2021 - 3:56pm
KClubs, what's your opinion? Comment below:

Have some bitcoin, but more for shits and giggles. Blockchain technology makes sense, but I don't see why a currency would be its best usage.

1. How safe/secure is it in the physical world? If its ultimately tracked somewhere "online" or "on the cloud", can't it be hacked and/or removed from someone's "ownership"? 

2. If widespread adoption approaches, what's to stop a central bank from (i) outlawing it, or (ii) creating its own "coin" that can act as legal tender?

3. Do you really think that this "wealth transfer event" will happen without large & powerful groups/people trying to stop it? ie. lobbying. You even mention that "governments will try to ban/heavily regulate BTC...". What would an average person do if this were to happen?

4. There have been many instances of items going from step 1 to 2 (beanie babies). Why do you think bitcoin will manage to move from #2 to #3, and onwards?

5. Why do you think BTC would completely replace the market cap for gold?

6. Your last point on Bitcoin's value proposition being a new form of money. Why couldn't you make the same argument for any finite resource (eg. pearls)?

7. "Race for 21 million". I was under the impression that there are 21M bitcoin, where the smallest "unit" is a satoshi, which is 1 millionth...implying 2,100 trillion satoshis?

8. Given supply is fixed, how would bitcoin manage/address/effect inflation?

9. Given supply is fixed, how would bitcoin manage/address/effect liquidity?

  • Intern in VC
Mar 26, 2021 - 6:57pm

Given the fixed max. supply, once it has been reached, BTC will be deflationary. Successful credit creation (which is necessary in facilitating economic growth) requires non-deflationary economic circumstances. This being said, how can BTC successfully replace fiat as money?

  • Analyst 1 in S&T - Equities
Feb 23, 2021 - 9:10am

Anyone buying dips today? I'm thinking about it, but don't want to bring my cost basis up.

  • Analyst 1 in IB - Gen
Feb 23, 2021 - 12:44pm

I bought more yesterday and more today

  • Analyst 1 in S&T - Equities
Feb 23, 2021 - 12:56pm

What's your basis if you don't mind me asking? I'm planning on holding long term so I should just pony up. Was waiting for it to trade down for like a month straight or something, but doesn't seem to be happening lately (knock on wood).

Feb 28, 2021 - 10:07am
ActuarialQuant, what's your opinion? Comment below:

Currently in the relatively late stages of a 4 year cycle, give or take a few months when you look at proximity to halvings. "Popular" TA suggests we can dip to as low as $42k in the short term before going back up with strong conviction. We peak probably around anywhere between October '21/Mar '22 is my guess. $100k+ BTC probably imminent this cycle, we'll see. Whether or not you believe in its fundamental valuations of being "fairly priced" or not, market psychology and greed offers plenty of opportunities to make profits. Not financial advice. I'll just leave it at this and see how this ages by EOY lol. 

"Luck is what happens when preparation meets opportunity"
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Mar 8, 2021 - 8:02pm
aempirei, what's your opinion? Comment below:

There's 8-9 months left in this bull cycle. People have a hard time wrapping their head around parabolic growth but the biggest gains are still to come.  Peak should be $250k minimum and potentially much much higher. 

My name is Nicky, but you can call me Dre.
Mar 11, 2021 - 6:48pm
Pizz, what's your opinion? Comment below:

This thread doesn't belong on a financial forum like WSO; I gave you MS (spam) as a result

Mar 12, 2021 - 1:00am
6969, what's your opinion? Comment below:

imagine shitting on a scarce asset with a 200% annual return over the past decade

May 3, 2021 - 12:32pm
2rigged2fail, what's your opinion? Comment below:

whats everyone buying

holding BC, Compound, Uniswap, AAVE and some XRPs.

  • Research Analyst in HF - EquityHedge
May 21, 2021 - 7:28pm

What do you guys think of the sustainability/environmental factor for Bitcoin mining? It's a kind of a waste of energy and creates nothing. It's not a product nor a service, what value does it add to society given it is not used as a traditional currency and is not trending in that direction. The tech is cool and has numerous applications, but it's use as a legitimate currency is hard to comprehend.

Let me know what you guys think. With the large push towards alternative energy sources in the long term, digital currency mining doesn't exactly play well in this narrative.

May 25, 2021 - 6:38pm
curiousgeorge79, what's your opinion? Comment below:

Definitely right about the narrative, which they might be able to change.

However, the narrative is more a stupid religion than anything else. The author of the article linked below has written a good book and articles on the issue. Tons of citations.

https://environmentalprogress.org/big-news/2020/6/29/on-behalf-of-environmentalists-i-apologize-for-the-climate-scare

  • Business School in IB - Cov
May 26, 2021 - 12:53pm

Bitcoin is not competing to be a currency. It is competing as an asset. 

The value add is enormous and the energy is not wasted at all. The energy used protects the network and gives the highest level property rights to all 8 billion people on the planet. 

The economic incentives to mine bitcoin are too strong for people to care about climate change. As one jurisdiction outlaws it others will allow it and the miners will go there. 

May 26, 2021 - 3:18pm
loanboy043, what's your opinion? Comment below:

Cryptocurrency Industry Overview of Select Markets

Introduction to Bitcoins, Ethereum, Litecoins, and the Blockchain

 Bitcoin

  •  A Bitcoin is a decentralized digital currency that is issued by, and transmitted through, an open source, public, digital protocol platform using cryptographic security that is known as the Bitcoin Network. The Bitcoin Network is an online, peer-to-­peer user network that hosts the public transaction ledger, known as the Blockchain, and the source code that comprises the basis for the cryptography and digital protocols governing the Bitcoin Network. No single entity owns or operates the Bitcoin Network, the infrastructure of which is collectively maintained by a decentralized user base. Bitcoins can be used to pay for goods and services or can be converted to fiat currencies, such as the U.S. Dollar, at rates determined on Bitcoin Exchanges or in individual end-user-to-end­-user transactions under a barter system.
  • Bitcoin's digital protocol verifies transactions through a process known as mining See "Bitcoin Mining and Creation of New Bitcoins" in more detail below. The mining of Bitcoins rewards users who verify transactions over time at a decreasing rate incrementally.
  • This digital protocol allows there to be a controlled supply of Bitcoin in the long term that is finite at twenty-one million Bitcoins. Currently there are over sixteen and a half million Bitcoins in circulation.
  • Bitcoins mining protocol works on a proof-of-work (PoW) consensus system. This means that a certain amount of computer power and verification is needed for a transaction to be considered valid by the Bitcoin Blockchain. Once the set amount of "work" is completed, and all necessary conditions are met, the transaction is approved and executed. 

Ethereum

  • Ethereum is a decentralized digital currency that is issued by, and transmitted though, an open-source, public, blockchain-based distributed computing platform featuring smart contract (scripting) functionality. The Ethereum Network is an online, peer­-to­-peer user network that hosts the public transaction ledger, known as the Blockchain, and the source code that comprises the basis for the cryptography and digital protocols governing the Ethereum Network. No single entity owns or operates the Ethereum Network, the infrastructure of which is collectively maintained by a decentralized user base. Ethereum's token called "Ether" can be used to pay for goods and services or can be converted to fiat currencies, such as the U.S. Dollar, at rates determined on Ethereum exchanges or in individual end­ user­ to­ end­ user transactions under a barter system. It also provides a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine ("EVM"), which can execute scripts using an international network of public nodes. Ethereum differs from Bitcoin in the following ways:
  • The Ethereum Network aims to process a block every 14 to 15 seconds, rather than Bitcoin's 10 minutes, which its developers claim allows for faster transaction confirmation.
  • Ether is mined on a proof-of-stake (PoS) consensus system, unlike Bitcoin, which is mined on a proof-of-work (PoW) consensus system
  • Proof-of-stake is a mining criteria similar to proof-of-work in that it verifies users' transactions, however, it involves pledging or backing a portion of your ether as a way to vouch for a transactions validity.
  • Ethereum releases the same amount of Ether each year ad infinitum, whereas Bitcoin has an overall supply cap of twenty-one million.
  • Ethereum has a different method for costing transactions depending on their computational complexity, bandwidth use, and storage needs, which is called "Gas" and is limited per block. Bitcoin transactions compete equally with each other, and are limited by the block size.
  • Ethereum has its own Turing complete internal code, which means that it can implement a programmable contract. A contract is essentially an automated agent that lives on the Ethereum Network, has an Ethereum address and balance, and can send and receive transactions. A contract is "activated" every time someone sends a transaction to it, at which point it runs its code, possibly modifying its internal state or even sending some transactions, and then shuts down.

 Litecoin

  •  Litecoin is a decentralized digital currency that is issued by, and transmitted though, an open-source, public, digital protocol platform using cryptographic security that is known as the Litecoin Network. The Litecoin Network is an online, peer­to­peer user network that hosts the public transaction ledger, known as the Blockchain, and the source code that comprises the basis for the cryptography and digital protocols governing the Litecoin Network. No single entity owns or operates the Litecoin Network, the infrastructure of which is collectively maintained by a decentralized user base. Litecoins can be used to pay for goods and services or can be converted to fiat currencies, such as the U.S. Dollar, at rates determined on Litecoin exchanges or in individual end­ user­ to­ end­ user transactions under a barter system. Litecoin differs from Bitcoin in three key ways:
  •  The Litecoin Network aims to process a block every 2.5 minutes, rather than Bitcoin's 10 minutes, which its developers claim allows for faster transaction confirmation.
  • Litecoin uses scrypt in its proof-of-work algorithm, a sequential memory-hard function requiring asymptotically more memory than an algorithm that is not memory-hard. This means that, unlike Bitcoin mining, Litecoin mining relies on RAM (random access memory) size instead of raw processing power alone.
  • To highlight the difference in hashing power (mining power), as of October 16, 2017, the total hashing rate of the Bitcoin Network is over 11,000,000 Terra Hashes per second, while Litecoin is just 20 Tera Hashes per second.
  • The Litecoin Network will produce 84 million Litecoins, or four times as many currency units as will be issued by the Bitcoin Network.

Blockchain

  •  Cryptocurrencies are "stored" or reflected on a digital transaction ledger known as the "Blockchain," which is a digital file stored in a decentralized manner on the computers of each Bitcoin Network (or other network) user. The Blockchain records the transaction history of all cryptocurrencies in existence and, through the transparent reporting of transactions, allows the cryptocurrency networks to verify the association of each cryptocurrency with the digital wallet that owns them. The cryptocurrency networks and cryptocurrency software programs can interpret the Blockchain to determine the exact cryptocurrency balance, if any, of any digital wallet listed in the Blockchain as having taken part in a transaction on the cryptocurrency network.
  • The Blockchain comprises a digital file, downloaded and stored, in whole or in part, on all cryptocurrency users' software programs. The file includes all blocks that have been solved by miners and is updated to include new blocks as they are solved. As each newly solved block refers back to and "connects" with the immediately prior solved block, the addition of a new block adds to the Blockchain in a manner similar to a new link being added to a chain. Because each new block records outstanding cryptocurrency transactions, and outstanding transactions are settled and validated through such recording, the Blockchain represents a complete, transparent and unbroken history of all transactions on the Bitcoin Network.
  • Each cryptocurrency transaction is broadcast to the cryptocurrency network and recorded in the Blockchain. The cryptocurrency network is decentralized and does not rely on either governmental authorities or financial institutions to create, transmit or determine the value of cryptocurrency. Rather, cryptocurrency is created and allocated by the cryptocurrency network protocol through a "mining" process subject to a strict, well-known issuance schedule. The value of cryptocurrency is determined by the supply of and demand for the cryptocurrency in the respective cryptocurrency exchange market (and in private end -user -to- end -user transactions), as well as the number of merchants that accept them. As Bitcoin transactions can be broadcast to the Bitcoin network by any user's cryptocurrency software and cryptocurrency can be transferred without the involvement of intermediaries or third parties, there are little or no transaction costs in direct peer -to -peer transactions on cryptocurrency networks. Third-party service providers such as cryptocurrency exchanges and cryptocurrency third -party payment processing services may charge significant fees for processing transactions and for converting, or facilitating the conversion of, cryptocurrency to or from fiat currency.

 Overview of the Bitcoin Network's Operations

  •  The Bitcoin Network, Ethereum Network, and Litecoin Network are similar in operations, and thus, the Bitcoin overview and explanations are equally applicable to the Ethereum and Litecoin Networks.
  • In order to own, transfer, or use Bitcoins, a person generally must have Internet access to connect to the Bitcoin Network. Bitcoin transactions between parties occur rapidly (typically between a few seconds and a few minutes) and may be made directly between end -users without the need for a third- party intermediary, although there are entities that provide third -party intermediary services. To prevent the possibility of double- spending a single Bitcoin, each transaction is recorded, time stamped and publicly displayed in a "block" in the publicly available Blockchain. Thus, the Bitcoin Network provides confirmation against double- spending by memorializing every transaction in the Blockchain, which is publicly accessible and downloaded in part or in whole by all users' Bitcoin Network software programs as described below. This memorialization and verification against double- spending is accomplished through the Bitcoin mining process, which adds "blocks" of data, including recent transaction information, to the Blockchain.

Summary of a Bitcoin Transaction

  • In a Bitcoin transaction between two parties, the following circumstances must be in place: (i) the party seeking to send Bitcoins must have a digital wallet and the Bitcoin Network must recognize that digital wallet as having sufficient Bitcoins for the spending transaction, (ii) the receiving party must have a digital wallet and (iii) the spending party must have internet access with which to send its spending transaction.
  • Next, the receiving party must provide the spending party with its wallet's digital address, an identifying series of 27 to 34 alphanumeric characters that represents the wallet's routing number on the Bitcoin Network and allows the Blockchain to record the sending of Bitcoins to that wallet. The receiving party can provide this address to the spending party in alphanumeric format or an encoded format such as a Quick Response Code (commonly known as a QR Code), which may be scanned by a smartphone or other device to quickly transmit the information.
  • After the provision of the receiving wallet's digital address, the spending party must enter the address into its Bitcoin software program along with the number of Bitcoins to be sent. The number of Bitcoins to be sent will typically be agreed upon between the two parties based on a set number of Bitcoins or an agreed-on conversion of the value of fiat currency to Bitcoins. Most Bitcoin software programs also allow, and often suggest, the payment of a transaction fee (also known as a miner's fee). Transaction fees are not required to be included by many Bitcoin software programs, but, when they are included, they are paid by the spending party on top of the specified amount of Bitcoins being sent in the transaction. Transaction fees, if any, are typically a fractional number of Bitcoins (for example, 0.005 or 0.0005 Bitcoins) and are automatically transferred by the Bitcoin Network to the Bitcoin miner that solves and adds the block recording the spending transaction on the Blockchain. See below "Bitcoin Mining and Creation of New Bitcoins."
  • After the entry of the wallet's digital address, the number of Bitcoins to be sent and the transaction fees, if any, to be paid, the spending party will transmit the spending transaction. The transmission of the spending transaction results in the creation of a data packet by the spending party's Bitcoin software program. The data packet includes data showing (i) the destination digital wallet's address, (ii) the number of Bitcoins being sent, (iii) the transaction fees, if any, and (iv) the spending party's digital signature, verifying the authenticity of the transaction. The data packet also includes references called "inputs" and "outputs," which are used by the Blockchain to identify the source of the Bitcoins being spent and record the flow of Bitcoins from one transaction to the next transaction in which the Bitcoins are spent. The digital signature exposes the spending party's digital wallet address and public key to the Bitcoin Network, though, for the receiving party, only its digital wallet address is revealed. The spending party's Bitcoin software will transmit the data packet onto the decentralized Bitcoin Network, resulting in the propagation of the information among the software programs of Bitcoin users across the Bitcoin Network for eventual inclusion in the Blockchain. Typically, the data will spread to a vast majority of Bitcoin miners within the course of less than one minute.
  • As discussed in greater detail below in "Bitcoin Mining and Creation of New Bitcoins," Bitcoin miners record transactions when they solve for and add blocks of information to the Blockchain. When a miner solves for a block, it creates that block, which includes data relating to (i) the solution to the block, (ii) a reference to the prior block in the Blockchain to which the new block is being added and (iii) all transactions that have occurred but have not yet been added to the Blockchain. The miner becomes aware of outstanding, unrecorded transactions through the data packet transmission and propagation discussed above. Typically, Bitcoin transactions will be recorded in the next chronological block if the spending party has an internet connection and at least one minute has passed between the transaction's data packet transmission and the solution of the next block. If a transaction is not recorded in the next chronological block, it is usually recorded in the next block thereafter.
  • Bitcoin transactions that are micropayments (typically, less than 0.01 Bitcoins) and that do not include transaction fees to miners are currently deprioritized for recording; meaning that, depending on Bitcoin miner policies, these transactions may take longer to record than typical transactions if the transactions do not include a transaction fee. Additionally, transactions initiated by spending wallets with poor connections to the Bitcoin Network (i.e., few or poor-quality connections to nodes or "supernodes" that relay transaction data) may be delayed in the propagation of their transaction data and, therefore, transaction recording on the Blockchain. Finally, to the extent that a miner chooses to limit the transactions it includes in a solved block (whether by the payment of transaction fees or otherwise), a transaction not meeting that miner's criteria will not be included.
  • To the extent that a transaction has not yet been recorded, there is a greater chance that the spending wallet can double -spend the Bitcoins sent in the original transaction. If the next block solved is by an honest miner not involved in the attempt to double -spend Bitcoin and if the transaction data for both the original and double -spend transactions have been propagated onto the Bitcoin Network, the transaction that is received with the earlier time stamp will be recorded by the solving miner, regardless of whether the double -spending transaction includes a larger transaction fee. If the double -spend transaction propagates to the solving miner and the original transaction has not, then the double- spending has a greater chance of success. As a result of the high difficulty in successfully initiating a double spend without the assistance of a coordinated attack, the probability of success for a double -spend transaction attempt is limited. See "Double -Spending and the Bitcoin Network Confirmation System" and "Forms of Attack Against the Bitcoin Network" below.
  • Upon the addition of a block included in the Blockchain, the Bitcoin software program of both the spending party and the receiving party will show confirmation of the transaction on the Blockchain and reflect an adjustment to the Bitcoin balance in each party's digital wallet, completing the Bitcoin transaction. Typically, Bitcoin software programs will automatically check for and display additional confirmations of six or more blocks in the Blockchain. See "Double- Spending and the Bitcoin Network Confirmation System" below.

 Bitcoin Mining and Creation of New Bitcoins

 Mining Process

  •  The "mining process" or "mining" is the process by which Bitcoins are created and Bitcoin transactions are verified. To begin mining, a user, or "miner," can download and run a mining client, which, like regular Bitcoin Network software programs, turns the user's computer into a "node" on the Bitcoin Network that validates blocks. Bitcoin transactions are recorded in new blocks that are added to the Blockchain and new Bitcoins being issued to the miners. Miners, through the use of the Bitcoin software program, engage in a set of prescribed complex mathematical calculations in order to add a block to the Blockchain and thereby confirm Bitcoin transactions included in that block's data.
  • Most Bitcoin transactions are recorded in blocks added to the Blockchain. Each block contains the details of some or all of the most recent transactions that are not memorialized in prior blocks, as well as a record of the award of Bitcoins to the miner who added the new block. In order to add blocks to the Blockchain, a miner must map an input data set (i.e., the Blockchain, plus a block of the most recent Bitcoin Network transactions and an arbitrary number called a "nonce") to a desired output data set of a predetermined length (the "hash value") using the SHA­256 cryptographic hash algorithm. Each unique block can only be solved and added to the Blockchain by one miner; therefore, all individual miners and mining pools on the Bitcoin Network are engaged in a competitive process of constantly increasing their computing power to improve their likelihood of solving for new blocks. As more miners join the Bitcoin Network and its processing power increases, the Bitcoin Network adjusts the complexity of the block­ solving equation to maintain a predetermined pace of adding a new block to the Blockchain approximately every ten minutes.
  • A miner's proposed block is added to the Blockchain once a majority of the nodes on the Bitcoin Network confirms the miner's work. Miners that are successful in adding a block to the Blockchain are automatically awarded Bitcoins for their effort plus any transaction fees paid by transferors whose transactions are recorded in the block. This reward system is the method by which new Bitcoins enter into circulation to the public.

Serviceable Addressable Market "SAM" (Crypocurrency)

SAM

Total Addressable Market "TAM" (Crypocurrency)

  • 2020: $0.7 Trillion
  • 2027E: $5.5 Trillion
  • (~8x in 8 years)

Cryptocurrency Industry Statistics & Projections:

Crypocurrency is a Burgeoning Asset Class Requiring Bespoke Solutions

  • $162B - avg daily trading volume
  • $5.5 Trillion - expected Mkt val of crypto (2027E)
  • 234MM crypo wallets by 2025E
  • 36MM - Crypto cold storage wallets (2025E)
  • 65% - CAGR - BTC & ETH Addresses
  • 87MM - BTC & ETH Addresses with non-zero balances as of 2021

Crypo - TAM 2

Crypocurrency - TAM

Competitive Landscape (Crypocurrency)

  • Rapid Acceleration of Digital Asset Adoption: Companies featured:
  • (1) Crypocurrency Asset Solutions (CompoSecure, Arculus, Blockchain, Bitcoin)
  • (2) Selected Digital Asset Services (Revolut, Cash App)

Competitive Landscape

Competitive Landscape: Capabilities

Bakkt, Robinhood, Coinbase, Square, Cashapp, PayPal, Rakuten, RevolutComp Landscape 2

Jun 13, 2021 - 10:52pm
dengamoyaodna, what's your opinion? Comment below:

Funny to scroll up and read some skeptic comments while the price is now x6 from that time) Only very greedy people lost on cryptocurrency. Because you had just to buy any and not to make stupid trades. Or if you are a complete beginner you could simply listen to someone who is in crypto for a long time. I personally followed Lifeforex to buy the most perspective coins. You can click here to see their omg price prediction.

Jun 16, 2021 - 4:38pm
michaeldrill, what's your opinion? Comment below:

I had a very bad experience with an unregulated broker and was saved by the timely intervention of swift coin recovery who just in nick of time got back my $138000. He is really good at what he does, i have recommended him to friends and co workers who all became satisfied customers. He has helped me alot in the trading industry, you can reach him at [email protected] gmail com for anything fraud related

Jun 24, 2021 - 6:02am
seoyeon, what's your opinion? Comment below:

I am a senior citizen and have worked hard all my life and save some money. It all started when I initially deposited EUR 9000. Not a very big amount. My manager explained to me that in order to get decent returns I will have to add more to the existing amount. I went for his words and added more amount. I won few trades and also lost some. Again manager told me to add more amounts which I did as I was winning few trades. I told him I wish to withdraw the entire amount that I have invested leaving only my profit in my account and applied for it. Within few days manager informed that because of the mistake of the analyst I have lost money. The manager started ignoring me and withdrawals are yet to come. Thanks to Diane she helped me recovered all of my lost funds, you can contact : dianerecoveryexpert at cyberservices. Com and share the testimony they shouldn't keep ripping people off

Jul 5, 2021 - 12:03pm
Gibiskus, what's your opinion? Comment below:

Well, I still think that bitcoin is a really great thing that will define the future. The thing is, that just like someone said above, the crypto transactions are still way too expensive and that is exactly why crypto currencies are not that popular acutally, at least that is my own opinion. Moreover, some people do not understand that these are not real money, it is all about digital things, digital money, that is why you also have to be aware of the fact that you can get scamed by the brokers. So yeah, it is a very .. complicated situation with crypto. To be honest, I am a very great fan of crypto, and I am using it in almost every single aspect of my own life. I am even gambling only on online crypto gambling platforms, mostly I am doing that on https://lambo2btc.com/ethereum_casino as it is the best one that I have ever player on.

Jul 10, 2021 - 12:42am
ligiaobando, what's your opinion? Comment below:

Can the victims of scam get their money back? Yes, if you have fallen victim to scam from an unregulated investment platform or any scam at ll then are eligible to recover what was stolen from you and this can only happen if this is reported to the right people. With the right approach and with evidence, you will get what you lost back. Those behind these unregulated platforms will likely want to sell the idea that what happened to your investment was an unfortunate occurrence when in reality what happened was theft via elaborate means. If you are a victim or you know any one who is a victim of these occurrences, you should know there are people who can help you. Simply search (r e c o v e r y t e m p l e . t e c h) on google just the way it is in that bracket. It is never too late if you have the right information, your sanity can be restored.
 

Nov 2, 2021 - 7:46am
tarasun, what's your opinion? Comment below:

Bitcoin cryptocurrency is a promising investment tool, which allows earning good money if skillfully handled. But due to the limited use of coins, the income received in most cases has to be converted into a more practical payment instrument. And the income itself is also associated with frequent transactions of purchase/sale of cryptocurrency. That is why it is worth understanding how to sell and buy assets with maximum speed, profit, and safety. And of course, you should always keep an eye on changehigh, because nowadays, it is more important than ever, especially if you are planning to exchange bitcoin.

Nov 10, 2021 - 10:13am
JonnyDrama, what's your opinion? Comment below:

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Nov 30, 2021 - 11:01pm
morganfrank, what's your opinion? Comment below:

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Dec 20, 2021 - 12:58am
Isaiah_53_5 💎🙌💎🙌💎, what's your opinion? Comment below:

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"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Feb 14, 2022 - 5:56am
mandyflows, what's your opinion? Comment below:

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