Question about Bitinstant -> Bitcoin Address : Bitcoin

A step by step guide for newbies who want bitcoins anonymously.

This may be a long post, essentially I just thought it would curb a lot of the questions around here about how to acquire BTC. So here goes:
  1. Go to www.bitinstant.com
  2. Select cash to bitcoin address
  3. On your SR account, under "account" (on the top bar beside messages and orders) there should be a BTC address in green characters. Copy and paste that as the bitcoin address to send your BTC to on bitinstant.
  4. For your notification email they ask for on the bitinstant website form, use a tormail account for anonymity. This is free and super easy to set up. I use squirrel mail as it is the most basic. sign up here: http://jhiwjjlqpyawmpjx.onion/ and for the other info (name and DOB) make it up. but use the same fake info when you actually deposit the cash. I used my fake ID's info (I have a PA ID that I got from ID chief before he was shut down, so i use that info)
  5. After you fill that out, it will send you to zipzap. Follow the basic instructions there and use your real zipcode to find places close to you that will allow you to do this transaction. I chose CVS.
  6. follow the rest of their instructions and make sure you print out the pdf with all the information (account number and code and such). take this form with you to CVS.
  7. Go to the customer service department (or photo department lol this is where the moneygram stuff was when I went). Just pick up the red phone and listen. You will be asked an address, name, and phone number. SAY YOURE PAYING A BILL. I think they say "press 2 for bill payment". Press that. Then just follow the instructions on the phone and such. About the address and shit: Just give them any address and zipcode, same bullshit with the name. Any name will do (try and make sure it matches the fake one you originally used on bitinstant though just in case), and say you chose not to give your phone number.
  8. They will eventually tell you "you are paying a company (zip zap) please go to the counter and tell them your name and that you are paying a company"
  9. go to the cashier and tell them you are so and so paying a bill/company with moneygram and they will confirm the amount of cash.
  10. after you give them the cash, you will be on your way! :) It should take a bit for the BTC to be confirmed.
GENERAL INFO: Bitinstant will give you a specific amount. i.e. $242.97 and you MUST have exact change when you pay.
Make sure you have enough. There is a 4% fee plus zip zap takes like $3.99. So to be safe, deposit 10% more than you need. I made this mistake yesterday lol. For example: you want $250 in your SR account. Deposit $250 + 10% ($25) so you'll deposit $275.
If you go home and would like to see where your BTC currently are, take your SR address (or the address you sent to) and search it on www.blockchain.info and when that address has anywhere from 7-10 confirmations, it should appear in your SR account!
It should take about an hour or two from depositing until the time when you have BTC in your account. Happy shopping :)
If this guide sucked, I'm sorry. lol. I tried.
submitted by antoniomontana to SilkRoad [link] [comments]

A Step-by-Step Guide to Creating an Anonymous Wallet for Covert Practices

A Step-by-Step Guide to Creating an Anonymous Wallet for Covert Practices
With the recent Bitcoin “bubble” fiasco and the subsequent rise and fall of Bitcoin value, it seems that this subreddit has become obsessed with making money. But get-rich-quick schemes are not at the heart of Bitcoin. Instead BTC should be seen as a way to keep Big Governments and Big Businesses from knowing how much money you have and what you choose to spend that money on. As a currency, it doesn't matter how much the value fluctuates if you plan on spending your wealth on sites like the Silk Road and etc.
(OK, maybe it does matter a little bit if the money you spent yesterday is worth twice as much today; but this guide is for spenders, not hoarders. Or at least for hoarders who also like to spend.)
Let's discuss my favorite attribute of the Bitcoin protocol: anonymity.
Many noobs getting into the Bitcoin game fail to realize that anonymity is an important key to understanding the importance of Bitcoin. In places where your wealth can easily be taking away from you (see Cyprus, Russia, China, the USA and others), Bitcoin can function like a store of cash buried in a dessert in the middle of nowhere – buried so deep that nobody can find it, not even the most powerful men and women on Earth.
POINT: If you are purchasing your Bitcoins through services like Coinbase or Mt. Gox, and if you've ever given your real name and bank account information to a Bitcoin Exchange, then you are NOT anonymous. Your Bitcoins can be traced back to you. Your purchases are recorded in the blockchain, and although it's difficult, it's certainly not impossible for those with the knowhow to find you and prosecute you. See this link before continuing.
Bitcoin is not inherently anonymous. You must take steps to protect yourself in order to keep your identity a secret. And even still, if you don't know what you are doing, you run the risk of being caught. So if you care about hiding yourself and your money, I offer this guide as a way to accomplish secret purchases and covert trades. Of course I cannot guarantee you won't end up in jail. At the end of the day, nobody knows how closely governments are tracking BTC purchases over the TOR network. Some people even believe that the TOR network was created by nefarious forces. I doubt it, but you never really know.
STEP ONE: Anonymous Hardware
Because you cannot really know whether or not you are being watched, your first step in creating an anonymous wallet is to protect yourself by buying a cheap laptop computer and removing the hard-drive. Really, who needs a hard-drive anyway? Toss it in the garbage.
STEP TWO: Anonymous Software
If you don't know how to download a Linux LiveCD, then stop reading now. You are probably not skilled enough to protect yourself anyway. If you don't know how to download a Linux LiveCD, then proceed with extreme caution; downloading an ISO file and burning it to a DVD is pretty damned easy. Easier than anonymity. Those who refuse to learn are at risk.
It's arguable which software you should use, but I recommend connecting to the TOR network using TAILS, a live DVD or live USB that aims at preserving your privacy and anonymity. TAILS helps you to use the Internet anonymously, leave no trace on the computer you're using, and to use state-of-the-art cryptographic tools to encrypt your files, email and instant messaging.
ProTip: For an extra layer of protection, download the ISO from your local library's computer. Or while you're sipping a mocha at Starbuck's. Then burn it to a DVD and take it home. Place it in your crap computer (the one without a hard-drive) and turn it on. Enter the BIOS menu and boot from CD if your computer doesn't do it automatically.
DO NOT CONNECT TO THE NETWORK FROM YOUR HOME.
I repeat, for an extra layer of security, DO NOT CONNECT TO YOUR HOME WIFI USING TAILS IF YOU WANT TO DO SHADY THINGS. That's just common sense. TAILS itself isn't illegal. But if you're the type to do shady things, you don't want to practice on your home Wifi, which you probably pay for with a bank account or credit card.
After you've spent a day or two using TAILS and familiarizing yourself with the LinuxOS, and once you feel comfortable enough to continue, then head back to your local Starbucks, boot up the LiveCD, and connect. Browse the TOR network and triple-check that you are protected. You can do this by checking your IP address for DNS LEAKS. Only if you feel comfortably hidden from prying eyes will you want to continue.
STEP THREE: Creating an Anonymous Wallet
There are several different ways to to this, but the easiest way is to use the code at bitadress.org. Thanks to SpenserHanson for creating this thread which describes the process in detail:
  1. Save bitaddress.org.html to your computer
  2. Close browser.
  3. Disable computer Wi-Fi.
  4. Open bitaddress.org.html in browser.
  5. Generate an address and record the private keys.
  6. Close the browser window.
  7. Go home. Think about what you are about to do.
STEP FOUR: Funding the Anonymous Wallet
Funding your wallet will be the most difficult part of this process. Obviously you don't want to go to a site like Coinbase or Mt. Gox and link up you bank account, then start sending coins to your anonymous address. That would be stupid. Very stupid.
Probably the best way to get coins is to know someone who is willing to send you a few, but even then you lead a trail back to your friend.
My suggestion is to make cash deposits through ZipZap or Bitinstant, and give them false information (for example, use the new email you created, over the TOR network, from a site like Hotmail or Yahoo, which doesn't require a phone number to sign up – I'm looking at you Gmail. Make sure your new account forwards your email to yet another account, perhaps Tormail or a temp address. You probably won't need to use the email more than once anyway, for confirmation, if you need it. And you might want to create a new address with every deposit, just to be safe). There are other options of course. Some companies will sell you Bitcoins anonymously through Bank of America cash deposits. But remember that the moment you walk into a Big Bank and give them money, you are caught on camera. Maybe offer a homeless man some money to make the deposit for you. And hope he doesn't just pocket your money. Regardless, you want to stay away from Big Banks if you can. It really isn't that hard.
If you absolutely must make deposits from your bank account, you could send your coins to an anonymous online wallet first and then to cold storage, but make sure to use several mixing services over a period of several days. And then have trouble sleeping at night.
Another great idea is to use the localbitcoins website; meet with a seller locally; pay cash and GTFO.
STEP FOUR: Spending from the Anonymous Wallet
If you are looking to CASH OUT, there aren't many anonymous options besides meeting with somebody and selling face to face. You could always sign up for your own account at localbitcoins, then hope a buyer contacts you. But this guide isn't about making money, it's about spending your coins.
To buy things, you'll want to go to back to the library, connect through TAILS, download a lite client like Electrum and access your account. Every time you want to spend, you will have to re-download, but it should not take more than a few minutes. And though you are probably safe enough to spend directly from the client, if you really want to be safe you should send the funds to a second wallet though a mixing service, then to a third or fourth or fifth wallet, also through mixing services. These “Mixing Wallets” should NOT be created using the TOR network because the TOR exit node may be monitored. I've never had a problem myself, but it's theoretically possible that an attacker could record the password/private keys for the hosted wallet and steal your coins. Which is why you should NEVER USE THE SAME ACCOUNT TWICE. And never access your cold storage wallet through the net. That would be very very bad.
To created the mixing wallets you will also need a way to hide your identify without using TOR. The best way to do this is to sign up for a VPN service though a public WiFi hotspot and then pay in Bitcoin. The best service I have found is called Private Internet Access. You can access their service through a public computer, connect to the VPN, and voila, you now can safely create mixing wallets without exposing your password to the open network. Make sure that after you mix the coins you send them all to a safe, final address, which will be your Spending Wallet.
Remaining anonymous will cost your some time and money. With each transaction you're going to have to pay for mixing, and also the transaction fee. And setting up a new email and a new account with every transaction (so that you can spread the coins across multiple fake accounts) will be bothersome but worth it in the long run. You can't put a price on piece of mind when it comes to your safety.
REMEMBER Your Spending Wallet should not contain all of your funds. The bulk of your coins should be address you created using bitaddress. Never trust an online service to hold the bulk of your funds. The recent hacks have shown that the best place to store your private key is in your head.
Final Notes:
The Bitcoin protocol itself is not anonymous. And theoretically it's possible to trace every transaction back to you. This is why you need to use fake emails, many multiple addresses, and a VPN service with heavy encryption. Even with the knowledge and the technology to map the blockchain, the FEDS will have a hell of a time tracking multiple address though VPN tunneling back to a cold storage wallet that you created offline and only use to send coins over TOR. There are just too many roadblocks. Of course nothing is impossible. But I sleep very good at night knowing that my door is not going to be kicked in by the Men in Black. And even if you're not doing anything illegal, this sort of behavior is certainly suspicious.
If you were lucky enough to receive a tip from Reddit's own bitcoinbillionaire (I myself was not) and you haven't cashed out. Create a VPN-tunneled throwaway account and tip yourself before claiming your coins. Then send them through a mixing service and to your cold storage address. Now you're on your way to being an anonymous spender.
I hope this guide helps. I really do. The purpose of Bitcoin isn't to make money. It's to protect the money that you already have, and to protect your identity in places where your identity is compromised. Everybody in the world wants your money, especially the richest of the rich. You ought to do everything you can to keep yourself safe. Especially if you live in a compromised geography.
TL;DR: Go directly to jail. Do not pass Go. Do not collect $200.
EDIT: Some typos.
submitted by anon_spender to Bitcoin [link] [comments]

I am traveling and am in a city in Brazil. My only credit card got cloned. I have bitcoins. How can I use them to get my hands on some fast cash to buy food, etc?

This is a real situation. I only have about $75 in cash, but have a few thousand dollars in bitcoin. I'm in Manaus (a city in the middle of the Amazon). I was wondering if anyone knew how I could quickly convert some bitcoin to the local currency (Reals). I don't mind a fee, I would even use Western Union if there was a quick and easy way to do it.
edit: I'm still looking for the best way to get some local currency. So far this is what investigating has lead to: There are a handful of services that will do it, that are so small that I would actually be more likely to trust a redditor with a decent account history. (https://www.ecurrencyzone.com/ would be an example of someone who provides the service, but does not inspire confidence).
One guy (Talan_Sun) started up an account to respond to this offering to send me money and then I send him bitcoins in an incrementing spiral, until I have the full 2k. Seems weird, but, well, he'd be taking the risk if he really did that, so it seems like an okay offer, although quite a long way to do it.
The best redditor offer that I will go for if a company does not work out is Julian702 in the comments here. He seems like a nice guy, and has a good reputation with people vouching for him. This is more confidence inspiring than those shady looking websites set up to do it.
Right now where I'm at is that I contacted BitInstant asking if they could help, using their form, and they did not respond. But now Erik with a @bitinstant email address shows up in these comments and says to contact him if I still need the money. So I'm doing that, and depending on what happens there, I'll go with Erik from BitInstant, and if not him, then Julian from the comments.
edit2: Just had breakfast. Another $8.50 gone.
Final edit: Although the reddit community and individual redditors were greatly supportive and awesome in general, there were no really clean and sane ways to do it. Nothing that didn't either take a long time, or involve trusting an internet person with the entire sum of money. In terms of risk, I really would trust someone with a good reputation with a couple of k in a pinch. But really I thought there'd be a simpler way to do it. Give someone bitcoins, then they send you money. That doesn't seem that hard. But on that same note Western Union and MoneyGram would not allow me to make a bank account deposit to myself, and then pick it up at one of their offices. So who would've thought getting your hands on some some cash when you have money would be so hard?
What ended up seemingly being the best and easiest solution was using MasterCard emergency services. They can get money into a bank account within a few hours, and can provide an emergency card which will be valid for 3 months or so within a few days. So this is the kind of service a huge corporation will provide you when they take so much our money for providing a non-service, that they don't know what else to do with it. Ah well, it gets me out of a pinch, anyway.
submitted by feelix to Bitcoin [link] [comments]

Why would an average person actually choose to use Bitcoin?

(Cross post from https://bitcointalk.org/index.php?topic=131154.0) That is a question that I come across quite often. For example,
From: Cardiovorax
I understand all the ideological reasons for why someone might want to choose Bitcoin. Most of them are fairly crazy, but at least they're there. What I don't get are the practical benefits, why an average person would actually choose to use them. If you aren't worried about the government or the banks or planning to get rich quickly 2140, then what can Bitcoin actually do for you? That's the part that nobody has really managed to explain so far in any of the threads, at least as far as I can remember.
To be fair, we understand the currency, it's inner workings, and thus its potential quite well, but while we profess how great it is, with $'s and stars in our eyes, we likely forget that the people we are talking to don't know or understand everything that we do. So, I think we should come up with some examples that answer the question of "why would an average person care" (or re-paste them from older necro threads). Here are some of mine:
1) It lets you send money overseas cheaper than using a bank wire (FIAT > BTC > BTC > FIAT has way better fees and exchange rates than bank wire, Western Union, etc).
2) It lets anyone open a virtual bank account without needing access to a physical bank. For example, some banks charge fees and require minimum balances for accounts, which may be prohibitively expensive. Some areas around the world don't even have banks other than in far away big cities. And in some cases, it's easier to just create a new Bitcoin wallet to store money in, than it is to drive down to a bank, fill out forms, come up with profs of ID, wait days for them to be verified, and another week for your account to actually be ready to use (especially if you're looking for a small business account).
3) It lets you accept payments online easily and way cheaper than with VISA, PayPal, or other such services. Heck, you can even just get a bitcoin address from MtGox or any other exchange, set up your account to instantly exchange any received BTC for local currency, and you're done.
4) It lets you accept payments over e-mail or any other service that can transmit text (even photos, as seen on girlsgonebitcoin). Some sellers may not have the means to build a website, but can still send out an invoice, asking to send payments to a specific address. (i.e. someone living in a poor country who only has access to an internet cafe, or someone who just doesn't have web skills).
5) It lets you accept tips or donations using any website. You can upload videos to YouTube, photos to Flickr, posts to a blog, music to Soundcloud, art to Deviantart, or comic strips to GoComics, and to accept donations all you need is to include a string of text in the description. No need to set up any money-accepting plugins, set up any bank or financial accounts, or rely on features provided by the service being used.
6) It lets you send money to places where PalPal or other money transmitting services are blocked, for example Russia or India, and is much cheaper for sending money to family in other countries. Even if that country they can't send money to is US, as in the example of the parents in Iran sending $2,000 to their college student son living here.
7) It lets you send huge sums of money overseas quickly and cheaply. If you were in US and you needed to pay $1,000,000 for a shipment from China, using normal methods of wiring money would take two or more weeks, and will cost more than $25,000 for the transaction. With Bitcoin, it takes a few hours, and costs $12,000 or less.
8) It lets you send micropayments better than anything else out there. It's easy and practically free to send $0.01 to anyone else using BTC, but would cost about $0.25 for just the fee to use the USD/EUR system. Any micropayment system that uses USD/EUR would have to sit on top of a larger system that stores all the money in a single large account, and all micropayments would have to be done as accounting entries within that account, instead of money actually moving around (i.e. you have to fund the system with a large payment, do your micropayment transactions, and withdraw when your fund is big enough again). This means micropayments using USD/EUR are restricted to only within specific services (i.e. your pre-paid micropayments fund that you use to pay for news articles can only be used within that news website)
9) It lets you create programs and services with their own bank accounts (the software stores value, as opposed to value always being linked to a real world person and a real world outside-the-service bank account). The Reddit tipbot is an excellent example of this, and would be impossible with USD/EUR, since to build it using FIAT, someone would have to open a real world bank account under their name (with all the forms, proofs of ID, etc), set it up to accept money transfers from others using PayPal, VISA, or something else, which will charge fees, have nasty exchange rates, have to keep to strict AML regulations, and be restricted to certain specific countries. Plus it would have all the micropayment issues mentioned above. With Bitcoin, all the "banking" is done with software, requiring no permissions, and no single programmer's name has to be linked with any bank accounts.
10) It lets you instantly fund USD/EUR based accounts around the world. The small LLC I started up keeps a BTC cash account for minor business expenses, and my business partners around the world will have Bitcoin funded VISA debit cards (as soon as Bitinstant releases them). That way, all the money is stored safely in the business vault, and if they need to pay for any business expenses, no matter where they are on the planet, or what their home currency is, I can fund their cards from home within 10 minutes. That's impossible with ACH, wires, or whatever else is out there.
11) It lets you link a payment account to a contract using address signing. For example, Person A agrees to buy Person B's debt. They write up an agreement contract, and instead of signing it with PGP keys, they sign it with A's and B's bitcoin addresses. Then money is sent from Address A to Address B, and any repayments are sent from Address B to Address A. That way, Person B can't claim that they never received the money, and Person A can't claim that they are still owed more than they really are, since all transactions are publicly verifiable on the block chain using the very addresses that were used to sign the contract. There is no need for any legal disputes of who owes what, since the blockchain keeps both parties honest (I actually did this already).
If you can think of anything else, please add it to the list.
EDIT: 12) Usenet has recently gone through the Wikileaks experience, with copyright behemoths pressuring VISA, PayPal, et all, to stop processing payments for Usenet service providers. Many have switched to Bitcoin since then, and I personally know Usener user who followed, now buying his btc from me for that purpose.
submitted by Rassah to Bitcoin [link] [comments]

BitSpot ! A brick & mortar Bitcoin exchange!

Pictures of our brick & mortar exchange!
Hello, Aaron @ BitSpot
We're a brick-and-mortar company based in Ashland, KY. We started as a small group of traders nearly a year ago and we exchanged Bitcoins for fiat currencies through various methods. Our objective in the Bitcoin community is allowing customers to create friction-less trades and be able to exchange Bitcoins from Fiat to Bitcoin or vice versa in a matter of 15 minutes. We want the transition in and out of Bitcoin to be as smooth, quick, and reliable as possible.
Through hard work and dedication we've managed to expand our operations and grow faster than imagined. We are nearly amazed at the amount of volume we process everyday for our clients, we had no idea that so many people actively bought and sold Bitcoins in relatively small quantity. All of our clients quickly fell in love with the concept of how we do business and that is: Personal. We develop working relationships with all of our customers and try to accommodate their needs and wants in any way possible. We've learned that people enjoy talking to an actual human being and that they prefer doing business with a person rather than an automated machine. Many of our customers are un-banked and would rather not deal with the organizations that are in place now such as: Bitstamp, Coinbase, BTC-E, etc. They are simply wanting to buy or sell only a couple Bitcoin at a time, but they are wanting to do it quickly. This is where we are able to fill the gap, we offer quick liquidity services to the community. About 3 months ago we finally pulled the trigger and acquired our building where we have a fully functional local exchange. Our building consists of 5 Offices, conference room, reception area, 2 bathrooms, and a lounge. We're hoping to have it become a "meet-up" or "hub" for Bitcoin activity within our area and we seem to definitely have the monopoly in the area.
The way BitSpot currently conducts it's exchanges is through a Broker-Client transaction. It involves a customer wanting to buy or sell Bitcoin and then having them contact their Broker, who is employed by BitSpot. The brokers reside here in our office where they are employed full-time much like a regular job but of course a lot better. The brokers buy and sell Bitcoins by using our companies pool of funds that are specifically used for this reason. We've reached a point now where demand and volume are starting to outpace our ability to process all of our transactions, so we are planning to do a over-haul and possibly implement some better strategies of how we can handle the growth. We never want to be faced with telling one of our clients that we can't handle that trade for them that day, or we don't have time. We've already scaled to the maximum potential as far as our building goes, it's just not logical at this point to hire anymore brokers. We've ultimately decided to take the route that the former company BitInstant took. We've been in talks and negotiations with Western Union & MoneyGram to see who could possibly offer us the best deal in order to accomplish our business plan. The new system we are proposing will allow Customers to send us money from nearly anywhere due to Western Union & MoneyGram's infrastructure globally. All the customer will need to do is attach a memo of the Bitcoin address they would like to receive their funds at or they could enter the transaction ID into an online portal along with the accompanying bitcoin address they'd like the funds to go to. This flexibility will allow all of our clients / customers to easily send money to us from anywhere around the world just as if they were paying a bill payment through Western Union for example. The fee would be minimal and cost around $5 but on the positive side the customer will receive their Bitcoins within minutes of sending the transaction or before they are even able to make it home. When it comes to selling Bitcoins to us, it would work nearly the same but in reverse. We're also in the works of launching a very large Bitcoin ATM network in the following areas: Kentucky, West Virginia, and Ohio. We have everything in place as far as compliance and regulation so at this point we are recruiting physical merchants to adopt them.
This system and infrastructure we've decided to pursue seems like the most logical step forward in our growing business. We don't see any other ways to keep up with the growth and demand of our services. We believe we can improve the speed of all of our transactions and possibly even bring them below the level of 15 minute transactions by using this method. We can still retain our core values of great customer service as well by re-focusing the existing brokers into this system and still treating our clients as our fellow friends. We've only encountered one problem that could possibly delay transfer times or be a negative to this switch in transaction processing. The new implementation of this system could easily stump our statistical analysis of future growth and we could easily reach our maximum funds limit. At the current state where we are dealing with our clients on an individual 1 on 1 basis we are easily able to predict our future transaction volume, how much funds are needed, and future profit. When we implement this new approach and it's successful we might become overwhelmed with an influx of new customers, especially if certain events were to arise in the Bitcoin ecosystem. Through this analysis and in hopes of growing our company and further strengthening the community we've come to the following decisions below.
We've decided to offer our company to the public and let them be a part of our business! This will help by allowing us to raise additional capital for our principal fund pool that is used solely for everyday transactions in and out of Bitcoin. We are at a stage where we are deciding upon the platform we should use to allow the public to become a part of our company. We intend on offering all investors regular dividends for each share they hold so they don't need to just speculate on the future value and growth of our company. We are already at this point a profitable company and future growth will only compound our success and revenue. The money will be used to process the transactions we handle daily and expanding existing infrastructure while increasing liquidity for our customers.
After researching different platforms and certain protocols, we've became greatly interested in Counterparty. It seems to be quite revolutionary and a real diamond in the rough. Counterparty meets and exceeds every expectation we need from a platform. We will be able to easily issue the shares of our company, allow dividends to be paid, and also callback our shares at a future date if wanted.
Right now this is just an announcement and we have yet to set the official date of our launch to private investors. We're wanting to make everyone aware of this upcoming event and poll the community upon our decision. We want to give back to our clients and our community and hopefully they too can partake in our business and reap some profits and rewards.
We're more than enthusiastic about Counterparty and the progress thus far. In our humble opinion we do believe this is the next step in the Bitcoin revolution and that's why we would like to use it as our platform to reach future investors and current clients. It's fairly simple, stable, and quick to work with while still having all the great qualities of the Bitcoin Blockchain. When we carve out all the details for our IPVO we will include a tutorial, step-by-step guide on how to operate Counterwallet and purchase assets.
Any suggestions, help, or questions are more than welcome.
If you're near the area code 606 and would be interested in coming by, feel free! We welcome all Bitcoiners anytime and all the time!
Thanks for taking the time to read! Aaron @ BitSpot
submitted by BitSpot to Bitcoin [link] [comments]

[Table] IAmA: We Are the Hosts of the Let's Talk Bitcoin! Show! We just spent 4 days at Bitcoin2013, Ask Us Anything!

Verified? (This bot cannot verify AMAs just yet)
Date: 2013-05-24
Link to submission (Has self-text)
Link to my post
Questions Answers
Hi all! I was wondering, what do you think it would take to get bitcoin from a niche currency used mainly by internet denizens to go mainstraim? I know the slow creep of more small companies accepting bitcoin helps, but what do you think that final cusp will be, and will it ever come to that? Thanks for taking the time to do this! There are several potential tipping points, but my favorite one is a large corporation accepting Bitcoin.
Amazon has an incredibly small operating margin, less than 1% - They have more than that in transaction costs, so if they were to accept Bitcoins for product and offer Bitcoins as payment to their affiliates it would cause a rush of other companies to jump onboard for the same reasons.
Once that happens with one large company, it sets a precedent. Doing something new is scary, and when the regulatory environment is uncertain like it is with Bitcoin the choice to accept could potentially cost you a lot of money later if it's retroactively made not OK and the value of the currency plummets.
But once a company like Amazon or Google jumps in, they have enough political swing and momentum that attacking Bitcoin becomes attacking them, and they'll fight that tooth and nail if it's saving them money.
Another example of a tipping point would be a country, ANY country, adopting it as their formal currency OR issuing a new currency with Bitcoins as the transparent backing of it. With bitcoin you can have a functional gold standard, because the gold doesn't need to be hidden from sight.
It is the hiding that makes gold standards dangerous - The people who issue currency with the gold as backing have no reason to issue the correct amount when only they know how much is out there, and how much gold they have.
I guess the Supreme Court has decided this does not apply to taxes, which is crap. Or are you talking about other countries? Thank you :) I actually mean something along the lines of "It is illegal to trade dollars for any cryptocurrency that does not have a real name and social security associated with it"
Will bitcoins ever be able to be traded like other recognized currencies in similar ways to Forex? More specifically, will there ever be retail brokers offering margin trading accounts that allow you to buy and sell bitcoin with leverage? There are already really small niche sites you can trade Bitcoin at leverage with, but it's just a bad idea. With a "normal" commodity market, like say chickens, if you think chickens are undervalued and want to profit from them you can buy forward production of say, a million chickens. Then when the option comes due, if you're on the profitable side of the trade you can essentially sell it for cash and the chickens never need to be delivered. In that way, it almost doesn't matter if the chickens ever existed to begin with because you never intended to take posession. With Bitcoin, it's different - Converting a bitcoin options contract into US dollars, yen, whatever actually is more expensive and time consuming than just "accepting delivery" of the bitcoins themselves. You can still sell them for whatever currency you want, but it is at the time of your choosing rather than at the point of settlement. What that means is that if you sell an option and the Bitcoins don't really exist, you could be screwed. You either default or buy them at market price which can be very painful given how volatile the pricing is right now. It is a bad idea to play with leverage in Bitcoin because if you lose, you potentially lose very big. Additionally, it's bad to buy an option because you introduce the possibility of the counterparty (supply) not being able to deliver, whereas if you just bought Bitcoins you have the Bitcoins.
Do you believe bitcoin is important locally as well as on the internet? If so, how are you promoting bitcoin in your local communities? Cryptocurrencies (of which Bitcoin is the most prominent) are the first real competition to the types of money we've used all our lives. With Dollars, Yen, Whatever - Ultimately there are a handful of people who get to decide how and why the currency should be managed.
If they did a good job, it might be fine - But the reality is the decision made affecting all users of the currency are to the benefit of a very few , at the cost of the many.
Bitcoin is different - The rules that govern it, are the rules that govern it. Nobody can break them, and if they're ever broken it's because more than 51% of the distributed power in the system (anyone can buy a mining rig and join this group). For me, that's incredibly important. Rules should apply evenly to everyone because otherwise they're not rules at all.
Local communities can benefit because it removes payment processors from merchant relationships, removes chargeback risk, and basically acts like Cash on the internet.
What are some of the more exciting things you (each of you?) envision for Bitcoin in the short to medium term? Discounts :) We've been talking about the deflationary business model, and during this period where the value is going to go up pretty fast (over the next several years) as adoption ramps up, businesses are going to be giving major discounts to those who choose to spend them.
From the merchants perspective, this is actually a huge win - They get to have lower prices than their US Dollar (or local currency) competitors, and the value of the Bitcoins they receive goes up over time instead of going down with printed currencies. Once this becomes pervasive in the Bitcoin economy, it will mean that even at those discounted prices they are STILL profitable because their suppliers are also offering them discounts to pay in Bitcoin.
Right now we're at the beginning of this cycle, you can see BitcoinStore.com is attempting it (Disclosure - They have sponsored us in the past, we run a 30s advertisement for them per show) but it's hard to be the first one doing it because it looks like you're sacrificing yourself when really it's just the model that makes the most sense.
Not to be the doom and gloom person but in the future what do you think will/would be the "last nail in the coffin" for Bitcoin? It depends what you mean by "last nail in the coffin"
How did you meet/find Andreas and Stephanie and how did you persuade them to be part of your show? I put out a call for staff several months ago, Andreas found me through that and joined the team initially as a correspondent providing expertise and commentary while Mt.Gox was having a lot of problems. Once we re-started the show as a twice-weekly, he graciously offered to join the hosting staff and gladly took him up on it.
I found Stephanie through her show Porc therapy, and a listener named Justus - He mentioned she did voicework, and I hired her to do some of our early introductions and advertising spots. When we went through the re-organization I offered her an occasional hosting role, and never bothered finding other hosts because I was so happy with our dynamic and varied viewpoints.
Both of the other hosts on the show are real professionals, and it's been my distinct pleasure to work with them.
Thanks for responding! Andreas is my fave (though I enjoy yours and Stephanie's comments too). Everybody has their favorite :) I think the fact that we all have people disagreeing with us at times means we're doing the job, and providing multiple and varied perspectives.
What recording tools are you using? We started off using Skype, Virtual Audio Cables (VAC) and Adobe Audition (creative suite)
Now we use Mumble instead of Skype, but the rest is the same.
I edit the host segments for content (sometimes we go on and on and on) and I edit the interviews for presentation, rarely removing any content. Many times the skillset that enables you to have a really smart idea is not the same skillset that lets you present that idea, perfectly, the first time. Our interview subjects tell me all the time "I love how smart I sound" and I get to say "You are smart, I just removed the brain processing noises"
Assuming bitcoin reaches critical mass, how does bitcoin cope with the criticism of rewarding early adopters? Do you see a potential uproar about inequity? Is there outrage against people who bought Apple stock at $30? Bitcoin is a currency that right now, and for the next few years, acting like an IPO. People who got in early got in cheap, but there was a whole lot of risk because people weren't using it much, there wern't vendors accepting it, so the use case is much more speculative.
We're very much still in the early adoption phase right now - Less than %.01 of internet users are Bitcoin users, as that number grows while the number of coins being added to the total pool grows at a much slower rate, the price per coin has to go up. If Bitcoin fails and everybody abandons it, this works the opposite way - but it actually solves a number of problems (microtransactions, fees, international money transfers, automated payment systems) so I'm not super concerned about that.
One of my favorite quotes, by Douglas Adams.
>It is a rare mind indeed that can render the hitherto non-existent >blindingly obvious. The cry 'I could have thought of that' is a very >popular and misleading one, for the fact is that they didn't, and a very >significant and revealing fact it is too.
What do you make of the download trend of the bitcoin client software in China? Isn't this a big story? China has lots of restrictive controls on their local currency, so Bitcoin has a real use case there. This is one of many scenarios where given even 1% adoption, the price must go very much above where it is now.
You commented on a recent episode about how Satochi Dice was going to block US traffic to the site due to uncertain regulations. Can't bitcoin work around that? If you send bitcoin to the addresses of the various bets - it still works right? Thanks for your show - I await each new podcast. Yes, if you already have the specific betting addresses it doesn't matter where you are in the world. It is only the website that does not allow US IPs, they did this to be very clear they were trying to respect the US gambling laws.
I spoke with Erik Voorhees about this among other things at the conference, you can find that interview here Link to letstalkbitcoin.com
I'd like to thank all three of you for doing this podcast, it's always thought provoking and fun to listen to. Plus, Stephanie does have a very sexy voice... But I do have a question, Right now, I don't know the answer to that question.
How do miners determine which transactions will be confirmed first and which get put to the back of the line? Shouldn't they be confirmed in a 'first come, first serve' basis? But the development team has made it clear they're moving towards a market-based mechanism where Miners set the minimum transaction fee they will accept, and process on a first-come/highest-fee model. People who want their transaction to process fast will put a higher fee and it will be prioritized, while people who don't care about delivery time will be able to send no fee and be subsidized by those paying higher fees.
*edit: As well, do you still plan on using some time on the show to go into more detail about mining? I think it was mentioned a few weeks ago that the topic might be explored in further detail. There will be fewer miners who accept free or very low fee transactions, so there you go.
How would Bitcoin change our financial system as we know it? In the same way the automobile changed the horse-and-buggy system as they knew it. If you play out the logic, one functionally obsoletes the other. I was talking with a financial reporter the other day who has been coming around to bitcoin, and he said to me "You know, if they were building the banking system from scratch today I think this is pretty close to what it would look like"
Andreas answered a question below about bitcoin and self driving cars, fixing spam on the internet by using Bitcoin addresses with tiny amounts of BTC in them to prove you're a real person and not a single-use bot, there are so many crazy and impossible things that become actually probable when you're talking in the context of a world built on decentralized, rules-based, cryptographically secured, instantly transmittable, person to person internet cash.
I have never been so hopeful for our future as I am now that I've thrown my days into bitcoin. Bitcoin 2013 was a fine conference and a wonderful experiance, so many very smart people have quit their jobs or left their studies to do the same thing I have.
We know we're building the future, and it's a better one than we have today.
Have any of you heard about how in Africa much of the exchange in value is done with mobile phone minutes? It seems to me - whatever the US attempts to do with Bitcoin - there will be other places that it will bubble up in. What about Argentina and other places where they actually understand what damage a desperate government can do to a currency? I would agree with you. Until recently it's been impossible to use Bitcoins on a "dumb cell phone" - That changed recently with Link to phoneacoin.com and others.
Bitcoin solves problems that the world has had for decades, it takes the power to destroy the currency away from government so they cannot do it no matter how much they want to, or how desperately they think they need to.
No government wants to destroy a currency, they just don't want to acknowledge they've trapped themselves with debt and have no way out.
Who invented Bitcoin? What is to stop whoever did so initially issuing themselves the equivalent of $79 zillion in Bitcoin currency prior to it taking off? Is there commission charged on each transaction that occurs? If so, how much, and who receives this? The true creator is not known, he went by a false name "Satoshi".
He actually holds about 250,000 coins if I recall correctly because he was the first miner. Bitcoin is a protocol, a set of rules. It's open source, and anyone who wants to look at it can see that there is not a mechanism to just create more coins by typing in a magic word. There are no commissions, although there are fees that go to the miners who process and verify transactions.
Great podcast, can't wait for the next one! It depends on the mesh. If the mesh was never connected to the internet, it would be a parralel Bitcoin network able to transact with itself but if it was ever connected to the larger network any conflicting transactions would be "lost" as the two ledgers (the big one, and the disconnected one) try to reckon their differences. Only one winner, so that means there is a loser.
You discussed mesh networks in 3rd world countries and how bitcoin could be used in such a scenario. If the [mesh] network is disconnected from the internet, how would transactions on the blockchain be verified? Couldn't the time the mesh network was disconnected make it vulnerable to hacking the [mesh network's] blockchain? More interesting might be disconnected communities running their own fork or version of Bitcoin, that way if they're ever connected it can be an exchange process (trading their coins for "bitcoins" rather than a reckoning (Seeing who has a bigger network and canceling out transactions on the smaller one that conflict)
1) The price for one Bitcoin seems to fluctuate quite a bit. The most successful currencies remain relatively stable over time (e.g. the Dollar). Will Bitcoin ever need to reach a certain level of stability to be a successful unit of trade? and if so, what do you think needs to happen before then? 1 - Yes! Once everyone who has purchased Bitcoin has purchased them, the price will stabilize. In practice this will start happening long before absolute stability, and as soon as people start thinking about prices in terms of BTC instead of their local currency it almost doesn't matter.
2) If Bitcoin ever becomes a widely accepted form of payment (seems a lot of businesses already accept it), how do you think the US government will proceed/react/regulate/etc. considering that technically only the feds can issue currency? 2 - "The Feds" are not the only ones who can issue currency - They have legal tender laws which mean people MUST accept their money, but nothing prevents you from circulating a voluntary currency like Bitcoin.
Do you foresee companies like paypal incorporating bitcoin into their businesses in the future as a more credible exchange than these ones that are currently running? No. Paypal again is the proverbial horse-drawn-buggy manufacturer- Sure they might go to the worlds faire and while observing the new fangled automobiles say to themselves 'we might integrate this into our existing machines!' when the fact is that it obsoletes those existing machines.
Paypal makes their money by standing in the middle of transactions collecting fees, Bitcoin serves its function by connecting people who want to do commerce directly to one-another, and what fees are paid are a tiny fraction of what Paypal does. If paypal accepted Bitcoin, it would not be Bitcoin any more because they would have mechanisms to freeze accounts at the very least to mitigate risk. That is not possible with Bitcoin by itself.
Thanks for the well thought out response, I genuinely appreciated that you took the time for this! I do have a follow up question, how does one get bit coin in an easy way? Lets say I have 300$ that I want in bit coin.. whats the best way to approach this? Probably a company like bitinstant.com, bitstamp.com, or btcquick.com - For larger amounts they don't make too much sense but at that level its your best bet.
Not to be rude, but how do you expect for a currency without a standard like gold silver etc. to not crash down in a blaze of glory? What standard is your currency backed by?
Hi There. I was at the San Jose convention hall last weekend attending Big Wow Comicfest and that's where I saw Bitcoin2013! Mostly Bitcoin 2013 was an opportunity for people building the future of Bitcoin to meet each other and network. There were speakers talking about a wide variety of issues, and vendors of Bitcoin services who were showing their latest innovations and systems.
What information was presented at this event that couldn't be done justice disseminated over the internet? The information will eventually be online, but the probably 200 people I got to meet in real life will not (in real life)
What resources do you think I should review as a total newbie to bitcoin? Or if possible, what's the one sentence pitch to get a newb involved? For people brand new, www.weusecoins.com is a good place to start For people who want to learn how it works, www.letstalkbitcoin.com/learn will direct you to the Bitcoin Education Project, which is a series of free and very high quality lectures that will tell you everything you ever wanted to know and more about Bitcoin, How it works, and all the little sub-topics that you'll eventually want to learn about.
The pitch is "It's like cash that lives on the internet, and is as easy to spend on the internet as buying a candybar in a store with a dollar"
Would any of you hazard a guess at the bitcoin exchange rate at the end of 2013? Sure, i'll make a wild guess.
$1000.
If and when a large user comes onboard, I think thats the next price at which we'll bounce around for a while, just like 100 became the sticky point after the last major bout of adoption.
How do bitcoins relate to the law? For example, what would be the crime if somone hacked your account and stole your bitcoins? It's not exactly theft of money, or is it? Bitcoins are your property, it's illegal for someone to steal your property whether it is money or not. Right now there is little that can be done about theft, but eventually I expect a class of "Blockchain Forensic Investigators" to emerge who will track down your stolen coins for a % based fee.
On your last show you mentioned the diversity of the Bitcoiners who attended BitCoin2013 - which nation was most represented in your opinion? Were there any Chinese nationals present (we've heard that they've suddenly gotten the bitcoin bug in the last month)? Did the other nations talk about regulatory problems or is that just a US concern? I met the gentleman from BTC-China, but other than that I actually didn't see any obvious chinese nationals. We saw lots of eastern europeans and south americans.
Other nations are not talking about the regulatory issue as far as I can tell, it seems like everyone is waiting to see what the US does, which is not abnormal in a very new situation like this.
Isn't having an inherently deflationary currency a terrible idea? How is bitcoin different from geeky goldbuggery? Because you can't divide a gold coin into .0001 without incurring cost and expense. That's not the case with Bitcoin, so the deflationary aspect of it is largely moot.
There is a tendency to listen to modern "economics" which makes this arguement, saying that the money supply must expand because otherwise it drives down profitability in a race to the bottom.
I think in practice we'll find that people don't work against their own best interest, and while during the initial adoptions stages of Bitcoin there will be significant discounts offered to those who pay with Bitcoin vs. legacy currency, once the market becomes saturated and the price levels out those discounts will be scaled way back.
Right now it makes sense to heavily discount, because the expectation is that the value of the Bitcoins will go up during this period of adoption, that won't always be true and the discount is a reflection of anticipated future returns.
Was it bad when people saved money in banks that paid 10% interest? No, that's called capital formation. There is a thought that given a deflationary currency nobody will spend any money, that's nonsense. Just because your currency gains value over time doesn't mean that you no longer have costs that must be paid for. What Deflationary currencies do is say "Ok, you could spend it on that, but is it worth it relative to what you'll gain by not?"
That's a good thing. Our system right now works on the opposite theory - Spend money NOW because if you're dumb enough to keep it in the bank it will actually lose value over time between the couple points of "official" inflation and less than 1% artifical interest rates. The situation is like this now because the fed is trying to make people spend as much money as possible with the hope that the flows will "restart the economic engine"
Too bad this isn't how things work, not that it'll stop us from trying it over and over again.
In the 2008 financial crash, govts bailed out the banks because there was no other way to maintain the whole financial ecosystems of payrolls, invoices and trade, all of which go through the banking system. Honestly? No. Bitcoin would be great in this role, but governments around the world rely on their ability to expand the money supply (print money, or sell debt) in order to fund their deficits. They also manipulate interest rates to be low so that debt is very inexpensive.
Can you envisage another financial crash in the future where govt says, "We don't need to do a bailout, as we've got this alternative payment system" and then instructs businesses and employees to just get themselves a bitcoin address and work through the Bitcoin system? Bitcoin doesn't have a central control mechanism, so there is no group or person who can say "OK - the interest rate is 1%" - If that's really what the interest rate wants to be based on market forces, it'll be that - But if not, there isn't much anyone can do to stop it.
What type of notes and agenda does the team coordinate on before a show? We use Basecamp, and it really depends. Right now we have a show prep thread that has 30+ posts in it for episode 11, we'll probably use 5 of those.
The agenda is really basic - As we get near recording time topics are selected (generally by me, but I like to get the other hosts to do it since they provide most of the commentary in Host segments) and I form a schedule, then we run through the recording session hitting each topic.
Over the last weeks we've brought two researchers onto the team, so that has helped a TON.
I first learned about Bitcoins on an episode of The Good Wife. The one with Jason Biggs as the creator of BitCoin. Have you watched that episode and how accurate does that episode portray what's happening with Bitcoin in terms of legal stuff? Not having seen it but knowing TV, I'm gonna go out on a limb and say "not very well" Satoshi has not been identified, was a throw-away identity that was cryptographically secured, so probably never will.
Are there any conferences in Chicago anytime soon? I think a Q&A in public would be helpful for your show as well as bitcoin. I'll be speaking at an event in NYC on July 30, there will be one or two meetups while I'm there. There is also an event in October in Atlanta. I remember talking with a guy at Bitcoin2013 wearing a shirt that said "BitcoinChicago" so I'd suggest looking for a user-group.
We're planning on doing Q&As often, but none of us are really near Chicago so it's tough. Happy to do virtual Q&As over skype, live or recorded.
Oh dear. You're not all perfectly grammatical orators on the first try? I'm crushed! I really value my own time, and I know other people out there do too. I try to make the show as information dense as possible, thats the criteria we've been operating under from really day one.
We're actually talking about cutting the show in half and releasing it more often (still recording the same amount) because people can get tired of listening to such dense content for an hour or more.
US Treasury recently issued a directive stating they would be monitoring any entity attempting to exchange virtual currency for USD (or any other currency, goods, or services), indicating that federal authorities take a dim view of what amounts to private coinage. Do you anticipate a Supreme Court case here defining what is and is not private coinage? 2.And given bitcoin's noted extra-legal uses, do you have any indication it is being decrypted by NSA? 3.Taking it a step further, do you think it could be a national security-sponsored international sieve for money laundering? It may eventually go to Supreme Court.
I think the market has done fine for bitcoin so far. I think the market will continue to take care of bitcoin. The idea of giving in willingly to regulation makes me cringe. There are two camps. Some people think that regulation is inevitable, and since it's going to happen anyways it's better to participate in the process and try to make it less bad. The other side thinks that by participating, you accept their authority to regulate it when really they have no right to regulate money and have proven to do a very bad job at it now for quite a number of years.
Thanks so much for doing this, I love the Bitcoin system, but hate the volatility. How do you recommend dealing with that? I've heard to convert it quickly to the currency of choice after any exchange has been made to avoid any more changes to the price. The easy solution is just buy and hold - If you need to buy something, do it when you need to and not before. Do not pre-order anything.
What is your prediction of the price for 1 btc in USD, exactly one year from now? Just for fun, since I know it is impossible to even guess the day to day price swings. As a wild guess number I'd say $1000 or less than a dollar. Very little middleground because if it's regulated out of existence it will still exist, but be hard to find and cheap - If adoption continues to path the price should accelerate with wild spikes up and down.
My partner is buying into bitcoin as well as litecoin. Any advice for him? (I personally don't understand it) Don't panic, invest for the long term, and don't buy any more than you can afford to lose 100% of because there are still things that could dramatically reduce the price of bitcoin (mostly regulatory stuff, I answered this elsewhere in the thread)
Hello, I just wrote a long post about the functions of using BTC to facilitate a 'free bank' using the principals of free money, similar to the WIR bank. Link to en.wikipedia.org Do you think that something like this would be possible using Bitcoin? Probably. Not really my area of expertise.
Why did bits take a dive at the same time gold took a tank? I don't pay attention to price, sorry.
We take full credit for any rise and blame others for any decline. Feel free to tip us from your gains! Lol.
Just wanted to say I love your show. I encourage you to please continue making high-quality podcast episodes. Thank you. I'm really excited to be able to be a journalist in such an exciting field in a time when journalism is under attack. Not sure if you've been following the so-called "AP scandal" but now is a weird time to be trying to report the truth in this world, and we couldn't have picked a more controversial topic to the global macro picture.
Bitcoins are the stupidest investment anyone could ever make. Pass. Link to static.quickmeme.com
Unfortunately, quickmeme doesn't let you copy image urls directly. Link to i.qkme.me
Yes, but they started being worth a set value. bitcoin was never backed by anything so its value was kind of made up. how do you expect to make a non goverment currency anybody with a computer can print to retain value? Because the pie is only so large, the more people who have computers devoted to the work just each get a smaller and smaller piece.
The rate of issuance for Bitcoin is currently 25 bitcoins every 10 minutes. Only one person or pool gets the whole 25 bitcoins, it's a race to find them. If there are 10 people looking, chances are pretty good you'll find some. If there are 100,000,000 people looking, chances are much less good that you'll find them first, but if there are that many people looking those 25 coins are probably worth a whole lot more.
The system is self balancing in this way, unlike the government currency system where they create 65 billion USD worth of new value every month to buy mortgage backed securities for face value to try and prop up the market. With more than a trillion USD being added in this way each year, how can a government currency retain its value?
Because the governments "pie" does infact have limits to making it, and only dropped gold standard after over 150 years of the doller having a defined worth, unlike bitcoin, where a random hacker can just print endless money. I'd direct you to security researcher Dan Kaminsky. Link to www.businessinsider.com
You'll find it's a little harder than you're describing. Like, impossible.
Last updated: 2013-05-29 11:06 UTC
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We could use a few more Spartans. Here's what you can do to help Bitcoin today!

BTC is being tossed around like a sex slave by traders lately. This is a guide to quickly investing in a small long position in BTC on Mt. Gox. This essentially raises the ante for the players. If you believe in BTC bu don't have any, this is how to put your money where your mouth is, and now is as good a time as any. On e person with deep pockets is nowhere near as powerful as a multitude of little people in this scenario, and the market is on an enforced pause.
If you have Bitcoin but don't want to sell them(or even open your wallet), this method will also work for you. If you have Bitcoin and do want to sell them, it doesn't surprise me that you are reading a wall of text that.....well, what can i say.
First the disclaimers.
First, there are some who believe that BTC dropping in value could be the best thing for it. I see why that is a possibility, but my counter is that i don't care about the price, i care about stability. Increased stability will lead to more adoption on all fronts (anyone want to do a merchant guide?) and increased likelihood of success. I am not encouraging day trading, i am explaining how to take a long position (a long term bet that BTC will go up vs. $USD). We are just trying to build a decentralized 'floor' to ease the sharp drops.
Second, i am not a financial or legal expert. I have read the so called 'guidance' and am very sure that this method is well within the law. I am just describing what has worked best for me so that you can hopefully avoid some of the many missteps i have made along my bitcoin journey. YMMV.
Third, yes i know that Mt Gox is having trouble lately, and not the best place to put your money. However, like it or not, Mt Gox is currently the public face of BTC value and where the battle for public opinion is being fought. That's where we nee d the Spartans the most.
Last, please post how long this process took you in the comments so that we can get a solid estimate on how fast Spartans can be added to the line in the future.
You will need: Pen & paper, cell phone, computer(not smartphone), two hours of time and a little money that you are willing to lose. DO NOT make a bigger bet than you can afford to lose. This is NOT A SURE THING, but every extra Spartan helps, especially right now.
Step 1. Go to Mt. Gox and create an account.
It's been a while since i made mine, so i don't know how long this takes these days. Don't bother with verification or anything you don't have to. The object is to acquire a Mt. Gox account number. It will be in the form of M********X, where *=numeral.
Step 2. Move some money in to the account.
If you live outside the control of the US gov't, just do what any normal person would do and move the money into an exchange with a debit or credit card. Enjoy your freedom. Otherwise......
This is the pain in the ass part where you will start to understand what 'freedom' really means. Some will disagree with me, but IMO right now BitInstant->Moneygram->Zipzap->Mtgox is the quickest way. It is the difference between 2 hours (24/7) and two business days. If you want to use a different method, more power to you.
Go to bitinstant.com, select your country, and select 'Cash Deposit' on the left. The drop down menu will list Moneygram vendors (CVS, Jewel/Osco, 7/11,Stater Bros, WalMart, etc). Select a vendor that is convenient. The right side should be defaulted to 'Mt Gox',which is what we want.
Call the Moneygram vendor to A) ensure that they are open B) ensure that they have a dedicated RED PHONE at their Moneygram station. If they have a kiosk instead of a phone, you're gonna have a bad time, so select another vendor and try again. Grocery stores seem to be the best. While you are on the phone you can continue with the dat entry.
Enter your information. They will ask for your Mt Gox account #, your legal name, a contact e-mail, and your date of birth. Don't lie, it's important to follow the law to the letter in a public environment. If you are looking for anonymity, this is not for you.
Enter the amount you wish to move. Low numbers are easy, big numbers are problematic. The butter zone seems to be $500. Anything higher and you are likely to get rejected further down the line, and have to start the process all over. The transaction limit seems to be 2/day. The truth is that there has been a lot of 'variance' in people's experience with this transfer, and there i no rhyme or reason to it. I am trying to show you what has worked for me. At $500 your transaction fees will end up at 4.75%, at other amounts it will vary because of the $3.95 fixed fee per transaction. If you have a better deal than 4.75% that can be done in less than 2 days, i would love to hear about it.
Play the little game to prove you are human by clicking and dragging the objects around. Vote for your favorites in the comments; i just got 'Put the animals on the ground' which i hereby down vote. There are much better ones.
Once you are certain that you Moneygram vendor will meet your needs (RED PHONE!), click the send funds button to move onto the next screen, which redisplays the info and gives you some transaction codes. Take a screenshot or copy the info(or not) and click 'Go' to move to the next screen.
Now we are at ZipZap. Enter your phone number and your area code and hit search. You will see a google maps style interface displaying Moneygram vendors. If you select any vendor other than the one you selected back at Bitinstant, you're gonna have a bad time. If your vendor is not available on the list, take note of the ones that are and go back to Step 1. Click 'Pay Here' next to your vendor and then click 'Create Payment Slip'.
The two most important numbers are the AMOUNT ($503.95 in my example) and the ACCOUNT NUMBER OF BILL TO PAY, the 9 digit number. If your 9 digit number contains any letters, stop and go back to Step 1. You will not be charged any money if you stop now, but if you try to use letter in the account number you're gonna have a bad time. The 4 digit RECEIVE CODE is also important, but it is a constant 9611.
Go to the Moneygram vendor. Tell the cashier you are there to pay for a money order, and ask if they are going to need a manager to complete the transaction, i.e. make sure they have their shit together BEFORE you pick up the red phone, otherwise your gonna have a bad time. If the transaction times out because they aren't ready to take your money, congratulations, you get to go back to Step 1 (tens timeouts seem to be getting longer, around 10 mins, but again, YMMV. My budget is 5 mins, just to be sure. the fine print is something ridiculous like 120 seconds or something).
Pick up the red phone and get ready to take the red pill.
Follow the prompts with the keypad to enter all your information. This will include your phone number, the amount, the receive code (9611) and the 9 digit acct #. Most likely that will not be good enough (you may get lucky, but definitely not your first time) and so you will be connected to a live Moneygram operator. They will repeat all the info you just entered back to you verbatim and ask you to confirm it. They will also ask for your address. They are looking to check against the address your driver's license (your tax dollars hard at work, the irony is delicious) before the send the money on to Ukraine, who will send it to Japan. They will also ask if you iive in a house or an apartment, IDK why but they do. Once they are satisfied, they will tell you to pay the cashier.
Pay the cashier. Cash, debit or a combination of the two. Credit cards may work, too, but idk for sure.
Go back to the Mt Gox website. Log in and click on Settings. The second menu item will allow you to be notified every time a trade is completed, which is what you want.
Wait for the money. IME it has been 10 to 30 minutes. If you missed ANY detail in the previous steps (i.e. omitted a middle initial in you name as it appears on your debit card, incorrect address spelling, etc...) you're gonna have a really bad time. You will get your money eventually, but you are going to end up in the customer service queue, and they are a wee bit busy at the moment due to this complicated process. You will be waiting a while, and your money will be trapped in transit.
Step 4. Set the position. I don't want to get into the details of trading or Mt Gox, i just want to keep it simple. Feel free to expand the discussion below. Here is the gist: you are going to buy low and sell high. Novel concept, i know.
Set your floor. This is the crux move. The floor is the price below which BTC will not drop, no matter what, its minimal market value. We want that to increase so that the volatility that just shut down Mt Gox goes away, and sane people start to consider entering the market. Your floor price is your floor price, and every individual person is different, but we can floor $100 if 1,000 follow these steps. Last time the floor was $5. It could get really ugly. That is what we are trying to prevent.
So, using my $500 example, i immediately spilt the position, meaning i buy $250 in bitcoin. I know it sounds crazy, but the price doesn't matter. You can duke that out in the comments, but it is true.
Now i have $250 in bit coin and $250 in cash, and i'm going withdraw the bitcoin out of mt gox to somewhere else (newbs seem to like blockchain.info). Now i have a minimal (but not zero) investment in bitcoin that is not on mt box.
Using my example again, i am going to bid(try to buy) 2 bitcoins at $100. If i am successful, i will still have $50 left, and therefore some cash in reserve. Now it doesn't really matter whether i buy a bitcoin or not at this point, because i have succeeded in establishing the THREAT of buying at $100, which the speculators can see. If enough people do this (and there are already a ton, maybe even enough, but it is too close to call, hence the volatility and the market shutdown) they won't even try to push that low, and we have established a floor. Pick your own floor number. Seriously, you have to pick the number that you really believe in for this to work, that way everybody's floor number is a bit different from everyone else. Now instead of a hard floor at $100 (speculators push price to $101 and then allow growth again) we have a soft floor that is more difficult to see and react to. It is the advantage of being decentralized, which we must continue to use.
The last piece of the puzzle is to ask to sell 10 bitcoins. You have none to sell, but mt gox will let you place to order all the same. Don't be greedy here! $60 is plenty of reward for your effort. If you try to take $100 out each time right now, you're gonna have a bad time.
The last important point is that every time you get an email that says a trade has been completed on Mt Gox, go back and reset the EXACT SAME trade, even if you lack the funds.
So, in my example, i have a bid of 2 coins at $100 and an ask of 10 coins at $140, and $250 cash and 0 BTC in my account, along with some BTC in reserve.
Let's run through all the possible scenarios.
PRICE goes DOWN and STAYS DOWN. I end up buying 2 BTC. PRICE goes DOWN and then UP. I buy two coins at 100, then sell them at 140. I pocket the $80. If the price goes down again, we can do it again. PRICE goes UP and STAYS UP. We win. There are more fights ahead but they are of a different nature. Cross that bridge when we get there. PRICE goes UP and then DOWN. I end up buying 2 BTC. PRICE dosn't move. This is what we want most.
As long as they keep manipulating the price, you keep pocketing $80. This is how the tool that is BTC works. You can't stop them from manipulating price, but they can't stop you from extracting money from them when they do. The less stable the market, the more
WARNINGS!!!! Here are the best ways to fuck this up! 1. Getting greedy. If you don't sell at 140 and try to hold on, you risk not having the funds to maintain your floor. don't be greedy. 2. Forgetting to reset the trades. Once a trade is made, you have to reset it to have it available again. 3. ????? Am i missing something? Let us know???
OK, my head hurts form typing, but that't the gist of it. I am sure i missed some details, particularly about Mt. Gox, cuz it's really not my thing, and i appreciate any clarifications y'all may have. Also, i'm not going back and proofreading this, so i am sure the grammar police will visit, and i thank them in advance.
If 1,000 do this in the next 8 hours we can start to be taken seriously as a currency, and we will surpass silver in terms of fixed value. Once BTC are worth more than silver, it's only one more step to being worth more than gold.
submitted by holyoak to Bitcoin [link] [comments]

[Table] IAmA: IAM Peter Vessenes, Executive Director of the Bitcoin Foundation. AMAA!

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Date: 2012-09-28
Link to submission (Has self-text)
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Questions Answers
Most proponents of Bitcoin seem to believe that there will be a point where one coin exceeds a value of $100 or even $1000. Sure, that is definitely possible and I can accept that it may happen one day. However, since each coin has this intrinsic potential value.. why would anyone spend them on trivial stuff like food now? How can you spend something that you believe will continue to grow in value effectively to infinity? That seems like a fair complaint to me, in general. In practice, and as opposed to Krugman's thoughts on the matter, we have many thousands of happy Bitcoin transactors, I think people like to spend their bitcoins with others, give them away, and use them for things. I do know some Bitcoin businesses that try never to spend their coins. That said, we have had some periods like last year where EVERYBODY wished they'd spent their coins.. To my mind volatility is a worse 'evil' than being deflationary. As I said above, I think most government economists wish an inflationary currency (and many bitcoiners hate this, and talk a lot about how much they hate it), but I think there's definitely a place in the world for a deflationary value system. An interesting thought experiment for you -- if you forked the Bitcoin blockchain and changed issuance so that it tracked say, USD or USD/EUR inflation rates for issuance, would it have the same uptake or not?
Every once in a while I hear stories about security breaches including 240,000 bitcoins that went missing the other month. How do you ensure security of account holders funds? The practical security aspects of running Bitcoin businesses are a REAL need, and it's something we want to help on with advice, and possibly opt-in certification at some point. I say more about this elsewhere in the AMA.
Furthermore, most sites I've came upon that sell goods seem poorly managed and difficult to use. Is there a Bitcoin equivalent to sites like Ebay and Amazon? Re: bitcoin site usability -- I agree, it's often terrible! I'm not sure why this is, except to say that bitcoins make transacting online so easy that even people who can't afford a designer can do it.
A: How does the intrinsic non-fiat nature of the currency affect its susceptibility to market fluctuation? I.E. Better or worse stability than fiat currency? So far, because market cap is so low, (Roughly $100mm of value), Bitcoin exchange rates are highly susceptible to people pushing it around. This is really tough for everyone. There are a bunch of businesses that might not be viable until you have some exchange rate certainties that extend beyond a short (one day-ish) window.
B: What can be done to improve the resistance to massive fluctuations in value stemming from exchange market manipulation or normal use? There are some macro-economic things that could be done, like exchanges publishing all trades to a central area, and implementing locks if prices rise / fall too suddenly, but those all have their own effects to consider. I think the fundamental thing to do is help Bitcoin acceptance and uptake grow, increasing the size of the pie until there are a much smaller number of parties that could push the price around.
C: Is there anything that can be done to the standard to improve stability or is it all up to the markets to implement safeguards? So, we all do have a part in that stabilization for sure. There's also the angle of creating whole supply chains that are bitcoin denominated -- paying our staff in Bitcoins only is an attempt to work on that angle.
What do you say to people that claim Bitcoin is nothing but a pump-and-dump pyramid scheme designed to benefit it's creators? That they're sitting on a huge pile of bitcoins obtained by them before the currency was made available to the public when mining was far easier then dumping huge batches of Bitcoins destroying the price over and over again to enrich themselves and fuck everybody else? And that they get more chumps into the system to inflate the price again, by going around the internet and promoting Bitcoins as an alternative currency rather than a complete fraud? This borders on the troll-ish, but I will say that the Bitcoin network autosizes coin generation based on how many people wish to do it. That is, people opt in to make the coins and secure the network. Nobody is forced to.
Is the Bitcoin Foundation a non-profit, tax-exempt organization in the United States? Who among the directors and the board has experience running a non-profit? Why is the ED also a member of the board? How does the ED have the time to run the organization given his obligation to CoinLab? Why haven't I seen any of the involved parties at either of the last two Bitcoin conferences? Can we get somebody who isn't a white male involved? We're a 501(c)6, Washington DC Nonprofit.
I have experience launching a non-profit, hence my job.
ED's typically get a salary and work full time at the job; we didn't know if we'd have budget to pay someone who could operate such a thing, so we went with this structure. I anticipate that I will step down from being the ED at the earliest moment we know we have someone better to do it; running CoinLab is plenty of work for me.
Our assistant director Lindsay Holland is not a white male.
In general, Bitcoin is a white male sausage-fest, though. I urge you and all Bitcoiners everywhere to work on changing that.
What is the future of bitcoins? Do you think they will ever make government-issued currency obsolete? I don't know the future of Bitcoin, but I hope that I and the Foundation are a part of it!
I don't believe Bitcoin will ever obsolete a government currency, but I only speak for myself when I say that. Bitcoin is a fascinating and novel technology with a HUGE number of potential benefits to the world, so I'm into it. I don't see a government wishing to cede control of its currency to anything like the technocratic / consensus model that Bitcoins are governed by, though.
That said, I do hope that Bitcoins will be able to help people in areas of the world that need better money features. Mpesa is a great example of something that helps Kenyans (and people from a few other countries) by changing how money is used. Bitcoin has the potential to help people like that, all over the world, whether or not the 'market' is large enough in that country.
I personally think that sort of thing is SUPER exciting.
Could you describe the bitcoin foundation for me? Sure! It's a trade organization, member-driven. Its goal is to promote, protect and help standardize Bitcoin. Our initial goals are to provide funding for the core development team, run a 2013 Silicon Valley Conference, and create some opt-in certification methods and best practices for businesses dealing with Bitcoin.
Join us.. :)
Standardize? I can tell you hate our goals, so I won't spend a long time trying to convince you. But, I will say that businesses often need a long, secure timeframe to make investment decisions, and they need to have some sense that what they work on or invest in will be roughly similar at the end of their investment to the beginning.
Why do you want to "standardize"? For instance, imagine ebay deciding to take bitcoins. The person-hours to get that done inside ebay are staggering to imagine, from wallet scalability issue to accounting treatments, refunds, ... It would be a major endeavor.
What gives you that authority? It would be great for bitcoin if ebay took bitcoins. Seriously great, but they can't right now until they feel there is some generally stable path going forward.
Why is the core development team so deserving of funding when they can't even make a decent client? You might hate everything about that, and that's cool. I urge you to go ahead, fork the code, advocate as much as you like for something else. Bitcoin's free, both the protocol and the software. Nobody is stopping you.
Is there any legal action to be done if someone steals your bitcoins? Yep, if you're in the US, file a police report, and call FBI Cybercrimes division.
As an individual member of the Bitcoin Foundation, what do I get? Any perks or privileges? Email aliases, voting rights, a newsletter, etc? Or are these memberships mostly a way of providing financial support to the foundation? The bylaws are up now, so you can read in great detail what the organization will provide its members: Link to github.com
In short, though, rights to vote people on / off the board of the Foundation, soon access to private forums, probably discounts to the bitcoin 2013 conference, happiness at supporting the dev team.
I would like to provide email aliases, we've got Patrick and Jon working on any possible gotchas there, though.
Many aren't taking bitcoin seriously because of the security issues some have had. What steps are you taking to legitimize this currency? Like Jeff says below, I would distinguish between fundamental protocol security and security practices.
Bitcoins fundamental protocol security seems pretty good at this point; I'm sure we'll all be keeping an eye on that quite intently into the future.
Practical Security has been, largely, terrible in the Bitcoin space for most businesses, Mt. Gox perhaps excepted. The amount of work it takes to secure 80 byte strings that may be valued in the million dollar range is non trivial. Think securing missile codes as to the level of security needed.
Many bitcoin businesses can't afford (or don't wish to) this sort of security. I'm hoping we can provide some tools and pointers for these businesses and their users to help people understand what they're getting into when they transact with a bitcoin business, and what their risks are.
The Bitcoin Foundation Membership (VIP) fees are definitely disproportionate. Why? Are we now heading for a two-tier bitcoin community? We got requests from large supporters to make a more expensive membership tier. I'm slow, but not so slow that I said 'no'.
I'm slow, but not so slow that I said 'no'. - So you said 'YES'? Someone said "Please make higher corporate member fees: Linux Foundation Top Tier member fees are $500k. Your plan is too low."
I said "OK, Thank you for that advice. We should do that."
Is the foundation primarily focused on US or also europe and the rest of the world? Right now Jon Matonis is considered our "Europe Expert" on the board. There's a huge amount of work to do just in keeping track of how Bitcoin is categorized and regulated around the world. I would expect the Foundation to put some time and energy into helping with that process, but it's not our first goal.
What would you or the Fundation do if the government declares Bitcoin ilegal? Advocate that such a thing is silly, unenforceable, and counterproductive.
Thats no answer to the question. Have you got any plans for the "unthinkable"? That really is what I would do. What do you suggest?
What are your thoughts on transparency of the foundation? How much revenue is there and how it is spent, will that info be public? We're aiming to be highly transparent. I proposed today that we publicize our cold wallet public keys so that people can check our balances. This got pushed back a month while we work on some logistics. I will follow up about this, though. I think having auditable books from day one is really cool.
What are your thoughts on fiat currency? I love it and wish more of it. I'm totally grateful that nations have standardized and created currencies for their people, so that I can travel and buy stuff without worrying about the reputability of a local bank when I go to exchange my money.
I read something recently about a Bitcoin based debit card system. How is that coming along? I don't know, but I want one! The Foundation would like one, too. We are trying to run the Foundation with only Bitcoins, so it would be nice to fuel up a debit card for some expenses.
Create an opt-in certification process for Bitcoin businesses. How will you be going about this? What will certification entail? TBD, But I am imagining that businesses could vet their processes and procedures against a set of published standards, pay for an audit, and then be able to help their users understand what level of security they provide, e.g. "Bronze certification -- the site could be trusted with 50 bitcoins of stored value per person."
Does the foundation intend to have control over bitcoin.org and thereby over the main distribution channel for Bitcoin-Qt? We're a member organization. Some of our members do have access to and influence over bitcoin.org and bitcoin-qt. I have no idea if they would like us to help manage bitcoin.org, since we just launched yesterday.
If the decision makers for bitcoin.org and bitcoin-qt want us to help out in those areas, I wouldn't mind. I don't think either of those things is super strategic to helping Bitcoin right now; there's more need for messaging and some financial security for the core team, and the other stuff we said we're going to work on this year. bitcoin.org and -qt publishing don't seem broken to me or risky right now.
Given that Mt Gox has a (rightfully deserved) place on he board, what steps can and will you be taking to ensure that independent exchanges are encouraged and not ignored? Also what steps, if any, can and will you take to ensure the public that the commercial interests of those on the board do not conflict with the decentralised ideals and paradigm of Bitcoin itself? I don't know how we'd encourage or ignore exchanges, since everyone is welcome to join.
I do think this individual / corporate angle is at the heart of the Bitcoin, though; it's got a lot of parties that care about it, passionately. Some are investing millions of dollars. Some are tirelessly advocating for Bitcoin. Many sit around and troll and waste people's time.
I guess that partly we expect our board members will act with integrity, and that if they aren't representing the needs of their member class, they'll get replaced with someone who will.
I also don't know how we would, practically, decentralize Bitcoin, even if we wished such a thing. I don't think anyone on the board thinks Bitcoin is doing badly. We're all really excited about it and want to help. I personally believe if corporations (a small group or just one) ever provably controlled Bitcoin, they would become vastly less appealing and useful. So, we're on watch.
Not as on watch as a paranoid bitcointalk forum troll wants us to be, but we're on watch.
Why do you require a real name and real address, when bitcoins core values are to be anonymous? The Foundation's core values include openness and transparency. I think the Bitcoin anonymous thing is overblown and a bit of a myth, by the way. Every bitcoin transaction links two addresses; often people can be determined from those addresses.
At any rate, we wish to make sure you can't stuff the ballot box during voting, and we wish civil productive discourse among our members, so we need real names and addresses.
If you just want to support us without joining, you can always send money to our vanity donation address: 1BTCorgHwCg6u2YSAWKgS17qUad6kHmtQW.
What is the current, largest obstacle when it comes to wider Bitcoin adoption? I think Bitcoin adoption is growing nicely. There seems to be a sort of stair-step function where people figure out something new and broadly appealing to do with them, and it makes a big jump. I expect we'll see that many times over the next five or ten years.
Doubts about the network's scalability, uncertain status about its legality or something else? Bitcoin's brand seems bad to me; mostly the highly publicized exchange attacks worry people. It's too hard to have a secure cold storage wallet for even a very smart individual. I'd like to see some of those things improved.
Does Bitcoin have any plan to combat criminals using the currency to purchase things on online black markets? I can't speak for Bitcoin, but the Foundation has no criminal combatant plans. We do want our members to use their real names and promise that they only engage in activities legal in their jurisdiction, though.
That's mostly just a way of us saying who we want to hang out with, and expressing some community values we think will help our organization be a success.
Did you expect for the Bitcoin concept to explode as it has? I sort of did, but I definitely didn't put my wallet behind that explosion. Sigh.
Also, where do you see it going in the future? I talk elsewhere in the AMA about what I'm hoping for Bitcoin.
Will the foundation be sponsoring Bitcoin software outside of Bitcoin.org? What do you mean? Like if Jeff Garzik made cool software that would help the Bitcoin world but didn't release it at bitcoin.org would we try and help him?
The answer is yes.
I.e., the Foundation would provide a service with recommendations such as wallet security for an exchange, but I don't think the Foundation should be in the business of "certifying". Yeah, there's an interesting set of questions there about certification. I would LOVE to see a certification that brought with it the ability to be insured against loss and theft. Think how nice it would be for an exchange or wallet business to be able to offer that insurance. That said, I don't know of any bitcoin company that has such insurance yet. I think we have some work to do vetting out the processes and procedures, and then some sales and relationship work with insurance companies first. At any rate, we won't be stumping up security for certified companies through the main Foundation corporate vehicle ever. But I think the membership will want to discuss what a good set of next steps is toward that goal, if we're all sold on trying to make it happen.
What's the advantage to using bitcoins over government issued currency, basically why should I invest my $US in bitcoins? Some people have ideological preferences for Bitcoins money issuance scheme.
Some are nerds, and like it for nerdy reasons.
Some just like being able to pay whom they choose when they choose.
Some deal with payment infrastructures that are scary (Paypal freezes are scary), or slow (wiring money in and out of small country central banks is REALLY slow).
Also, they're neat.
How does it feel to know that a kitten wearing a top hat has more upvotes than you? That kitten is so damn cute. I spent some of my AMA time going "AWWW"
How will you try to keep BIG businesses from buying their way into "THE" Bitcoin Foundation? Bitcoin is inherently free, it's peer to peer, it can be forked, it's not controlled by the Foundation, especially one that's one day old.
So, I look forward to large donations from BIG businesses. We will use that money to further the Foundation's mission. Our members will, no doubt, be highly engaged in discussions about what to do with large donations. I'm looking forward to it.
What is your opinion on Canada's new digital currency, "Mint Chip"? How does this affect Bitcoin? I don't know much about it, but I think it's cool from what I do know, (and is it technically flawed? I don't recall). I'm all for money system experimentation, as you might guess.
You are starting to get increased media/congressional notice. Are you at all worried about being shut down and prosecuted like E-Gold was? Who is we? The Foundation is a member organization, nothing else.
There are some bitcoin exchange operators that actively flout the same AML laws that got the E-Gold founders in trouble.
There are some that try hard to do the right thing, jurisdiction by jurisdiction.
Personally, I don't worry about the ones trying to comply, and I don't transact with the ones flouting the laws.
Why do you have different vote classes, is one class worth more then another? Corporate members vote their seats, Individual members vote theirs.
Anecdotally, there are fewer corporate members, so a corporate membership vote has a greater proportional influence over a board seat than an individual membership.
so a corporate membership vote has a greater proportional influence over a board seat than an individual membership. - So there may be poll when votes of both classes come together? Like asking ALL members to opt out changes to the source code? I would be stunned if we voted on source code, ever. I don't think anyone thinks that is in the remit of the Foundation.
Pragmatically, the dev team is one arm of bitcoin source code governance, and miners are the other, since they can refuse to work with code changes they don't like if they do it in bulk.
The board meets often, and should be listening to its constituents; sign up as a member, and then mail your appropriate rep. As a sample of what we discussed today: "Should we do an AMA? Who will get member signup confirmations out? Can we publicize Patrick's bylaws yet?" were the scintillating topics of conversation.
Will I be getting an e-mail with receipt for my payment confirming my membership subscription? Yes, we are ACTIVELY working on it. Apologies.
What's the dev's payroll? TBD, now that we know what our member signups are.
I don't know if we'll release payroll or budget numbers outside the membership -- something we have to discuss.
What power does this foundation have over Bitcoin? Why did you make Satoshi the founder without his permission? We have no power over Bitcoin whatsoever.
I think we felt a foundation that didn't somehow acknowledge Satoshi would be a bit churlish, like ignoring Linus completely while making the Linux Foundation. Satoshi is, as always, free to participate as he/she chooses.
Has there been a growth in algorithmic trading of Bitcoins in the past year? If so, is that growth in algos added stability to the Bitcoin Market? I have no idea. But I'm curious about this too!
Why hasn't (almost) anybody heard of you before today? I keep a low profile. Until yesterday. Also, I gave up on the forums a long time ago; not productive enough for me.
That was very informative, thanks. Not that hard to grasp when somebody spells it out. The reason you do it is to provide a second element of value to a chain of transactions; the first element of value is consensus -- what everyone else says happens.
Is there a reason for doing this? Or just a way to pace the grinding nature of mining bitcoins? The second, arguably more powerful one is provable computation time spent on creating the consensus. So you can look at a set of bitcoin transactions and say "Ah ha, that had roughly [say] $1mm worth of computation time put in to securing and validating it! I believe it's safe to consider my $55 transaction secure."
Just out of curiosity, do you have any idea how many people have applied so far? Yep. We'll release end of first-month member numbers in 29 days. :)
How does one go about buying bitcoins? Probably the fastest way is to ask a friend who has some.
Next would be to use a service like Link to bitinstant.com.
How long are terms for each board member? Two years.
Will the Bitcoin Foundation promote a Vulnerability Reward Program ? I would like to see that, but I think the first things to do in terms of importance are on our published list.
Will the funds for a permanent memberships be put into an endowment, or will they be spent immediately? We haven't discussed it. Budget discussions are next couple of weeks, now that we have our heads around some numbers.
We also have to discuss if the foundation wishes to go long bitcoin, or instead spend to its annual budget. All TBD; if you have opinions send them on to your member reps.
I'm curious about this too. I'm not sure I understand how they work entirely. Maybe somebody could Explain like i'm five... Totally. They are confusing; it's a truly novel solution. Essentially it mixes something non-intuitive and magical-seeming (public key cryptography) with something very hard to imagine a solution for (distributed timestamping among non-trusted parties).
We will be seeing the concept extended out into a number of technology arenas over the next 25 years I imagine. It's an incredibly powerful solution-space.
I spent maybe an hour on the wiki reading the FAQ and everything, and it still makes references to "blocks" and "mining blocks" and those that mine have the option of transaction fees.. and I'm still not really sure what is happening. Yep, like I said. I've been thinking hard about them for two years, I have a cryptography background, and I still have 'a-ha!' moments weekly, at the very least.
There are a couple pretty good bitcoin explanation videos out there, but I'm not up to date on what the best one is. Maybe someone helpful can post a link.
After establishing support for food and shelter for Gavin, will there be opportunities for other bitcoin developers to apply for grants - maybe for specific implementations or features desperately needed. I'd love it. I think Gavin will be working out the specifics of what we want to do. I'd LOVE to see money put into a huge test suite, personally.
Thank you for furthering the effort of Cryptocurrency, I have written several policy papers in this arena, and look forward to the day where the deep web stigma is removed from the currency. Thanks FapNowPayLater! We genuinely appreciate the support.
Last updated: 2012-10-02 22:30 UTC | Next update: 2012-10-03 04:30 UTC
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