Bitcoin Pyramid Scheme - btcnn.com

1234

[ 🎶 Thinking Cap ] This post is framed around results of cypher-based queries for the number 1234 against my custom lexicon files built up over a year of phrase inputs (mostly gleaned from newspaper headlines and their 'quoted phrases', or stream of conciousness inspired by them). There are not very many, but the few there are appear to be instructive. I have used some repetition to aid those with trouble remembering numbers. Perhaps NSFW. (For the confused: see here, here and here)
If you are brand new to this collection of scrolls, I recommend reading (as much as you can of) this before returning here, which will help to justify my particular focus below (the belt).
Did you gnow A=1?
There are 26 letters in the English-Latin Alphabet.
The basic alphabetic gematria code acknowledges that A=1, B=2, C=3, ..., Z=26 (ie. ordinal gematria).
In this basic alphabetic cypher (which is implied if I do not specify):
If you flip the numeric ordering about (ie. look in the mirror: treat 'Z' as 1, down to 'A' as 26), then...
This ("The ABC") is the name of the earliest alphabet primer textbooks for kids.
The first church primers paralleled the introduction of school textbooks known as “the ABC”
The Alphabet is a vessel for messages:
If, instead of the basic alphabetic ordinal cyphers above, we use another cypher some call Agrippa's Key, and some call the 'jewish cipher', which is based on the ancient Hebrew and Greek gematria charts, and maps that scheme to the Latin Alphabet, we can ask a catch-phrase question (written more formally than usual)
What's in a name?
Indeed:
Here we move beyond the three steps of ABC and arrive at the Door of Dalet. Behind it, if we have the write keys, we might discover...
The results of...
Itself the result of...
... of the Masters of the Ages.
Or not.
Many folks shun numbers:
  • "Obnoxious" = 1234 trigonal
  • ... ("number" = 73 = "crazy" ... but "perfect" = "count" = 73)
  • "The Great Learning" = 1234 trigonal
  • ... "Great Knowledge" = 1234 jewish-latin-agrippa
  • ... ( "Great Knowledge" = 449 primes (*) )
  • ... ( .. ... "Mental Contact" = 449 primes )
  • ... ( .. .. "Population" = 449 primes )
  • "Silence is Golden" = 449 primes (ie. Hush in the Library)
  • "Great Knowledge" = 1234 jewish-latin-agrippa
  • ... "Forbidden Word" = 1234 jewish-latin-agrippa
  • ... .. .. ( "Silence is Golden" = 449 primes )
  • "My Call of Duty" = 1234 jewish-latin-agrippa
  • ... "Great Knowledge" = 1234 jewish-latin-agrippa
  • .. ... .. "What is in a name?" = 1234 jewish-latin-agrippa
  • "Silent Warrior" = 1234 english-extended
  • ... ( "Rain" = 322 trigonal ) ( "Number" = 73 alphabetic; "Jake" = "Bard" = 73 primes )
  • ... ( .. "Counting" = 322 trigonal ) ( "Count" = 73 = "Perfect" = "Number" )
  • ... ( .. "To Know" = 322 trigonal ) ( "The Mind" = 73 = "Count" = "Number" )
  • ... ( .. "The Proof" = 322 trigonal )
  • ... ( .. .. "Final Proof" = 322 jewish-latin-agrippa )
Genesis 3:22 (KJV Bible)
And the Lord God said, Behold, the man is become as one of us, to know good and evil: and now, lest he put forth his hand, and take also of the tree of life, and eat, and live for ever:
  • "To Know" = 322 primes
  • "A Magic Number" = 322 primes
  • .. .. ... "Magician" = 322 trigonal
Make it ...
  • "Rain" = 322 trigonal
... for the ...
  • "Girl" = 322 trigonal
Thor and Jane meet again: https://www.youtube.com/watch?v=E0HzpZAgAwY
  • "Full Name" = 322 jewish-latin-agrippa (ie. Count it! ... but you are fool to reveal it)
  • ... .. .. ( "What is in a name?" = 1234 jewish-latin-agrippa )
  • .. .. ... ( ... https://forgottenrealms.fandom.com/wiki/True_name )
  • . .. ... "Counting" = 322 primes
  • ... .. "Count" = 393 jewish-latin-agrippa
  • .. . "Accurate" = 393 primes
  • . "Accountancy" = 393 primes
  • "Counting" = 322 primes
  • "Full Name" = 322 jewish-latin-agrippa
  • ... ( "A Magic Number" = 322 primes )
  • "What is in a name?" = 1234 jewish-latin-agrippa
  • ... "Great Knowledge" = 1234 jewish-latin-agrippa
  • ... .. .. "The Spells of Eden" = 1234 trigonal
The Fruit of the Tree of Knowledge...
  • "Great Knowledge" = 449 primes
  • "Sex Education" = 449 primes
  • ... ( building "Population" = 449 primes )
...And they knew they were naked (ie. eyes opened):
  • "Shame On You" = 1234 trigonal
  • ... "The First Day" = 1234 trigonal
  • ... .. .. "The Spells of Eden" = 1234 trigonal
  • "Sex Education" = 1337 english-extended (ie. Elite codes)
  • "The Spells of Eden" = 1234 trigonal
  • ... "Great Knowledge" = 1234 jewish-latin-agrippa
  • ... .. .. "The Great Learning" = 1234 trigonal
  • .. .. ... "A Great Work" = 1234 jewish-latin-agrippa
  • ... "Speak Loud and Clear" = 1234 trigonal
  • ... .. "Water out!" = 1234 trigonal (ie. 'The Number' ~= 'Pregnant' ~= 'A Baby')
  • ... .. .. "The Spells of Eden" = 1234 trigonal (ie. spell-casting -> spillage -> spoil it)
Serpents, and Tower of Babylon:
  • "What is in a name?" = 1234 jewish-latin-agrippa
  • ... "The Unpatchable Code" = 1234 trigonal (DNA code; written language, (relatively) hard to change)
  • ... .. .. "The Spells of Eden" = 1234 trigonal
  • .. .. ... "The One Source" = 1234 trigonal
  • .. .. ... .. "The Duration of One Year" = 1234 jewish-latin-agripa
  • ... .. .. ... .. "The Source" = 365 primes (ie. days in a year, solar orbit)
ie. Matrix Code - Mother Code Pregnancy Procedure and Cascading Responsibility.
  • "My little Pony" = 1234 jewish-latin-agrippa
If you're lucky:
  • "Birth of Twins" = 1234 english-extended
ie. quantum-entanglement: you cannot give birth to your first alphabetic Son, a strong boy named Aleph, and deny he is '1'. You cannot have your second child, a beautiful maiden, Beth, and deny she is '2'.
Animals on the ark 2 by 2. You cannot order the alphabet, and deny the letters have ordinal indexes (ie. numbers associated with them - significant others)
  • "Boat" = 123 primes
To travel down...
  • "Denial" = 123 primes ...is as easy as ABC.
Again, many folks shun numbers:
Obstetrics is the field of study concentrated on pregnancy, childbirth, and the postpartum period. As a medical specialty, obstetrics is combined with gynaecology under the discipline known as obstetrics and gynecology (OB/GYN) which is a surgical field.
  • "Obnoxious" = 1234 trigonal
  • ... "The Number" = 333 primes
  • ... "Unspeakable" = 333 primes
  • ... "The Unspeakable Number" = 666 primes
  • .
  • "Counting" = 322 primes
  • "Magician" = 322 trigonal
  • ... "Magician" = 156 primes
  • ... "Apple" = 156 primes
  • ... ( the 156th prime number is 911 )
  • ... ( ... "Divine Feminine" = 911 jewish-latin-agrippa )
  • ... ( ... "She is a Beauty" = 911 jewish-latin-agrippa )
  • ... ( ... "Sexy Girl" = 911 jewish-latin-agrippa )
  • ... ( "The Last Proof of Life After Death" = 911 primes )
I have a spell-matching feature that can cross-match multiple cypher results and return the 'closest frequency matches' of all the spells I've ever entered into my gematria tools. At the time of writing the lexicon file is half a megabyte in size (plain text) and contains 37,694 words and phrases.
When I ask for the spellings that most closely match: "live forever", I get the following three results as top matches:
  • 'white liquid', 'into the girl', and 'the dilution' (with 8+ cypher matches)
There are a lot of flowery symbolic or metaphorical phrases that it could have returned, but it seems the Heptapods are rather blunt.
Again:
  • "Divine Feminine" = 911 jewish-latin-agrippa
  • ... .. "Sexy Girl" = 911 jewish-latin-agrippa
From...
Revelation 9:11 King James Version (KJV):
And they had a king [41] over them, which is the angel of the bottomless pit, whose name in the Hebrew tongue is Abaddon [41] , but in the Greek tongue hath his name Apollyon.
This is perhaps a dual - the Abaddon is both Father Beast (and Lord of the Harem, perhaps, given the plural 'them') and the Beastly Progeny (ie. King and Prince):
  • "Pregnant" = 333 jewish-latin-agrippa
  • "The Temple" = 333 jewish-latin-agrippa
  • ... "A Baby" = 333 trigonal
The angelic little baby, retrieved from the bottomless pit, is the apple of mommy and daddy's eyes (even though it is very naughty, ruling over their lives for many years after his or her noxious retrieval from the Underworld).
"I wonder why?" = 474 primes ( "Accountancy" = 393 primes )
  • "Numerology" = 474 primes
  • "Great Pattern" = 474 primes
  • "Object of Lust" = 474 primes ( "Deny Nature" = 419 primes )
  • "The Devil, Woman" = 474 primes (ie. Beauty and the Beast)
  • .
  • ... "The Number" = 333 primes
  • ... .. .. "A Baby" = 333 trigonal
  • "The Great Emergence" = 474 primes
  • "Population" = 449 primes
  • ... "Sex Education" = 449 primes
  • .. .. .. "Surveillance" = 449 primes
  • ("A Pornographic" = 616 englist-extended [ie. "Number" = 616 trigonal ] )
  • ("Pornographica" = 616 eng-ext [ie. "Perfect Number" = 616 jewish-latin-agrippa ] )
  • ... ("The Law" = 616 trigonal )
  • ... ("Garden of Eden" = 616 trigonal )
  • .
  • "To Know" = 322 primes
You cannot unsee it:
  • "Girl" = 322 trigonal <---- pornographic numeric hieroglyph
To each there own:
  • "Tradition" = 393 jewish-latin-agripa
  • "The Perfect Woman" = 1,393 jewish-latin-agrippa
  • "Tradition" = 393 jewish-latin-agripa
  • ... "Count" = 393 jewish-latin-agripa
  • .. .. ... "Accountancy" = 393 primes
Occult Alphabet = English Alphabet = Statistics
  • "Figures Reveal..." = 1234 trigonal
  • .... "Liberal Party" = 1234 trigonal
  • Q: .. "What Rules?" = 1234 english-extendedd
  • A: .. "Just Sign Here"* = 1234 jewish-latin-agrippa
The closest multi-cypher spectrum match against dictionary files (as described here), to the spell "One Thing" is:
  • "enduring" (with 9+ matches)
  • "Tradition" = 393 jewish-latin-agripa
  • ... "Survive" = 393 primes
  • ... .. .."Greyhound race" = 1234 trigonal
  • .. .. ... ... "The Rat Race" = 314 primes (ie. pi; commute in circles)
  • "Great Place" = 1234 square
Viva Las Vegas (ie. V.L.V ):
777 (ie. to win at slots):
  • "A Triple-Seven" = 1234 trigonal | 2,322 squares
The Boeing 777 is a premiere passenger aircraft.
The Boeing 787 is called the Dreamliner (ie "The Call" = 787 squares ... of Morpheus)
The Boeing 747 is Old Faithful, the Jumbo Jet of Time
Air Force One is a 747
  • "Air Force" = 223 primes
  • "Winds" = 223 primes
  • "Goddess" = 223 primes
  • ... "The Law" = 223 primes
  • ... "Air Force" = 223 primes
  • "Winds" = 223 primes
  • .
  • "The Law" = "Goddess" = 223 primes
She steps on "The Scale" = 223 primes ...
...and hopes she is ...
  • "Weightless" = 1234 jewish-latin-agrippa
From an old Alphabet Primer:
... He that ne'er learns his ABC,
... For ever will a Blockhead be.
... But he that learns these Letters fair,
... Shall have a Coach to take the Air.
Are you ready, Icarus?
  • "This is the deal" = 139 = "Occult Alphabet"
  • ... "Competition" = 139 = "Pyramid scheme" = "Ancient Egypt"
Mirror Mirror, upon the wall, who is the Pharaoh over all?
Extra credit:
Read about the taming of Enkidu, in the myth of Gilgamesh:
  • "The Spells of Eden" = 1234 trigonal
  • "Great Knowledge" = 1234 jewish-latin-agrippa
  • ... "Great Knowledge" = 449 primes
  • ... "Sex Education" = 449 primes | 1337 english-extended
  • ... .. .. "Prostitute" = 1234 english-extended
  • .. .. ... .. "Carnival Row" = 1234 english-extended
  • ... .. .. "Prostitute" = 1234 english-extended
  • .. .. ... ... "Presidential Golf Course" = 1234 english-extended
  • "One, Two, Three, and Four" = 227 basic alphabetic (the 'and' was for ... metrical reasons.)
  • ... ( "The Emergence" = 722 trigonal ... ie. pi and reverse pi; circles)
Q: ?
  • "A: The Emergence" = 314 primes (ie. classic Amorican pi)
  • "A: The Emergence" = 1337 squares (ie. "sex education" = 1337 english-extended)
  • "The Alphabetical Epidemic" = 1234 trigonal
  • ... "Not entirely true(?)" = 1234 jewish-latin-agrippa
Enregisterment is often partially, rather than completely, true, sort of like an accent viewed through a funhouse mirror.
I was triggered to made this post due to various recent media 'events', this 'crazy' 'news item' the final straw that broke the gimel's black (I link to old reddit theme because it is objectively better ):
Also, see recent threads:
Relevant numbers & links:
Also, perhaps relevant pings:
Disclaimer:
You might have noticed the game I've long played with the dots used for spacing and indenting lists of spells. They usually follow the pattern of:
  • ... (ie. 3, trinity, the Beatrice of the Matrix Code)
  • ... .. (ie. 32, life, Eve)
  • ... ... (ie. 33, magic, name, a life)
  • . .. ... (ie. 123, alphabetic codes, the ABC, initation)
  • ... .. . (ie. 321, countdown to church society)
  • ... .. .. (ie. 322, to know, the proof is counting)
  • .. .. ... (ie. 223, the law, chapter 1, the scale, goddess, Lucifer, the moon)
  • .. ... .. (ie. 232, scary, number, Satan)
  • ... .. ... (ie. 323, Lucifer, 1 Goddess)
  • ... .. .. ... (ie. 3223, the upward spiral, ascending the tower of babylon)
Sometimes the layout is thematically tied to the associated text.
  • . "Scary" = 232 primes
  • .. "Number" = 232 primes
  • ... "Tell All" = 232 primes
Wiki Index: https://old.reddit.com/GeometersOfHistory/wiki/index
.
EDIT:
Chinese researcher accused of trying to smuggle vials of ‘biological material’ out of US hidden in a sock
Sweeping ban on semiautomatic weapons takes effect in New Zealand
  • "The Semiautomatic Rifle" = 232 basic alphabetic
  • ... "Bullet" = 232 primes
  • ... "Scary" = 232 primes
  • ... .. .. "Number" = 232 primes
  • ... "Scary" = 232 primes
  • ... .. .. "Satan" = 232 jewish-latin-agrippa
  • .
  • "Semiautomatic Rifles" = 1776 trigonal
  • .
  • "The Semiautomatic Rifle" = 232 basic alphabetic
  • ... "Bullet" = 232 primes
  • ... "Number" = 232 primes
Bullet News Bulletsin Bullet points Bullet Bull ET Extraterrestrial Bull Bull God
  • "The Bull God" = 322 primes
.
EDIT: - moments later - :
https://old.reddit.com/occult/comments/eee131/does_anyone_know_what_this_symbol_represents_its/
Does anyone know what this symbol represents, it's familiar to me and puts of a very unique energy and I cannot place it
  • "unique energy" = 322 baconis | 522 primes ("the prime number" = 522 primes)
  • "(a) very unique energy" = 232 basic alphabetic | 2,247 jewish-latin-agrippa
  • ... "very unique energy" = 2023 trigonal (ie. 223 with zephyr)
  • "the very unique energy" = 264 basic alphabetic ("Source" = 264 primes)
The golden ratio is 1.61(8...)
  • ... "unique energy" = 161 basic alphabetic
  • ... "unique energy" = 1601 english-extended
  • ... "unique energy" = 1061 jewish-latin-agrippa
  • ... .. "energizer" = 1061 english-extended
  • ... .. .. "unique energy" = 161 basic alphabetic | 322 baconis
  • .. .. ... "undercurrent" = 161 basic alphabetic | 322 baconis
  • .. .. ... "song of creation" = 161 basic alphabetic | 322 baconis
https://old.reddit.com/GeometersOfHistory/comments/cyr1nq/gematria_of_161_and_322/
EDIT - again, next day (remembering that 'president' ~= 'count' ~= 'accountancy'):
I wrote here, a few days ago:
These are things we can imagine Alphabet Sages might desire to encode and honour - as much for a mnemonic purpose, as for teaching purposes, or for archiving [...] knowledge [...] or purely for the sake of esoterica itself (ie. wizard just likes math, or architecture, and thus honours math and arches, secretely in words using basic algebra and references to certain idioms and golden numbers. Wizard works for King, shows him tricks. King decrees new Bible edition, and new Dictionary version).
Today:
https://www.reddit.com/worldnews/comments/eemt1d/china_orders_christians_to_rewrite_the_bible_fo
China orders Christians to rewrite the Bible for the era of President Xi
China orders Christians to rewrite the Bible for the era of President Xi
  • "Right the Bible" = 369 primes
  • "The Alphabet Code" = 369 primes
  • "Ritual Code" = 1,666 squares
  • "Aright the Bible" = 1,666 squares
  • "The Bible: 1 Right" = 1,666 squares
EDIT - next day again (Christmas Eve) -- re: bullets (first edit above)
https://games.slashdot.org/story/19/12/23/2042253/how-do-bullets-work-in-video-games
How Do Bullets Work in Video Games?
https://arstechnica.com/science/2019/12/lessons-from-scorching-hot-weirdo-planets/
Q&A(stronony) —
Lessons from scorching hot weirdo-planets
The first kind of exoplanet found, Hot Jupiters still perplex and captivate
from The Comte De Gabalis, discourse 1: https://www.sacred-texts.com/eso/cdg/cdg04.htm
He found me to be of a tractable, inquiring, and fearless disposition. A dash of melancholy is lacking in me, else I would make all, who are inclined to blame the Comte de GABALIS for having concealed nothing from me, confess that I was a not unfit subject for the Occult Sciences. One cannot make great progress in them, it is true, without melancholy; but the little that I possess in no wise disheartened him. You have, he told me a hundred times, Saturn in an angle, in his own house, and retrograde; some day you cannot. fail to be as melancholy as a Sage ought to be; for the wisest of all men, as we learn in the Cabala, had like you Jupiter in the Ascendant, nevertheless so powerful was the influence of his Saturn, though far weaker than yours, that one cannot find proof of his having laughed a single time in all his life. The Amateurs must, therefore, find fault with my Saturn and not with the Comte de GABALIS, if I prefer to divulge their secrets rather than to practise them.
https://arstechnica.com/science/2019/12/optical-quantum-computer-goes-big-in-new-quest-for-quantum-supremacy/
Photons are (almost) supreme —
Why I dislike what “quantum supremacy” is doing to computing research
  • "Photonics" = 119 | 47 reduced (ie. Orthodox, Foundation, Master Plan)
  • "Photonics" = 968 trigonal
  • "A+ Photonics" = 969 trigona (ie. Matrix Code)
Q: Light particles?
"A: Bits of Light" = 393 primes (ie. Bits of a Light )
submitted by Orpherischt to GeometersOfHistory [link] [comments]

The Rise and Fall of a Bitcoin Mining Scheme That Was "Too Big to Fail"

This is the best tl;dr I could make, original reduced by 95%. (I'm a bot)
While the BCN promoters bragged that they had "The most transparent company in the history of the world," a venture that was "Too big to fail," prosecutors accuse them of operating an updated version of a classic Ponzi scheme - making exaggerated claims about mining capability they didn't have, doling out inflated earnings to early investors in order to rope in more suckers, and taking huge rake-offs for themselves, much of it in the form of commissions from a multi-level marketing setup that offered investors bonuses for recruiting new members.
Ever since the "Genesis" block of Bitcoin was first mined eleven years ago, there have been convoluted efforts to game the system, along with cryptocurrency empires that were too big to fail but did.
As speculation in cryptocurrencies has spread, more investors have also been drawn to the arcane process of Bitcoin mining - even though the chances of striking it rich in the mining business are uncertain at best, and next to none in the pyramid-scheme mining pool that BCN was offering.
Weeks claims to have brokered sales of more than $60 million in mining equipment to BCN, and he led tours of the data center in Iceland where much of the mining was taking place.
In one video, Medlin can be seen bragging that BCN would soon be mining at a rate of 1100 petahash per second, raking in $10 million to $20 million a month in Bitcoin.
The actual dollar value of its mining production is difficult to calculate, since the price of both cryptocurrencies fluctuated wildly in the course of BCN's operation, but a conservative estimate would be in the $300 million to $500 million range.
Summary Source | FAQ | Feedback | Top keywords: mine#1 week#2 BCN#3 Bitcoin#4 investor#5
Post found in /technology, /Longreads and /Buttcoin.
NOTICE: This thread is for discussing the submission topic. Please do not discuss the concept of the autotldr bot here.
submitted by autotldr to autotldr [link] [comments]

What is bad about bitcoin?

What is bad about bitcoin?

https://preview.redd.it/efwk0tmidmw31.png?width=2560&format=png&auto=webp&s=7952d767bc7054084216de931c2c2ecf7d2c564e
In recent days, bitcoin is almost the most popular topic. In just a few hours, its value could rise by a thousand dollars, or it could fall. Cryptocurrency, which once cost about a cent, is now bought for 10 thousand dollars, and the interest in it is huge. Now I will try to explain why Bitcoin is not an ideal solution to human problems.

Bitcoin is not regulated by any state. It's good. But bad, too

Who has the right to print money-the state or independent structures? Now, without exception, all countries believe that the state: it collects taxes, and prints the currency in which these taxes are collected. As soon as we break this chain, there are opportunities for all kinds of abuses-and for tax evasion, and for the financing of terrorism, and for the laundering of money obtained through criminal means.
https://preview.redd.it/i1624668hmw31.png?width=1366&format=png&auto=webp&s=c0969d60d97fa6e6fcbac052676074051ccaa571
"Bitcoin shows how great is the need for ways to launder funds," says Larry Fink, head of the management company BlackRock Financial Management, and most bankers and officials around the world agree with him.
The lack of a regulator is a good advertising sign, but it's actually a bit of guile. Control of the cryptocurrency is distributed among Chinese manners, who own most of the computing power, software developers and exchange platforms. And they can not agree on a single development of bitcoin.

Bitcoin for many is a replacement for roulette

Or, in financial parlance, it's a great asset to speculate on. Buying bitcoins is relatively simple, does not require any special knowledge and trips to investment companies. The cryptocurrency has very sharp fluctuations, which attracts a lot of "gamblers" — those who bet rather than invest-to "play" with the rate. This only increases the fluctuations and makes Bitcoin look like a pyramid scheme.
https://preview.redd.it/fuytmxwtdmw31.png?width=1498&format=png&auto=webp&s=aa2c9430c0eb88da4cf661edf4be23fa8ff67d8e

Bitcoin is very similar to the "bubble"

At the time of the famous pyramid MMM critics warned: no asset in the world can not provide a yield of hundreds of percent per year. Bitcoin for the year has risen in price by 15 times, and it is increasingly compared to the "dotcom bubble" that burst in the early 2000s. then investors overestimated the economy associated with the Internet, not fully understanding its capabilities and device. There is a feeling that investors in bitcoin also do not understand how it works or what it can be used for.
https://preview.redd.it/zffhiq1bgmw31.png?width=1000&format=png&auto=webp&s=d94337f21d4f0007f3c9e81d6f2b869f9bb05258

Miners spend a huge amount of energy

Mining is required to create new coins and make transactions. Bitcoin uses a scheme for this process, which involves carrying out a huge number of calculations and turns into a waste of a large amount of energy. With the rising cost of cryptocurrency mining new bitcoins is becoming more profitable. Therefore, miners are increasing the capacity of their systems, and more and more energy is consumed. Now so much energy is spent on maintaining the work of bitcoin that it would be enough for some countries. Soon, according to this indicator, the cryptocurrency will overtake the energy consumption of Serbia, Denmark, and then Belarus.
In other words, for the system to function, we need to burn a huge amount of oil, gas and other raw materials. Is it worth it?

Bitcoin does not perform socially useful functions

This argument is more philosophical than economic, although expressed by economists. Usually an asset is worth something because it is useful: we understand why we are willing to pay for oil, iPhones, hamburgers and so on — because all of this, roughly speaking, makes the world a better place. Bitcoin, according to economists — for example, Nobel laureate Joseph Stiglitz-does not change the world.
In response, one could argue that bitcoin and everything that happens around it is a test of the idea of cryptocurrencies for strength, which means that there is still a benefit, but is this benefit commensurate with the value of Bitcoin?

Bitcoin is an imperfect cryptocurrency

A huge number of different cryptocurrencies are trying to correct the shortcomings of bitcoin. As a result, there are already cryptocurrencies that provide:

  • an increase in the number of transactions
  • other schemes for creating blocks that do not turn into a large consumption of electricity
  • full anonymity to participants of transactions
  • concealment from observers of transaction sizes
  • the use of new promising technologies such as smart contracts
  • no restrictions on the number of new coins
submitted by AVAY11 to u/AVAY11 [link] [comments]

The fundamentals of bitcoin as an asset exist and they are stupider than you can imagine

tldr; tldr; Hodling is deflationary and all those wild price swings from bitcoin are changes in the fundamental value of bitcoin. Really.
tldr; Imagine there is a market where $100 worth of goods are sold every day using 100 bitcoins which cycle around. Then each bitcoin would be worth $1. Now suppose that 50 of the bitcoins were being held in anticipation of growing in value so only 50 bitcoins were cycling each day. For all the goods in the market to be sold every day each bitcoin will now be worth $2.
Introduction There has been a lot of discussion about what the fundamental value of bitcoin is. The consensus view in this subreddit is that the fundamental value is zero. I argue in this post that the fundamental value of bitcoin is whatever the price is right now, or a something close to it. This is because the fundamentals of bitcoin are stupid. Unimaginably stupid.
Bitcoin as Currency Bitcoin is a terrible currency compared to normal statist filthy fiat. Bitcoins are often permanently lost due to hacking or easily made mistakes. Transactions take considerable time to be confirmed. The price is highly volatile. But this post isn’t going into those issues in depth.
There is little evidence for mainstream Bitcoin use. A report by Morgan Stanley on the acceptance of Bitcoin from online retailers found that only 3 out of the 500 online retailers tracked accepted Bitcoin payments, a decrease from 5 in the previous year. The report concluded: “Bitcoin acceptance is virtually zero and shrinking”.
The number of transaction on darknet markets is large. On darknet markets users buy illegal products using cryptocurrencies (not just Bitcoin). Due to their illegal nature, it is impossible to know the exact value of transactions that take place on them. Between February 2011 and July 2013 the darknet market Silk Road had 1,229,465 transactions comprising 9,519,644 bitcoins in revenue. Darknet markets, along with ransomware payments are the only uses where there is evidence of a substantial number of bitcoin transactions taking place.
To work at scale darknet markets require cryptocurrency to pay for goods on sale. The anonymous nature of cryptocurrency allows transactions to take place without the buyer or the seller knowing anything about each other (although if a buyer has drugs mailed to them the seller will know who they are). If darknet markets used another form of payment then law enforcement could buy something and then track both the money going to the seller and the commission paid to the darknet market. It isn’t true as many people have claimed that nothing backs bitcoin. Bitcoin is backed by darknet markets.
There are a few kinds of people who buy bitcoin and want to spend it. They include drug buyers, those who need to pay off ransomware, money launders, fraudsters, and a few others but for simplicity’s sake I will just call them drug buyers. Likewise, there are a few types of people who sell products for bitcoin but again for simplicity’s sake I will call them drug sellers.
Non-circularity Bitcoin is a currency with a property that I call non-circularity. With Actual Money, when I buy something in a shop, the money I paid with goes towards the wages of the staff, rent and the products themselves among other expenses. This money then flows on to others. When a drug seller receives bitcoin in exchange for their drugs they can’t use the bitcoin to pay for their groceries or to pay their rent. They must exchange the bitcoin for filthy fiat to buy food. The inability to use bitcoin for further purchases means it is a non-circular currency. Bitcoin is a medium of a medium of exchange.
A full bitcoin transaction thus consists of three parts:
  1. A drug buyer goes to a bitcoin exchange to get bitcoin in exchange for filthy fiat
  2. The drug buyer goes to the DNM to exchange bitcoin for drugs from the drug seller
  3. The drug seller goes to the bitcoin exchange to get filthy fiat in exchange for bitcoin
An exchange is any place which matches buyers and sellers of bitcoin. This includes online exchanges like Coinbase as well as LocalBitcoins which matches people for face to face transactions. As nobody receives bitcoin for payment except drug dealers, the only place for drug buyers to get bitcoin is an exchange. The extreme volatility of bitcoin means that drug buyers and sellers try to complete the process as quickly as possible and avoid holding onto bitcoin.
Perfect Price Unstickiness For normal currencies prices are sticky. That means that nominal prices do not respond quickly to changing economic conditions. In contrast bitcoin has what I call perfect price unstickiness so the price of goods in bitcoin changes almost perfectly to changes in the value of bitcoin.
This is because prices for items which can be bought with bitcoin are never actually set in bitcoin, probably due to the high volatility. Instead they are set in fiat. The amount in fiat can either be listed directly, so $US50 for these drugs, or the price can be listed in the converted amount of bitcoin, 0.005BTC if 1 BTC = $US10,000. Changes in the price of bitcoin on exchanges are instantly reflected in the prices of drugs in bitcoins on darknet markets.
Hodling Another feature of bitcoin that should be considered is that people hodl bitcoin. The word comes from a typo of ‘hold’. Bitcoin is often bought on exchanges not for use as a currency to buy drugs, but as an asset in expectation of a price rise. Hodlers are the third type of user of bitcoin along with drug buyers and drug sellers. Although they don’t use it.
What’s the difference between an asset that is held and one that is hodled? This is admittedly vague, but an asset is hodled if it is being held, it can be held for long periods at low costs, it can but isn’t generating any income and there are no plans to generate income from it soon.
Cash under the mattress is being hodled, cash in my wallet that I am going to buy stuff with soon is not. Money in my bank account is generating income and so is not hodled. Bitcoin held in anticipation of price rises is being hodled. Bitcoin bought to buy drugs but which has not been used yet is not. Gold stored in a vault is being hodled, gold used for electronics purposes is not (jewellery is a harder case). A vacant block of land with no plans to develop it or use it for anything is being hodled but one that is soon going to have an apartment block built on it is not.
Commodities can be held and do not generate income until sold but it is expensive to hold most commodities for long periods of time. This prevents most commodities from being hodled.
Velocity The velocity of money is the average number of times a unit of fiat changes hands in a period. You can skip the next three paragraphs as they are a little annoying and you can get by without them. Just know that I am defining the velocity of bitcoin as what the velocity of bitcoin would be if no bitcoin was being hodled.
Due to hodling, the velocity of bitcoin under the conventional definition can vary wildly. Consider two cases. Both have 100 bitcoins, 100 transactions a day and all non-hodled bitcoins are spent each day. The first has no hodled bitcoins, the second 50 hodled bitcoins. The first has a velocity of bitcoin of 1 transaction per day, the second is 0.5 per day.
I want a definition of velocity of bitcoin that is not impacted by changes in hodling. I did consider doing this analysis through changes in velocity but the final formula is easier to understand if we find a definition of velocity of bitcoin that is independent of the level of hodling.
The definition that achieves this is (Length of Time)/(Average length of time to complete transaction). When there is no hodling the two definitions agree but the new definition is unchanged by any rise or fall in the level of hodling, which is what we need. From this point on when I refer to the velocity of bitcoin I am referring to the second definition.
The actual time to complete a bitcoin transaction seems to be over a week. In an interview one vendor claimed that it took one week for the bitcoin to be released from escrow and longer to convert it to actual money.
Intuitive argument Assume that the amount of drugs sold on darknet markets changes little from week to week. If the price of bitcoin doubles over the week then the number of bitcoins flowing through the darknet markets will halve. So where have the bitcoins gone? Drug buyers and sellers don’t have them. The only option is hodlers. In fact, it was the hodlers buying the bitcoins that caused the price to change.
Formula The conventional formula for the relationship between velocity of money (V), nominal amount of money (M), price level (P) and real economic activity (Q) is
V*M = P*Q
I am going to change that equation slightly so it now concerns the velocity of bitcoin (V), the total number of bitcoins (M), the price level of bitcoin (P), the total value in fiat of all economic transactions (Q) and the proportion of bitcoins that are hodled (h). If h*M bitcoins are being hodled then there are (1-h)*M bitcoins being used in economic transactions. The new equation is
V*(1-h)*M = P*Q
Next we isolate P:
P = V*(1-h)*M/Q
If the price level changes from 1 to 1.1 that means that there has been 10% inflation over the period and that the value of bitcoin has fallen. To find the value of a single bitcoin we have to take the reciprocal of P and that gives a formula for the true value of bitcoin:
1/P = Q/[V*(1-h)*M]
In the rest of the post when I write the price of bitcoin I mean the price bitcoin sells for on exchanges. I establish in the next section that this price must be close to the true value of bitcoin.
Equilibrium This section uses the flow of bitcoin model established earlier. We assume no activity from hodlers and that economic users do not hodl bitcoin (not true but it simplifies and does not hurt the model). Furthermore, we assume that all activity on the bitcoin exchanges happens, then all activity on the darknet markets happens. Drug sellers sell their bitcoin to drug buyers, then drug buyers use the bitcoin to buy drugs on the darknet markets. Neither the exchanges or the darknet markets charge commissions. I use specific numbers but my reasoning is easily generalizable.
To establish why the equation is true we must consider what happens if the actual price is higher or lower than the price given by the formula. First let us suppose that the price is lower than the price predicted by the formula. Over the time period of a day suppose that Q = 100 (so $100 worth of transactions a day), V = 1 (transactions take a day), M = 100 (100 bitcoins) and h = 0.5 (50 bitcoins are hodled). This gives a predicted price of $2. Suppose the price is instead $1.
Every day there are $100 worth of drugs available to be sold and buyers willing to buy $100 worth of drugs. At a price of $1 and with only 50 bitcoins available for economic use each day that means that only $50 worth of drugs can be sold. This would drop Q to 50 and immediately correct the equation.
However, there are buyers and sellers who want more drug dealing than that. Some buyers are not going to be able to get their drugs given the current price. Some of them will be willing to pay higher prices for bitcoin to guarantee they can have their drugs. Suppose that the drug sellers have 50 bitcoins (hodlers also have 50). They want to sell their 50 bitcoins to drug buyers on an exchange. Some drug buyers then bid the price of bitcoin up to $1.10 (for example). This benefits other drug buyers as now $55 worth of drug transactions can take place each day. In this way, the price will be bid up to $2, the equilibrium price.
If the price is $1 and the drug buyers have the 50 bitcoins then they will spend the bitcoins to buy $50 worth of drugs and then we are in the situation above.
Now suppose the reverse happens and the actual price is higher than the predicted price. Let the actual price be $4, with all the same example values from the previous example, so the predicted price is $2. On the exchange drug sellers have 50 bitcoins worth $200 to sell. Drug buyers want to buy $100 worth of bitcoin. At this price only 25 bitcoins are sold. To ensure they sell more of their bitcoin, drug buyers bid down the price. If the price does not immediately reach $2 then the left-over bitcoins will be held by the drug sellers until the next day when the price will be bid down again.
The drug sellers holding bitcoin for a few extra days is not the same as hodling because they are actively trying to sell them on an exchange but they haven’t because the price isn’t in equilibrium. They could instead decide to sell only 25 bitcoins and hodl the other 25. This would raise h to 0.75 and the price would be in equilibrium again.
Now suppose that the drug buyers have 50 bitcoins and the price is $4. Then $100 worth of drugs are bought with 25 bitcoins. The drug sellers will not be able to sell their bitcoin as drug buyers already have enough bitcoin to buy the next round of drugs they want. The drug buyers spend their last 25 bitcoin and drug sellers now have 50 bitcoins and the situation is as above.
In conclusion, the price of Bitcoin is fundamentally determined by speculators and brought into equilibrium by criminals.
Inflows and Outflows of Hodling The previous section treated the level of hodling as constant, except when drug buyers or sellers decide to hodl extra bitcoins that are in their possession. Now we will treat the amount of hodled bitcoins as changing. The next topic to consider is the relationship between filthy fiat spent to hodl bitcoins and the bitcoin price.
To calculate how much it costs to raise the hodl ratio from 0 to h we assume that the bitcoins are bought continuously. We integrate the function Q/[M*V*(1-t/M)] between 0 and h*M. The result is (Q/V)ln[1/(1-h)].
To double the price of bitcoin by taking h from 0 to 0.5 will cost (Q/V)ln(2). In fact, it will always cost this amount to double the price of bitcoin as we can see by finding the difference between the total value of hodled bitcoin when we consider hodling levels of h and (h+1)/2.
This means that the price of bitcoin rises exponentially when a constant amount of new money buys bitcoin to hodl. I would illustrate this with a log-scale graph but I don’t know where to find one. It also means that the market capitalisation of a cryptocurrency gives very little idea about how much the cryptocurrency is worth. It is an impossibility for all hodlers to receive the Actual Money that they think their bitcoin is worth.
Volatility People hoping to get rich and their buying and selling bitcoin is what causes bitcoin’s extreme volatility. Theoretically this could be stopped if there was a bank where hodlers could deposit their bitcoins and earn interest. However, for this to work would require the existence of a bitcoin bank which is not a Ponzi which seems like an unlikely outcome.
Hodling Gold A quick digression into gold, but I suspect someone has already thought of what follows. We can consider gold like a conventional commodity with conventional supply and demand curves (the real world for all commodities is more complicated but this is going to be quick). But people also hodl gold. If hodlers decide to buy $100 million worth of gold produced in the year, then that will change the equilibrium price. The new price is such that the difference between the quantity demanded by non-hodlers and the quantity supplied at that price multiplied by the price is 100 million.
If the overall level of hodling declines then the reverse happens. The hodlers sell an amount of gold, that amount is the difference between the amount supplied and demanded. The hodlers earn that amount multiplied by the new lower price. (I assumed people bought a fiat amount of gold and sold a volume of gold to make things easier).
Without another hodler to take on the gold or an improvement in market conditions, the hodlers are guaranteed a loss. To make a profit hodling gold you need there to be hodlers to sell it on to (or an improvement in the underlying factors). It follows that all the gold hodled in the world today cannot be sold without causing the fundamentals of gold to collapse. With 40% of the gold produced in 2017 being hodled this will eventually become a significant issue.
Full Reserve Banking Another place where we can consider the impact of hodling is full reserve banking. It is a form of banking where banks are required to have cash on hand equal to the full amount in all demand deposit accounts. The bank does not lend this money. This contrasts with the present system where banks are only required to have a certain fraction of this amount on hand, called fractional reserve banking. Money in a fractional reserve bank account is not being hodled (or is, but to a more limited degree) as it is being lent on to other people and it is generating income for the depositor.
Deposits under full reserve banking are hodling. They are like cash stuffed under a mattress but have better security. In a recession people increase their saving rates. Much of this additional saving will be in liquid assets because of fears of economic trouble. This rise in deposits under full reserve is an increase in hodled cash which then causes deflation. This is a big problem in a recession. (Somebody else has probably already made this observation).
Velocity and Value Consider the equation of bitcoin’s value again. Notice that the value increases when V decreases. Which means that the length of time to complete a transaction has increased. Bitcoin is an asset and a currency and its value as an asset increases as the length of time it takes to complete a transaction increases. This is a minor bit of stupidity which surprised me but seems obvious in retrospect as if bitcoins take longer to be processed then they must be worth more so that all transactions can happen. (This is assuming that a decrease in V does not also cause a decrease in Q which might be caused by drug buyers and sellers switching to a different cryptocurrency).
Hodler Behavior With one exception which I might make in another post I make no assumptions about hodler behaviour. I think they are buying and selling with no rational basis. But there are two rational reasons why someone would expect the price of bitcoin to rise: increased economic activity using the cryptocurrency in the darknet markets or an increased level of hodling in the future. The DNM is an actual economic activity but due to its illegality knowing anything about the amounts involved is impossible for almost everyone as is predicting their trends. Future hodling levels are also impossible to predict, unless you run a pump and dump. We can’t expect any sort of rational behavior from hodlers.
Nakamoto Scheme Preston Byrne developed the concept of a Nakamoto Scheme to describe cryptocurrencies because of how they differed from Ponzis and pyramid schemes. While bitcoin has been frequently called a Ponzi or pyramid scheme it is clearly something different. There are no “dividends” paid or any sort of organised structure. There are similarities, notably early adopters make their money at the expense of later adopters. Like in pyramid schemes hodlers try to convince new people to join in.
It is best to consider bitcoin as a type of asset which is uniquely suited for a pump and dump. When hodlers buy bitcoin, and encourage others to do the same (the pump) the fundamental price of bitcoin really is raised by these actions which helps the pump.
To add to Byrne’s work, we should put the properties of cryptocurrency assets at the centre of the scheme. A Nakamoto scheme works like this: first create a cryptocurrency and keep most of it for yourself. Then release it and try to get as many other people hodling as possible and try to get the darknet markets to adopt it (I’m looking at you Monero). This increases the fundamental value of the asset. Then dump your hodlings. Pocket the actual money. This is probably legal right now. But I’m not a law-knowing person.
For the hodler the Nakamoto scheme is like going to a party. You arrive and leave later on. If there are more people at the party when you leave compared to when you arrived then you’ve made a profit. There is also drug dealing going on at the party. The change in the level of drug dealing also impacts your profits. You have to try and get more people to come to the party and be careful of everyone else at the party who have the exact same incentives as you. It is a weird new form of scam.
Lower bound on price While the price of bitcoin can theoretically be infinitely high there is a lower bound on the price when the hodling ratio is zero. For given levels of Q, V and M the value of bitcoin can never go below Q/[V*M] (the highest possible price for bitcoin is when 1 satoshi is equal to the value of a transaction).
Some bitcoins have been permanently lost due to people losing their wallet keys or bitcoins being sent to the wrong address. If we suppose that H is the proportion of coins that have been permanently lost then the actual lower bound is Q/[V*(1-H)*M]. Note that a hodler losing their coins does not change the present fundamental value of bitcoin.
What could cause bitcoin’s price to go lower? Besides a mass hodler sell-off the obvious reason is a permanent decline in Q. What could cause this? Law enforcement have successfully shut down many darknet markets but others have replaced them quickly. What could really hurt darknet markets is increased government scrutiny of exchanges. When governments realise that bitcoin has no use beyond criminal transactions and speculation they might decide to treat every bitcoin transaction as inherently suspicious and regulate exchanges heavily. This will make bitcoin much harder to use for criminal transactions and thus greatly decrease Q and the value of bitcoin.
Previous work This post is not entirely original. Satoshi himself said that if a bitcoin user wanted to give a donation to everyone else then they should delete the keys to their wallet and increase the value of everybody else’s bitcoins. I realised that someone who hodled a bitcoin would temporarily have the same effect.
More significantly Joseph C Wang came up with a formula very similar to mine. A significant difference is that he thought increased economic activity with bitcoin would not cause an increase in bitcoin’s value but an increase in its velocity. My model has nominal prices of drugs in bitcoin falling when Q increases. Wang has prices remaining the same and the velocity of bitcoin increasing to handle the extra transactions. I developed my formula before I became aware of Wang’s work.
Further Topics This post is over 4000 words so I have not gone into depth on a few subjects like the costs of block rewards (higher than you think), shocks like darknet market shutdowns, why bitcoin can’t fall to a liquidity trap, how to value a cryptocurrency that isn’t being used for economic transactions and why it makes sense that bitcoin and bcash had a higher combined value at the time of the fork compared to bitcoin alone. If there is demand I’ll put together a second post which will cover these issues.
submitted by GBerkeley1734 to Buttcoin [link] [comments]

The core concepts of DTube's new blockchain

Dear Reddit community,
Following our announcement for DTube v0.9, I have received countless questions about the new blockchain part, avalon. First I want to make it clear, that it would have been utterly impossible to build this on STEEM, even with the centralized SCOT/Tribes that weren't available when I started working on this. This will become much clearer as you read through the whole wall of text and understand the novelties.
SteemPeak says this is a 25 minutes read, but if you are truly interested in the concept of a social blockchain, and you believe in its power, I think it will be worth the time!

MOVING FORWARD

I'm a long time member of STEEM, with tens of thousands of staked STEEM for 2 years+. I understand the instinctive fear from the other members of the community when they see a new crypto project coming out. We've had two recent examples recently with the VOICE and LIBRA annoucements, being either hated or ignored. When you are invested morally, and financially, when you see competitors popping up, it's normal to be afraid.
But we should remember competition is healthy, and learn from what these projects are doing and how it will influence us. Instead, by reacting the way STEEM reacts, we are putting our heads in the sand and failing to adapt. I currently see STEEM like the "North Korea of blockchains", trying to do everything better than other blockchains, while being #80 on coinmarketcap and slowly but surely losing positions over the months.
When DLive left and revealed their own blockchain, it really got me thinking about why they did it. The way they did it was really scummy and flawed, but I concluded that in the end it was a good choice for them to try to develop their activity, while others waited for SMTs. Sadly, when I tried their new product, I was disappointed, they had botched it. It's purely a donation system, no proof of brain... And the ultra-majority of the existing supply is controlled by them, alongside many other 'anti-decentralization' features. It's like they had learnt nothing from their STEEM experience at all...
STEEM was still the only blockchain able to distribute crypto-currency via social interactions (and no, 'donations' are not social interactions, they are monetary transfers; bitcoin can do it too). It is the killer feature we need. Years of negligence or greed from the witnesses/developers about the economic balance of STEEM is what broke this killer feature. Even when proposing economical changes (which are actually getting through finally in HF21), the discussions have always been centered around modifying the existing model (changing the curve, changing the split, etc), instead of developing a new one.
You never change things by fighting the existing reality.
To change something, build a new model that makes the existing model obsolete.
What if I built a new model for proof of brain distribution from the ground up? I first tried playing with STEEM clones, I played with EOS contracts too. Both systems couldn't do the concepts I wanted to integrate for DTube, unless I did a major refactor of tens of thousands of lines of code I had never worked with before. Making a new blockchain felt like a lighter task, and more fun too.
Before even starting, I had a good idea of the concepts I'd love to implement. Most of these bullet points stemmed from observations of what happened here on STEEM in the past, and what I considered weaknesses for d.tube's growth.

NO POWER-UP

The first concept I wanted to implement deep down the core of how a DPOS chain works, is that I didn't want the token to be staked, at all (i.e. no 'powering up'). The cons of staking for a decentralized social platform are obvious: * complexity for the users with the double token system. * difficulty to onboard people as they need to freeze their money, akin to a pyramid scheme.
The only good thing about staking is how it can fill your bandwidth and your voting power when you power-up, so you don't need to wait for it to grow to start transacting. In a fully-liquid system, your account ressources start at 0% and new users will need to wait for it to grow before they can start transacting. I don't think that's a big issue.
That meant that witness elections had to be run out of the liquid stake. Could it be done? Was it safe for the network? Can we update the cumulative votes for witnesses without rounding issues? Even when the money flows between accounts freely?
Well I now believe it is entirely possible and safe, under certain conditions. The incentive for top witnesses to keep on running the chain is still present even if the stake is liquid. With a bit of discrete mathematics, it's easy to have a perfectly deterministic algorithm to run a decentralized election based off liquid stake, it's just going to be more dynamic as the funds and the witness votes can move around much faster.

NO EARLY USER ADVANTAGE

STEEM has had multiple events that influenced the distribution in a bad way. The most obvious one is the inflation settings. One day it was hella-inflationary, then suddently hard fork 16 it wasn't anymore. Another major one, is the non-linear rewards that ran for a long time, which created a huge early-user advantage that we can still feel today.
I liked linear rewards, it's what gives minnows their best chance while staying sybil-resistant. I just needed Avalon's inflation to be smart. Not hyper-inflationary like The key metric to consider for this issue, is the number of tokens distributed per user per day. If this metric goes down, then the incentive for staying on the network and playing the game, goes down everyday. You feel like you're making less and less from your efforts. If this metric goes up, the number of printed tokens goes up and the token is hyper-inflationary and holding it feels really bad if you aren't actively earning from the inflation by playing the game.
Avalon ensures that the number of printed tokens is proportional to the number of users with active stake. If more users come in, avalon prints more tokens, if users cash-out and stop transacting, the inflation goes down. This ensures that earning 1 DTC will be about as hard today, tomorrow, next month or next year, no matter how many people have registered or left d.tube, and no matter what happens on the markets.

NO LIMIT TO MY VOTING POWER

Another big issue that most steemians don't really know about, but that is really detrimental to STEEM, is how the voting power mana bar works. I guess having to manage a 2M SP delegation for @dtube really convinced me of this one.
When your mana bar is full at 100%, you lose out the potential power generation, and rewards coming from it. And it only takes 5 days to go from 0% to 100%. A lot of people have very valid reasons to be offline for 5 days+, they shouldn't be punished so hard. This is why all most big stake holders make sure to always spend some of their voting power on a daily basis. And this is why minnows or smaller holders miss out on tons of curation rewards, unless they delegate to a bidbot or join some curation guild... meh. I guess a lot of people would rather just cash-out and don't mind the trouble of having to optimize their stake.
So why is it even a mana bar? Why can't it grow forever? Well, everything in a computer has to have a limit, but why is this limit proportional to my stake? While I totally understand the purpose of making the bandwidth limited and forcing big stake holders to waste it, I think it's totally unneeded and inadapted for the voting power. As long as the growth of the VP is proportional to the stake, the system stays sybil-resistant, and there could technically be no limit at all if it wasn't for the fact that this is ran in a computer where numbers have a limited number of bits.
On Avalon, I made it so that your voting power grows virtually indefinitely, or at least I don't think anyone will ever reach the current limit of Number.MAX_SAFE_INTEGER: 9007199254740991 or about 9 Peta VP. If you go inactive for 6 months on an account with some DTCs, when you come back you will have 6 months worth of power generation to spend, turning you into a whale, at least for a few votes.
Another awkward limit on STEEM is how a 100% vote spends only 2% of your power. Not only STEEM forces you to be active on a daily basis, you also need to do a minimum of 10 votes / day to optimize your earnings. On Avalon, you can use 100% of your stored voting power in a single mega-vote if you wish, it's up to you.

A NEW PROOF-OF-BRAIN

No Author rewards

People should vote with the intent of getting a reward from it. If 75% of the value forcibly goes to the author, it's hard to expect a good return from curation. Steem is currently basically a complex donation platform. No one wants to donate when they vote, no matter what they will say, and no matter how much vote-trading, self-voting or bid-botting happens.
So in order to keep a system where money is printed when votes happen, if we cannot use the username of the author to distribute rewards, the only possibility left is to use the list of previous voters aka "Curation rewards". The 25% interesting part of STEEM, that has totally be shadowed by the author rewards for too long.

Downvote rewards

STEEM has always suffered from the issue that the downvote button is unused, or when it's used, it's mostly for evil. This comes from the fact that in STEEM's model, downvotes are not eligible for any rewards. Even if they were, your downvote would be lowering the final payout of the content, and your own curation rewards...
I wanted Avalon's downvotes to be completely symmetric to the upvotes. That means if we revert all the votes (upvotes become downvotes and vice versa), the content should still distribute the same amount of tokens to the same people, at the same time.

No payment windows

Steem has a system of payments windows. When you publish a content, it opens a payment window where people can freely upvote or downvote to influence the payout happening 7 days later. This is convenient when you want a system where downvotes lower rewards. Waiting 7 days to collect rewards is also another friction point for new users, some of them might never come back 7 days later to convince themselves that 'it works'. On avalon, when you are part of the winners of curation after a vote, you earn it instantly in your account, 100% liquid and transferable.

Unlimited monetization in time

Indeed, the 7 days monetization limit has been our biggest issue for our video platform since day 8. This incentivized our users to create more frequent, but lesser quality content, as they know that they aren't going to earn anything from the 'long-haul'. Monetization had to be unlimited on DTube, so that even a 2 years old video could be dug up and generate rewards in the far future.
Infinite monetization is possible, but as removing tokens from a balance is impossible, the downvotes cannot remove money from the payout like they do on STEEM. Instead, downvotes print money in the same way upvotes do, downvotes still lower the popularity in the hot and trending and should only rewards other people who downvoted the same content earlier.

New curation rewards algorithm

STEEM's curation algorithm isn't stupid, but I believe it lacks some elegance. The 15 minutes 'band-aid' necessary to prevent curation bots (bots who auto vote as fast as possible on contents of popular authors) that they added proves it. The way is distributes the reward also feels very flat and boring. The rewards for my votes are very predictable, especially if I'm the biggest voter / stake holder for the content. My own vote is paying for my own curation rewards, how stupid is that? If no one elses votes after my big vote despite a popularity boost, it probably means I deserve 0 rewards, no?
I had to try different attempts to find an algorithm yielding interesting results, with infinite monetization, and without obvious ways to exploit it. The final distribution algorithm is more complex than STEEM's curation but it's still pretty simple. When a vote is cast, we calculate the 'popularity' at the time of the vote. The first vote is given a popularity of 0, the next votes are defined by (total_vp_upvotes - total_vp_downvotes) / time_since_1st_vote. Then we look into the list of previous votes, and we remove all votes in the opposite direction (up/down). The we remove all the votes with a higher popularity if its an upvote, or the ones with a lower popularity if its a downvote. The remaining votes in the list are the 'winners'. Finally, akin to STEEM, the amount of tokens generated by the vote will be split between winners proportionally to the voting power spent by each (linear rewards - no advantages for whales) and distributed instantly. Instead of purely using the order of the votes, Avalon distribution is based on when the votes are cast, and each second that passes reduces the popularity of a content, potentially increasing the long-term ROI of the next vote cast on it.
Graph It's possible to chart the popularity that influences the DTC monetary distribution directly in the d.tube UI
This algorithm ensures there are always losers. The last upvoter never earns anything, also the person who upvoted at the highest popularity, and the one who downvoted at the lowest popularity would never receive any rewards for their vote. Just like the last upvoter and last downvoter wouldn't either. All the other ones in the middle may or may not receive anything, depending on how the voting and popularity evolved in time. The one with an obvious advantage, is the first voter who is always counted as 0 popularity. As long as the content stays at a positive popularity, every upvote will earn him rewards. Similarly, being the first downvoter on an overly-popular content could easily earn you 100% rewards on the next downvote that could be from a whale, earning you a fat bonus.
While Avalon doesn't technically have author rewards, the first-voter advantage is strong, and the author has the advantage of always being the first voter, so the author can still earn from his potentially original creations, he just needs to commit some voting power on his own contents to be able to publish.

ONE CHAIN <==> ONE APP

More scalable than shared blockchains

Another issue with generalistic blockchains like ETH/STEEM/EOS/TRX, which are currently hosting dozens of semi-popular web/mobile apps, is the reduced scalability of such shared models. Again, everything in a computer has a limit. For DPOS blockchains, 99%+ of the CPU load of a producing node will be to verify the signatures of the many transactions coming in every 3 seconds. And sadly this fact will not change with time. Even if we had a huge breakthrough on CPU speeds today, we would need to update the cryptographic standards for blockchains to keep them secure. This means it would NOT become easier to scale up the number of verifiable transactions per seconds.
Oh, but we are not there yet you're thinking? Or maybe you think that we'll all be rich if we reach the scalability limits so it doesn't really matter? WRONG
The limit is the number of signature verifications the most expensive CPU on the planet can do. Most blockchains use the secp256k1 curve, including Bitcoin, Ethereum, Steem and now Avalon. It was originally chosen for Bitcoin by Satoshi Nakamoto probably because it's decently quick at verifying signatures, and seems to be backdoor-proof (or else someone is playing a very patient game). Maybe some other curves exist with faster signature verification speed, but it won't be improved many-fold, and will likely require much research, auditing, and time to get adopted considering the security implications.
In 2015 Graphene was created, and Bitshares was completely rewritten. This was able to achieve 100,000 transaction per second on a single machine, and decentralized global stress testing achieved 18,000 transactions per second on a distributed network.
So BitShares/STEEM and other DPOS graphene chains in production can validate at most 18000 txs/sec, so about 1.5 billion transactions per day. EOS, Tendermint, Avalon, LIBRA or any other DPOS blockchain can achieve similar speeds, because there's no planet-killing proof-of-works, and thanks to the leader-based/democratic system that reduces the number of nodes taking part in the consensus.
As a comparison, there are about 4 billion likes per day on instagram, so you can probably double that with the actual uploads, stories and comments, password changes, etc. The load is also likely unstable through the day, probably some hours will go twice as fast as the average. You wouldn't be able to fit Instagram in a blockchain, ever, even with the most scalable blockchain tech on the world's best hardware. You'd need like a dozen of those chains. And instagram is still a growing platform, not as big as Facebook, or YouTube.
So, splitting this limit between many popular apps? Madness! Maybe it's still working right now, but when many different apps reach millions of daily active users plus bots, it won't fit anymore.
Serious projects with a big user base will need to rethink the shared blockchain models like Ethereum, EOS, TRX, etc because the fees in gas or necessary stake required to transact will skyrocket, and the victims will be the hordes of minnows at the bottom of the distribution spectrum.
If we can't run a full instagram on a DPOS blockchain, there is absolutely no point trying to run medium+reddit+insta+fb+yt+wechat+vk+tinder on one. Being able to run half an instagram is already pretty good and probably enough to actually onboard a fair share of the planet. But if we multiply the load by the number of different app concepts available, then it's never gonna scale.
DTube chain is meant for the DTube UI only. Please do not build something unrelated to video connecting to our chain, we would actively do what we can to prevent you from growing. We want this chain to be for video contents only, and the JSON format of the contents should always follow the one used by d.tube.
If you are interested in avalon tech for your project isn't about video, it's strongly suggested to fork the blockchain code and run your own avalon chain with a different origin id, instead of trying to connect your project to dtube's mainnet. If you still want to do it, chain leaders would be forced to actively combat your project as we would consider it as useless noise inside our dedicated blockchain.

Focused governance

Another issue of sharing a blockchain, is the issues coming up with the governance of it. Tons of features enabled by avalon would be controversial to develop on STEEM, because they'd only benefit DTube, and maybe even hurt/break some other projects. At best they'd be put at the bottom of a todo list somewhere. Having a blockchain dedicated to a single project enables it to quickly push updates that are focused on a single product, not dozens of totally different projects.
Many blockchain projects are trying to make decentralized governance true, but this is absolutely not what I am interested in for DTube. Instead, in avalon the 'init' account, or 'master' account, has very strong permissions. In the DTC case, @dtube: * will earn 10% fees from all the inflation * will not have to burn DTCs to create accounts * will be able to do certain types of transactions when others can't * * account creation (during steem exclusivity period) * * transfers (during IEO period) * * transfering voting power and bandwidth ressources (used for easier onboarding)
For example, for our IEO we will setup a mainnet where only @dtube is allowed to transfer funds or vote until the IEO completes and the airdrop happens. This is also what enabled us to create a 'steem-only' registration period on the public testnet for the first month. Only @dtube can create accounts, this way we can enforce a 1 month period where users can port their username for free, without imposters having a chance to steal usernames. Through the hard-forking mechanism, we can enable/disable these limitations and easily evolve the rules and permissions of the blockchain, for example opening monetary transfers at the end of our IEO, or opening account creation once the steem exclusivity ends.
Luckily, avalon is decentralized, and all these parameters (like the @dtube fees, and @dtube permissions) are easily hardforkable by the leaders. @dtube will however be a very strong leader in the chain, as we plan to use our vote to at least keep the #1 producing node for as long as we can.
We reserve the right to 'not follow' an hardfork. For example, it's obvious we wouldn't follow something like reducing our fees to 0% as it would financially endanger the project, and we would rather just continue our official fork on our own and plug d.tube domain and mobile app to it.
On the other end of the spectrum, if other leaders think @dtube is being tyranical one way or another, leaders will always have the option of declining the new hardforks and putting the system on hold, then @dtube will have an issue and will need to compromise or betray the trust of 1/3 of the stake holders, which could reveal costly.
The goal is to have a harmounious, enterprise-level decision making within the top leaders. We expect these leaders to be financially and emotionally connected with the project and act for good. @dtube is to be expected to be the main good actor for the chain, and any permission given to it should be granted with the goal of increasing the DTC marketcap, and nothing else. Leaders and @dtube should be able to keep cooperation high enough to keep the hard-forks focused on the actual issues, and flowing faster than other blockchain projects striving for a totally decentralized governance, a goal they are unlikely to ever achieve.

PERFECT IMBALANCE

A lot of hard-forking

Avalon is easily hard-forkable, and will get hard-forked often, on purpose. No replays will be needed for leaders/exchanges during these hard-forks, just pull the new hardfork code, and restart the node before the hard-fork planned time to stay on the main fork. Why is this so crucial? It's something about game theory.
I have no former proof for this, but I assume a social and financial game akin to the one played on steem since 2016 to be impossible to perfectly balance, even with a thourough dichotomical process. It's probably because of some psychological reason, or maybe just the fact that humans are naturally greedy. Or maybe it's just because of the sheer number of players. They can gang up together, try to counter each others, and find all sorts of creative ideas to earn more and exploit each other. In the end, the slightest change in the rules, can cause drastic gameplay changes. It's a real problem, luckily it's been faced by other people in the past.
Similarly to what popular and succesful massively multiplayer games have achieved, I plan to patch or suggest hard-forks for avalon's mainnet on a bi-monthly basis. The goal of this perfect imbalance concept, is to force players to re-discover their best strategy often. By introducing regular, small, and semi-controlled changes into this chaos, we can fake balance. This will require players to be more adaptative and aware of the changes. This prevents the game from becoming stale and boring for players, while staying fair.

Death to bots

Automators on the other side, will need to re-think their bots, go through the developement and testing phase again, on every new hard-fork. It will be an unfair cat-and-mouse game. Doing small and semi-random changes in frequent hard-forks will be a easy task for the dtube leaders, compared to the work load generated to maintain the bots. In the end, I hope their return on investment to be much lower compared to the bid-bots, up to a point where there will be no automation.
Imagine how different things would have been if SteemIt Inc acted strongly against bid-bots or other forms of automation when they started appearing? Imagine if hard-forks were frequent and they promised to fight bid-bots and their ilk? Who would be crazy enough to make a bid-bot apart from @berniesanders then?
I don't want you to earn DTCs unless you are human. The way you are going to prove you are human, is not by sending a selfie of you with your passport to a 3rd party private company located on the other side of the world. You will just need to adapt to the new rules published every two weeks, and your human brain will do it subconsciously by just playing the voting game and seeing the rewards coming.
All these concepts are aimed at directly improving d.tube, making it more resilient, and scale both technologically and economically. Having control over the full tech stack required to power our dapp will prevent issues like the one we had with the search engine, where we relied too heavily on a 3rd party tool, and that created a 6-months long bug that basically broke 1/3 of the UI.
While d.tube's UI can now totally run independently from any other entity, we kept everything we could working with STEEM, and the user is now able to transparently publish/vote/comment videos on 2 different chains with one click. This way we can keep on leveraging the generalistic good features of STEEM that our new chain doesn't focuses on doing, such as the dollar-pegged token, the author rewards/donation mechanism, the tribes/communities tokens, and simply the extra exposure d.tube users can get from other website (steemit.com, busy.org, partiko, steempeak, etc), which is larger than the number of people using d.tube directly.
The public testnet has been running pretty well for 3 weeks now, with 6000+ accounts registered, and already a dozen of independant nodes popping up and running for leaders. The majority of the videos are cross-posted on both chains and the daily video volume has slightly increased since the update, despite the added friction of the new 'double login' system and several UI bugs.
If you've read this article, I'm hoping to get some reactions from you in the comments section!
Some even more focused articles about avalon are going to pop on my blog in the following weeks, such as how to get a node running and running for leadewitness, so feel free to follow me to get more news and help me reach 10K followers ;)
submitted by nannal to dtube [link] [comments]

Most talked about and upvoted cryptos in r/cryptocurrency, week ending 2018-01-19

tl;dr: (skip to “Trending Cryptos”, esp. if you've already read the intro from my post last week)
INTRO
Like most of us here, I’ve been following the posts on this subreddit diligently, and have been able to make some good crypto investments from all the shilling, discussion, and even fud that happens here!
I don’t have enough time to read everything and constantly check the reddit app, but I still don’t want to miss out on opportunities that come from a crypto being talked a lot about on here.
So I developed a program for myself that collects data on the cryptos that are being talked about most (both in terms of number of posts, and total number of upvotes) on cryptocurrency and altcoin. I can quickly browse the headlines of the top posts it collects, as well as see at a glance which cryptos are “trending” or “buzzing” on the subreddits in the recent weeks. The program also pulls in Coinmarketcap API data, like current market cap and 7 day price change. Aggregating all this data automatically has saved me a lot of time and allowed me to focus my research efforts on the cryptos that I think could have the highest potential e.g. low market cap, recently “buzzing” cryptos on cryptocurrency and altcoin.
I’ve decided to share the outputs of my program, as well as some highlights I’ve written, here for the benefit of this subreddit (and may do so periodically). Let me know if you have any feedback, questions, or suggestions, always looking to improve and share more interesting data here!
TRENDING CRYPTOS
Highlights:
  1. BitConnect lost almost all its value this past week, with a large increase in the number of posts, and the popularity of those posts, about it. BitConnect's increase in buzz is almost entirely attributable to the community pouncing on it for being a scam / pyramid scheme.
  2. COSS and Aigang were lower market cap coins that fell in price, but experienced a modest increase in buzz. Some continue to remain optimistic about the prospects of COSS, and there have been several posts reviewing Aigang as more and more people learn about it.
  3. NEO was the only coin to have an increase in price this past week. Buzz for NEO is still remaining steady, at the top of the list in terms of both post count and score/popularity.
(inf means infinity, which occurs when a number is divided by zero i.e. a week over week change number is calculated when the week before last week had a zero value)
Crypto Name Market Cap 7 Day Price % Chg Post Count Post Count Week Over Week % Change Total Post Score Score Week Over Week % Change
BitConnect 265.8M -90.99% 47 4600.00% 31,159 53622.41%
NEO 9.3B 12.39% 39 18.18% 5,634 11.43%
VeChain 1.7B 2.19% 24 -35.14% 4,593 -32.16%
Ethereum 104.9B -16.74% 23 -45.24% 3,033 -42.12%
COSS 68.8M -50.16% 20 53.85% 1,976 292.06%
RaiBlocks 2.4B -29.34% 20 -33.33% 6,723 -61.69%
Ripple 58.5B -26.98% 14 -26.32% 564 -86.65%
AppCoins 185.8M -32.91% 12 -53.85% 451 -80.16%
ICON 3.4B -8.41% 12 -42.86% 2,506 -33.51%
Bounty0x 47.4M -30.68% 11 -54.17% 1,803 -65.73%
TRON 5.5B -26.02% 9 -66.67% 506 -67.73%
Stellar 9.1B -25.96% 8 -63.64% 1,501 -48.42%
Walton 567.5M -17.09% 8 100.00% 501 294.49%
QASH 593.1M -11.93% 7 0.00% 256 69.54%
DeepBrain Chain 157.6M -47.80% 6 -60.00% 251 -75.25%
OmiseGO 2.0B -17.25% 6 0.00% 1,187 73.54%
Tether 1.6B -0.02% 6 200.00% 1,398 4011.76%
Aigang 23.6M -62.60% 5 400.00% 164 1161.54%
Bitcoin Diamond 0.77% 5 inf 157 inf
ECC 65.8M -15.49% 5 -28.57% 159 -7.56%
Elixir 25.5M -42.47% 5 -28.57% 199 -39.51%
Trending cryptos < $300M market cap:
Highlights:
Crypto Name Market Cap 7 Day Price % Chg Post Count Post Count Week Over Week % Change Total Post Score Score Week Over Week % Change
BitConnect 265.8M -90.99% 47 4600.00% 31,159 53622.41%
COSS 68.8M -50.16% 20 53.85% 1,976 292.06%
AppCoins 185.8M -32.91% 12 -53.85% 451 -80.16%
Bounty0x 47.4M -30.68% 11 -54.17% 1,803 -65.73%
DeepBrain Chain 157.6M -47.80% 6 -60.00% 251 -75.25%
Aigang 23.6M -62.60% 5 400.00% 164 1161.54%
ECC 65.8M -15.49% 5 -28.57% 159 -7.56%
Elixir 25.5M -42.47% 5 -28.57% 199 -39.51%
Bancor 297.4M -22.63% 4 -20.00% 67 -24.72%
GoByte 25.3M -18.12% 4 33.33% 111 164.29%
Oyster 96.8M -45.84% 4 -78.95% 149 -95.19%
Vertcoin 215.3M -20.51% 4 100.00% 279 830.00%
IoT Chain 140.5M -19.75% 3 50.00% 67 -16.25%
Po.et 262.2M -22.34% 3 -62.50% 70 -80.50%
iExec RLC 237.3M -25.76% 3 0.00% 44 18.92%
Simple Token 174.1M -39.99% 3 200.00% 335 88.20%
See the complete dataset: stats as well as recent posts and URLs
Notes: “Post Count” means the number of posts that had titles that mentioned the specified crypto. “Week Over Week Change” means the change in the specified metric over the last 7 days, compared against the metric over the previous 7 days before last week. “Total Post Score” means the sum of net upvotes (or score) for all posts that mentioned the specified crypto.
FOLLOW ALONG
If you’d like to follow along via email and get more insights + a better looking report in your inbox every single week, you can learn more and subscribe here. I'm always looking to improve and provide more useful and interesting info to my readers, so don't be afraid to reach out!
EDIT: fixed the tables above to more accurately reflect the underlying data linked in the Google Spreadsheet e.g. include counts for Vechain, Raiblocks, etc. that had a high number of posts this week.
submitted by smbdata_t to CryptoCurrency [link] [comments]

Apocalypse of Plustoken

Apocalypse of Plustoken

https://preview.redd.it/4ed0ie0c3g831.jpg?width=1280&format=pjpg&auto=webp&s=14d0727fd907a44782065cdb3fba52d50247022f
One day before Plustoken fall apart, the official account of Shenzhen Police Department got “attack” from some investors .
https://preview.redd.it/xipidl8d3g831.jpg?width=1080&format=pjpg&auto=webp&s=c5386f7be64bf25b5e8a9a0a266e1115c217c1e4
"We all use it as Yu'E Bao and the earnings return to account on time every day. Why it stops working out of sudden?” He Xiaoli did not know what to do. She’s afraid to tell the news to her husband and mother, because there are hundreds of thousands of money was supposed to be the elderly pension money.
Behind the meltdown of the Plustoken is the disappearance of ¥30 billion from 3 million users.
No one knows how much money in there is the elderly pension money, how much money in there is the children's education reserve fund, how much money in there is the savings from years of hard working life, no one even know how much money in there is through usurious loans, small loans or even net loans to get the money.
Not only are these users facing losses on their investments, but they are also facing loans that they may not be able to pay interest on, plunging them into a terrible blackhole of loan that they cannot come back on their feet again
To be honest, those people who participate in Plustoken are not t stupid. On the contrary, they are very smart.
They are just greedy. About the Plustoken - No.1 fund plate in token field, what is the rules of it? I didn't really get involved, but I got the general idea. After all, it was pretty much the same.
Plustoken is a capital project of tokens which was created in April 2018(crowdfunding started in Feb.). The full name of Plustoken is Plustoken digital currency arbitrage quantitative trading wallet, whose declared business model is to carry out arbitrage in different exchanges.
In short, users purchase bitcoin, Ethereum and other mainstream tokens in the exchange. Transfer money to the Plustoken and obtain the corresponding divided – Plustoken token.
How do you get the profit?
Just as mentioned above, it is the same as Yu’E Bao. All you have to do is put the token in the account and then you can receive dividends every day with a monthly yield of 10% and an annual yield of more than 100%. They claimed that there were professional teams to carry out risk-free arbitrage activities such as doing basic transaction, arbitrage and quantification. If you think that return is high enough, then you still underestimate the power of the game. At the same time, the Plustoken rises constantly, which is said to increase by hundreds of times at the highest point.
Huge profits naturally cause huge desire so what if you’re still not satisfied with all the profits? You can invite others to join you:

https://preview.redd.it/rzzd8poe3g831.jpg?width=690&format=pjpg&auto=webp&s=982d408e283c216632ecfafef2df13811ffbb9d0
Invite one person to get 100% of al-dog’s profit.
Invite 10 person to get 10% of al-dog’s profit from the second to the tenth.
Large user’s demand is 10 level of al-dog worth $200,000 and infinite 5% of al-dog’s profit.
Next level is to invite 3 large users and get infinite 10% of al-dog’s profit.
The biggest one is to invite 3 smaller levels and get infinite 15% of al-dog’s profit.
Simply speaking, the more people you bring in, the higher return you will get. With an acceptable approach of money and enough bonus of inviting people and the development to small cities and even villages, Plustoken continues to be used. And to be maintained, it need to make more and more people especially those who already make profits here to fully trust Plustoken.and to keep investing, making the bubble bigger.
However, there is no practical value behind the whole game so at the end of day, it’s still nothing but a Ponzi Scheme, waiting to fall apart.
Besides Plustoken, there is another well-known scheme calld Qubu that only picking up people from small place. At the beginning of Qubu, it collects a batch of funds through real-name authentication to finance its own team operation. Later, through a so-called earnings by walking to attract a number of ignorant people to participate. If these people stop putting more money in the account, there is no money-lost for them. If they keep adding money to the account, they are waiting to be scammed. Then it’s basically the same way to attract more people, pyramid selling and individual investing companies.
It’s always the same trap with different names, including the viral mode-coins, resonance coins and so on. There are others trending modes in the industry such as cloud-mining and cloud-calculating which are all scams. Of course, there are some legit platform but not many actually have mines and mining machines.
Stay on guard.
The reason we are concerned about the recent events is that we have found that some common concepts in the industry like “digital tokens”, “blockchain” and “quantitative trading” have been used in many schemes. And every time they crash, the headline in the news always involves digital tokens so there are many people believe token itself is a scam.

https://preview.redd.it/bedt82df3g831.jpg?width=600&format=pjpg&auto=webp&s=e52d3dff31b5dd37b1f0edc9d9db882e9ca0b85d
In fact, there have been a lot of people think this way. They would tell you to be careful if you tell them you are in the game.
Such scams increasingly illustrate two things – the concept of blockchain is trending and the fact that digital token is indeed a particularly good asset transfer tool.
There is no need to further explain the first one. The concept of blockchain is just a popular concept. Those pyramid selling teams used a lot of different concepts. From the earliest Amway derived health care products scam to the subsequent equity investment scam to later P2Pnand other internet finance, they like use the same routine and they can even create a project that fits into a national policy. For example, there was a project focusing on the western before the development of the western regions and a project to enter the west was created and later there was the Belt and Road Initiative project for the program.
The name is always changing and an reasonable high yield and promises are constant.
Here is the logic behind it:
Promise you a high return. You may not believe at first but with a variety of high-end technology projects and blurry words to brainwash you to accept their whole idea. Once you believe them, you will spontaneously pyramid selling to your friends in order to chase a higher return.
Secondly, it is known to all that it’s obvious that token would be used for scam due to its anonymity. 3M was the first to use bitcoin to play a pyramid scheme on a global scale, which made many people find out how easy to use bitcoin for scheme. The collection is not transparent so it cannot be frozen by the bank and it’s easy to just carry on and run away.
These are the two reasons why there are so many pyramid schemes using tokens and blockchain.
In fact, most of people know this kind of high return does not exist. The market is free and an extreme high return will naturally flow in with more capital, eventually adjusting all the profit back to a normal level. But there are still a lot people chose to believe and invest more than they can afford. Why? Probably greed.
Victims are pitiful. Let’s just hope there won’t be any victims any more.
submitted by infini2019 to u/infini2019 [link] [comments]

Aunt loses the chance to become a literal millionaire because of an pyramid scheme scam

I know what you may be thinking, no, the title isn't a click-bait, pretty much this happened some months before the huge bitcoin spike back in 2017.
PS: if the numbers look a bit random it's because I am converting the currency from MXN to USD.
PS2: Also pardon if some sentences are a bit wonky as English is not my mother tongue.
PS3: I'm a bit fussy on all the dates and numbers, but I'll try to be as specific as possible, also I'm an artist so don't quote me on my math.
So story time: both my aunt and uncle are pretty well established financially. My uncle is a retired veteran pilot from the US so he gets sent some money to his bank account monthly, and my aunt it's a pretty popular tattoo artists in our area and since we all live in Mexico their income is waaaaaaaaay above the average, which makes them also somewhat entitled. A bit unfair if you ask me.
Anyway, my uncle isn't tech savvy person but he is rather passionate about learning. He'll ask me from time to time very specific stuff like "What's a MIDI?" "What's a tracker on a torrent". What I mean is that he does research on his own and just ask me stuff when he's completely stuck.
So this all started in December 2016 I think, my uncle came visit so we could talk about cryptocurrency. At this point I wasn't an expert, but I knew a thing or two, and with some research we got a very well understanding.
Both he and my aunt wanted to invest a huge amount of money into cryptocurrency, it was I think around $500,000 Mexican pesos, which is around $26,326 USD. They got this money because back in the day when land was cheap, they purchased lots of it to build big houses which then they sold for a lot of money, so for them this is somewhat pocket change.
We looked into buying ant miners, investing into different cryptocurrencies, etc. We decided that one of the best possible options was to invest some money into buying bitcoin, as well as a couple ant miners (Special computers that calculate bitcoin but they use a LOT of power). And with time buy more ant miners.
One mystical day near the end of December, my aunt and uncle invited me to a very sketchy cryptocurrency conference, so I could be there to verify if the information said there was trustworthy.
Well, I didn't suspected much at first, but as soon as we got to the event hell broke lose. It wasn't an MLM it was straight up a pyramid scheme. The conference talked wonders about "Be your own boss" "Young people are becoming millionaires, this is how" "Never work a day in your life again" etc.
It was for this "new cryptocurrency" called sCoin, if you google it you will find a bunch of results in Spanish many of which have the word on the title "Is it a scam?" so... yeah this was a clear scam from the get go.
They talked about how you can buy different packages with different benefits. Get a $526 USD for each family member, and just wait for it to bloom and they can all become millionaires!, and if you get your friends or other family members to join under you, you get 25% of their revenue! And by the end of the year you could earn 10 times the money you invested! how cool is that!?!????
It was something like that.
Once the conference ended, we got to the car and I said "No fucking way, this is a pyramid scheme scam" Now, unfortunately my family has been into pyramid schemes from as far as I have memory, and I've never been able to explain to them why they are so bad, this time was no exception.
My uncle said he was a bit skeptical, but my aunt was like "Well it's just $526, we can buy like 10 packages it isn't much money" to which I internally screamed "IT IS A LOT OF MONEY"
So the next couple of weeks was mostly me and my uncle checking on the website, waiting for any updates and stuff, they would constantly send us YouTube videos, where people talked how big this sCoin thing was going to be, and the scary part was... these videos were recorded on a way that made them seem very relatable.
Each video featured one person talking to the camera ala VLOG style. Some presenters were 25-ish years old, while others were 40-ish or even 60-ish. They all where recording from their garden, showing how big of a house it was they lived in, showed off stuff like their cars, and talked about how entrepreneurs like them reached success putting their earnings into cryptocurrencies. The videos were very poorly edited, but I think this was done intentionally so they seemed more like "We are normal people like you and your friends, we aren't a company"
The videos had 200 visits at most, and comments were disabled in most of them, by the end of January every-time you googled for sCoin you would find about 50% videos made by these people explaining how big sCoin was going to become, and 50% blogs talking about how it was a pyramid scheme scam.
For people like me, this was clear it was a pyramid scheme, but for my relatives, the scheme blogs were clearly written from people who were jealous of the big entrepreneurs.
February arrived, and with it the supposed release of the sCoin... but oh? what's this? nothing happened? the website dint had any changes and when talking with their contacts from the sCoin they just said there was a small delay, now around this time two very big events happened which should've made it 100% clear this was a scam:
  1. We were given the "Address" of the company, whose roots are in Berlin, Germany, of course it had to be "Germany" all the big things in the world come from there, except it was a lie, see, back in the day I went to college with a couple German friends (I studied abroad in Canada and so did they). Locally one of my friends lived in Berlin and when I asked her if she could check the address she literally told me: This is the address of a mall. So when you by any chance looked for the address on street view you'd just see a big building and assume is the headquarters, given how everything is written in German but truth be told it was far from a corporation building it was just your average mall.
  2. The page was updated to sell sCoin through PayPal as a means to make the scam seem more legit. This was great because I have plenty of experience with PayPal, as I mentioned before I am an artist so most of my income comes from commissions paid through PayPal, I told my aunt that PayPal didn't allowed the purchase of any cryptocurrency to which she told me how could I know, I don't work there, so I got my laptop, opened my PayPal account, looked for the contact phone number and gave them a call to directly inquiry about the legitimacy of selling sCoin through PayPal, of course they said they don't allow such behaviour they would look into it and to be careful as this was most likely a scam.
Now I know for a fact PayPal looked into this, because not even a week passed by and we all got an email saying that unfortunately the people at PayPal were not entrepreneurs and they are morons who didn't wanted the opportunity to become millionaires through selling sCoin but once again, they told us sCoin IS NOT ILLEGAL.
By this point I was getting pretty annoyed, there were dozens of google searches saying this was a scam, their headquarters was a scam, their deal with PayPal was a scam, their supposed "big launch" never happened, but still my aunt and uncle believed these people were legit.
March came with another conference, this time for the people who have paid, my uncle in an impulse to participate on the conference bought 10 packages, they even put one of them to my name, so when I'm a millionaire I can put my own business and become an entrepreneur, yeeey thank you so much! Call me a ChosingBegar but I much prefer a bag full of dust it would've been more useful.
This conference was key because two big names I have read before were present, I don't remember the exact names, but when researching information about pyramid schemes one of these persons were mentioned as a lawyer from Guatemala who has been trying for years to make pyramid schemes legal and destroy their bad reputation, this lawyer has represented lots of companies who have gone to court for scamming people off.
I was like "I'm outies, this man in front of us is a literal criminal who helps other criminals why can't you see all that is wrong here?" Unfortunately my aunt and uncle decided to stay, what harm can listening to them do? I mean they already bought 5 packages of $526 USD each...
I couldn't stomach it anymore, I took a taxi and went to the bus station to come home as the conference was in another city. Both my aunt and uncle were upset I did this because I missed so much wisdom about how to be an entrepreneur but by this point I didn't cared anymore.
At this conference my aunt and uncle were convinced to invest a lot of money on sCoin they ended up investing the money they would've otherwise used on bitcoin and ant miners, investing a total of $26,326 USD
Month's passed, the launch date kept getting delayed and delayed and delayed, until around June, I watched a Philip D Franco video that talked about a huge boom on bitcoin. And by this point I started checking Bitcoin rate religiously, until August when it had it's biggest boom: $4,670 USD exchange rate.
My aunt and uncle gave sCoin $26,326 USD around the time where bitcoin costed $1200. If they had followed our initial plan of investing that money into bitcoin, they would've quadrupled their investment. They would have gotten around 389% their original investment which translates to around $102,408 USD or $1,943,387 MXN which is almost 2 million Mexican pesos.
Naturally, my aunt and uncle are pissed that they lost such a chance and they blamed me for a long time, to this day we don't talk to each other anymore, because of this and other reasons.
To this day, sCoin has yet to be launched.
submitted by captainjawz to iilluminaughtii [link] [comments]

Suspicions of DASH seem true

Dear CryptoCurrency
I posted very important questions about DASH Crypto 4 days ago, because I wanted to see potential in it & did invest somewhat in it. Its been 4 days and I have had no response from dashpay.
I'm now convinced DASH is not what it seems, because there silence has confirmed my worries and therefore and I have liquidated all of my DASH holdings to be safe!.
I hope CryptoCurrency can help to answer these question in my dashpay post about DASH.
My Questions are here: https://redd.it/6ar49o
Opinions & Thoughts? (Preferably not bias, but based closer to the facts about DASH).
COPY OF WHAT I SAID:
[submitted 4 days ago * by TXJQQVRF
Dear dashpay
I would like to ask some very important questions:
Governance structure: Could this be seen as subject to manipulation or am I taking it out of context? (i.e. As governance sounds the same as a government, I feel its a hostile name to use in the Cryptocurrency space, as the whole point of Crypto's is to free us from manipulation and control, to have a trustless system where you don't have to put your 'trust' in organization/s and/or person/s). (DASH, I hope should be no more subject to manipulation than Bitcoin is, and in fact hope DASH is LESS manipulatable in terms of its 2nd tier system; other than Crypto news effecting price, which is the only form of manipulation I accept). (Can you have governance without the risk of manipulation?).
Masternodes & Pyramid scheme proof: Could you explain in detail how DASH with its Masternodes will not become a Pyramid scheme or is it Pyramid scheme proof already? (i.e. Later Masternodes could be used to pay the early Masternodes as difficulty rises faster than return on investments for the early Masternodes, meaning for them to get return on investment and keeping the network alive the money would have to be pulled from latesooner Masternodes). (I see Pivx more prone to be a pyramid scheme, as its completely based on PoS. I believe PoW is still a requirement with PoS & could even be superior than just PoW alone). If I'm wrong, explain.
Miners separate from Masternodes: Is there anything to ensure miners and Masternodes are not run by the same people? (i.e. To prevent creating a cartel, making it more centralized than it should be).
Difficulty in mining & Masternodes: How is the difficulty calculated for Masternodes and how is it separate from mining? (i.e. Are the Masternodes PoS?)
UASF(User Activated Soft Fork), If all is good with the 'above' questions: Would you consider allowing 'full' voluntary nodes (non-Masternodes) a vote in the system alongside Miners and Masternodes? (To possibly allow UASF's if necessary in the future, to further democratize DASH governance structure; so its not just votes by invested players).
PS: I want to see DASH as Bitcoin 2.0, but need some reassurances that this is a sustainable system to the best of DASH developers/communities knowledge. If there are risks in regards to my asked question, its advantageous to ask and make these questions and risks known to ensure steps can be taken to prevent Armageddon with DASH in the future before its too late. I look forward to DASH future!.
Best regards.]
submitted by TXJQQVRF to CryptoCurrency [link] [comments]

Most talked about and upvoted cryptos in r/altcoin and r/cryptocurrency, week ending 2018-01-19

tl;dr: (skip to “Trending Cryptos”, esp. if you've already read the intro from my post last week)
INTRO
Like most of us here, I’ve been following the posts on this subreddit diligently, and have been able to make some good crypto investments from all the shilling, discussion, and even fud that happens here!
I don’t have enough time to read everything and constantly check the reddit app, but I still don’t want to miss out on opportunities that come from a crypto being talked a lot about on here.
So I developed a program for myself that collects data on the cryptos that are being talked about most (both in terms of number of posts, and total number of upvotes) on cryptocurrency and altcoin. I can quickly browse the headlines of the top posts it collects, as well as see at a glance which cryptos are “trending” or “buzzing” on the subreddits in the recent weeks. The program also pulls in Coinmarketcap API data, like current market cap and 7 day price change. Aggregating all this data automatically has saved me a lot of time and allowed me to focus my research efforts on the cryptos that I think could have the highest potential e.g. low market cap, recently “buzzing” cryptos on cryptocurrency and altcoin.
I’ve decided to share the outputs of my program, as well as some highlights I’ve written, here for the benefit of this subreddit (and may do so periodically). Let me know if you have any feedback, questions, or suggestions, always looking to improve and share more interesting data here!
TRENDING CRYPTOS
Highlights:
  1. BitConnect lost almost all its value this past week, with a large increase in the number of posts, and the popularity of those posts, about it. BitConnect's increase in buzz is almost entirely attributable to the community pouncing on it for being a scam / pyramid scheme.
  2. COSS and Aigang were lower market cap coins that fell in price, but experienced a modest increase in buzz. Some continue to remain optimistic about the prospects of COSS, and there have been several posts reviewing Aigang as more and more people learn about it.
  3. NEO was the only coin to have an increase in price this past week. Buzz for NEO is still remaining steady, at the top of the list in terms of both post count and score/popularity.
(inf means infinity, which occurs when a number is divided by zero i.e. a week over week change number is calculated when the week before last week had a zero value)
Crypto Name Market Cap 7 Day Price % Chg Post Count Post Count Week Over Week % Change Total Post Score Score Week Over Week % Change
BitConnect 265.8M -90.99% 47 4600.00% 31,159 53622.41%
NEO 9.3B 12.39% 39 18.18% 5,634 11.43%
VeChain 1.7B 2.19% 24 -35.14% 4,593 -32.16%
Ethereum 104.9B -16.74% 23 -45.24% 3,033 -42.12%
COSS 68.8M -50.16% 20 53.85% 1,976 292.06%
RaiBlocks 2.4B -29.34% 20 -33.33% 6,723 -61.69%
Ripple 58.5B -26.98% 14 -26.32% 564 -86.65%
AppCoins 185.8M -32.91% 12 -53.85% 451 -80.16%
ICON 3.4B -8.41% 12 -42.86% 2,506 -33.51%
Bounty0x 47.4M -30.68% 11 -54.17% 1,803 -65.73%
TRON 5.5B -26.02% 9 -66.67% 506 -67.73%
Stellar 9.1B -25.96% 8 -63.64% 1,501 -48.42%
Walton 567.5M -17.09% 8 100.00% 501 294.49%
QASH 593.1M -11.93% 7 0.00% 256 69.54%
DeepBrain Chain 157.6M -47.80% 6 -60.00% 251 -75.25%
OmiseGO 2.0B -17.25% 6 0.00% 1,187 73.54%
Tether 1.6B -0.02% 6 200.00% 1,398 4011.76%
Aigang 23.6M -62.60% 5 400.00% 164 1161.54%
Bitcoin Diamond 0.77% 5 inf 157 inf
ECC 65.8M -15.49% 5 -28.57% 159 -7.56%
Elixir 25.5M -42.47% 5 -28.57% 199 -39.51%
Trending cryptos < $300M market cap:
Highlights:
Crypto Name Market Cap 7 Day Price % Chg Post Count Post Count Week Over Week % Change Total Post Score Score Week Over Week % Change
BitConnect 265.8M -90.99% 47 4600.00% 31,159 53622.41%
COSS 68.8M -50.16% 20 53.85% 1,976 292.06%
AppCoins 185.8M -32.91% 12 -53.85% 451 -80.16%
Bounty0x 47.4M -30.68% 11 -54.17% 1,803 -65.73%
DeepBrain Chain 157.6M -47.80% 6 -60.00% 251 -75.25%
Aigang 23.6M -62.60% 5 400.00% 164 1161.54%
ECC 65.8M -15.49% 5 -28.57% 159 -7.56%
Elixir 25.5M -42.47% 5 -28.57% 199 -39.51%
Bancor 297.4M -22.63% 4 -20.00% 67 -24.72%
GoByte 25.3M -18.12% 4 33.33% 111 164.29%
Oyster 96.8M -45.84% 4 -78.95% 149 -95.19%
Vertcoin 215.3M -20.51% 4 100.00% 279 830.00%
IoT Chain 140.5M -19.75% 3 50.00% 67 -16.25%
Po.et 262.2M -22.34% 3 -62.50% 70 -80.50%
iExec RLC 237.3M -25.76% 3 0.00% 44 18.92%
Simple Token 174.1M -39.99% 3 200.00% 335 88.20%
See the complete dataset: stats as well as recent posts and URLs
Notes: “Post Count” means the number of posts that had titles that mentioned the specified crypto. “Week Over Week Change” means the change in the specified metric over the last 7 days, compared against the metric over the previous 7 days before last week. “Total Post Score” means the sum of net upvotes (or score) for all posts that mentioned the specified crypto.
FOLLOW ALONG
If you’d like to follow along via email and get more insights + a better looking report in your inbox every single week, you can learn more and subscribe here. I'm always looking to improve and provide more useful and interesting info to my readers, so don't be afraid to reach out!
EDIT: fixed the tables above to more accurately reflect the underlying data linked in the Google Spreadsheet e.g. include counts for Vechain, Raiblocks, etc. that had a high number of posts this week.
submitted by smbdata_t to altcoin [link] [comments]

Bitconnect Lending: An investment strategy? A scam? Both? - Different things you should consider

What is Bitconnect Lending?
A lending platform made by the company Bitconnect. How does it work? You buy BCC, a coin that they have created, and use your balance to invest in the platform. They will convert your BCC back to USD, and you will now be part of their lending program. The capital you invest will be locked for 120 – 299 days, depending on the amount. What do you get from it? Around 0.90% profit per day on your active investment. This interest can be withdrawn or re-invested into the system (which works well with compound interest). How is the interest calculated? It depends on the volatility of BTC. The more the BTC price fluctuates in a day, the more they can make a profit from trading with your money, and the interest will be high. There could be some days where you make 2% interest, and some days where you make as low as 0.05% interest – it could be anything. However, the average per month is around 0.90% daily interest, as mentioned before.
Too good to be true?
You probably heard a lot of things about Bitconnect. Indeed, the platform is the subject of a big debate and most of the active people in the cryptocurrency world now know about it. How big? Well, a lot of people thought that it was a scam. However, the company has been alive for a year now, paying its customers, and a good percentage of the cryptocurrency community changed their mind on Bitconnect or are now unsure of its future. In fact, in a year, not only the platform managed to attract more than 1 500 000 users, but it managed to bring BCC in the top 15 cryptocurrencies on CryptoMarketCap, with a general capitalization of over 2.6 billion. There were also no fraud cases with Bitconnect detected as of now – which could convince people that the company is legit. However, not so fast, the debate is there for a reason.
There are a number of “red flags” that lead the thoughts of it being a financial pyramid scheme. 1. Bitconnect might be paying their current investors with the money they get from the new members and the constant growth of their BCC coin. In fact, the use of a trading bot was never proven and the referral system (highly profitable for the user), as well as the 0.90% daily interest, are excessively expensive for the average business. The model could be unsustainable, which makes people, like Ethereum’s founder, yell “Ponzi”. 2. The information given by the company is very limited. No information about the cryptocurrency creators, and no white paper 3. The market isn’t setting the price of BCC, since it is directly influenced by the platform. In order to use the lending platform, you need to first trade your BTC for BCC on their website. Then, to withdraw your investment, you need to trade back your BCC into BTC. This creates demand for the coin, and the value goes up.
Is it still worth a try?
Ponzi or not, Bitconnect is paying right now and the profit or loss of an investment on their platform depends on the life of the company. When will it cease to exist? They could disappear in 1 month or in 3 years, we don’t know. However, like any investment, an investment in Bitconnect is a risk. The risk changes depending on the investment, but you can never be sure at 100% that an investment will be profitable. Therefore, we could consider Bitconnect lending as an investment option, even if it could be a scam. We just can’t be stupid and invest in something we are sure not to get our money back, right? So let’s see if it would indeed be a good investment.
It takes 79 – 120 days to get your investment back (in your pocket) with interest, if you invest in Bitconnect. As a result, if Bitconnect is able to stay alive for the next 4 months, you’ll be able to reduce your risk to 0 and start making a profit every day, without losing money if Bitconnect disappears. Let’s see what is the probability of that happening. Here are some arguments used in favor of Bitconnect’s system :
With all of this in mind, we could say that it’s highly possible that Bitconnect stays alive for another 4 months. It might not be a model that guarantees a life of a couple of years, but it is genius enough for us to take advantage of it for a while. The risk to not get all of your money back is still there, but it is definitely a risk to take if your goal is to make money passively.
What is the best method when you invest in Bitconnect?
Of course, you could cash out your interest every day. However, this isn’t the most profitable method. The good thing about a lending platform like Bitconnect is that you can use the concept of compound interest. Compound interest is the result of reinvesting interest, so that interest on the next day is then earned on the principal sum plus previously-accumulated interest. By doing this, your profit accumulates faster, and you are able to take full advantage of Bitconnect and its platform. For example, applying compound interest with an investment of $100 will give you $2960 at the end of the year, while $1000 will give you $23 610; which are very nice returns. However, at one point, you will have to collect your interest to reduce your risk. The most efficient way is to apply the 60/60 rule. This rule indicates that you should re-invest your interest for the first 60 days, and then collect your interest for 60 days after that. At the end of the 120 days, you should have your invested amount back, and a nice amount left in Bitconnect (1.5x – 2x the initial investment), to continue getting interest. Your capital might be locked for up to 299 days, but it doesn’t matter at this point since you already got your capital back with interest.
Are you investing yourself?
Indeed, I chose to consider Bitconnect as one of my investment strategies. I know there is a risk of it being a scam, but I do believe that there is still time to make a significative profit, since it could easily live more than 4 months. Their intention might have been to scam at first, but the goal could have changed with all the popularity, users, genius ideas for them to make money in the long run, …. If that’s the case, then I will be there to profit with them. I understand that I could lose everything, that is part of the game. You should always invest only what you can afford to lose.
I started on December 4th of 2017, and will update this as I go.
I would also love to see your progress with Bitconnect, so definitely share your experience on this thread if you have some. Feel free to also post your opinion on this point of view.
Hopefully I helped a bit, Cheers!
January 4th : 1 month in Bitconnect and they are still there. This month we had an average of 0.87 per day. Still have a good feeling about the company. I believe the ICO BitconnectX is for a decentralized exchange that will be released in May. We'll see.
submitted by -MattP to Bitconnect [link] [comments]

Is Bitcoin a Ponzi Scheme or a Pyramid Scheme? - YouTube Bitcoin is a PYRAMID SCHEME Says Peter Schiff - Here’s Why He’s Wrong TradeShark - The Latest Bitcoin Pyramid Scheme - YouTube Nasgo Is The Next Bitconnect Pyramid Scheme BREAKING: Roger Ver says Bitcoin is a Pyramid Scheme. Federal Reserve to Tokenize the US Dollar!?!

The Simplest Pyramid Scheme - A Chain Letter Scam An example of the simplest form of a pyramid scheme would involve Person A sending a letter to 2 other people (Level B) requesting them to send $1 back, and to then send letters out to 2 other people (Level C) requesting a dollar. So Person A and all people at Level B would theoretically make $10. This type of letter is known as a chain letter ... If you’re new to bitcoin, transaction fees can be fiendishly tricky to get your head around. Use an online fee estimator to do the math. Pyramid schemes come in many guises, but they have one thing in common – they always fail. That is why I was dismayed by the comments on a recent article on that seemed sympathetic to a doomed ... Bitcoin is a pyramid scheme, economist says. Nick Rose · Producer. January 1, 2020, 12:42 PM. It’s been a rollercoaster couple of years for cryptocurrencies, but 2019 has been a fruitful one ... Bitcoin is considered the grandfather of cryptocurrency, rising from a value of just a few cents to thousands of dollars per coin. Cryptocurrency is beginning to hit the mainstream and investors continue to look to crypto as a way to make money quickly. Unfortunately, many investors fell victim to pyramid schemes. Bitconnect, PlusToken, and OneCoin are amongst the most well-known crypto scams.

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Is Bitcoin a Ponzi Scheme or a Pyramid Scheme? - YouTube

Is Bitcoin a Ponzi Scheme? Is Bitcoin a Pyramid Scheme? Is Bitcoin a Bubble like Tulip Mania or Beanie Babies? ===== Thanks for watching! Don't f... nasgo going hard pyramid, new hampshire accepting bitcoin soon, and more!! Sign up with coinbase. buy or sell 100 dollars in crypto currency and get 10 dollars of bitcoin for free with this link ... Instagram Live BREAKING: Roger Ver stated that BTC Bitcoin core may be a pyramid scheme and attests that Bitcoin Cash is the real deal (is he wrong?). Also, rumors are circulating that the US Dollar might become ... Is bitcoin a pyramid scheme? Peter Schiff says so, but is he right? In this video we’ll take a look at Schiff’s recent bitcoin opinion and see if it holds any water.

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