Bit Coin. Please explain it to me like I am a 3 year old.

a reply to: PhotonEffect

Thanks, it seems the cold wallets are the way to go.

What do you know about the possibility of Bitcoin forking? Sounds like it could be a bit disruptive if it happens. It's pretty remarkable how much info there on this, yet most of the public is not aware or doesn't care. After just a couple days of researching, I can't see how blockchain technology won't eventually replace much of how we internet today.

(I'm only now starting to educate myself on all of this, as a potential investment opportunity. I have a long long way to go).

originally posted by: PhotonEffect
a reply to: PhotonEffect

Thanks, it seems the cold wallets are the way to go.

What do you know about the possibility of Bitcoin forking? Sounds like it could be a bit disruptive if it happens. It's pretty remarkable how much info there on this, yet most of the public is not aware or doesn't care. After just a couple days of researching, I can't see how blockchain technology won't eventually replace much of how we internet today.

(I'm only now starting to educate myself on all of this, as a potential investment opportunity. I have a long long way to go).

This website keeps track of the forking thing. What you wanna look at right now is the orange "BIP91" section. If that reaches 80%, segwit will activate and bitcoin won't fork, at least for now. If segwit activates, the value of bitcoin and many of the others like ether and litecoin -should- shoot up again, and they are already starting to as people anticipate segwit. Apparently in November there will be another chance for bitcoin to hard fork, but from what I've read, this is unlikely.

You're right that alot of people don't care about the technology yet, but this is the same phenomena for all sorts of other new technologies as well. It's kindof like when computers were invented, alot of people thought nobody would ever have use for them and therefore had no interest in them until they exploded and were absolutely everywhere. The blockchain technology is already starting to replace things all over the world.

a reply to: trollz

Appreciate the link. It's very interesting.


Ethereum or Ethereum Classic?

originally posted by: NightSkyeB4Dawn
Dahboo 7 is promising a video in the future that is supposed to go into to detail about bit coins, block chain technology, and crypto currency.

I have to admit that this is something I can't seem to get my head around. Math is not my strongest suit and I have watched a ton of videos, but so far, I know what it is but I just don't understand it.

I know someone on ATS, understands how this works. Hopefully someone that understands it will be able to come forward and explain it to me so that I can understand it.

I am not asking about whether it is a valid currency or not. I just want to understand how it works.

This is the video that got me interested in having a better understanding of how crypto currency.

Why do you even want to know? Who has gotten rich with this bitcoin? Nobody..because nobody knows what to do with it...it is a conception not real worth.

originally posted by: InTheLight
Why do you even want to know? Who has gotten rich with this bitcoin? Nobody..because nobody knows what to do with it...it is a conception not real worth.

Everything you just said is EXTREMELY incorrect....
Please do any amount of basic research before saying such blatantly incorrect nonsense that can be proven false with a quick google search.
Alot of people are now millionaires because they invested in bitcoin.
Alot of major companies accept bitcoin as payment, including Subway, Overstock, Microsoft, Newegg, etc.
It's not a "conception" because the underlying technology is being used all over the world by everything from individuals to governments.
It does have real worth when you can buy and sell it and transfer your profit directly to your bank. If it had no worth you wouldn't be able to sell it. Your mind would probably be blown if you realized how much money flows through bitcoin every day.

originally posted by: trollz

originally posted by: InTheLight
Why do you even want to know? Who has gotten rich with this bitcoin? Nobody..because nobody knows what to do with it...it is a conception not real worth.

Everything you just said is EXTREMELY incorrect....
Please do any amount of basic research before saying such blatantly incorrect nonsense that can be proven false with a quick google search.
Alot of people are now millionaires because they invested in bitcoin.
Alot of major companies accept bitcoin as payment, including Subway, Overstock, Microsoft, Newegg, etc.
It's not a "conception" because the underlying technology is being used all over the world by everything from individuals to governments.
It does have real worth when you can buy and sell it and transfer your profit directly to your bank. If it had no worth you wouldn't be able to sell it. Your mind would probably be blown if you realized how much money flows through bitcoin every day.

No, there is no mention of bitcoin when I watch the financial news.

originally posted by: PhotonEffect
a reply to: trollz
Ethereum or Ethereum Classic?

If you're asking which is a better investment, my opinion would be strongly for Ethereum (Ether / ETH). Ethereum Classic (ETC) is absolutely useless long-term in comparison to ETH. Everything running on the Ethereum network will be using ETH, not ETC.

This strikes me as an outskirts financial game where nobody wins.

originally posted by: InTheLight

originally posted by: trollz

originally posted by: InTheLight
Why do you even want to know? Who has gotten rich with this bitcoin? Nobody..because nobody knows what to do with it...it is a conception not real worth.

Everything you just said is EXTREMELY incorrect....
Please do any amount of basic research before saying such blatantly incorrect nonsense that can be proven false with a quick google search.
Alot of people are now millionaires because they invested in bitcoin.
Alot of major companies accept bitcoin as payment, including Subway, Overstock, Microsoft, Newegg, etc.
It's not a "conception" because the underlying technology is being used all over the world by everything from individuals to governments.
It does have real worth when you can buy and sell it and transfer your profit directly to your bank. If it had no worth you wouldn't be able to sell it. Your mind would probably be blown if you realized how much money flows through bitcoin every day.

No, there is no mention of bitcoin when I watch the financial news.

I'm not even trying to be rude when I say this, but you've just confirmed that you're astonishingly ignorant. You refuse to look for yourself, and instead dispute the entire thread simply because you didn't happen to see it on television.
For your information, just about every major news outlet has talked about bitcoin at some point over the past few years. Just because you don't see something doesn't mean it isn't real.

I read news about bitcoin and other cryptocurrencies every day from various sources.
Again, do some very basic research of your own... You're making a fool of yourself.

a reply to: trollz

Bloomberg radio, just this morning, had an analyst discussing the potential of Ethereum...

And yeah, ETH is the better investment it seems. Unless you were to short the crap out of ETC (not that I would)

DId you say you earlier that you considered litecoin to be a better version of bitcoin?

originally posted by: PhotonEffect
a reply to: trollz
DId you say you earlier that you considered litecoin to be a better version of bitcoin?

Yeah, basically what it comes down to is that while they both do the same thing (digital currency), litecoin has way faster transaction times and uses less electricity to mine. Litecoin also has a larger supply, and seems pretty undervalued currently in comparison to bitcoin. Segwit seems about to activate for bitcoin so I'm not sure how bitcoin transaction times will be effected. So... Litecoin is currently a slightly better version of bitcoin. I don't know if that will remain true in the future though.

oops..

a reply to: ScepticScot

originally posted by: ScepticScot

originally posted by: nOraKat
a reply to: trollz

I thought Bitcoin's main competitor was Ethereum.

I suspect taxes are not paid on appreciation. For example the dollar goes up and down all the time, but we do not pay taxes when it appreciates nor do we write off a loss when it depreciates.

In the UK digital currencies would be subject to capital gains tax if sold at a profit.

But that doesn't make any sense. Thats like saying if the dollar depreciates against the Yen, and I convert/trade some Yen to dollars then I have to pay taxes on the difference of what I originally paid to get the Yen, when the dollar simply depreciated.

I should get a write-off every time the dollar depreciates in that case.

originally posted by: nOraKat
a reply to: ScepticScot

originally posted by: ScepticScot

originally posted by: nOraKat
a reply to: trollz

I thought Bitcoin's main competitor was Ethereum.

I suspect taxes are not paid on appreciation. For example the dollar goes up and down all the time, but we do not pay taxes when it appreciates nor do we write off a loss when it depreciates.

In the UK digital currencies would be subject to capital gains tax if sold at a profit.

But that doesn't make any sense. Thats like saying if the dollar depreciates against the Yen, and I convert/trade some Yen to dollars then I have to pay taxes on the difference of what I originally paid to get the Yen, when the dollar simply depreciated.

I should get a write-off every time the dollar depreciates in that case.

Digital currencies aren't really currencies they are commodities. If you sell at a higher price than you paid you are making a profit and potentially subject to tax.

ETA: currency speculation is taxable as well.

a reply to: ScepticScot

Digital currencies aren't really currencies

Many people will disagree. They are not called crypto-*currencies" for nothing.

originally posted by: nOraKat
a reply to: ScepticScot

Digital currencies aren't really currencies

Many people will disagree. They are not called crypto-*currencies" for nothing.

Doesn't matter what they are called, what matters is reality.

Money is an IOU, bitcoin and similar are more like gold. A highly liquid asset that can be used for barter.

For tax purposes what matters is that tax is calculated and paid in the domestic currency. If you make a profit on bitcoin, gold or even foreign currencies then tax may be owed.

a reply to: trollz

Okay, sooo... Bitcoin Cash! Now what?!

a reply to: nOraKat


I think what SkepticScot means is that Bitcoin is not a physical currency. But it still has value similar to intellectual property.

If you buy it and then sell it, you must pay capital gains tax on the profit, depending on which country you are in.

You only are liable for the tax when the asset leaves your possession and you receive something in exchange, you aren't liable for tax on the change in value if you still hold the asset.