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Another thing to remember is that when you talk about someone having a cryptocurrency in a wallet it actually doesn't mean that. What it actually means is that they have ownership of the crypto.

 

Even many people who think they know crypto well do not understand the basics of cryptocurrency 

 

All cryptocurency like for example bitcoin exists on the blockchain.. Think of the blockchain like our land registry office. If you own a house here your ownership will be recorded in the land registry. So if someone contacts them this can be confirmed 

In a similar manner all  crypto exists on the blockchain. Someone who has the private keys of a  wallet  has ownership of the crypto that has been allocated to that wallet . So the owner can transfer if to someone if he wants .

So when we talk about crypto transactions its actually transfer of ownership than an actual physical transfer of crypto. 

So when  person A who has control of say 1 bitcoin via his wallet can "transfer " maybe 0.1 bitcoin to person B . What actually happens is that person A is informing the blockchain that he wants to give part of his ownership to person B ( i.e 0.1BTC out of the 1 BTC he has ) 

So for the "transfer" the blockchain rewards the miners who process these transactions with a fraction of the  BTC which  not been mined yet . So this is one of the ways in which bitcoin miners work 

Now the clever part is that person B doesn't get full ownership of the 0.1 BTC till there have been several confirmations from different miners .

So its difficult for a single bad actor to fake a transaction these days . You need multiple bad actors in a joined up effort and is not as common as in the early days of crypto 

So when person A " transferred" 0.1 BTC to person B the miners  keep confirming that person B 's wallet now has ownership of that BTC. Obviously the more the confirmations the more safer it is..

 

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1 hour ago, mad_manx said:

cryptocurrency in a wallet it actually doesn't mean that. What it actually means is that they have ownership of the crypto

Whats the difference? Who cares if its not technically stored in a wallet, but the rights to it are if its functionally the same thing?

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Even many people who think they know crypto well do not understand the basics of cryptocurrency

Even many people who think they know the internet well do not understand the basics of TCP/IP.


I think being pedantic on the technical details just puts people off and has done more harm than good. That's why so many people have tried to understand it but have given up.

Imagine giving up on getting on the internet because you didn't have a good grasp of routing protocols. Sure, if you're interested in understanding how things work on a fundamental level, more power to you! It just doesn't make sense for everyone to have to know the technical details.

 

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45 minutes ago, Aislinn said:

Whats the difference? Who cares if its not technically stored in a wallet, but the rights to it are if its functionally the same thing?

Even many people who think they know the internet well do not understand the basics of TCP/IP.


I think being pedantic on the technical details just puts people off and has done more harm than good. That's why so many people have tried to understand it but have given up.

Imagine giving up on getting on the internet because you didn't have a good grasp of routing protocols. Sure, if you're interested in understanding how things work on a fundamental level, more power to you! It just doesn't make sense for everyone to have to know the technical details.

 

Storage vs ownership matters. For example  you might have 1 BTC visible in your wallet.  But if someone else gets your private keys they can put it into their wallet and access that crypto.

This is why you should never give your private keys to anyone.

In the fiat World if you feel that your online banking account password has been compromised you can change it or contact the bank etc

 You cannot do that to a crypto wallet if the private keys have leaked.The only safe option is to move the crypto ASAP to a brand new wallet .

 

People need to understand this before getting into this space. 

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Respectfully I disagree.

I think people can learn how to store it securely if they ever decide they want to own some and without being bombarded by the technical details of how blockchains work right from the start that puts them right off.

By far the most interesting thing are the implications of permissionless money on society and the world at large, and it's a shame most peoples first introduction to it is poorly explained technobabble on the technicalities of public key cryptography.

 

 

 

 

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54 minutes ago, Aislinn said:

Respectfully I disagree.

I think people can learn how to store it securely if they ever decide they want to own some and without being bombarded by the technical details of how blockchains work right from the start that puts them right off.

By far the most interesting thing are the implications of permissionless money on society and the world at large, and it's a shame most peoples first introduction to it is poorly explained technobabble on the technicalities of public key cryptography.

 

 

 

 

Permissionless money already exists, typically with a member of the royal family, president or similar printed on it.

The technobabble is an important caveat, many bitcoin wallets have been lost, and even more have been stolen from. Plenty of scams like USITech that have done the rounds too.

I'd compare it to people losing significant amounts of money in any investments or ventures, you want to know what you're putting your money in.

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It's worth noting that relatively low trading volume and a lack of liquidity (nobody selling) is making it very easy for whales and bulls to manipulate the price ever higher.

For the most part people are selling it to each other at the moment.

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4 minutes ago, AcousticallyChallenged said:

The technobabble is an important caveat, many bitcoin wallets have been lost, and even more have been stolen from. Plenty of scams like USITech that have done the rounds too.

To be clear, I wasn't saying people shouldn't do their due diligence before buying it. I just think that the focus is so much on the tech when introducing the concept is all.

 

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Permissionless money already exists, typically with a member of the royal family, president or similar printed on it

I think the idea is permissionless internet money. But I was generally referring to the range of interesting properties that cryptos present that differ from the current money that we use.

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15 minutes ago, pongo said:

It's worth noting that relatively low trading volume and a lack of liquidity (nobody selling) is making it very easy for whales and bulls to manipulate the price ever higher.

I wonder if its so volatile because its used so much for speculation. A big online casino that somehow feels more serious and legitimate than betting on horses because the underlying thing is somewhat interesting and theoretically valuable - however no one really knows what that value precisely is.

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I reckon its an elongated sting. Once all the drug lords, money launderers and Russian gangster types have invested in it the bubble will be burst.

You heard it here first...🖖

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3 minutes ago, Aislinn said:

I wonder if its so volatile because its used so much for speculation. 

You don't need much of it to move the market. And you can do that just by moving BTC from a wallet to an exchange and creating the idea that you might be about to sell.

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When you say volatile, what do you mean? 15 years ago people said Bit coin was nothing more than a fad and would not catch on, but it has. There are quite a lot of Crypto's & I keep an eye on them (coz I invested/gambled £50) - the majority are making 5-25% a day - I'm doing alright on it, made £9 in a day last week, what's not to like? And if it tanks? It's £50, less than a night out and so much more fun :)

DOGE to the moon with Elon Musk. 🚀🚀🚀 lol

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1 minute ago, 2bees said:

When you say volatile, what do you mean? 15 years ago people said Bit coin was nothing more than a fad and would not catch on, but it has. There are quite a lot of Crypto's & I keep an eye on them (coz I invested/gambled £50) - the majority are making 5-25% a day - I'm doing alright on it, made £9 in a day last week, what's not to like? And if it tanks? It's £50, less than a night out and so much more fun :)

DOGE to the moon with Elon Musk. 🚀🚀🚀 lol

DOGE has made me a tidy wedge the last couple of weeks.

As has cumrocket.  Paid for a new motorbike in three weeks in fact.

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