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  1. #16
    FEAR n GREED JBmurc's Avatar
    Join Date
    Sep 2002
    Central Otago

    Default FRom HC ...

    "Bitcoin is a term assigned to a virtual product from a blockchain program. A virtual product underpinned by digital data. It is far from being a currency, let alone a form of money at this stage, as the tangible value is only measured or realised by the transfer of an authorised national currency in exchange for having a blockchain transaction entered on a virtual world ledger........ aka bitcoin in this case. Some businesses are trying to do transactions in bitcoin transfer and it remains to be seen how that all pans out over time.

    Because blockchains are akin to ledger books the technology concept has huge potential to improve all sorts of supply chain management steps, plus of course play an important role in the financial system if it continues to move towards a cash less society.

    In simple terms relating to a basic understanding of accounting 101, a blockchain is a ledger book that can have additional pages added ad infinitum from here to eternity. Each new block added to the chain is like adding a new ledger page to the book. Each new page is a ledger that records all transactions regarding in/outs or receipts/issues for that particular account (or ledger page if you like). The key is having a social network that supports additional blocks (aka a page aka a bitcoin) being added to the chain. Social networks that provide trust and confidence to supporting a particular form of blockchain will be the key to longevity and utility of such.

    Blockchains require certain system architecture, powerful computing hardware, and special types of coding protected well by encryption for a blockchain to work well. The architecture for Bitcoin are things like exchanges, so called miners, digital wallets, and networking nodes as a minimum. This type of virtual system requires simplicity, timeliness, efficiency of effort and most importantly cheap energy to build, run and sustain otherwise it becomes ineffective and too uneconomic and thus a demotivation for people to join the network.

    Even if a social network is developed to support a particular blockchain it will quickly fall apart as soon as any event causes a breakdown in confidence of the participants, or more importantly in the confidence of the participants to be!

    Finally, because blockchains are digital programs that live in the virtual world and there is huge scope for hacking, hijacking, hinderance and thus hell to be injected by those with the know how, sinister intention, and capability to do so. So many things can potentially go wrong and the mind boggles if time is taken to contemplate such threats and weaknesses!

    Cryptocurrencies are not well understood so caveat emptor. Is it a ponzi scheme? If it is, then like any ponzi scheme, the early movers will make squillions and the masses will turn out to be losers again. How much larger can a ponzi scheme get is anybody's guess!?!?

    The thing I find most humorous is that cryptocurrencies rely on blockchain technology that is controlled by a virtual world democracy and the biggest players, especially in mining them, are the Chinese. How ironic........... a digital system run by a democratic philosophy of majority rules that is mostly controlled by a bunch of Chinese cryptocurrency factories in a command economy........ hahhaha that is non sequitur to the extreme.
    Sell the hype, buy the fear. Always second guess the sentiment but trust in the fundamentals

  2. #17
    Senior Member stevo1's Avatar
    Join Date
    Jun 2007


    Quote Originally Posted by Joshuatree View Post
    Bitcoin too risky and volatile for me im thinking. I have a rudimentary understanding. Im more interested in looking to invest in blockchain in listed companies using it. Thnking of the goldrush days where most went bust but the stores selling the picks and shovels did very well with minimal risk. So a list of such companies would be productive and beneficial imo.
    I would not rush in to ANY listed crypto company take--- Long Island Iced Tea for example changing its name to Long Blockchain and the resultant share price surge.They are saying we have not got any expertise in tech but that is what we are thinking about doing.Irrational exuberance.I guess there will be number of penny dreadfuls on the ASX that will come up with some hair brained crypto scheme now.The biggest advantage in this crypto mania is that it has taken eyes off other opportunities.


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