Gold collapsing. Bitcoin UP.

[freetrader]

@Aquent: we will see shortly how much those words by @Jihan are matched by actions.

We hold more than just Reddit and Twitter accounts.

There may be tectonic plates shifting though. 屮

 

[satoshis_sockpuppet]

"We will not active the SegWit until seeing the promised (by "individuals" yes I know Maxwell could not be represented.) HF code being released in Bitcoin Core. "

I have to admit that this clear wording surprises me.
People told me that we might get a deadlock because some miners wouldn't activate SW before a HF was rolled out. I didn't believe that after all the bullshit we've witnessed, I thought miners are just going to swallow everything Core shovels in their direction.
So there is a spark of hope that miners are using their power to negotiate. I'm positively surprised.

Negative: A HF with 2 MB in 2017 won't do the trick. Does anybody here believe Bitcoin can maintain it's current status with more than another year (!!!!!) of 1 MB blocks? No fucking way.

Hope: Core dismantles itself by insisting on developer consensus, which now seems clear won't work with Greg and we get Classic. I want to believe.

Positive: Greg seems to be in total meltdown mode. It's not a good character trait of mine but I'd have to dig very deep to find some kind of sympathy for that guy; so him going down and burning everything around him is another positive factor hopefully.

 

[cypherdoc]

even if you believe Bitfury is ready for a halving of income (i don't), that doesn't mean the other large miners are. as i've said many times, i think they are the most leveraged and skating on the thinnest of margins; that's what big players do and that's how they get big in the first place, through leverage. reading btwn the lines, i clearly get the sense of increasing stress in their voices the closer the halving gets. you gotta give them time and respect what agreements they may have with kore dev, however ill-advised they may be.

and don't argue with the charts. a breakout is imminent:

 

[AdrianX]

Oh, and he calls it "virtual currency", LOL.

Technically bitcoin is virtual in every sense of the use in computing. Bitcoin is by no means "virtual" when you use the term as an adjective. Agreed that it not virtual the adjective but is virtual currency - arguably the most real money ever.

 

[cypherdoc]

and don't argue with the charts. a breakout is imminent:

it's happening.

 

[theZerg]

It makes it harder for large surveillance operations (e.g. NSA) to trace transactions through the network, and pinpoint their origin. I think it does actually make sense.

Yes I actually wrote a line addressing this and then deleted and sent b/c regardless of your opinion on that I still think that that's the joke.

But encryption is probably simultaneously overkill and not enough if your purpose is obfuscation -- not enough bc you need to randomize the port, use 80, and normalize the message length to https or ssh average sizes.

Also most encryption schemes weaken dramatically if attacker has lots of cleartext.

EDIT: on the other hand, now that I've skimmed the BIP I can see that the main purpose is to ensure communications between SPV wallets and particular nodes. That has lots of uses -- it opens the door for extended functionality available between a SPV wallet and a trusted full node. And stops the Sybil attack vector that you can use on SPV wallets.

 

[Erdogan]

It is not virtual money - it is completely and utterly money..

You could even say they are tangible; the unlocking key must be present in written form, at least in the transaction signing moment.

It is not currency, because bitcoin is not in general use. It is real, it works, but nowhere is it used as the preferred money by all actors. Therefore the multistep transaction procedure: fiat -> bitcoin -> fiat. If it becomes currency, nothing is better.

My preferred description:

Bitcoin is free market, sound, private money with excellent money properties, for the world.

 

[cypherdoc]

continuing the elevation:

[doublepost=1464308398][/doublepost]

It is not virtual money - it is completely and utterly money..

You could even say they are tangible; the unlocking key must be present in written form, at least in the transaction signing moment.

It is not currency, because bitcoin is not in general use. It is real, it works, but nowhere is it used as the preferred money by all actors. Therefore the multistep transaction procedure: fiat -> bitcoin -> fiat. If it becomes currency, nothing is better.

My preferred description:

Bitcoin is free market, sound, private money with excellent money properties, for the world.

yes, Bitcoin has 2 of the 3 properties of money; MOE & SOV, but not yet unit of acct.

given that 95%+ of USD's are virtual, i don't see what the problem is.

 

[cypherdoc]

lol, Western exchanges doing their best to ignore the Chinese breakout. can't be done. eventually, the arbitrage opportunities will get too great.
[doublepost=1464310286,1464309583][/doublepost]Boom
[doublepost=1464310487][/doublepost]isn't that just beautiful. so many bulls left behind...
[doublepost=1464310648][/doublepost]capitulation:

 

[AdrianX]

@cypherdoc there is a cost to get money out of China, so eventually it finds a equilibrium I trade another pair that has a minimum of a 5% premium - turns out that's the cost to buy CAD and USD.

The last time it got overvalued in China I started selling Bitcoin to pay for my RMB denominated orders, a real win for western importers it was like an instant 12% discount.

if it holds up well see more adoption here?

 

[cypherdoc]

if you own this, i suggest you start selling:

 

[Erdogan]

@cypherdoc there is a cost to get money out of China, so eventually it finds a equilibrium I trade another pair that has a minimum of a 5% premium - turns out that's the cost to buy CAD and USD.

The last time it got overvalued in China I started selling Bitcoin to pay for my RMB denominated orders, a real win for western importers it was like an instant 12% discount.

if it holds up well see more adoption here?

Great. Another avenue for arbitrage. Bitcoin is unstoppable.

 

[cypherdoc]

who wants me to reset the poll above?

if it turns out to be true, that means we catch gold...
[doublepost=1464311730][/doublepost]

@cypherdoc there is a cost to get money out of China, so eventually it finds a equilibrium I trade another pair that has a minimum of a 5% premium - turns out that's the cost to buy CAD and USD.

The last time it got overvalued in China I started selling Bitcoin to pay for my RMB denominated orders, a real win for western importers it was like an instant 12% discount.

if it holds up well see more adoption here?

the intensity, circumstances, and configuration of this breakout means you'd be crazy to sell here.

 

[theZerg]

Given the close correlation and no other news, I think we can say beyond reasonable doubt that this breakout is the direct effect of Jihan's statement that Chinese miners will force a seg wit for 2MB compromise...

 

[cypherdoc]

note the volume coming in:

Eth in big trouble. in danger of a double top:

[doublepost=1464314578,1464313749][/doublepost]Western exchanges capitulating (getting dragged up kicking and screaming) and beginning to approach their breakout points.
[doublepost=1464315012][/doublepost]Gold collapsing. Bitcoin UP:

[doublepost=1464315436][/doublepost]elevating moar:

 

[cliff]

it's happening.

Not sure whether this idea has been suggested before: it seems that major altcoin hype-events/pumps have an inverse relationship with the bitcoin price. This is probably due to altcoins being priced in BTC. Recently, there have been three major altcoin/hype-events in a short amount of time: Ether, DOA, Lisk. We also had Craig. Twice (the Craig1 preceded the first ether boom by a few weeks). BTC is definitely due for an upward correction as the hype disruption wears off.

 

[Norway]

lol, Western exchanges doing their best to ignore the Chinese breakout.

Let's hope the breakout comes from the fact that most miners decided to remove the silly 1mb limit.

 

[Mengerian]

If you believe that the value of a network follows Metcalfe's law (or the n(log(n)) version), then splitting will non-linearly decrease the value of both sides.

But since all holders would still control their Transaction Outputs on both sides of the fork, wouldn't both sides each have the same potential network effect? At least until holders pick sides and divest from one side of the fork or the other.

Volume of trades is not so relevant. Trades occur when individuals change their minds on the value nonuniformly. If everybody at the same time change their consideration of the value up by 10%, the value is up, but there are no trades.

Yes, but as Bitcoin goes through cycles of accumulation and distribution, more trades allow for the coins to be distributed more quickly to those who value them most highly. I think of each voluntary trade as a transfer of coins from someone who values them less to someone who values them more. So each trade, even small ones, should theoretically add to the total value of all Bitcoin holdings, as compared to if the trades are prevented from taking place.

Personally, I think as soon as we start to see orphan rates anywhere near 10%, miners will be working together to improve block propagation through techniques such as subchains, as this benefits all of them. So I think the problems that higher demand might create (e.g., increased orphaning risk) also provide the impetus for their solution

The driving force for adoption of improved block propagation techniques should be strongest if a subset of miners can benefit relative to the rest by adopting those techniques. If something like subchains can give even a small group of miners a competitive edge, one would expect the rest of the miners to follow suit in short order.

 

[cypherdoc]

lol, dumbasses on BFX. short squeeze!:

[doublepost=1464325561][/doublepost]this is beautiful; the dump accelerating:

[doublepost=1464325722,1464325113][/doublepost]To the Moon Baby!:

[doublepost=1464326489][/doublepost]BFX & Bitstamp breaking out over the top, soon to be followed by Coinbase. don't fight it:

 

[cypherdoc]

$500 here we come.