For users of the [ripple](http://ripple.com) p2p ecosystem ie [stellar](https://stellar.org) but also Privpay, [dogemarket](http://www.reddit.com/ripplers/comments/1vjc90/doge_markets_such_power_wow_including_transitive/) as well as any forks (ING, ABNTrade, Splash, Protoshares and Netpay) or previous versions (ie www.villages.cc, multiswap)
New to Cryptocurrency? Please read this, my advice from following the crypto community.
Hey folks -- Incredibly unexpectedly to me, DogeCoin seems to have struck a chord with the world, and now I'm seeing all sorts of new people into cryptocurrency. Welcome! To me, the cryptocurrency scene is utterly fascinating. However, as it is so new and money is involved, it can be quite dangerous. So, I'd like to share some advice that I've attained through being involved in the community for awhile:
The world of Cryptocurrency is the Wild West 2.0
This is the main point I want to make, and the rest are just supporting details. There are good people and there are scammers. There are opportunities to grow and learn and contribute cool things, and there are sharks that will take advantage of people and fraud them out of money. There are genuine market dynamics as well alongside massive manipulation, and it's hard to tell which is which without studying it for awhile. There aren't any rules, there can be rampant greed a times, there are always bubbles on bubbles on bubbles (see http://www.pbs.org/wgbh/nova/body/mind-over-money.html -- this basically shows that humans naturally make financial bubbles and how the entire market is ruled by psychology). I have no doubt that cryptocurrency will be studied for years, academically, as "what happens in a free market." Fascinating stuff. Just know what you're getting yourself into!
Never "invest" in Cryptocurrency more than you are willing to lose
First of all, buying cryptocurrency is not really investing, it's much closer to gambling. I have never recommended purchase of any crypto with dollars to anyone, but I always recommend mining, because it's quite inexpensive and makes it easier to treat these coins as magic funny money. Pretty much all cryptocurrency "value" is just the amount of bitcoin people are trading it for, and bitcoin is an extremely volatile asset that can and has dropped in value 50%+ overnight, and that isn't any different with DogeCoin. This is why I want to keep the DogeCoin community lighthearted. It's never fun to lose money, but everyone needs to understand that, unless they are just mining, any money they put into it can be lost. Not trying to scare everyone away! Just be careful.
If you decide you want to purchase, use exchanges, ebay/paypal is not generally recommended
Even though I wouldn't recommend purchasing over mining, if you insist, I would always recommend going through http://coinbase.com, purchasing bitcoin, and trading it for dogecoin at market value on one of the major exchanges (bter, vircurex, coinedup, imo. Cryptsy, as you have seen, is a bit of a toilet) as opposed to purchasing anything on ebay/paypal, even though it is faster. First of all, people mark up the price on ebay, because they are targetting newbies. Second of all, paypal will not honor any cryptocurrency agreement, so if the buyer files a dispute, the seller won't get the money - another reason for markup. This goes for selling as well, for the same reasons.
Use different passwords on different sites
The vast majority of people are honest, but not everyone, so be careful and diligent. Don't use the same password twice, set up 2-factor authentication wherever you can. Forums often get hacked and steal passwords, and sometimes site operators aren't safe and have your passwords hidden in plaintext.
Make wallet backups and encrypt your wallet
Your wallet.dat file holds are your coins. If you lose that, you are toast. If someone copies that file from you, they can steal all your coins. You want to encrypt it and use a very strong password, and back it up - on a thumb drive, etc. Or export the private key and write it down somewhere (google paper wallet for how to accomplish this) Note that there is a bug right now for some windows platforms when encrypting the wallet. I'll fix it soon..ish... >_<
Don't leave your coin in online exchanges or pools too long, or too much online wallets
When you're using an exchange, pool, or online wallet, keep in mind that at any point they can go down or be hacked. It's best to keep the payout threshold low in pools and only keep money in online exchanges you find trustworthy with 2-factor authentication. Considering its newness, DogeCoin does not yet have long running trusted services, so of course not saying dogewallet (or any other wallet service that will come about for dogecoin) is untrustworthy, but that it is a risk to keep too much coin in any type of online wallet. (Note - dogewallet turned out to be a unsafe/compromised/maybe a scam)
Consider Mining CPU Coins and GPU coins at the same time
If you're mining Dogecoin with a graphics card, you can also mine with your CPU at the same time (though generally you'll need to use MAX_CPU_THREADS - 1 to avoid issues). There are some coins that are essentially CPU only -- the most interesting of these, I find, are Primecoin and Protoshares. The easiest way to do this is to go through http://www.ypool.net and follow the instructions from that site. Both these coins are well established and have interesting algorithms. Mining two coins at once -- much profit!
Try not to become elitist! Continue being generous, welcoming, and have fun
This is my last piece of advice to all. This is the tone I hope to always keep for DogeCoin. The cryptocommunity is full of elitism and greed, and it makes sense in from a psychological standpoint. People get very invested and want to thwart away anything that entrenches on their territory. I hope that the DogeCoin community will never get that way. I want us to understand how that happens and resist it. Even though 5 new coins just came out that essentially cut and paste DogeCoin, we don't need to trash their coins and feign being superior to everyone - there will be many more popular coins that come out in the future. And really, I mean, c'mon. I slapped a dog on a coin :) Let's remember that and continue to do what I am seeing right now, which is incredibly welcoming, generous, and fun. Thanks folks. Enjoy your holidays :)
Paypal freezes our account after one year of service. We are having a HUGE sale just for cryptocurrencies as a result.
Hi guys, So in November paypal froze our account due to them claiming they do not process payments for vaporizers. Our sales had been pretty steady up until this point and we've been struggling to get the same level of sales ever since. Bitcoin has helped us immensely during this time but the bitcoin market is still too small to reach the same level of sales as we were doing before. We tried setting up other payment gateways to no success. We used Stripe, but after our first sale they refused to do business with us. We are currently working to set up another payment gateway solution and merchant account. We are not asking for donations, but rather just informing the community of what happens when big companies like paypal are threatened by bitcoin and other technologies. However we are asking for help with regards to setting up a merchant account in Canada as that is our main priority as well as to advertise a big sale we are having to help with this transition. The sale will be up to 50% and we are accepting ONLY cryptocurrencies. We are only set up for bitcoin, but we would also like to accept these cryptocurrencies through email. • Litecoin • Nxt • Bitshares PTS (protoshares) • counterparty • mastercoin • dogecoin Also as a bonus we will be giving a free MFLB and V-tower to two lucky individuals who purchase from us this week! http://www.vapetropolis.ca TL:DR Huuge Sale when paying with bitcoin or cryptocurrencies listed above.
Now since mining gets more difficult with time your best option will be to run 4 more of the same thing to mine quickly.
Each server costs $20. So $20*5 = $100. $100/30 = $3.33 each day You have $10 credit so you have ~3 days worth of mining that you can do for free. If you go over you will only be be charged the extra by the hour so don't worry about getting a huge charge on your creditcard unless you forget for a month. WHAT IF I WANT BITCOINS OR ANOTHER CURRENCY NOT PROTOSHARES? Well you can try to find other guides online to use these servers, but unless it is a CPU only coin the results won't be worth it. You can also trade them on Cryptsy for other coins including bitcoins. Cryptsy non-refferal
Our goal at coinpay is to network and list merchant services and coin payment options for each coin above. Any coin devs or coin admins and staff for each coin above please contact us to list merhcant services and retailers.
Many people I've talked to worry that the huge proliferation of altcoins will eventually eat away at Bitcoin's marketshare and value, and/or compete with each other to the point that the value of all cryptocoins drops to zero. This won't happen, and in fact, the end result is a win/win scenario, in which we end up with one highly superior coin, or a basket of coins, each offering different types of value the others can't privide. Here's what I wrote in the other forum. "When it comes to economic entities (not the currency used between those entities), the more the merrier, as long as it creates better products and services, and price competition. I think having a competing basket of cryptocurrencies is also a good idea, as long as the result is a better cryptocurrency, but not price competition. What Gordon is saying is that, assuming all things being equal, too many equivalent cryptocurrencies end up devaluaing all of them because you have too many tokens chasing too few goods, cuasing hyperinflation worse than anything we have with fiat. As I've been debating with Gordon, I don't see that scenario happening for of all the reasons I stated above. Namely, that there can only be one market leader in cryptocurrencies. If people have a choice they are going to use the one that increases in value the most. And once that trend is obvious, people will increasingly avoid the alternatives. This is the first mover advantage we are seeing with Bitcoin. Despite there now being over 100 billion altcoins in total, Bitcoin has maintained it's >90% marketshare. Any coin that was increasing in value faster than bitcoin was only able to maintain it for about a week before collapsing back in value. The only thing I can see that would take away Bitcoin's marketshare is a genuinely better coin that is prefferred by both merchants and users, or offers something that is actually filling an entirely different economic niche, and thus it's own unique value role in that economy. The few that come to mind that do this are Protoshares, Namecoin and Mastercoin. Each creates a different type of value because they are not in essence competing with Bitcoin, in the same way that a computer manufacturer is not competing with a grocery store. When it comes to currencies proper, a different mechanism is at play, what we might call an "algorthmic possibility space". In other words to what degree is it possible for a single algrothim to provide all the functions of an ideal coin? For example, if it's algrothmically possible for one coin to do everything, then we will end up with just one coin. Lets call this coin the "Unicoin" - I like this term, because it sounds just like unicorn. It means both unified and universal. I should trademark it or something. In this scenario we'd still have a very small marketshare of competing coins vying to be the "next best" Unicoin. Since open source is king, then the most likely outcome is the Unicoin development team simply incorporates the new and improved code into the existing Unicoin protocol. Assuming this "algorithmic unification" is possible, this is the most likely scenario. I don't see this as being "monolithic" in any meaningfully bad way. If it can be integated, it will be integrated. More menacingly we could call this the Borgcoin, but I don't see this as a bad thing at all. Now it may turn out that it is impossible, algorithmically, to provide all the things needed in a currency/asset class in one coin. In that case we end up eventually with optimized algorthims for each function that cannot be integrated by the others. The really fun question then is what are those currency/asset class functions that can and cannot be unified algorthmically? Are we looking at just one to a few, or dozens to hundreds? I suspect whoever has the answer to that question is going to be the next Satoshi Nakamato.
Mining hardware constraints in relation to transaction fees: thinking about the future
In a (not so) distant future when block subsidies are no more, miners' income will come from transaction fees only. Assuming everybody behaves the same way and mines to support decentralization, what each person spends on mining is also what each person receives as mining rewards, so the balance is zero. However they still have to pay for their mining hardware and their power bills. The question is: how much are you willing to spend to support the network? I would say not much more than regular banking fees. As a rule of thumbs, let's say $10 per month. Let's study 2 cases. If you already have the hardware because it is general-purpose (i.e.: the crypto is ASIC-resistant), you can spend these $10 on electricity only. At a rate of $0.15/kWh, this is is 67 kWh, which means you can afford to let a miner of 91W run permanently. This is slightly more than a CPU (without the rest of the system), and only about one third of an AMD 7950 GPU (without the rest of the system either). If you must buy specific hardware (i.e.: the crypto is ASIC-friendly), assuming it is perfectly power-efficient, you can disregard power costs and spend your whole budget on hardware. Assuming you will renew it every 3 years, this means you can afford a $360 miner. For Bitcoin, as of today, this would be 3 Redfury USB miners. Now, the important part: since the sum of transaction fees can only support that much hashing power, if anyone mines more than their share, they contribute to centralizing the network, because assuming no one is willing to pay more transaction fees to compensate, someone else will need to stop mining. Conclusions: in the long run, GPU mining is not sustainable at more than 1 GPU per household. CPU mining by everyone could be sustainable if a CPU-friendly, GPU-resistant and ASIC-resistant algorithm can actually be designed. As of today, SHA-256 is completely dominated by ASICs, Scrypt with N=1024 ASICs are on the horizon, Scrypt with higher N values is vulnerable to DOS attacks, Quark's algos have already been implemented as ASICs by academics and Protoshare's Momentum algorithm is GPU-vulnerable. As far as I know, the only viable algo that has yet to be proven GPU/ASIC-vulnerable is Primecoin's, but given the fates of the others, I wouldn't set my expectations too high. So it appears that progression to ASICs will be hard to avoid. But big ASICs with power draws higher than 100 watts are definitely a threat to decentralization. They are acceptable as long as the money supply is growing, but are not sustainable, so I advocate the development of smaller ASICs to preserve the decentralization of crypto-currencies in the future. Coincidentally you can use these calculations to estimate the cost of a 51% attack in the future: let's consider the current global population of 7 billion people, each spending $10 per month to secure the network. For a 51% attack, you would need more than 70 billion dollars per month, or 840 billion per year, 23% more than the 2010 US military budget. Of course, all of this is assuming a PoW mining system. With proof-of-stake, it would be completely different, as block generation would be nearly free.
The budget is limited to hardware. Terms of the agreement, no speculating allowed. What's my best bet for ROI? ASIC (I don't have anything on order yet, so what can I get now?) CPUs and altcoins / protoshares? (At least that way there would be a use for the hardware after the difficulty goes so high that the cost of electricity makes it unprofitable to mine.) Are there calculators out there that help pick a hardware setup to maximize return with more options than bitcoin/litecoin/alt/alt-alt?
"The Correct Strategy of Bitcoin Entrepreneurship" by Daniel Krawisz | Satoshi Nakamoto Institute Mempool
The Correct Strategy of Bitcoin Entrepreneurship by Daniel Krawisz We're All in This Together Bitcoin entrepreneurs have yet to appreciate fully collaborative nature of the Bitcoin economy and its implications for entrepreneurial strategy. Every successful entrepreneurial act improves the Bitcoin economy and attracts more people in, thus raising the value of the coins. Each new service benefits everyone else who is already invested. Consequently, Bitcoin businesses do not necessarily need to see themselves as competitors to one another. Even if they have the same business model, they both have more to gain from the influx of new users from outside than by taking customers from one another. Furthermore, the growth of any Bitcoin business is limited ultimately by the growth of Bitcoin itself. Since the number of coins is strictly capped, the currency must grow with its price. This means that few business can be expected to earn a much better return than the coin itself over time. Entrepreneurs should therefore invest in coins, not businesses, because coins are where the profit is. In addition, if Bitcoin fails, then the Bitcoin businesses fail—so Bitcoin is less risky than any Bitcoin business too. Thus, Bitcoin entrepreneurs should be less interested in making money than in making bitcoins into money. An entrepreneur who follows that precept should generally be expected to be more successful than otherwise because the potential for Bitcoin itself is so much greater than any Bitcoin business he could invest in. Of course, Bitcoin cannot succeed without businesses, or at least some sort of entrepreneurship. What is the best way to fund ventures in an environment in which they are relatively poor investments? The trick, I propose, is to think of these ventures more as donations to the Bitcoin economy than as profit-seeking ventures. Any useful Bitcoin service will tend to make the Bitcoin price increase because it adds value to the network. It may, therefore, be perfectly rational for a Bitcoin investor to contribute the service to the economy for free. Furthermore, the success of such a business being desired by everyone who holds coins, such a business can be run more like a non-profit or open-source project than an business. Thus, a new venture may attract investment even if it is not profitable as long as it provides a service the Bitcoin world needs. In mid 2013 Armory, an open-source Bitcoin wallet project, received $600k in seed funding without even though nobody knows how it will eventually be monetized. These people have the right idea, but they shouldn't try to monetize it at all—it is obviously making all the coins more valuable. Don't be a venture capitalist—be a speculative philanthropist. Labor Is Scarcer than Ideas The task ahead of us is monumental—the construction of a new financial economy to replace the one built around the national currencies. This will take a lot of work. Unfortunately, a lot of work is being wasted right now. The venture capitalists are looking to invest in a sharp team with a cool idea but the group of people that matters most is the entire network of Bitcoin users, and the idea that matters most is Bitcoin itself. Big new ideas get hyped up almost every week around here, and the Bitcoin economy will work a lot better if people would try harder to ignore them. There are lots of business ideas floating around and limited time to create them. Only ideas that have a very high probably of being an important part of the future Bitcoin economy should be implemented because that is all we have time for and those are the only ideas worth risking Bitcoins on. The proof that ideas aren't scarce is that anybody can make his own altcoin at any time. Already there are hundreds, and every one of them a bad idea from people who don't understand the cumulative benefits of cooperation. Since entrepreneurs don't understand Bitcoin very well yet, it is easy to dazzle them with technobabble and funnel investment into flawed projects like Protoshares, Mastercoin, and Ethereum that have a very low probability of furthering Bitcoin adoption to any significant degree. There is no real reason to keep secrets because the more that everyone knows about what everyone else is doing, the more easily they can decide what the Bitcoin economy most needs of them. Everything about a business can be done openly for the benefit of the entire industry. Product development, future plans, market research, finances; everything except private customer data, which shouldn't be collected anyway, and, in the case of illegal Tor businesses, the real identities and locations of the owners. We need open business and open businesses. Entrepreneurship as a Collaborative Scientific Enterprise In an open-business world, less experimentation is necessary to produce a workable system than among other businesses because there is no reason to keep secrets from one another. All trial-and-error should immediately benefit all the other Bitcoin entrepreneurs so that everyone can more easily figure out the most effective way to work. Open business as a generally accepted best practice would have eliminated terrible businesses like MtGox and Butterfly Labs early on. But even that would have been too late. Everything possible should be done to try to eliminate ideas before they can turn into failed businesses. That means sharing all ideas with the community, and investing in nothing that does not already have widespread community support. Much of the Bitcoin world already works very openly. Lots of terrible ideas get shot down all the time in the Bitcointalk.com forums. All the software is open source. However, more is required: Bitcoin entrepreneurship should be run more like scientific research than a gold rush or an Internet bubble. There should be open research into the future Bitcoin economy, complete with peer review and consensus over which ideas are the most useful and important. Investment should focus on ideas that already have been vetted by the community. It should be considered reprehensible for startups to inventtheir own cryptographic algorithms. It is too much of a waste of resources to test ideas in experiments with real businesses. All business models ought to be carefully critiqued beforehand and only the most necessary ones that we have time for should be created. This is not central planning; it is consensus-based entrepreneurship. No one shall be forced to follow any idea at all; it is simply in everyone's best interest to cooperate. If I am right, then soon investors will learn to back only heavily vetted ideas and entrepreneurs will it as well. In the early Renaissance, mathematics was practiced in secret and mathematicians carefully guarded their own discoveries because a mathematicians' career depended on being able to show patrons that he could solve problems other mathematicians could not. However, in 1545, Gerolamo Cardano sparked a new trend with Ars Magna, the first published work to include the general solutions of the cubic and quartic equations. He even included secret work (with citation) by Niccolò Fontana Tartaglia, which whom Cardano had promised not to reveal. Gradually, mathematics transformed into a tradition characterized by publication rather than secrets. Open-access publishing is now demanded. Entrepreneurship is in its Renaissance still. Conclusion In a low-growth economy, one grows rich by carefully leveraging one's skills and assets so as to negotiate the most profitable trades. In other words, wealth comes from performing better than everyone else. It makes sense to guard closely any edge that one might have. Whereas in a high-growth economy, wealth comes from doing as well as everyone else. It is more difficult to improve one's state relative to everyone else than to enjoy the overall growth that improves everybody's state. The Bitcoin world understands this instinctively, but needs to take it to its logical conclusion. The entire Bitcoin economy needs to be open-sourced. This is how to make Bitcoin succeed most quickly and with the least effort, which is the best outcome for everyone. Let's get to work.  In a post-singularity world, everything should be expected to grow at a phenomenal rate, similar to the growth of the Bitcoin economy today. Thus, I would expect the attitude of sharing and collaboration should apply generally.↩
Question: How would could you tie a real product to a Crypto Coin? Specifically an agricultural product...
I recently heard a LetsTalkBitcoin cast in which the host suggested a private coin idea, drawing a parallel to ProtoShares. He used the concept of a timber company, having a 5 year lifespan to grow a finite set of trees and harvest them. The idea of a crypto coin created and tied to the actual harvest of an agricultural product. Of which this coin could be mined (aka protoshares). What I could not understand was the buy back from the grower, a guarantee of sorts, thus giving the coin a tangible value. (would like to understand this idea further) Could some of you extend this concept... I am very interested in how this could be tied in by a private company, brand, product, etc. that has a real timeline for production, consumption, etc against a finite output of produced goods. The primary concept being that Crypto Currencies have value based on attributes that go further than the protocol of sorts. Protoshares being used to create software and a decentralized corporation or QuarkCoin that uses 6 different crypto routines, etc. Hope you guys can shed some light on the concept.
Looking for someone to join our team. Need experience with Linux, Github(a must), PHP, JS, AJAX, HTML, Bootstrap, and Python. We are moving toward web apps, so please post any asynchronous apps you have worked on. If you can provide your websites, Github, and rates(if comfortable) that would help me narrow down people quickly.
If ethereum isn't an altcoin then what are ethers and why would anybody want/need/use one?
I'm totally confused. Is bitcoin sufficient for payment and money transfer, but if you're a developer than you'd buy ethers and use them to I guess develop apps? Would you then need ethers to run these apps? Could someone ELI5? And for extra credit why is this better than protoshares?
Description ProtoShares is a unique type of cryptocurrency that is not based on Bitcoin's code or model, as many other digital currencies are. For one thing, instead of the energy- and time-intensive SHA-256 mining protocol used by many alternative currencies, Protoshares has developed their own mining system called Momentum, which is designed to be quicker and easier for individual miners to use. ProtoShares are based on the basis of the Bitcoin, but with several modifications made towards it, to make it different and in their opinion better. It uses the SHA512 protocol for mining the coins and aims to create a new block to be mined every 5 minutes, which the system will adjust the difficulty towards. How to Buy ProtoShares Guide. ProtoShares is an exciting new addition to Bitcoin-inspired ideas, but unlike the other altcoins, ProtoShares is more of a crpto-equity than crypto-currency. This is a first of its kind, and frankly, I am quite excited about its prospects, especially given the promise that BitShares is going to be forked off of ProtoShares. PTS – Protoshares. ProtoShares coin uses a new Momentum Proof of Work (POW) algorithm that is designed to be GPU and ASIC resistant. Protoshares coin was launched on 5th November 2013. Protoshares specifications. POW Hash: Momentum (2^26 / 2^50) with SHA512 Generation; Block target: 5 minutes; Difficulty Retargeting: 4032 Blocks How ProtoShares evolved to become BitShares X and other future DACs.Original (dhimmels): On October 5, 2013, at the Cryptocurrency Conference, Daniel Larimer, the founder of Invictus Innovations gave a presentation on Decentralized Autonomous Companies (DAC). One idea that he presented was the creation of ProtoShares (PTS). PTS is a mineable cryptocurrency used to raise funds for the
Bitcoin is the most popular cryptocurrency with the highest cost (as of this video). There are a lot of videos talking about the revolutionary blockchain, but very few videos actually going ... Excerpt from Let's Talk Bitcoin - Episode 57 (http://letstalkbitcoin.com/e57-protoshares-selfish-mining) HOW TO BUY BITCOIN 2020 - BEST Ways to Invest In Cryptocurrency For Beginners! (UPDATE) Get $10 of free Bitcoin when you buy or sell at least $100 of cryptocurrency on A Beginner’s Guide to Bitcoin Looking for a general understand of ‘what’ bitcoin is, ‘what’ gives it value and ‘where’ it comes from? This is the video for you. As the topic of ... This video is unavailable. Watch Queue Queue. Watch Queue Queue