Is Bitcoin dead now? Mining it is more costly than the profit?

Bitcoin isn't made for making easy money with mining. And mining being costly doesn't impose any threat to Bitcoin, this just adjusts markets. The amount of security in petahashes are enough to keep network running secure for billion users even in case if 95% of miners disappear due to insolvency. So, the network itself is well-protected. While the easiness of making money isn't promised & isn't the philosophy of the Bitcoin concept. Forget about mining. Think about technology. Bitcoin is a scarce digital asset. Bitcoin is unforgible asset. Bitcoin can't be created out of thin air. Bitcoin can be transferred instantly. With no fees. Around the globe. Without banking hours. Without waiting lines of humans, or lines of documents. Without any permission from anyone. Without control. Without borders. Secure. Decentralized. Only 21'000'000 will exist ever (never ever more) - its strictly scheduled & strictly specified by protocol. The whole Bitcoin right now absolutely not depends from mining concept, because AISCs are powerful enough to be collaboratively more secure than any supercomputer in the world, even if minority of ASICs will left.

No one can freeze your funds. No one can confiscate anything. No debts. No minimum balance. No maximum balance. Open your wallets within seconds or even milliseconds. You can even create your wallet in Bitcoin by calculating it on 1980 TI-89 calculator - and this kind of wallet will be way stronger than any existing 1950 credit card system.

Choose the Bitcoin. Choose the future. 

Read More

Bitcoin Restriction

ChipArgyle >  As demand increases, the servers will create new Bitcoins 

Its not true. That's a myth. Every "Bitcoin-server" is running on Open Source software with open code. And every "Bitcoin-server" has hard-wired VERY STRICT restriction on how much there's gonna be Bitcoins.

Moreover this restriction is SO PRECISE that I can say exactly how much there will be Bitcoins in the world 10 years from now, how much Bitcoins there will be 20 years from now and so on. See for yourself:https://en.bitcoin.it/wiki/Controlled_supply

You can read about this restriction in many sources, and probably you already heard so many times "There's only 21 million of Bitcoins", but perhaps you were to busy being angry on Bitcoin that you skipped that part.

> There's no reason for that not to happen, because they're arbitrary items that have no inherent value.

The whole invention of distributed databases (blockchain) would be useless if this restriction rule would be impossible to enforce.

The whole idea of Bitcoin as a currency would be really silly, and I would sit here all days long explaining to strangers why it is so.

The whole idea of Bitcoin as a currency would be really silly, if any government easily could manipulate any even random account.

Bitcoin is the revolution. And Bitcoin is so great just because we know how much Bitcoins there will be EXACTLY.

For the cases of more density of wealth concentration within Bitcoin ecosystem there's opportunity to divide 1 bitcoin to 1 million bits, or to 100 million satoshi.

But when you divide Bitcoins it doesn't mean that you're printing new Bitcoins, you're just having system where less and less Bitcoins needed to represent wealth.

Read More

Blockchain could be used to make stealing anything 100% not interesting.

Robbery is a big problem for many things, that's why such expensive things as cars are registered in government agencies.

Throughout the history governments around the world proven, that they can't protect things from being stolen. Robbery still exists.

What if I told you that blockchain holds promise for perfect ownership proving & transferring mechanism?

What if every bicycle would have encrypted public key manufactured into each detail? What if the public keys are will be engraved the way it would be really hard to counterfeit? (E.g. let's say its bicycle - you just engrave your public key in many places on the most important parts of bicycle frame).

When you purchase your bicycle, store sends 1st transaction to main public key of bicycle. Within transaction the store includes public key of new owner. Next time owner wants to sell his bicycle, he can broadcast 2nd transaction to the main public key of bicycle.

What task blockchain solves in this scenario? In this case blockchain is used as a ledger for registering ownership.

The most awesome thing is that while government itself can't register things smaller than cars, but with blockchain you can register within such blockchain such small things as even pencils, pens, computer mouses and keyboards, etc.

If every pencil, every hard disk, and every stuff in everyone's house would be marked in blockchain, then I doubt it will have any sense to break into house and take anything, because person who steals it, can't sell it without your permission, because you're the only one who hold your private key of last transaction in public key specified on that item.

And even if you lost your item, someone who found it can contact you by sending contact message on public key specified on that item.

Read More

You can send your Bitcoins to dead human (if dead human kept his private key in brain)

Basically this is serious topic, I bear in mind 4 goals -

1) I've heard about traditions where people are giving people some gold, some cash after someone is passed away. Does that virtually could become valid tradition once cash is replaced?

2) How about ethics? On the one hand its the common process (just burning Bitcoins the way its done in OpenBazaar), but on the other hand - what's gonna happen if a lots of cultures will adopt this? Can we statistically run out of Bitcoins if every person on the earth will take their Bitcoins to the heaven?! (i.e. transferring Bitcoins to God). And by the way, if burning Bitcoins is transferring them to God, maybe logically its the only legal form of paying that 10% tithe? (Don't offer attaching those tithes to sidechain because its again transfers money from poor to wealthy)

3) What if dead person somehow is going to use his Bitcoins on heaven? Does that means that relatives will automatically get psychological trauma?

4) I personally believe that dead people can move their funds from heaven. I'm just talking spiritually. For example do you think it will be ethical to program my wallet to deliver different kind of goods to alive people and freaking them out? Actually this is going to be my last question - e.g. if I have 1 million dollars in my wallet, is that a good budget to freak out remember about me everyone who knew me? What ideas do you have to freak people out? (E.g. I can setup programming platform which can send messages over social network on event of my death, e.g. I can send messages like "Hi, this is John, I'm writing you from heaven, there's a new movie called <PARSED_INFO from MOVIES_WEBSITE> are you going tonight? Here's the tickets I bought for you and Lucy using my Bitcoins, meet you there!"

What kind of automatically setup services would freak you out the most? I want to pay for this stuff! Isn't it nice if your Bitcoins keep you in your good shape after you dead? :D

Read More

Bitcoin Bandwidth Scalability

Bitcoin generates more transactions per each customer. So fake numbers can become real for Bitcoin once it will gain mass adoption.

* Bitcoin should be used for microtransactions like 1 cent & should be free.
* Every person should have access for sending 1 cent even 1000 times per day
* Every teapot, every door, every dancefloor & every living & non-living creature must have a BTC address. No doors should be opened without BTC & no device should be used without BTC micropayment.

1TB per day is pretty possible scenario in case of worldwide adoption. Bitcoin is useful because you can microtransact with it.

But you won't have to worry if Bitcoin scales to this point if you're not willing to become Bitcoin core developer, because even if Bitcoin lacks some bandwidth, I can spend my Bitcoin to purchase that bandwidth. & if that bandwidth is expensive, at the time it will become mainstream, it will be possible to be covered by microtransactions.

So - more microtransactions means more bandwidth. More microtransactions is a luxury. Each small microtransaction uses bandwidth & each bandwidth are just an infrastructure. And infrastructure is just a one-time payment. If its a one time payment, that means that microdonations can easily cover that type of expense.

So problem here is not Bitcoin. Problem here is how do we scale the Internet to 1TB per day. I want access to 100 TB per day already now for making my city rich of Bitcoin microtransactions. I'm ready to pay this price even if its really expensive price. & I am getting my fiberoptics ready now, because I'm a qualified network engineer. I can find relatively cheap ways to scale to 1000 TB transactions per day. So don't worry about me or bandwidth. Do your own job, I will provide the rest.

I don't care how much space or electricity will be consumed for making sure the freedom for generations to come.

Read More

I was an iOS user. But when Apple banned Bitcoin, I destroyed my brand new iPhone (I still haven't accomplished paying credit payments 11 months after that). And that was a sacrifice & promise for never coming back to Apple the system I loved the most, because that made my favorite Bitcoin apps unavailable for few months.

I loved Apple when there was a Steve Jobs. Without Steve Jobs, Apple is just a corporation who's sucking the blood out of everyone by their tyranny. They are going to fall upon their own weight (they don't even let you downgrade to OS version you like, there's growing numbers of dissatisfied customers with new iOS)

And you are must be blind if you're building your future only upon iOS. You're blind because you're under control, because they can make your phone useless whenever they want just by pressing a button. That's kind of the prophecy of the Bible - and if you look closer - that is exactly 666 mark which tries to block Bitcoin out of its existance & slowing down the information for being propagated over the network for truth.

This shouldn't be so easily forgiven. I was true Apple fan & never thought that I'll ever change my attitude. But THIS happened and I REMEMBER.

If its not Open Source, its not your phone.

I don't use Android & don't like it either - I still love iOS, but can't use it, because I don't trust it anymore & it goes against my ideology. I don't buy Android phones & use dumb phones just because last Android phones I tried wasn't useful for me at all: Samsung Galaxy S2, then new one: Xperia Z. Right now I have some HTC One S - I didn't used it for 2 month, I think its battery should be dead by now.

& Since non of those phones fit my requirements (only iOS fits) - now I have to wear a Eee-PC Laptop with Windows XP installed & with 2 batteries, which the only reminder of a mobility I had with iOS. It can't replace iOS mobile phone, but that's easier than using HTC One.

Read More

My user experience with Bitcoin

I know about Bitcoin for 3 years & experienced user myself. I never been in U.S. so I still don't know anything about purchasing Bitcoins in U.S.

In Russia my own user experience was never bad. Once I learned about LocalBitcoins every transaction went smoothly (LocalBitcoins take 5% for exchanging on each transactions on Russian markets - fees are high, but I always buy any amounts of Bitcoin very smoothly).

So no troubles buying Bitcoin in Russia.


My family isn't experienced with Bitcoin at all, but they are ready to follow any technical/banking steps I provide.


Few months ago my sister wanted to sign up with CoinBase & she even deposited her $30 or $50 to her account in U.S. dollars. She lost her money, because she already don't remember what email assigned to her coinbase.

She told me that it took 3 days to confirm her account, and once she confirmed it... They asked her to wait another 3 days.

Yeah, maybe it was all her fault, because she never stores passwords properly, sometimes I feel she's losing her passwords all the time on purpose.


**This time we got simple task**: I needed my family to transfer me some $100 and I refused receiving any Western Union transfers - and now we think together about how to convert their paper dollars in Bitcoin. So yeah, basically I'm trying to survive in Russia only on Bitcoins. There's no problem in Bitcoin withdrawals in Russia. Huge challenge is teaching my family to use Bitcoins smoothly. My sister finally got computer which supports TeamViewer & I can even remotely connect to their system, but its gonna be hard for me to learn all the banking stuff about U.S. Next week they will need to send me small payments.

3 days ago we tried to sign up with Circle. I remotely connected to their computer using TeamViewer, first time we tried to sign up using sisters identity.

My sister received email from Circle saying that she can choose "passport, driver license or some 3rd document I don't remember the name of it" - since my sister have only social security & green card (she's not a citizen yet, some 3rd document isn't available for her).

So somehow we stuck on NetVerify process on circle.com because my sister wasn't unable to confirm her identity with circle.

Since my Mom's more careful with documents, we tried to sign up on Circle again but now we started the other account.

And this time we was ready for NetVerify. But we didn't received any letter from NetVerify during the sign up. I really don't know why! 3 days ago we wrote Circle's technical support with question "Why we don't receive NetVerify", and now they're not responding!

Its the 4th day since we signed up & when we try to "Add funds" from Mom's account, Circle says "Your credit card is in process is being verified blah-blah-blah"

Today we've got plan to try register account on CoinBase for mom. Because I'm already delayed my payment for landlord & miss that $100, and soon if we won't find some solution, I'll have some problems. Don't try to recommend me Western Union or any fiat exchange, I hate them.

We're already waiting for opportunity to use Bitcoins for 4 days, and it seems like we will have to wait another 3 days, because my mom just registered on coinbase, and we just figured out how to sign up with my mom's online banking which can't confirm instantly, so we have to wait another 3 days for deduction to appear in her banking statement.

We tried also signing up on BitStamp, but I don't understand how to use it! So here's the results:

- We tried Circle. Can't use it due to their customer support ignoring (we received 0 emails for 4 days)

- We tried CoinBase. It never confirms instantly, always asks to wait 3 days (and even this process doesn't guarantee that I will have money 3 days later). My Mom is using mountain america bank.

- We tried BitStamp. I think this exchange service works only with EU.

- We tried LocalBitcoins. Its frontpage says something like this "This web-site doesn't works in Germany" (whaaat? we're trying to access it on U.S. computer from U.S. IP address, even whatmyipaddress says that its Utah IP address!). LocalBitcoins, WTF with your geolocation?




Now we're trying to transfer those $50 which my family got. My sister is keeps annoying me with "easier fiat way", "she's ready to pay fee to Western Union" but I'm saying that I'd rather not accept any money & starve to death here (already went into some problems, but I'm fine).

So I need some more web-sites & recommendation. Where it went wrong? Why my family can't deposit their dollars to Bitcoins for 1 week?

But most importantly:

- Since U.S. got wrecked chargeback system & stewpid credit card, checking system - what are alternatives? LocalBitcoins.com doesn't works! My sister lives in Provo, so she can visit someone in Provo if they accept cash, is there other classifieds web-site except for LocalBitcoins for meeting for cash in-person?

- Except for Circle, Coinbase & BitStamp, is there any approved exchanges which doesn't steal credit card identities?

- What are more safe alternatives in U.S. to fix our problem? (We can't afford losing our last $50)

Read More

Fear to talk about Bitcoin

I knew about Bitcoin 2 years ago. But I was afraid talking about it to my sister, because I thought that girl will never understand Bitcoin. Then I found out about Julia Tourianski, and then in 1 video she quoted Brigham Young: “You educate a man; you educate a man. You educate a woman; you educate a generation.” ― Brigham Young

In other interview Julia Tourianski was speaking to Jeff Brunswick - and in that interview http://www.youtube.com/watch?v=mp6C4g23uYo she explained why its important to talk about educating Bitcoin to woman - Jeff even said that its the most useful thing you can do! That's what moved me to talk more about Bitcoin. Without this interview I would be very silent & would never care to spend any time to share technology because I usually don't like wasting time.

Read More