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Invest in LTC and BTC!

Discussion in 'CryptoCurrency' started by Aerojh, Nov 30, 2013.

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  1. Aerojh

    Aerojh Newbie

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    So quite a few of you already know about the recent rates of bitcoin and possibly litecoin


    In this thread my goal is give you guys a full understanding of bitcoin and litecoin


    Now what are these terms "LITECOIN" [LTC] and "BITCOIN" [BTC] i speak of?


    [Short non-complex answer] in todays world LTC and BTC is a crypto currency that is not tied to any governments of the world, these 2 crypto currencies are typically used for purchasing illegal services/items on a part of the internet called the deep web. LTC and BTC are non traceable which are sent through "addresses" that look like this 1DFb9oG8PdQF9NJmpfEDoJJk15Z6HY2MJE






    Where can i spend these crypto-currencies?​
    Users typically spend them through the deep web where they can purchase illegal/items and services anonymously (you must be using tor to access the deep web)


    Is this Illegal?
    No


    How are bitcoins/litecoins created?
    *COPIED*
    New bitcoins are generated by a competitive and decentralized process called "mining". This process involves that individuals are rewarded by the network for their services. Bitcoin miners are processing transactions and securing the network using specialized hardware and are collecting new bitcoins in exchange.


    The Bitcoin protocol is designed in such a way that new bitcoins are created at a fixed rate. This makes Bitcoin mining a very competitive business. When more miners join the network, it becomes increasingly difficult to make a profit and miners must seek efficiency to cut their operating costs. No central authority or developer has any power to control or manipulate the system to increase their profits. Every Bitcoin node in the world will reject anything that does not comply with the rules it expects the system to follow.


    Bitcoins are created at a decreasing and predictable rate. The number of new bitcoins created each year is automatically halved over time until bitcoin issuance halts completely with a total of 21 million bitcoins in existence. At this point, Bitcoin miners will probably be supported exclusively by numerous small transaction fees.

    How does the crypto-currency obtain a value?
    Bitcoins have value because they are useful as a form of money. Bitcoin has the characteristics of money (durability, portability, fungibility, scarcity, divisibility, and recognizability) based on the properties of mathematics rather than relying on physical properties (like gold and silver) or trust in central authorities (like fiat currencies). In short, Bitcoin is backed by mathematics. With these attributes, all that is required for a form of money to hold value is trust and adoption. In the case of Bitcoin, this can be measured by its growing base of users, merchants, and startups. As with all currency, bitcoin's value comes only and directly from people willing to accept them as payment.


    Is this a ponzi scheme?
    A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money, or the money paid by subsequent investors, instead of from profit earned by the individuals running the business. Ponzi schemes are designed to collapse at the expense of the last investors when there is not enough new participants.


    Bitcoin is a free software project with no central authority. Consequently, no one is in a position to make fraudulent representations about investment returns. Like other major currencies such as gold, United States dollar, euro, yen, etc. there is no guaranteed purchasing power and the exchange rate floats freely. This leads to volatility where owners of bitcoins can unpredictably make or lose money. Beyond speculation, Bitcoin is also a payment system with useful and competitive attributes that are being used by thousands of users and businesses.


    Is bitcoin ran by a person?
    Nobody owns the Bitcoin network much like no one owns the technology behind email. Bitcoin is controlled by all Bitcoin users around the world. While developers are improving the software, they can't force a change in the Bitcoin protocol because all users are free to choose what software and version they use. In order to stay compatible with each other, all users need to use software complying with the same rules. Bitcoin can only work correctly with a complete consensus among all users. Therefore, all users and developers have a strong incentive to protect this consensus.


    Why is there a wait time when sending and receiving bitcoin/litecoin?
    Receiving a payment is almost instant with Bitcoin. However, there is a 10 minutes delay on average before the network begins to confirm your transaction by including it in a block and before you can spend the bitcoins you receive. A confirmation means that there is a consensus on the network that the bitcoins you received haven't been sent to anyone else and are considered your property. Once your transaction has been included in one block, it will continue to be buried under every block after it, which will exponentially consolidate this consensus and decrease the risk of a reversed transaction. Every user is free to determine at what point they consider a transaction confirmed, but 6 confirmations is often considered to be as safe as waiting 6 months on a credit card transaction.




    Buy BTC/LTC from:

    • https://btc-e.com/
    • https://www.mtgox.com/
    • https://litecoinlocal.org/





    SOURCES
    http://bitcoin.org/en/faq
    http://en.wikipedia.org/wiki/Bitcoin
    https://en.bitcoin.it/wiki/Main_Page




    Download Tor:
    https://www.torproject.org/
     
    Last edited: Nov 30, 2013
  2. Conor

    Conor Jr. VIP Jr. VIP

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  3. okiedokie

    okiedokie Regular Member

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    I think in near future Usa will find a way to link bitcoin to child pornography and terrorism and take some kind of action on it ..may be ban it in usa and asks other country to block it too ?
     
  4. PrinceVisi

    PrinceVisi Elite Member

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    LOL... Nice explanation.

    I am very confident that Bitcoins are widely used in the underworld right now.
     
  5. okiedokie

    okiedokie Regular Member

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    You know Libertyreserve got taken down , right ?
     
  6. 25aug

    25aug Regular Member

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    Failed copy&paste? I saw this posted on another forum, not sure if you are the same guy but if you are at least edit the original post it looks bad.
     
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  7. Aerojh

    Aerojh Newbie

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    it is me, yea i saw that it was mis formatted but it was late but now i fixed it
     
  8. accelerator_dd

    accelerator_dd Jr. VIP Jr. VIP Premium Member

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    I bet they are the only thing used right now! From what I have read, everyone is claiming they are the most anonymous payment process out there.
     
  9. phatzilla

    phatzilla Supreme Member

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    Too bad the price is determined by a single entity; MTGOX. And who the fuck are they, anyway?
     
  10. Herion

    Herion Jr. VIP Jr. VIP Premium Member

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    There is no way to "ban" bitcoins. They'd have to eradicate money laundering first (which is also impossible).
     
  11. Herion

    Herion Jr. VIP Jr. VIP Premium Member

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    The price isn't determined by MTGOX, it's determined by how scarce bitcoins are, and how much people want them. MTGOX is just a trading platform (so the prices listed on there are solely based on the average people are paying for bitcoins at that time).
     
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  12. phatzilla

    phatzilla Supreme Member

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    As a rough example, what happens if a wealthy person(s) decided to buy his own bitcoins at increasing prices through the exchanges? Nice way to artificially inflate the price, whats stopping these exchanges from doing the same? they know they have a huge position right now. And if you don't think the main exchangers haven't whored out to various authorities, then i don't know what to say. Let's face it, in terms of a legitimate alternative to fiat currency, bitcoin is a huge, volatile joke at the moment. Definitely tons of money to be made through unscrupulous means, though.

    [​IMG]

    Straight from their site, 4+ weeks for a wire transfer? Wouldn't be surprised if more than a few got 'lost' in the shuffle.
     

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    Last edited: Nov 30, 2013
  13. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    If someone buys a huge lot of BTC, price will go up, just like if someone buys a huge lot of USD, price will go up. Demand and supply 101, so what 's your point?

    Who told you exchangers are illegal entities or are expected to behave as such?

    edit

    Because the net is full of people screaming how mtgox lost their wire, right? And hey, it 's too hard to get your BTC and cash out elsewhere, right?

    Did you sell your BTC when price was at $1? :)
     
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  14. phatzilla

    phatzilla Supreme Member

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    No, it was around 150$ iirc, and i made a good ROI so i still stand by my decision. That 51% attack vulnerability also scares the hell out of me.
     
    Last edited: Nov 30, 2013
  15. phatzilla

    phatzilla Supreme Member

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  16. The Mentalist

    The Mentalist Power Member

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    BTC and LTC are great investments if you're looking for a quick buck.
    Not so great long term.

    The government will have to be able to dip its hands into BTC, with the current system it can't, the system can't really be adapted so they can. I see a crypto-currency in the future, but it isn't the current BTC or LTC system.

    The price of BTC is based on nothing but demand, that's a problem. The USD has a multi-trillion dollar infrastructure, economy, and many other things backing it up. BTC does not. So guess what happens when certain sanctions or limits restrict BTC use back to the black markets, and there's little to no potential of it being available for use by the public for every day purchases? Exactly.
     
  17. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    Not a problem at all, this is exactly why it 's valuable - demand and only demand defines price. Do you think that 21 million BTC limit was put by accident?
     
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