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A dude I know just cashed in his 401K to buy mining rigs. His pregnant wife quit her job to mind the machines. How hosed is he?
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Dec 26, 2017 19:00
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Jikes posted:how the hell are the exchanges affording and surviving this hit? It's like a stock split to your bank balance. It's all fake numbers propped up by other fake numbers. The money coming into this is from people who don't know what's going on, but they heard a hot tip, or they're broken brain hodlers. The prices are artificially inflated by schemes and cons because shady people need to extract as much money as possible from your idiot coworker who can't stop talking about bitcoin.
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Dec 26, 2017 19:01
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gary oldmans diary posted:
Supposedly knowledgeable investor people who get to control a whole lot of money, and get 6-7 figure salaries, promoting blockchain, makes me totally get it they're just loving idiots who somehow got fell into their job. I actually feel relief by supposing they're intentionally talking up something that they know is garbage, for the purposes of self enrichment. At least that lets them be competent.
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Dec 26, 2017 19:09
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what problem of the ages have computer science scholars been struggling with that was supposedly solved by blockchain?
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The Dregs posted:A dude I know just cashed in his 401K to buy mining rigs. His pregnant wife quit her job to mind the machines. How hosed is he? ahahahahahahahahahaha e: that kid is going to be hosed too
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Dec 26, 2017 19:12
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XK posted:It's all fake numbers propped up by other fake numbers. The money coming into this is from people who don't know what's going on, but they heard a hot tip, or they're broken brain hodlers. The prices are artificially inflated by schemes and cons because shady people need to extract as much money as possible from your idiot coworker who can't stop talking about bitcoin. My main curiosity with bitcoin was the tech behind it and the idea of a peer-to-peer currency, the current economic behavior of it in the real world is something I just can't wrap my brain around. I'm not much of an investor, but even I can see that doubling all your clients' balances and not going out of business involves fantasy math. I'm still googling because I just can't believe this is how it's supposed to work. Do they not realize that at the very least, they are looking at a massive run on all the exchanges the first second of January 1st 2018?
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Dec 26, 2017 19:13
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Moridin920 posted:ahahahahahahahahahaha gently caress him. my wife runs a daycare and they pulled their kids out so pregnant mom can make millions on the bitcoin. if she comes back im raising her rates
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Dec 26, 2017 19:20
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Jikes posted:My main curiosity with bitcoin was the tech behind it and the idea of a peer-to-peer currency, the current economic behavior of it in the real world is something I just can't wrap my brain around. I'm not much of an investor, but even I can see that doubling all your clients' balances and not going out of business involves fantasy math. I'm still googling because I just can't believe this is how it's supposed to work. Do they not realize that at the very least, they are looking at a massive run on all the exchanges the first second of January 1st 2018? The fork, or whatever exactly is happening this time in bitcoin drama, is completely irrelevant to exchanges. If someone sells their forked whatever, it's because somebody else bought it. Exchange don't care, they're just skimming off their fee, and floating price changes with temporary withdrawal issues. Then there's fake money tether. That's going to be fun.
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Dec 26, 2017 19:20
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Jikes posted:Do they not realize that at the very least, they are looking at a massive run on all the exchanges the first second of January 1st 2018? The exchanges don't see runs, they see "unexpected hacking incidents" and one-way tickets to nonextradition island nations.
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Dec 26, 2017 19:23
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The Dregs posted:gently caress him. my wife runs a daycare and they pulled their kids out so pregnant mom can make millions on the bitcoin. if she comes back im raising her rates day care is a scam just like bitcoin
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Dec 26, 2017 19:24
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out of all the bitcoin stuff ever the most baffling is tether. "you want us dollars? oh ok ummmm heres some clownpeniscoins. just as good right?"Straight White Shark posted:The exchanges don't see runs, they see "unexpected hacking incidents" and one-way tickets to nonextradition island nations. gary oldmans diary fucked around with this message at 19:29 on Dec 26, 2017 |
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Dec 26, 2017 19:25
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gary oldmans diary posted:out of all the bitcoin stuff ever the most baffling is tether. "you want us dollars? oh ok ummmm heres some clownpeniscoins. just as good right?" I prefer johnnyissocoolandtommyissolamecoins but clownpeniscoins are also a good name
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Dec 26, 2017 19:36
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The Dregs posted:A dude I know just cashed in his 401K to buy mining rigs. His pregnant wife quit her job to mind the machines. How hosed is he? hosed enough that you should tell them they should find a family member or close friend who'll be willing to adopt the kid when they inevitable murder-suicide each other lmao
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Dec 26, 2017 19:38
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The Dregs posted:A dude I know just cashed in his 401K to buy mining rigs. His pregnant wife quit her job to mind the machines. How hosed is he? How hosed is he? Friend, your acquaintance just removed himself and his family from the yoke of statist financial oppression and took control of his economic potential. He is now helping to build the world's future currency blockchain, like a true pioneer. And like the explorers of yesteryear, he's about to find GOLD before anyone else even realizes how much the world has changed thanks to cryptocurrency. Like the peasants in Venice who were excreting their waste into the sea and wondering where that "weird" fella Christopher Columbus had headed off to. That's you, the man in Venice laughing about your friend, who is about to discover a whole new world of financial freedom, while you are left laughing at him, in your rags and clinging to the old economic system which is making you a slave while you don't even realize it. The question is not "How hosed is he", the question is "How hosed are YOU?"
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Dec 26, 2017 19:50
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The Dregs posted:A dude I know just cashed in his 401K to buy mining rigs. His pregnant wife quit her job to mind the machines. How hosed is he? this is just sad 
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Dec 26, 2017 20:01
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My brother in law thinks bitcoin will hit 50.000 next year and I told him "well, Frank, your raindeer sweater is freaking retarded" and he stormed off in a huff in his idiot sweater.
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Dec 26, 2017 20:03
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gary oldmans diary posted:
http://www.dugcampbell.com/byzantine-generals-problem/ It's literally a byzantine problem which doesn't mean that it's at all useful for generating a stable or usable currency. But blockchain on its own is of interest to computer scientists because it solves an old problem. Ccs fucked around with this message at 20:07 on Dec 26, 2017 |
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Dec 26, 2017 20:03
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then it literally didnt solve anything. proof of work and chain of trust predate blockchain and bitcoin
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Dec 26, 2017 20:15
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Ccs posted:http://www.dugcampbell.com/byzantine-generals-problem/ lmao blockchain doesn't "solve" any previously unsolvable logic problem, it's a p2p log file, that's it.
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Dec 26, 2017 20:20
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The Dregs posted:A dude I know just cashed in his 401K to buy mining rigs. His pregnant wife quit her job to mind the machines. How hosed is he? Please post the entire story in the Bad With Money thread please.
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Dec 26, 2017 20:24
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Ccs posted:http://www.dugcampbell.com/byzantine-generals-problem/ No. Blockchains are stupid.
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Dec 26, 2017 20:30
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Minimalist Program posted:My brother in law thinks bitcoin will hit 50.000 next year and I told him "well, Frank, your raindeer sweater is freaking retarded" and he stormed off in a huff in his idiot sweater.
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Dec 26, 2017 20:37
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Mr Teatime posted:In further crypto news it seems that many coinbase customers have found their SEPA deposits held in pending by coinbase for weeks after they were recieved. That these incidents started occuring en masse around the time where people were cashing out into real money in droves because of the price boom is purely coincidental and you should in no way be concerned about any liquidity issues at trustworthy coinbase. Interestingly this happened right after I predicted that Coinbase could have liquidity issues, on the basis that they can't cover the potential deposits of a tiny-rear end state like Hawaii (or rather, aren't even willing to try because they know better than anyone that their cash reserves are low)
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Dec 26, 2017 20:37
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bitcoin solved the problem of how to get lots of people to buy video game gold for real money except instead of manually grinding for random loot in a video game your gpu grinds on random numbers trying to get hash collisions and instead of there being a video game there is no video game the combination of these 2 things means it should be an obvious success and in fact the currency of a united earth some day magic the gathering online exchange 
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Dec 26, 2017 20:38
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WAR DOGS OF SOCHI posted:lmao blockchain doesn't "solve" any previously unsolvable logic problem, it's a p2p log file, that's it. You're right. But it's the first application of that type of log file with the characteristics that allow it to create consensus. https://socrates1024.s3.amazonaws.com/consensus.pdf
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Dec 26, 2017 20:40
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Ccs posted:So I saw a cousin who went to Stanford over the holidays and he's involved with the first cryptocurrency arbitrage firm. His take on crypto is that no one in finance is looking to solve the transaction time and security issues because those are complicated and difficult. Eventually they may be solved by computer scientists but not soon. Blockchain solved a byzantine problem in computer science and is mainly useful for pumping up user numbers because ICOs bring in rushes of users and cash. This isn't intrinsic to blockchain, it's just that blockchain as a marketing term is very attractive to investors at this point in time. What exactly does an arbitrage firm do? Do they hire a bunch of people to perform arbitrage trades between markets? Because if so bitcoin seems like a uniquely high-risk low-reward arbitrage market on the basis that transactions take can take up to an hour or more on the best of days and cost $50-$100 each
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Dec 26, 2017 20:41
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Ccs posted:You're right. But it's the first application of that type of log file with the characteristics that allow it to create consensus. Florida man writes blockchain paper.
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Dec 26, 2017 20:43
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QuarkJets posted:What exactly does an arbitrage firm do? Do they hire a bunch of people to perform arbitrage trades between markets? Because if so bitcoin seems like a uniquely high-risk low-reward arbitrage market on the basis that transactions take can take up to an hour or more on the best of days and cost $50-$100 each But this also means higher spreads on prices. If they can find some way to reliably get in front of trades or minimize transaction costs there may be a good amount of skimming that can be done.
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Dec 26, 2017 20:43
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XK posted:The fork, or whatever exactly is happening this time in bitcoin drama, is completely irrelevant to exchanges. If someone sells their forked whatever, it's because somebody else bought it. Exchange don't care, they're just skimming off their fee, and floating price changes with temporary withdrawal issues. Someone has to cover the money once it's generated though, right? Celery is giving me .27 of Bitcoin Cash because at the time of the fork, I held that much in Bitcoin. I just sent the .27 of Bitcoin from Celery to my exchange and I'm going to cash it out. On January 1st, I get .27 of Bitcoin Cash and I'm going to move it over and cash it out. Bitcoin Cash is worth a lot less than Bitcoin, but even so, who covers my $700 or so that I will get from selling the Bitcoin Cash? The sending exchange or the receiving exchange? Or nobody, or everybody?  None of it is making sense to me.
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Dec 26, 2017 20:45
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XK posted:No. Blockchains are stupid. Perhaps if Romanos IV had mastered the blockchain he wouldn't have lost at Manzikert.
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Dec 26, 2017 20:45
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Honestly I have no idea what their firm would do. They've got a group of people in California and a group on Wall Street working on it and have raised a lot of capital. Maybe all that money will disappear because of the transaction time and cost. But I assume a group of people from Stanford and Princeton would have thought ahead enough to figure out a way around that.
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Dec 26, 2017 20:46
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i intend to disrupt the market with an inflationary blockchain coin, please invest in my ico for zimbabwecoin
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Dec 26, 2017 20:46
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Ccs posted:http://www.dugcampbell.com/byzantine-generals-problem/ This is a common meme presented by bitcoiners but it isn't actually true; bitcoin adds an economic cost to disincentivize bad actors but there are all sorts of theoretical problems that would become serious if bitcoin was actually used as a currency and not purely as a speculative investment. Also as others have pointed out the tools that "solve" this problem were in use and applied long before bitcoin existed, bitcoin just happened to gain the most frenzied followers
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Dec 26, 2017 20:48
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Jikes posted:Someone has to cover the money once it's generated though, right? Celery is giving me .27 of Bitcoin Cash because at the time of the fork, I held that much in Bitcoin. I just sent the .27 of Bitcoin from Celery to my exchange and I'm going to cash it out. On January 1st, I get .27 of Bitcoin Cash and I'm going to move it over and cash it out. Bitcoin Cash is worth a lot less than Bitcoin, but even so, who covers my $700 or so that I will get from selling the Bitcoin Cash? The sending exchange or the receiving exchange? Or nobody, or everybody? When you sell it at a price, someone buys it at that price (plus fees paid for by one or both parties). It's the same as how it works when you sell a share of Amazon at $1000.
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Dec 26, 2017 20:48
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Ccs posted:Honestly I have no idea what their firm would do. They've got a group of people in California and a group on Wall Street working on it and have raised a lot of capital. Maybe all that money will disappear because of the transaction time and cost. Extract money from VC and hope someone else fixes the problems before they're expected to deliver resulys
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Dec 26, 2017 20:48
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Ccs posted:So I saw a cousin who went to Stanford over the holidays and he's involved with the first cryptocurrency arbitrage firm. His take on crypto is that no one in finance is looking to solve the transaction time and security issues because those are complicated and difficult. Eventually they may be solved by computer scientists but not soon. Blockchain solved a byzantine problem in computer science and is mainly useful for pumping up user numbers because ICOs bring in rushes of users and cash. This isn't intrinsic to blockchain, it's just that blockchain as a marketing term is very attractive to investors at this point in time. Look at Long Blockchain Corp (LTEA), the activist short sellers already smell blood in the water.
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Dec 26, 2017 20:50
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Jikes posted:Someone has to cover the money once it's generated though, right? Celery is giving me .27 of Bitcoin Cash because at the time of the fork, I held that much in Bitcoin. I just sent the .27 of Bitcoin from Celery to my exchange and I'm going to cash it out. On January 1st, I get .27 of Bitcoin Cash and I'm going to move it over and cash it out. Bitcoin Cash is worth a lot less than Bitcoin, but even so, who covers my $700 or so that I will get from selling the Bitcoin Cash? The sending exchange or the receiving exchange? Or nobody, or everybody? The money ostensibly comes from the person who's buying whatever you're selling. Exchanges (supposedly) don't do any buying or selling themselves, they just bring buyers and sellers together and facilitate the exchange.
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Dec 26, 2017 20:50
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XK posted:No. Blockchains are stupid. I do web dev poo poo and am self-taught so I don't know poo poo about algorithms or data structures, so I'm wondering why blockchains are dumb? I went to a developer meetup a few weeks ago and everybody would not shut the gently caress up about everything becoming blockchain, so it sounds like at the very least dumbass libertarian startup dipshits think it's good for solving basically anything that might be related to security of a system and calculating a thing, but I'm not smart of aware enough to know why it's good or bad. There was some failson investor kid there who was very interested in hearing anything anybody had to say about blockchain and was looking for 'the next blockchain' to invest in. bvj191jgl7bBsqF5m fucked around with this message at 20:54 on Dec 26, 2017 |
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Dec 26, 2017 20:51
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Jikes posted:who covers my $700 or so that I will get from selling the Bitcoin Cash? The sending exchange or the receiving exchange? Or nobody, or everybody? It's covered by the dumb idiot uncle at your holiday family get-together, or your insufferable co-worker who won't shut up about bitcoin.
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Dec 26, 2017 20:52
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bvj191jgl7bBsqF5m posted:I'm not smart of aware enough to know why it's good or bad. bvj191jgl7bBsqF5m posted:it sounds like at the very least dumbass libertarian startup dipshits think it's good The answer was inside you all along
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Dec 26, 2017 20:52
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AreWeDrunkYet posted:But this also means higher spreads on prices. If they can find some way to reliably get in front of trades or minimize transaction costs there may be a good amount of skimming that can be done. That's the real problem though: the transaction times and costs are an externality that they have no control over. If there's a $50 spread between exchange A and exchange B that would normally be a juicy opportunity in any other market, but in bitcoin it's not even worth pursuing because the transaction alone will cost more than the spread and within that 10-120 minute window the spread could evaporate entirely. Case in point arbitrage between bitcoin exchanges is already commonplace, but the transaction times and costs are so ridiculous that the average difference in bitcoin price between exchanges simply remains huge. Someone unfamiliar with the technology may look at that residual spread and see an opportunity where there really isn't any Ccs posted:Honestly I have no idea what their firm would do. They've got a group of people in California and a group on Wall Street working on it and have raised a lot of capital. Maybe all that money will disappear because of the transaction time and cost. But I assume a group of people from Stanford and Princeton would have thought ahead enough to figure out a way around that. They've sold the thought of figuring out a way around that to investors. That's all that really matters in the bitcoin sphere
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Dec 26, 2017 20:55
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