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Virtual currencies, Blockchain bitcoin
nipper
post Posted: Jun 22 2021, 09:55 AM
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In Reply To: nipper's post @ Jun 18 2021, 07:30 AM

Mick, there is more on this hero trade .... (no, I mean trade to zero. .... Actually, cannot trade, because it is ZERO)


Reasons to Avoid 1,2,3.
https://stockhead.com.au/cryptocurrency/fro...ject-collapses/



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jun 18 2021, 07:30 AM
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In Reply To: mullokintyre's post @ Jun 17 2021, 11:54 PM

Yeah, Mick, it seems to be the old axiom , if you don't know who the patsy is in the room, then it is likely it is you proving itself.

I think the art world got it right selling the concept of nothing , recently. Wasn't even heated air.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
mullokintyre
post Posted: Jun 17 2021, 11:54 PM
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In Reply To: nipper's post @ Jun 17 2021, 07:06 PM

Aahh, DeFi, another new buzzword.

It seems that DeFi may have just had its first "bank Run".
From Zero Hedge

QUOTE
Less than a week ago, billionaire investor Mark Cuban proclaimed:

"Crypto Businesses make more sense than you think and valuing tokens is easier and makes more sense than you think."

He may well be correct, but just a few days later, his investment in TITAN - part of a "multi-chain partial-collateralized algorithmic stablecoin ecosystem" from IRON Finance - has hit an iceberg and sunk like the Titanic.While this collapse is getting a lot of attention due to Mark Cuban's involvement, it is not the first of this breed of so-called algorithmic stablecoins to hit the wall.Rekt.com reports that the incident started when TITAN became overpriced, perhaps due to users purchasing the token in order to farm TITAN pairs at ~50,000% APY. Some large TITAN sales were made and the price became volatile, making investors nervous, and leading them to also sell their tokens.

The IRON stablecoin then lost it's peg due to TITAN dropping so rapidly.This created a situation in which users could now redeem a token worth 90 cents, for 75 cents of stablecoin and 25 cents of TITAN. An incredible arbitrage opportunity which required minting new TITAN tokens each time.

The market was flooded with freshly minted TITAN, and a panic sale began, pushing down the TITAN price and therefore making the IRON stablecoin lose its peg even further.

This vicious cycle could not be stopped until the $1 peg was regained.

Despite briefly regaining the peg, the huge amounts of freshly minted TITAN flooding onto the market caused the price of TITAN to drop again, the peg to be lost, and the arbitrage opportunity to open back up.

As long as IRON is not at peg, TITAN will continue to drop, and as long as TITAN continues to drop, IRON will not be at peg... and everyone ran for the door.

So, did you get all that? Read it five times and still not sure I got it right.
So many ways for shysters to make a buck by scamming the unwary.
Mick




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sent from my Olivetti Typewriter.
 
nipper
post Posted: Jun 17 2021, 07:06 PM
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QUOTE
Apollo Capital Fund, which invests in crypto assets: .... in the year to April 30, the fund was up 699.08 per cent, capping a solid few years since it was established in February 2018. Its two-year return is 924.21 per cent per annum, and since inception, it is up 362.83 per cent per annum.

How did they do it?
Henrik Andersson, .. chief investment officer of Apollo Capital Management, [said] the success of his flagship fund is because of an investment strategy focused on crypto's disruption of financial services.

We made two assumptions when we launched the fund 3 and a half years ago ..... One was that you need to be actively managed in the crypto space because it is a very inefficient space. The second one is a strong focus on an area within crypto called decentralised finance.
So those are two strong convictions we had ... and they have played out when we compare our returns to a passive index like the Crypto 20 index. We have vastly outperformed that index since inception.

When it comes to DeFi (decentralised finance), there is a greater understanding now that that is really where the value is captured outside bitcoin.

We have bitcoin in the portfolio, and we are strong believers in bitcoin, but the main value creation is happening in what we call decentralised finance, using blockchain technology to automate financial services.

Apollo Capital Fund is invested in several decentralised exchanges including Uniswap, Curve and SushiSwap. Andersson is bearish on one of the most popular alternatives to Ethereum called Cardano, a blockchain and smart contracts platform founded in Switzerland.

About 29 per cent of the fund is in crypto-smart contract platforms, 27 per cent is in decentralised finance, 19.8 per cent in cryptocurrencies as a store of value, 10.4 per cent in market neutral strategies through the Apollo Capital Opportunities Fund, 7.8 per cent is in exchange tokens, 5.5 per cent is in stablecoins and cash, and 0.5 per cent in futures...
https://www.afr.com/chanticleer/secrets-of-...20210616-p581kk




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
myshares
post Posted: Jun 15 2021, 05:48 PM
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In Reply To: mullokintyre's post @ Jun 15 2021, 09:19 AM

Mick

There are a lot of systems out there.. and the hard thing is to work through them all...

So much marketing both trying to sell their system or destroy others...

POW is not really scalable and that is really just BTC and ETH

ETH will go to POS

Both have secondary systems on top to speed up...

but I tend to view it as BTC, Platforms and Sh#tcoins

So many out there

We all have our favourites, but important not to throw the baby out with the bathwater

 
mullokintyre
post Posted: Jun 15 2021, 09:19 AM
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In Reply To: myshares's post @ Jun 14 2021, 11:19 AM

Perhaps Ms Warren (and a few others) needs to read A comparison of proof of work versus proof of stake
However, the one stumbling block in both systems, is the problems with scalability.
So many great ideas t hat work really well in proof of concept mode, fail when it comes time to scale them up to manage massive workloads.
Whether it be proof of work or proof of stake,l that hurdle still exists.
Mick



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myshares
post Posted: Jun 14 2021, 11:19 AM
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In Reply To: mullokintyre's post @ Jun 12 2021, 10:28 AM

and.. Warren doesnt understand Proof of Worth and Proof of Stake coins

as very different in terms of cost.

BTC and ETH are Proof of Worth.. (ETH trying to move)

DOT, HBAR and most others are Proof fo Stake

Proof of Stake is very very cheap

 
mullokintyre
post Posted: Jun 12 2021, 10:28 AM
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Us senator Elizabeth Warren, failed Presidential candidate, is one of those infuriating politicians for whom about 50% of her utterings, you shakes your head in wonder about the stupidity of the thing.
But for the other 50%, you say in varying degrees, I can't argue with that.
Her most recent railings against Bitcoin is a case of the latter.
From Wall Street on Parade
QUOTE
Cryptocurrencies have turned out to be a fourth-rate alternative to real currency. First, cryptocurrencies are a lousy way to buy and sell things. Unlike the dollar, their value fluctuates wildly depending on the whims of speculative day traders. You know, in just the last two months, the value of Dogecoin increased by more than ten-fold and then declined by nearly 60 percent. Now that may work for speculators and fly-by-night investors, but not for regular people who are looking for a stable source of value to get paid in and to use for day-to-day spending.

Second, crypto is a lousy investment. Unlike, say, the stock market, the crypto world currently has no consumer protection none. As a result, honest investors and people trying to put aside some savings are at the mercy of fraudsters. Pump and dump schemes are outlawed in the case of ordinary stock, but they have become routine in crypto trading. One study found that the level of price manipulation in cryptocurrency is and I quote unprecedented in modern markets.

And third, crypto has become a haven for illegal activity. Online theft, drug trafficking, ransom attacks, and other illegal activity have all been made easier with crypto. Experts estimate that last year more than $412 million was paid to criminals in ransom through cryptocurrencies. And unlike other payment systems that make it tougher to move money illegally, a key feature of crypto is its secrecy. So just in the past few weeks, cryptocurrencies made it possible for hackers to collect a ransom to release the Colonial pipeline hack and to free JBS, the worlds largest meat producer, from paralyzing cyberattacks. And every hack that is successfully paid off with a cryptocurrency becomes an advertisement for more hackers to try more cyberattacks.

Finally, there are the environmental costs of crypto. Many cryptocurrencies are created through proof-of-work mining. It involves using computers to solve useless mathematical puzzles in exchange for newly minted cryptocurrency tokens. Such mining has devastating consequences for the climate. Some crypto mining is set up near coal plants, spewing out filth in return for a chance to harvest a few crypto coins. Total energy consumption is staggering, driving up demand for energy. If, for example, Bitcoin just one of the cryptocurrencies were a country, it would already be the 33rd largest energy user in the world using more energy yearly than all of the Netherlands.

And all those promised benefits the currency that would be available at no cost to millions of unbanked families and that would provide a haven from the tricks and traps of big banks well, those benefits havent materialized.


The arguments could apply to almost all the digital currencies that exist that use mining and proof of mathematical concepts as validation.
However, there are others that do not require mining that also exist, and thus less likely to be blamed for the useless consumption of vast amounts of power.

As an aside, I was reading about the differences between mined versus non mined digital currencies (see Motley fool ), and read the following
QUOTE
Mining bitcoin requires specialized ASIC (application-specific integrated circuit) chips and massive servers, which can rack up expensive electrical bills. This means electricity costs come into play, which is a big reason China, a relatively low-cost country for electricity costs on a kilowatt-per-hour basis, is home to four out of five of the world's largest bitcoin mining farms.

I am not a big fan of the motley fool( just ask EB), so I often look for a secondary validation.
According to coinbase, the above statement may not be correct. It has a list of the 5 largest miners, and only one is in China ( see Coinbase
So much to learn about digital currencies, mining, distributed ledgers etc, and so little time.
Mick



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Said 'Thanks' for this post: neilo3  
 
mullokintyre
post Posted: May 25 2021, 11:55 PM
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There seems to be a few ducks lining up hat may put the brakes on various forms of cryptocurrency, some political, some financial, some moral.
But now a new problem has emerged distributed ledger type currencies.
Google has announce plans for a commercial Quantum computer by 2029.
So, what would that do for crypto currencies among other things?
From Mishtalk

QUOTE
Let's explore quantum computing, problems it might solve, and what it will do to current security protocols and blockchain.What is a Quantum Computer?

The New Scientist answers the question What is a Quantum Computer?

Classical computers, which include smartphones and laptops, encode information in binary “bits” that can either be 0s or 1s. In a quantum computer, the basic unit of memory is a quantum bit or qubit.

For instance, eight bits is enough for a classical computer to represent any number between 0 and 255. But eight qubits is enough for a quantum computer to represent every number between 0 and 255 at the same time. A few hundred entangled qubits would be enough to represent more numbers than there are atoms in the universe.

In situations where there are a large number of possible combinations, quantum computers can consider them simultaneously. Examples include trying to find the prime factors of a very large number or the best route between two places.
Since Google announced that it achieved quantum supremacy there has been an increasing number of articles on the web predicting the demise of currently used cryptography in general, and Bitcoin in particular. The goal of this article is to present a balanced view regarding the risks that quantum computers pose to Bitcoin.

All known (classical) algorithms to derive the private key from the public key require an astronomical amount of time to perform such a computation and are therefore not practical. However, in 1994, the mathematician Peter Shor published a quantum algorithm that can break the security assumption of the most common algorithms of asymmetric cryptography. This means that anyone with a sufficiently large quantum computer could use this algorithm to derive a private key from its corresponding public key, and thus, falsify any digital signature.

The prerequisite of being “quantum safe” is that the public key associated with this address is not public. But as we explained above, the moment you want to transfer coins from such a “safe” address, you also reveal the public key, making the address vulnerable. From that moment until your transaction is “mined”, an attacker who possesses a quantum computer gets a window of opportunity to steal your coins.

In such an attack, the adversary will first derive your private key from the public key and then initiate a competing transaction to their own address. They will try to get priority over the original transaction by offering a higher mining fee.

In the Bitcoin blockchain it currently takes about 10 minutes for transactions to be mined (unless the network is congested which has happened frequently in the past). As long as it takes a quantum computer longer to derive the private key of a specific public key then the network should be safe against a quantum attack. Current scientific estimations predict that a quantum computer will take about 8 hours to break an RSA key, and some specific calculations predict that a Bitcoin signature could be hacked within 30 minutes.

There's much more to the article including some advice for Bitcoin holders about public keys that needs to be addressed now.

But if quantum computers ever become fast enough, the security of the entire blockchain will melt down.

Deloitte notes the only solution is ‘post-quantum cryptography’ to build robust and future-proof blockchain applications.

That caution applies not only to Bitcoin but to any existing application that uses public-private keys.

How Does This Work?

Post Quantum Cryptography

Wikipedia has an excellent discussion of Post-quantum cryptography

One of the simple proposed solutions is to double the key size but there are practical considerations.

A practical consideration on a choice among post-quantum cryptographic algorithms is the effort required to send public keys over the internet.

The Open Quantum Safe project was started in late 2016 and has the goal of developing and prototyping quantum-resistant cryptography. It aims to integrate current post-quantum schemes in one library.

The Open Quantum Safe project currently supports 6 algorithms.

Beyond that, Forward Secrecy allows the use of one-time keys, generated at random.

Forward secrecy protects data on the transport layer of a network that uses common SSL/TLS protocols, including OpenSSL, when its long-term secret keys are compromised, as with the Heartbleed security bug. If forward secrecy is used, encrypted communications and sessions recorded in the past cannot be retrieved and decrypted should long-term secret keys or passwords be compromised in the future, even if the adversary actively interfered, for example via a man-in-the-middle attack.

The value of forward secrecy is that it protects past communication. This reduces the motivation for attackers to compromise keys. For instance, if an attacker learns a long-term key, but the compromise is detected and the long-term key is revoked and updated, relatively little information is leaked in a forward secure system.

Things may not be quite as simple as simply saying double the key size.


So, did you get all that??
Mick



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nipper
post Posted: May 21 2021, 07:52 AM
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Federal Reserve will issue report on US digital currency

Federal Reserve chairman Jerome Powell said the central bank will launch a centrepiece research paper this [Northern Hemisphere] summer on digital currency and seek public input, as he and his colleagues weigh how to proceed in this area.
"We are committed at the Federal Reserve to hearing a wide range of voices on this important issue before making any decision on whether and how to move forward with a US CBDC," he said in a statement on Thursday (Friday AEST), referring to central bank digital currencies.

The announcement, during a week of intense volatility in cryptocurrencies, marks a shift in momentum on the CBDC topic at the Fed, which until now has mostly been a technological research project at its regional branch in Boston.

Bloomberg

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Bitcoin on bitstamp.net +4.2% to $US$40,219.20
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endorsement or kiss of death?




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
 


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