The Cryptocurrency and blockchain thread

Yeah I understand not being on anyone's server but cold storage in your own pocket doesn't cut it with the SEC from a fiduciary perspective. They require funds/managers/etc who own any financial asset on someone else's behalf to be subject to surprise custody exams or keep the assets with a qualified custodian.

Essentially a custodian is a disinterested party that meets pretty strict rules around internal controls over their processes and not allowing any other claims to the asset. You could tell two different people that the assets in cold storage are theirs and neither knows the wiser. They're an essential third party service provider to any financial firm in the developed and developing world. So the custodian keeps the assets in cold storage then they require consent from the custodian and the owner to move the assets. In liquid financial markets it's all automated these days.

I don't believe Coinbase has something on this scale. It's likely fine to use their digital wallet for the small amounts that any of us play with. They very well could tell you the key over the phone but that doesn't help move cryptocurrency towards a liquid, efficient market. The alternative procedure should come into play in an actual disaster, not just when there's too much load on the servers.

Any thoughts on 24/7 price movements? I think its a much bigger hurdle than custody.
 
multisig wallets and signed messages could be used for custodian stuff. This is obviously way over my head but this is one of bitcoin's strongpoints I think. The positivity of the asset. If you have your private key, you don't need coinbase at all. You don't need anyone. You can have several people be required to sign off on the wallet before releasing the private key. But knowing the public key, and being able to sign messages with it prove you have control of it, and the blockchain proves the amount stored.

I have thought about the 24/7 markets, it sounds bad for traders. But it allows traders around the world to operate at their own desired times.
I'm sure it's already created a bunch of insomniacs. I have the ticker running right now, not sure why. Just so I have more anxiety. But futures trading started a few hours ago and volume spiked so I was curious.
 
its a mess right now - can the uncertainty and confusion be capitalized upon? that is the question.
 
so signing messages is a cool thing. a use for bitcoin outside of money.
earlier today to enter a slack chat the password to get in was to sign a message using a bitcoin address that contained at least x bitcoin. This way it keeps out trolls and people with little involvement and newbies.

but this can be used anywhere. it it can all be done with an app and normal people wouldn't ever have to even know what bitcoin is.

Say you were having a party at a nightclub and JayZ is playing, you could send out a penny's worth of bitcoin to all of your friends. (but it's an app, so it's just an invite message).
At the door your app signs a message with the bitcoin received and this grants you access. The blockchain knows exactly what address were derived from you. You can view these addresses on the blockchain, but you can't sign messages with the public key. You need the private key.
But then you decide that your guests should be able to bring a friend. Your invite app now allows entry from address derived from the guest address too. So your friends could split that penny in half and invite a friend. You can then define amount of guests they can bring (the amount of splits of the original guest address)
Just scan the QR code on the way in and that's your party ticket.
Sounds pointless, you can easily make an app that does that without the blockchain. BUT by using the blockchain you can guarantee with the laws of physics and math that there were no forgeries, and there is no central server to control this, or make a mistake.
You could use this as access to rental cars, hotels, millions of uses.
Ether gets cooler with this with the built in programming. Inside of ethereum itself you can tell it that every time your guest splits the coin and invites someone in order to process this you'd have to send $100 back to the birthday boy. And no 3rd party is involved at all.
 
You have to keep an eye on the fees, they really add up. It cost funds to get the money transferred over to an exchange that converts usd to crypto (ie, wire fees), such as coinbase/gemini/etc, but most of those exchanges only have 2-3 coins........... then the exchange charges you to purchase the coins........... and then if you want to purchase altcoins, you have to send the coins to an exchange such as binance/bittrex/bitfinex/kraken/poloniex/etc, which costs more fees, and then finally if you want to purchase altcoins, you then have to exchange your btc for the altcoin of your choice, which are yet more fees.......ouch
 
Last edited:
oobaa47 said:
You have to keep an eye on the fees, they really add up. It cost funds to get the money transferred over to an exchange that converts usd to crypto (ie, wire fees), such as coinbase/gemini/etc, but most of those exchanges only have 2-3 coins........... then the exchange charges you to purchase the coins........... and then if you want to purchase altcoins, you have to send the coins to an exchange such as binance/bittrex/bitfinex/kraken/poloniex/etc, which costs more fees, and then finally if you want to purchase altcoins, you then have to exchange your btc for the altcoin of your choice, which are yet more fees.......ouch
Click to expand...

Sounds like the system it was touted to replace?

I actually would think the fees should be high with all the volatility right now. The exchanges can have a lot of risk hanging on to cryptocurrency.

And I just realized cryptocurrency sounds pretty much as stupid as whenever "cyber" is used. Bitcoin doesn't sound so dumb.
 
oobaa47 said:
I believe for coinbase it's 1.5% if you're converting fiat to crypto, and also 1.5% to convert it back....
Click to expand...
You can get around fees by buying through coinbase's sister site GDAX with your coinbase login, and using limit orders.
Sending your money to/from a bank still has fees you can't excape.
 
absolute chaos, and I was sitting at my computer to watch it. Coinbase/GDAX announce BCH trading and BTC goes into anarchy. It was bouncing around like crazy. I wanted to buy the dips but I was afraid, so tried to time a sell at the top to follow with a buy at low, but I aimed too high. Dumbass me picked a round number. It only lasted a few minutes and it's normalized again now. Most of this I think is caused by GDAX's servers crashing so I'm not entirely sure how to read that volatility.
 
caused the alt's to go bananas too. I assume there is a different tax implication if I swing trade by going BTC-ETH-BTC for a profit vs BTC-USD-BTC ?
There's some uber sketchy alt that's tied directly to the USD that people are using for this. Seems suuuuuuuper dangerous to play with that fire.
 
StayHydrated said:
Freedom from the Federal Reserve? And they don't like it?
Click to expand...

do stock rules apply? it isn't a stock. can i go in/out without restriction?
since one must self claim any gains, how is it done? fifo/avg/lifo ? pick one, stick with it?

why is a currency being traded like a hot stock, when in theory it is a precious metal - although in any apocalyptic event,
the btc aren't going to be worth the bits they are stored on (in? by?) -
 
I see it as digital gold, but I guess this year we'll really figure out what the IRS wants to call it.
 
You must log in or register to reply here.
Back
Top Bottom