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    Bitcoin Bitcoin Newcomers FAQ - Please read!

    Bitcoin Bitcoin Newcomers FAQ - Please read!


    Bitcoin Newcomers FAQ - Please read!

    Posted: 06 Jan 2021 08:06 AM PST

    Welcome to the /r/Bitcoin Sticky FAQ

    You've probably been hearing a lot about Bitcoin recently and are wondering what's the big deal? Most of your questions should be answered by the resources below but if you have additional questions feel free to ask them in the comments.

    It all started with the release of Satoshi Nakamoto's whitepaper however that will probably go over the head of most readers so we recommend the following articles/books/videos as a good starting point for understanding how bitcoin works and a little about its long term potential:

    Some other great resources include Michael Saylor's "Bitcoin for Everybody" course, Jameson Lopp's resource page, Gigi's resource page, and James D'Angelo's Bitcoin 101 Blackboard series. Some excellent writing on Bitcoin's value proposition and future can be found at the Satoshi Nakamoto Institute.

    If you are technically or academically inclined check out developer resources and peer-reviewed research papers, course lectures from both MIT and Princeton as well as future protocol improvements and scaling resources. Some Bitcoin statistics can be found here, here and here. MicroStrategy's Bitcoin for Corporations is an excellent open source series on corporate legal and financial bitcoin integration.

    You can see the number of times Bitcoin was declared dead by the media or what you could have earned if you didn't listen to them XD

    Key properties of Bitcoin

    • Limited Supply - There will only ever be 21,000,000 bitcoin created and they are issued in a predictable fashion per the inflation schedule. Once they are all issued Bitcoin will be truly deflationary. The halving countdown tells you how much time until the next drop in block rewards.
    • Open source - Bitcoin code is fully auditable. You can read and contribute to the source code yourself.
    • Accountable - The public ledger is transparent, all transactions are seen by everyone.
    • Decentralized - Bitcoin is globally distributed across thousands of nodes with no single point of failure and as such can't be shut down similar to how Bittorrent works. You can even run a node on a Raspberry Pi.
    • Censorship resistant - No one can prevent you from interacting with the bitcoin network and no one can censor, alter or block transactions that they disagree with, see Operation Chokepoint.
    • Push system - There are no chargebacks in bitcoin because only the person who owns the address where the bitcoin resides has the authority to move them.
    • Low fee scaling - Most wallets calculate on chain fees automatically but you can view fee estimates and mempool activity if you want to set your fee manually. On chain fees may rise occasionally due to network demand, however instant micropayments that do not require confirmations are happening via the Lightning Network, a second layer scaling solution currently rolling out on the Bitcoin mainnet.
    • Borderless - No country can stop it from going in/out, even in areas currently unserved by traditional banking as the ledger is globally distributed.
    • Trustless - Bitcoin solved the Byzantine's Generals Problem which means nobody needs to trust anybody for it to work.
    • Pseudonymous - No need to expose personal information when purchasing with cash or transacting.
    • Secure - Blocks and transactions are cryptographically secured (using hashes and signatures) and can't be brute forced or confiscated with proper key management such as hardware wallets.
    • Programmable - Individual units of bitcoin can be programmed to transfer based on certain criteria being met
    • Nearly instant - From a few seconds on the lightning network to a few minutes on-chain depending on need for confirmations. Transactions are irreversible by normal users after one confirmation and irreversible by anyone (including miners) after 6 confirmations.
    • Peer-to-peer - No intermediaries taking a cut, no need for trusted third parties.
    • Portable - Bitcoin are digital so they are easier to move than cash or gold. They can be transported by simply carrying a seed (a string of 12 to 24 words) on a device or by memorizing it for wallet recovery (while cool, memorizing is generally not recommended due to potential for forgetting the seed and the potential for insecure key generation by inexperienced users. Hardware wallets are the preferred method for most users for their ease of use and additional security).
    • Scalable - While the protocol is still being optimized for increased transaction capacity, blockchains do not scale very well, so most transaction volume is expected to occur on Layer 2 networks built on top of Bitcoin.
    • Divisible - Each bitcoin can be divided down to 8 decimals, which means you don't have to worry about buying an entire bitcoin.
    • Designed Money - Bitcoin was created to fit all the fundamental properties of money better than gold or fiat

    Where can I buy bitcoin?

    Bitcoin.org and BuyBitcoinWorldwide.com are helpful sites for beginners. You can buy or sell any amount of bitcoin (even just a few dollars worth) and there are several easy methods to purchase bitcoin with cash, credit card or bank transfer. Some of the more popular resources are below, also check out the bitcoinity exchange resources for a larger list of options for purchases.

    You can also purchase in cash with local ATMs. If you would like your paycheck automatically converted to bitcoin use Bitwage.

    Note: Bitcoin are valued at whatever market price people are willing to pay for them in balancing act of supply vs demand. Unlike traditional markets, bitcoin markets operate 24 hours per day, 365 days per year.

    Securing your bitcoin

    With bitcoin you can "Be your own bank" and personally secure your bitcoin OR you can use third party companies aka "Bitcoin banks" which will hold the bitcoin for you.

    • If you prefer to "Be your own bank" and have direct control over your coins without having to use a trusted third party, then you will need to create your own wallet and keep it secure. If you want easy and secure storage without having to learn computer security best practices, then a hardware wallet such as the Trezor, Ledger or ColdCard is recommended.

    • If you cannot afford a hardware wallet there are many software wallet options to choose from depending on your use case. Mobile wallets like BlueWallet are generally more secure than desktop wallets. Beware of fake mobile wallets and check reviews from reputable Bitcoin websites. Avoid paper wallets or brain wallets.

    • If you prefer to let third party "Bitcoin banks" manage your coins, try Gemini but be aware you may not be in control of your private keys in which case you would have to ask permission to access your funds and be exposed to third party risk. There is a saying in the community, "Not your keys, not your coins" meaning if you don't store your coins in a wallet that you control the keys to then you do not really own your bitcoin as you have to ask permission from the third party in order to move them.

    Note: For increased security, use Two Factor Authentication (2FA) everywhere it is offered, including email!

    2FA requires a second confirmation code or a physical security key to access your account making it much harder for thieves to gain access. Google Authenticator and Authy are the two most popular 2FA services, download links are below. Make sure you create backups of your 2FA codes.

    Avoid using your cell number for 2FA. Hackers have been using a technique called "SIM swapping" to impersonate users and steal bitcoin off exchanges.

    Google Auth Authy OTP Auth andOTP
    Android Android N/A Android
    iOS iOS iOS N/A

    Physical security keys (FIDO U2F) offer stronger security than Google Auth / Authy and other TOTP-based apps, because the secret code never leaves the device and it uses bi-directional authentication so it prevents phishing. If you lose the device though, you could lose access to your account, so always use 2 or more security keys with a given account so you have backups. See Yubikey or Titan to purchase security keys.

    Both Coinbase and Gemini support physical security keys.

    Watch out for scams

    As mentioned above, Bitcoin is decentralized, which by definition means there is no official website or Twitter handle or spokesperson or CEO. However, all money attracts thieves. This combination unfortunately results in scammers running official sounding names or pretending to be an authority on YouTube or social media. Many scammers throughout the years have claimed to be the inventor of Bitcoin. Websites like bitcoin(dot)com and the r / btc subreddit are active scams. Almost all altcoins (shitcoins) are marketed heavily with big promises but are really just designed to separate you from your bitcoin. So be careful: any resource, including all linked in this document, may in the future turn evil. As they say in our community, "Don't trust, verify".

    • Avoid using ad-based search engines like Google or Yahoo: ads are shown based on how much the advertiser bids, and scammers can easily outbid legitimate providers for ad space, since immoral ways of earning money are far more lucrative than moral ways. Use DuckDuckGo instead, which has no ads, and never tracks you as well.
    • Ignore private messages offering services.
    • Never enter your seed words in a website of any kind. Hardware wallets will recover by displaying possible seed words on their own interface, never on a website.
    • Always check addresses on your hardware wallet before sending or receiving. Some malware has been known to replace addresses in your web browser or that you copy-and-paste.
    • Avoid clicking on links like that look like links, such as https://www.google.com/, without first hovering over it and actually checking where they go to. Just because a link is labelled with an HTTPS address does not mean it actually sends you to that address. It is trivial for someone to comment a link on Reddit that looks like it will send you to one website when it actually sends you to another, and you might not notice the difference until a scammer has gotten all your money, or you have downloaded and installed software that steals your money.

    Common Bitcoin Myths

    Often the same concerns arise about Bitcoin from newcomers. Questions such as:

    • Is Bitcoin a Ponzi scheme?
    • Will governments ban Bitcoin?
    • Will quantum computers break Bitcoin?

    All of these questions have been answered many times by a variety of people. Here are some resources where you can see if your concern has been answered:

    Where can I spend bitcoin?

    Check out spendabit or bitcoin directory for millions of merchant options. Also you can spend bitcoin anywhere visa is accepted with bitcoin debit cards such as the CashApp card or Fold card. Some other useful site are listed below.

    Store Product
    Bitrefill, Gyft Gift cards for thousands of retailers worldwide including Amazon, Target, Walmart, Starbucks, Whole Foods, CVS, Lowes, Home Depot, iTunes, Best Buy, Sears, Kohls, eBay, GameStop, etc.
    Spendabit, Overstock and The Bitcoin Directory Retail shopping with millions of results
    NewEgg and Dell For all your electronics needs
    Piixpay, Bitbill.eu, Bylls, Coins.ph, LivingRoomofSatoshi, Coinsfer, and more Bill payment
    Menufy and Takeaway Takeout delivered to your door
    Expedia, Cheapair, Destinia, Abitsky, SkyTours, the Travel category on Gyft and 9flats For when you need to get away
    Cryptostorm, Mullvad, and PIA VPN services
    Namecheap, Porkbun Domain name registration
    Stampnik Discounted USPS Priority, Express, First-Class mail postage

    Coinmap and AirBitz are helpful to find local businesses accepting bitcoin. A good resource for UK residents is at wheretospendbitcoins.co.uk.

    There are also lots of charities which accept bitcoin donations.

    Merchant Resources

    There are several benefits to accepting bitcoin as a payment option if you are a merchant;

    • 1-3% savings over credit cards or PayPal.
    • No chargebacks (final settlement in 10 minutes as opposed to 3+ months).
    • Accept business from a global customer base.
    • Increased privacy.
    • Convert 100% of the sale to the currency of your choice for deposit to your account, or choose to keep a percentage of the sale in bitcoin if you wish to begin accumulating it.

    If you are interested in accepting bitcoin as a payment method, there are several options available;

    Can I mine bitcoin?

    Mining bitcoin can be a fun learning experience, but be aware that you will most likely operate at a loss. Newcomers are often advised to stay away from mining unless they are only interested in it as a hobby similar to folding at home. If you want to learn more about mining you can read the mining FAQ. Still have mining questions? The crew at /r/BitcoinMining would be happy to help you out.

    If you want to contribute to the bitcoin network by hosting the blockchain and propagating transactions you can run a full node. You can view the global node distribution for a visual representation of the node network.

    Earning bitcoin

    Just like any other form of money, you can also earn bitcoin by being paid to do a job.

    Site Description
    WorkingForBitcoins, Bitwage, Cryptogrind, Coinality, Bitgigs, /r/Jobs4Bitcoins, BitforTip, Rein Project Freelancing
    Lolli Earn bitcoin when you shop online!
    OpenBazaar, Purse.io, Bitify, /r/Bitmarket Marketplaces
    /r/GirlsGoneBitcoin NSFW Adult services
    A-ads, Coinzilla.io Advertising

    You can also earn bitcoin by participating as a market maker on JoinMarket by allowing users to perform CoinJoin transactions with your bitcoin for a small fee (requires you to already have some bitcoin).

    Bitcoin-Related Projects

    The following is a short list of ongoing projects that might be worth taking a look at if you are interested in current development in the bitcoin space.

    Project Description
    Lightning Network Second layer scaling
    Liquid, Rootstock and Drivechain Sidechains
    Hivemind Prediction markets
    Tierion and Factom Records & Titles on the blockchain
    BitMarkets, DropZone, Beaver and Open Bazaar Decentralized markets
    JoinMarket and Wasabi Wallet CoinJoin implementation
    Decentralized exhanges Decentralized bitcoin exchanges
    Keybase Identity & Reputation management
    Abra Global P2P money transmitter network
    Bitcore Open source Bitcoin javascript library

    Bitcoin Units

    One Bitcoin is quite large (hundreds of £/$/€) so people often deal in smaller units. The most common subunits are listed below:

    Unit Symbol Value Info
    bitcoin BTC 1 bitcoin one bitcoin is equal to 100 million satoshis
    millibitcoin mBTC 1,000 per bitcoin used as default unit in recent Electrum wallet releases
    bit bit 1,000,000 per bitcoin colloquial "slang" term for microbitcoin (μBTC)
    satoshi sat 100,000,000 per bitcoin smallest unit in bitcoin, named after the inventor

    For example, assuming an arbitrary exchange rate of $10000 for one Bitcoin, a $10 meal would equal:

    • 0.001 BTC
    • 1 mBTC
    • 1,000 bits
    • 100k sats

    For more information check out the Bitcoin units wiki.


    Still have questions? Feel free to ask in the comments below or stick around for our weekly Mentor Monday thread. If you decide to post a question in /r/Bitcoin, please use the search bar to see if it has been answered before, and remember to follow the community rules outlined on the sidebar to receive a better response. The mods are busy helping manage our community so please do not message them unless you notice problems with the functionality of the subreddit.

    Note: This is a community created FAQ. If you notice anything missing from the FAQ or that requires clarification you can edit it here and it will be included in the next revision pending approval.

    Welcome to the Bitcoin community and the new decentralized economy!

    submitted by /u/BitcoinFan7
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    Daily Discussion, February 10, 2021

    Posted: 09 Feb 2021 11:00 PM PST

    Please utilize this sticky thread for all general Bitcoin discussions! If you see posts on the front page or /r/Bitcoin/new which are better suited for this daily discussion thread, please help out by directing the OP to this thread instead. Thank you!

    If you don't get an answer to your question, you can try phrasing it differently or commenting again tomorrow.

    Join us in the r/Bitcoin Chatroom!

    Please check the previous discussion thread for unanswered questions.

    submitted by /u/rBitcoinMod
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    PSA: We HODL here, not "����".

    Posted: 09 Feb 2021 05:53 PM PST

    Just preserving the core of the Bitcoin community.

    submitted by /u/DrinkAndKnowThings
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    Bitcoin is growing up fast...

    Posted: 09 Feb 2021 02:31 PM PST

    ����������Bitcorn ����������

    Posted: 09 Feb 2021 06:55 AM PST

    Updating an old meme on inflation and deflation

    Posted: 09 Feb 2021 08:41 AM PST

    Does anyone else miss this guy?

    Posted: 09 Feb 2021 01:28 PM PST

    GIGACHAD ELON

    Posted: 09 Feb 2021 11:24 PM PST

    Let us remember and pay homage to the Pineapple Fund — who anonymously and selflessly donated 5057 BTC (worth ~$85 million then, and ~$238 million today) to a bunch of incredible charities. Rumor has it there might be a second Pineapple fund by the same guy.

    Posted: 09 Feb 2021 07:21 PM PST

    Here's some context if you're out of the loop.

    Here's the rumor from the man himself.

    This story is still incredibly mindblowing and deserved as much, if not more media exposure than the Gamestop situation.

    submitted by /u/aknalid
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    Should Coinmarketcap show two Bitcoin rows? One for the price of 1BTC and the other for the price of 1SAT.

    Posted: 09 Feb 2021 09:09 PM PST

    Since Coinmarketcap is playing around with GME and Tesla in first position, I thought they could also do a public service by posting the price of Bitcoin with both denominations in two separate rows.

    That way it would psychologically help the newcomers to understand that the price difference in the crypto assets is not that important as they think. This may help them avoid painful mistakes in disregarding Bitcoin as their first safe position.

    I know that it is not a difficult concept, but being able to visualize the 1SAT at 0.02$ would help a lot.

    Literally every friend I have that has finally decided to jump into crypto is by default disregarding Bitcoin because of its pricetag. It's becoming burdensome to keep explaining myself 😂

    So the corporations get the good stuff and "the people" get left in the dust holding bags.

    If you think this is a good idea, upvote. Maybe we'll get their attention.

    submitted by /u/socratit
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    Good reminder! "Any crypto wallet that won’t give you your private keys should be avoided at all costs" - Elon Musk

    Posted: 10 Feb 2021 01:31 AM PST

    GME is why I'm here

    Posted: 09 Feb 2021 02:24 PM PST

    Watching that wonderful rise and seeing it ripped out from under us and then the aftermath of "regulators" threatening Redditors made me realize just how F'd the stock market is. It's not a free market.

    I'm so angry about it but also I'm pissed at the government for letting them do it.

    Meanwhile they keep printing dollars as if it doesn't mean anything.

    From now on my free cash goes into Bitcoin. I don't believe in the stock market or the dollar.

    When the Market crashes due to fraud and greed again and when the dollar collapses as a result we'll be sitting here with bitcoin which will skyrocket.

    The first trillionaire will not be Elon Musk. It will be Satoshi Nakamoto.

    submitted by /u/Bull_Winkle69
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    Bitcoin is a time machine. It is a time machine.

    Posted: 09 Feb 2021 10:00 AM PST

    Time is the most valuable asset in the world. Your time is limited, and you can not do anything about this.

    Days are passing, and they are gone forever. Becoming a parent 7 years ago taught me this lesson. Kids are growing fast, and you can not go back, just forward.

    This week I liquidated a reasonable part of my Bitcoin investments. I have been carefully stacking the sats for 5 years now, lived through ups and downs, holding all along solidly. My liquidated profits add up now to 10 years of my normal salary. Well, 10 years of my previously normal salary.

    Because today I left my job. For good. At least for 10 years.

    I want to spend the next 10 years being there for my kids, watching them grow, and being there for them completely. I will not be the occupied and preoccupied dad sitting at the dining table responding to work emails. I will not be the distant dad always thinking about something very important. Not any more. I want to be the dad who has always time, at least for the next ten years, while my kids will still be children.

    Time is important, and Bitcoin bought me time. Time to live freely and fully, without the daily stress of earning for the next ten years.

    Bitcoin is a miracle. For some, it creates Lambos and Teslas, for some it means yachts and airplanes. To me, it is a time machine. Nothing ever in my life gave me back my time, nothing until Bitcoin came along.

    A wonderful thing is happening around us, Bitcoin is turning the traditional wealth distribution of the world upside down. It is democratic, it is unconfiscatable, and it is there for everyone.

    I will hold to the rest of my sats until at least the next 10 years. Hope they will provide me with some further relaxing time.

    ----

    PS: seeing the comments, okay okay, it is not just about the kids, time will be used for self-development and also for doing some good in the world as well, I did not say I will do nothing now :)

    submitted by /u/mrginopalacca
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    This isn't r/WSB.

    Posted: 10 Feb 2021 03:12 AM PST

    Seems like we had an influx of retards from /r/wallstreetbets here. I like the "special" culture of WSB, but I personally really don't want to see this here. Bitcoin is so much more than a YOLO bet. I want a civilized discussion, due diligence, visions of a better future and, of course, our beloved memes. But please stop with pointless "BTC TO THE MOON!!11 💎🙌" posts...

    submitted by /u/Morphisto
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    Assuming a cost basis of 30K Tesla's 1.5B purchase represents 55.55 days of all btc mined. A single company purchased 15% of 2021's mining supply in January. Things are about to get wild.

    Posted: 09 Feb 2021 11:31 PM PST

    Tips for Newbies

    Posted: 10 Feb 2021 12:21 AM PST

    With the recent hype, there are a lot of newbies around. As someone who has been holding Bitcoin for 8 years now, I figured I'd put my take out there.

    Disclaimer: I'm not your financial advisor, do your own research, yadda, yadda.

    BITCOIN, THE LONGEST CHAIN

    First, we have to establish: Why Bitcoin, specifically?

    After all, there are a lot of options out there. This new technology has spawned a vast ecosystem, and it can be daunting to figure out which cryptocurrencies to support.

    The answer lies in one of the fundamental conventions of our community: the longest chain rule. I won't get into the technical details, but in very simplified terms, it means you should support the most popular one. That one will generally have the most consensus among miners and therefore be the most secure and have the widest support.

    You will hear of forks, splits, altcoins, and myriad other things. It's fine to support tech you believe in. But if you understand nothing else, just remember: go with the biggest, most popular one.

    Right now that is Bitcoin.

    BITCOIN, THE LEDGER

    There is a lot of complexity behind Bitcoin. It is easy to get lost in all of the technical details.

    Let me make it simple: Bitcoin is a ledger. It is a book with numbers in it. To understand what gives Bitcoin value, you need to understand what gives a ledger value.

    A good ledger is balanced. All the numbers add up. Every account is correct. You can trust it.

    A good ledger is secure. You cannot change accounts you do not own. You cannot fudge numbers. You cannot hide anything. You cannot counterfeit anything. You cannot invent new value out of thin air.

    A good ledger is redundant. There are many copies, and they all agree. There is no single point of failure.

    A good ledger is available. You can access it from anywhere and synchronize it across borders in the blink of an eye.

    Bitcoin is all of these things and probably more.

    When people say Bitcoin is better than fiat, they are talking about Bitcoin, the ledger. When governments print fiat at an alarming rate, it fails the secure condition—new value is being invented out of thin air. Likewise, it also fails the secure condition when the government is able to forcefully confiscate it—they are changing accounts they do not own. When central banks practice quantitative easing or fractional reserve banking, it fails the balanced condition—the numbers don't add up. And when governments restrict you from doing business with countries they do not approve of, it fails the available condition. Etc, etc.

    Bitcoin does not suffer from any of these problems.

    BITCOIN, THE AGREEMENT

    Now, a secure ledger is a worthy thing, but at the end of the day, it is just a book. What use is a book if no one agrees to use it?

    It is like a parent giving a child an IOU. The IOU has no intrinsic value. To anyone outside the parent and the child, the IOU is worthless. This is why people say Bitcoin is worthless and has no value—they don't accept it. So they are right, in a way. But to the parent and the child, who have agreed to use it, the IOU does have worth.

    I should point out here that all fiat money operates on this principle. It is why I can give the grocery store my US Dollars—they have agreed to use it. If someone gave me Korean Won, I would not value it highly because no one I know has agreed to use it. I would have to go out of my way to find someone who does agree to use Korean Won so I could arrange to trade my Won for their US Dollars, since that is my particular brand of IOU.

    Bitcoin is no different. It only has worth to the people who agree to use it. It is a secure, trustworthy ledger. You either agree to use it, or you don't. The more people who agree to use it, the more useful it is to everyone.

    BITCOIN, THE UNIT

    One thing that muddies up the picture a bit is that none of the numbers written in the ledger actually have any real-world value tied to them. They are all denominated in a new unit called the "satoshi," so named after the inventor of Bitcoin. No one is sure what a satoshi is worth, so we let the value of a satoshi be determined by the fair market.

    BITCOIN, THE SPECULATION

    Market-wise, Bitcoin seems to move in 4-year cycles centered around an event called the "Halvening." This Halvening marks a sharp drop in the number of new Bitcoins minted each year. This is built into the protocol and happens on a consistent schedule.

    It takes a while for the market to adapt to the decreased flow, so about one year after every Halvening, we historically see giant spikes followed by giant drops as the market figures out the new price. We are in the middle of one of these spikes right now. This is the riskiest time to speculate because a giant drop may be coming.

    There is a reason I'm highlighting "giant drop" over and over. Beware.

    It is important to understand these giant drops because it is easy to freak out and panic-sell if you aren't expecting it. When it comes, fear will be at an all-time high, and you will hear "Bitcoin is dead!" over and over. They will seem right, but they are wrong. No matter what reasons they attribute to this drop, it is a natural part of every cycle. They are afraid because they don't understand the cycle, so they invent their own reasons.

    Dumping your fortune into a spike and then panic-selling during a giant drop is how you get burned. Hard.

    Because of all the fear, a giant drop usually leads to an extended period of undervaluation for some time after. It takes two or three years to stabilize on the right value. This period is the safest time to speculate. Everyone will be afraid, having just been burned. Prices will be low. But you do not need to fear, because you understand the next cycle is coming.

    BITCOIN, THE VIRTUOUS CYCLE

    The four-year cycle I described above is low-key brilliant. The giant spikes lead to massive hype in the media, which brings in a flood of new awareness and increased demand. Likewise, the giant drops that inevitably follow also get massive coverage. As they say, even bad publicity is good publicity—it's free advertising. On top of all that, the cycle repeats only once every four years, giving two or three years of rest between, so you don't see fatigue. All of this media attention leads to increased demand.

    And the market is all about supply and demand.

    In the past, the Halvenings have consistently caused the value of Bitcoin to ratchet up every four years. If you think about it, that makes sense.

    Existing holders do not want to sell because Bitcoin has a track-record of amazing returns. They have no reason to sell their best-performing asset, which makes existing supply hard to get. In fact, they are greedy for more of it.

    At the same time, Halvenings make new supply hard to get. The fact that new supply is cut in half every four years means that everyone is in a rush to snap up Bitcoin because it will be exponentially harder to get in the future.

    The Halvenings are brilliant not just because they reduce supply and increase demand, but because they lead to a virtuous cycle of increasingly reduced supply and increasingly increased demand.

    BITCOIN, AND YOU

    At the end of the day, no one can tell the future.

    When it comes to your finances, all standard investment advice applies. Bitcoin is a new technology. That means it has untold potential, but that also means it has untold risk. Fortunes can be made, but they can be destroyed as well. Understand that you are speculating on an unknown future. Past performance does not guarantee future returns. Be careful not to put in more than you can afford to lose. If you are losing sleep over the price movements of Bitcoin, you have probably put in too much.

    It is generally good advice to keep your finances diversified. As they say, do not put all of your eggs in a single basket. If disaster strikes, you could lose everything. It is better to have two or three strategies that you follow, rather than just one. That way, if one fails, you can fall back on the others. Full-market index funds and real estate are considered by many to be relatively safe options.

    Finally, there are two virtues that tend to pay off in finances: patience and an iron stomach. Bitcoin's value seems to ratchet up every 4 years, so it makes sense that you will need to wait a similar amount of time to turn a profit. Having the patience to take a position early and hold for 10 or 20 years will put you lightyears ahead of someone looking for a quick profit, at far less risk. But doing that means you cannot just sell at the first sign of trouble.

    I don't remember who said it, but this seems like wise advice: "When deciding whether to sell, ask yourself if something fundamental has changed about your investment. If the fundamentals remain intact, you have no reason to sell."

    Good luck!

    submitted by /u/KitsuneMori
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    What’s the best strategy for buying #bitcoin? Don’t try to time the market. Slow and steady wins the race. Buying just $10/week for the past 5 years turned $2,600 into over $42,000. Start now and your future self will be thanking you. Just my opinion

    Posted: 10 Feb 2021 02:51 AM PST

    Sixty lesson course from Princeton on Bitcoin and cryptocurrency technology. Avg length ~15 mins. Links in post.

    Posted: 09 Feb 2021 05:24 PM PST

    This course came out in 2014 so it doesn't get into a lot of the newer tech, but I find it holds up really well as a technical deep dive into the foundation of cryptocurrencies. Some of the lessons are more relevant than others today so I timestamped each video to make it easy to bounce around. Hope you all enjoy!

     

    Intro to Crypto and Cryptocurrencies

    1.0 Welcome - 2 mins
    1.1 Cryptographic Hash Functions - 18 mins
    1.2 Hash Pointers and Data Structures - 8 mins
    1.3 Digital Signatures - 9 mins
    1.4 Public Keys as Identities - 5 mins
    1.5 A Simple Cryptocurrency - 14 mins

    How Bitcoin Achieves Decentralization

    2.1 Centralization vs. Decentralization - 4 mins
    2.2 Distributed Conesensus - 13 mins
    2.3 Consensus Without Identity: the Blockchain - 17 mins
    2.4 Incentives and Proof of Work - 19 mins
    2.5 Putting It All Together - 18 mins

    Mechanics of Bitcoin

    3.1 Bitcoin Transactions - 11 mins
    3.2 Bitcoin Scripts - 15 mins
    3.3 Applications of Bitcoin Scripts - 14 mins
    3.4 Bitcoin Blocks - 5 mins
    3.5 The Bitcoin Network - 18 mins
    3.6 Limitations & Improvements - 11 mins

    How to Store and Use Bitcoin

    4.1 How to Store and Use Bitcoins - 6 mins
    4.2 Hot and Cold Storage - 13 mins
    4.3 Splitting and Sharing Keys - 11 mins
    4.4 Online Wallets and Exchanges - 19 mins
    4.5 Payment Services - 8 mins
    4.6 Transaction Fees - 5 mins
    4.7 Currency Exchange Markets - 16 mins

    Bitcoin Mining

    5.1 The Task of Bitcoin Miners - 10 mins
    5.2 Mining Hardware - 23 mins
    5.3 Energy Consumption & Ecology - 14 mins
    5.4 Mining Pools - 14 mins
    5.5 Mining Incentives and Strategies - 23 mins

    Bitcoin and Anonymity

    6.1 Anonymity Basics - 26 mins
    6.2 How to De-anonymize Bitcoin - 18 mins
    6.3 Mixing - 21 mins
    6.4 Decentralized Mixing - 14 mins
    6.5 Zerocoin and Zerocash - 19 mins
    6.6 Tor and the Silk Road - 11 mins

    Community, Politics, and Regulation

    7.1 Consensus in Bitcoin - 6 mins
    7.2 Bitcoin Core Software - 10 mins
    7.3 Stakeholders: Who's in Charge - 9 mins
    7.4 Roots of Bitcoin - 9 mins
    7.5 Governments Notice Bitcoin - 9 mins
    7.6 Anti Money-Laundering - 5 mins
    7.7 Regulation - 11 mins
    7.8 New York's BitLicense Proposal - 10 mins

    Alternative Mining Puzzles

    8.1 Essential Puzzle Requirements - 5 mins
    8.2 ASIC Resistant Puzzles - 13 mins
    8.3 Proof-of-useful-work - 9 mins
    8.4 Nonoutsourceable Puzzles - 7
    8.5 Proof-of-Stake "Virtual Mining" - 8 mins

    Bitcoin as a Platform

    9.1 Bitcoin as an Append-Only Log - 16 mins
    9.2 Bitcoin as Smart Property - 16 mins
    9.3 Secure Multi-Party Lotteries in Bitcoin - 10 mins
    9.4 Bitcoin as Randomness Source - 18 mins
    9.5 Prediction Markets & Real-World Data Feeds - 23 mins

    Altcoins and the Cryptocurrency Ecosystem

    10.1 Short History of Altcoins - 21 mins
    10.2 Interaction Between Bitcoin and Altcoins - 15 mins
    10.3 Lifecycle of an Altcoin - 15 mins
    10.4 Bitcoin-Backed Altcoins, "Side Chains" - 11 mins

    The Fututre of Bitcoin?

    11.1 The Blockchain as a Vehicle for Decentralization - 14 mins
    11.2 Routes to Blockchain Integration - 28 mins
    11.3 What Can We Decentralize? - 24 mins
    11.4 When is Decentralization a Good Idea? - 16 mins

    submitted by /u/ccjunkiemonkey
    [link] [comments]

    I've been a bear since 2017, and I consider myself to be a smart guy who gets into early investments. let me tell you guys something.

    Posted: 09 Feb 2021 02:25 PM PST

    ...

    yall were right

    bought a btc today

    submitted by /u/antramanure
    [link] [comments]

    Elon Musk says dogecoin tweets are jokes, he is a "supporter" of bitcoin

    Posted: 09 Feb 2021 11:00 AM PST

    It’s time to start talking about buying Sats and not BTC

    Posted: 09 Feb 2021 06:43 AM PST

    On the market many companies will do a stock split to make their stocks more comfortable for people to buy.

    At the moment talking about buying BTC can be intimidating due to the value of a single BTC and its volatility. If people started to think of buying a Sat, rather than a BTC, it would be easier to digest, and the perceived volatility would drop too, because we're talking cents rather than thousand of dollars.

    We're now at a value that makes sense too. I can buy 10,000 sats for less than $5 USD. That's a bargain!

    submitted by /u/rich115
    [link] [comments]

    Nobody will ever be too late to join the Bitcoin network

    Posted: 10 Feb 2021 01:21 AM PST

    Many of my friends think they missed the opportunity to buy Bitcoin and now it is too late for them to enter the foray.

    IMHO this illusion comes from the fact of us considering Bitcoin as a stock in a company, to be bought low and sold high to produce a zero sum profit.

    On the contrary Bitcoin investment is not a zero sum game. Irrespective of the time, when you purchase even a fraction of a Bitcoin you are investing in the Bitcoin network to lock in your present purchasing power, which over time grows, first through the increasing network effect and once full adoption occurs through the increase in productivity of the entire human race.

    Hence even a child born 25 years from today will not be late to participate in this network.

    submitted by /u/Arjunan1
    [link] [comments]

    'Hey Bro, you still hold Bitcoin?'

    Posted: 09 Feb 2021 06:58 AM PST

    'Hey Bro, you still hold Bitcoin?'

    < a bit

    'Isn't it time to sell?'

    < could be

    'It's very high now, can crash any minute'

    < maybe

    'Anyway why didn't you convince me to buy haha'

    < ...

    'How much do you exactly have?'

    < not much just a bit

    'Know any other cheap coin I can buy now?'

    < not really

    'Something below a dollar preferably'

    < I dont think price per coin is important

    'Man if you have a lot, just sell and buy a house'

    < I'm good thanks

    'Real estate is passive income man'

    < yeah not my thing

    'Oh but eh should I buy bitcoin now?'

    <...

    Rinse repeat every 4 years

    submitted by /u/toplelkekfag
    [link] [comments]

    At a strip bar in Vancouver Canada #bitcoin

    Posted: 09 Feb 2021 04:58 PM PST

    I give up - If anyone can figure out how to get money out of my old Mycelium wallet, you can have it.

    Posted: 09 Feb 2021 09:20 PM PST

    I dug up an old Mycelium wallet, and I can't seem to figure out any way to get the money out. Mycelium keeps giving me error messages about Transaction Signing Failed and my wallet being out of sync. The blockchain explorer confirms I have money in the address, but if I import the seed to another wallet it shows up as zero.

    So I give up. I'm posting the 12-word seed here in case anyone else has better luck. If you can get into it and you feel like a white hat, send half to 16XSBwzGPuP1dTzni7uTqbDp5ew5AjRKhU and keep the rest for yourself. If you feel like taking it all, I literally can't stop you.

    Here's the seed:

    away mobile trap obscure sadness crop height profit river sorry wool very

    Edit: someone was able to start a transaction to empty the account. God speed to you, good sir!

    Edit2: At least 2 people were able to get in, and they now have competing transactions going. #2 literally put 60% of the balance into miner fees. It'll be fun to see what happens.

    submitted by /u/eruditionfish
    [link] [comments]

    Meet the entrepreneurs bringing bitcoin to institutions

    Posted: 09 Feb 2021 05:27 PM PST

    US solar company follows Tesla in accepting Bitcoins for all products and services

    Posted: 09 Feb 2021 08:02 AM PST

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