1 BTC = $8.2k, it’s up 735% this yr UPDATE 5/19: BTC @ $42k :damn:

[50CentStan]

Cold storage can't be taken away from you. It's true ownership, which is sort of the point of crypto. Hot storage is at the mercy of the exchange.

One upside to hot storage that was recently relevant is if something like XRP is tanking you can get out immediately without the lag time of sending your crypto from your wallet back to the exchange and waiting for it to get confirmed before being allowed to trade it.

Thank you

 

[the bossman]

Wait, why set up a wallet? Can't you just leave your BTC in your coinbase account? Whats the downside/upside?

Not your keys, not your bitcoin

Not Your Keys, Not Your Coins: Why It Matters | Ledger

 

[bammtronics]

They definitely can.

What Is a 51% Attack?

Miners aren't nodes. Nodes enforce the rules, miners do the work. Bitcoin miners vs Bitcoin nodes

Even if you assume all of the "n/a" in this chart is China (and that they could all somehow sync up and "hack" the blockchain), they're only at ~23% Global Bitcoin nodes distribution

You can help offset the "potential threat" by running your own node: Download - Bitcoin

 

[Ozymandeas]

Miners aren't nodes. Nodes enforce the rules, miners do the work. Bitcoin miners vs Bitcoin nodes

Even if you assume all of the "n/a" in this chart is China (and that they could all somehow sync up and "hack" the blockchain), they're only at ~23% Global Bitcoin nodes distribution

You can help offset the "potential threat" by running your own node: Download - Bitcoin

Bruh, nodes are computers running the software. Miners are mostly large groups that have the computational power to beat out other groups to process blocks of Bitcoin transactions. Nodes prevent shady transactions from happening since the idea is no bad actor can override enough nodes to have the fraudulent transactions become universally accepted across the system. A 51 percent attack means a group amassed enough power to override enough nodes thus they can control what’s being recorded. The only defense against this is the hope that they would realize this would tank Bitcoin and thus hurt their own investments but it is possible. IDK why y’all arguing. This has always been a possibility and has been discussed adnauseum in crypto world

 

[FruitOfTheVale]

Bruh, nodes are computers running the software. Miners are mostly large groups that have the computational power to beat out other groups to process blocks of Bitcoin transactions. Nodes prevent shady transactions from happening since the idea is no bad actor can override enough nodes to have the fraudulent transactions become universally accepted across the system. A 51 percent attack means a group amassed enough power to override enough nodes thus they can control what’s being recorded. The only defense against this is the hope that they would realize this would tank Bitcoin and thus hurt their own investments but it is possible. IDK why y’all arguing. This has always been a possibility and has been discussed adnauseum in crypto world

Based on that would it be idiotic to think that whoever cracks the quantum computing race first is going to have a disproportionate amount of power over the crypto economy

 

[bammtronics]

Bruh, nodes are computers running the software. Miners are mostly large groups that have the computational power to beat out other groups to process blocks of Bitcoin transactions. Nodes prevent shady transactions from happening since the idea is no bad actor can override enough nodes to have the fraudulent transactions become universally accepted across the system. A 51 percent attack means a group amassed enough power to override enough nodes thus they can control what’s being recorded. The only defense against this is the hope that they would realize this would tank Bitcoin and thus hurt their own investments but it is possible. IDK why y’all arguing. This has always been a possibility and has been discussed adnauseum in crypto world

if it's been discussed ad nauseam then surely you can provide one reference

 

[Ozymandeas]

if it's been discussed ad nauseam then surely you can provide one reference

Google 51 Percent Attack

 

[bammtronics]

Google 51 Percent Attack

I know what a 51% attack is. What I was saying was in reference to a) your conflation of miners vs nodes and b) the threat of a 51% attack specifically on Bitcoin.

I did google this though: Why Chinese Miners Won’t Stage a 51% Attack on Bitcoin

People who throw out the "51% attack" theory are usually referencing Chinas position in Bitcoin, which is why I mentioned them at all. Not sure if you meant them specifically, I'll concede that. But it applies to "anyone".

 

[Ozymandeas]

Based on that would it be idiotic to think that whoever cracks the quantum computing race first is going to have a disproportionate amount of power over the crypto economy

IDK...i don’t know enough about quantum computers to speak on it. Im more intrigued that there will be billionaires created off crypto and mining groups will essentially control the Bitcoin network but we wont know who they are If you follow the money back far enough I’m sure you’ll end up with Russian oligarchs, oil sheikhs, dark money Koch like groups, shady Chinese billionaires, etc. We’ll have no clue

 

[Ozymandeas]

I know what a 51% attack is. What I was saying was in reference to a) your conflation of miners vs nodes and b) the threat of a 51% attack specifically on Bitcoin.

I did google this though: Why Chinese Miners Won’t Stage a 51% Attack on Bitcoin

People who throw out the "51% attack" theory are usually referencing Chinas position in Bitcoin, which is why I mentioned them at all. Not sure if you meant them specifically, I'll concede that. But it applies to "anyone".

I didn’t conflate anything. I didn’t even mention nodes or miners in my original post. All that stuff is crypto 101. I said a 51 percent attack is possible (since someone in here wanted arguments against Bitcoin) and it is.

 

[bammtronics]

I didn’t conflate anything. I didn’t even mention nodes or miners in my original post. All that stuff is crypto 101. I said a 51 percent attack is possible (since someone in here wanted arguments against Bitcoin) and it is.

You said:

Vulnerable to professional hacks. If someone could gain 51% of the computing power, they can hack the entire system.

Trading one system of control (banks, central banks, governments, regulators) for another (miners) under the guise of being decentralized when in reality there’s only a few parties in the world with enough money to run these Bitcoin mining systems profitably meaning there could be a handful of unsavory wealthy individuals who essentially control this internet money supply. And unlike before you have no idea who these muthafukkas are. Think James Bond villian type sh*t.

Miners make up the bulk of the computing power in Bitcoin. However, nodes (I admit, doesn't look like you mention nodes) are what govern the information supplied by miners. Maybe I'm confused on where you're saying the threat is?

 

[Ozymandeas]

You said:


Miners make up the bulk of the computing power in Bitcoin. However, nodes (I admit, doesn't look like you mention nodes) are what govern the information supplied by miners. Maybe I'm confused on where you're saying the threat is?

Those are two different issues.

1) If someone wanted to hack the system, they just need to figure out how to get 51% of the computational power. This has already happened to some cryptos.

2) Mining Bitcoin is expensive. You cannot compete with the big boys who have enough money to buy multiple warehouses worth of servers in Sweden running Bitcoin nodes 24/7. So very quickly, you end up with a scenario where there’s only a few very wealthy parties processing most of the Bitcoin blocks. That’s not decentralization. You just exchanged central banks and governments for mining groups. And it’s a bit scary because you don’t know who these muthafukkas are.

The two intersect because if enough of these groups wanted to, they could override the system to do whatever they wanted. This is all theoretical but it’s a possibility

 

[GoldenGlove]

These prices are making me think wtf was I doing fukking with altcoins a few years ago.. the wasted money

This.

I fukked up, but you live and you learn.

 

[bammtronics]

Those are two different issues.

1) If someone wanted to hack the system, they just need to figure out how to get 51% of the computational power. This has already happened to some cryptos.

2) Mining Bitcoin is expensive. You cannot compete with the big boys who have enough money to buy multiple warehouses worth of servers in Sweden running Bitcoin nodes 24/7. So very quickly, you end up with a scenario where there’s only a few very wealthy parties processing most of the Bitcoin blocks. That’s not decentralization. You just exchanged central banks and governments for mining groups. And it’s a bit scary because you don’t know who these muthafukkas are.

The two intersect because if enough of these groups wanted to, they could override the system to do whatever they wanted. This is all theoretical but it’s a possibility

Gotcha. 51% is most definitely an issue for altcoins, especially the newer ones.

as to point 2.... I see what you're saying but it's kind of a non-factor UNLESS shyt like what the Feds are trying to push (and that crypto is fighting against) right now becomes the norm - the whole KYC/identify who owns every address regulation bullshyt. As long as it remains pseudonymous, I personally DGAF who "controls" Bitcoin as long as it will hold value and I can utilize that value whenever I want. The moment that becomes an issue, best believe that the crypto world would fork or move to another protocol (a la Monero). But on the flip side, that's also why I like that institutions are buying into Bitcoin, cause they ain't about to let the govt tank their investment, at least not without a fight.

 

[Black Bolt]

On the way to $50k...