There is a difference between trading and investing. I consider myself more of a trader than an investor but I do have long term investments as well. I definitely wouldn't pay any price for something I dunno where you're getting that bullshit from I've explained the value of BTC in my previous posts you should read them sometime.Originally Posted by Subteigh
"Precision beats power and timing beats speed"
So how can the network function without proof of work? you must be a great software engineer. I asked Chat GPT for you say thank you.
Proof of work (PoW) is the consensus mechanism used by Bitcoin to validate transactions and add them to the blockchain. In the PoW system, miners compete to solve a complex mathematical puzzle using their computing power, and the first miner to solve the puzzle is rewarded with a certain amount of Bitcoin.
The mathematical puzzle that miners must solve is known as a cryptographic hash function. A hash function takes an input and produces an output that is a fixed length and unique to that input. In the case of Bitcoin, the input is a block of transactions, and the output must meet a certain difficulty level set by the network. The difficulty level is adjusted every 2016 blocks to ensure that a block is added to the blockchain roughly every 10 minutes.
To solve the hash function, miners use their computing power to repeatedly guess inputs until they find one that produces an output that meets the difficulty level. This process is known as mining. The miner who finds the solution first broadcasts it to the network, and other nodes on the network verify that the solution is correct. Once a solution is verified, the miner who found it is rewarded with newly minted Bitcoin and transaction fees.
The PoW system ensures that the Bitcoin network is secure by making it difficult for attackers to tamper with the blockchain. To tamper with the blockchain, an attacker would need to have more computing power than the rest of the network combined, which is known as a 51% attack. This would be extremely difficult and expensive to accomplish, making the Bitcoin network very secure.
"Precision beats power and timing beats speed"
Yo, bro! Let me tell you about Bitcoin. It's like the digital gold, you know what I'm saying? The first and most popular cryptocurrency, created by some mysterious dude named Satoshi Nakamoto. Bitcoin is decentralized, meaning no government or financial institution controls it, making it free from manipulation and censorship. It uses a complex algorithm to verify transactions and record them in a public ledger called the blockchain. Bitcoin has been volatile, bro, with some people making big profits while others lost big time. But with its limited supply and growing adoption, Bitcoin has the potential to revolutionize the financial world and check into crypto mixing bro. So, what do you say? Wanna join the Bitcoin craze?
Last edited by Martex; 04-29-2023 at 12:10 PM.
The main positive side as a currency and not another pyramid alike gambling is higher anonymity, which is valued in criminal activity.
> meaning no government or financial institution controls it
Anything what acts in Internet has a control or an abbility for this.
Shit i agree with you on something
"Precision beats power and timing beats speed"
No, you gave me the recent range of the PRICE. Price and value are two completely different things.
There are mining alternatives to "proof of work" that are a lot more energy efficient, that you can easily find out about if you search. Aside from that, mining isn't necessary if you must use a cryptocurrency.
Proof of work (PoW) is the consensus mechanism used by Bitcoin to validate transactions and add them to the blockchain. In the PoW system, miners compete to solve a complex mathematical puzzle using their computing power, and the first miner to solve the puzzle is rewarded with a certain amount of Bitcoin.
The mathematical puzzle that miners must solve is known as a cryptographic hash function. A hash function takes an input and produces an output that is a fixed length and unique to that input. In the case of Bitcoin, the input is a block of transactions, and the output must meet a certain difficulty level set by the network. The difficulty level is adjusted every 2016 blocks to ensure that a block is added to the blockchain roughly every 10 minutes.
To solve the hash function, miners use their computing power to repeatedly guess inputs until they find one that produces an output that meets the difficulty level. This process is known as mining. The miner who finds the solution first broadcasts it to the network, and other nodes on the network verify that the solution is correct. Once a solution is verified, the miner who found it is rewarded with newly minted Bitcoin and transaction fees.
The PoW system ensures that the Bitcoin network is secure by making it difficult for attackers to tamper with the blockchain. To tamper with the blockchain, an attacker would need to have more computing power than the rest of the network combined, which is known as a 51% attack. This would be extremely difficult and expensive to accomplish, making the Bitcoin network very secure.
Yes it's called proof of stake. But proof of stake isn't as reliable as proof of work that's where I was going with this.
"Precision beats power and timing beats speed"
I see trading Cryptocurrency as freedom, but Hodling alone and not trading is similar to Banking which is slavery, but then again im a bipolar autist...
Last edited by tripod; 04-28-2023 at 10:49 PM.
I think your point about valuation vs. price is spot on. Warren Buffett's quote nails it—it's all about what you're getting for what you're paying.
It's a hot topic, and there are valid concerns about its environmental impact and scalability issues. But here's the thing: while proof of work might not seem like the ideal solution for a currency's backbone, it's currently what's driving the valuation of Bitcoin. But here's where things get a bit tricky with Bitcoin: its valuation isn't solely tied to traditional metrics like book value or price-to-earnings ratios. The asic profitability miners plays a significant role too. So yeah, while I totally respect the value investing approach, navigating the crypto space requires a bit of a different mindset. It's all about understanding the dynamics at play and making informed decisions based on a mix of factors.
Last edited by EmmanuelPalmer; 04-10-2024 at 12:38 PM.
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