Crypto Mining Pools 2019 : How To Choose The Best Pool

Wisdom Chian:AccountState

In the current block chain world, there are mainly two ways of record preservation, UTXO mode and Account mode. Bitcoin adopts UTXO model, Ethereum/EOS adopts Account model, and WisdomChian also adopts Account model. Today we will explain in detail why WisdomChian also adopted the account model.
Before introducing the UTXO model and the Account balance model, we have to first introduce the most important concepts and data structures in their two or even all block chain applications, that is, Block. The block chain is actually made up of a list of growing chains, which contains many records, that is, blocks.
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UTXO model
In the UTXO model, transactions only represent changes in the UTXO collection. The concept of accounts and balances is a higher abstraction on the UTXO collection. The concept of accounts and balances only exists in wallets. Let's look at some examples to understand the difference.
First, Bitcoin UTXO can not be partially expended. If a user wants to spend 0.5 Bitcoins, but he has 1 Bitcoins in his UTXO collection.He has to send half a Bitcoin to himself to get change at the same time as he sends half a Bitcoin to someone else. If he doesn't send it to himself, he will pay 0.5 Bitcoin to the miner.
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Second, Bitcoin itself does not store account balances. Users only need to sign these UTXO with the private key to spend Bitcoins. The digital wallet makes the Bitcoin blockchain look like it has the function of user account balance. This is not the case.
How visual wallets work in Bitcoin
Bitcoin's UTXO system works well, partly because digital wallets can help to accomplish most of the work related to transactions. Including but not limited to:
a) Processing UTXO
b) Storage key
c) Set transaction costs
d) Provide change address
e) Aggregated UTXO (display available, pending and total balance)
Trading in the UTXO model is similar to paper currency. Each account shows how much money it has by calculating the sum of all the paper money (UTXO) in the wallet (corresponding to the wallet address). When we want to spend money, we need to use one or more UTXO with enough cost and we may get a new UTXO. Each UTXO can only be used once, because once UTXO is expended, it will be deleted from the UTXO pool.
All in all, we know that:
Bitcoin blockchain does not store account balance
Bitcoin Wallet Holds secret key
If it is included in the transaction, it will cost the entire UTXO (in some cases, the change is in the form of a new UTXO).
WisdomChain
WisdomChain adopts the same Account transaction structure as ETH. Unlike Ethernet, there are two very different data in Ethernet: permanent data and temporary data. An example of permanent data is a transaction, which, when fully confirmed, will be recorded in the transactiontrie and will never change. An example of temporary data is the balance on a specific Ethereum account address. The balance of the account address is stored in statetrie and will be changed whenever the transaction of the particular account changes. In Ethereum, permanent data (such as mined transactions) and temporary data (such as account balances) are stored separately. Ethereum uses trie data structure to manage data.
And about WisdomChain, when the transaction is initiated, the node will calculate the status information after transaction based on the current state information and transaction content in the virtual machine, and store the relevant hash value of the state information along with the transaction. When the transaction is packaged by a miner, the remaining nodes store data on the Merkletrees to ensure that the state information of their nodes and other nodes in the network is consistent.
So WisdomChain's records are kept like banks. Similar to using ATM / debit cards, banks track the amount of each debit card. When we need to spend money, the bank checks its records to make sure we have enough balance before confirming the transaction.
Of course, WisdomChain uses the Account transaction structure, which inevitably leads to the problems of the Account transaction structure itself. First, there is no dependency between Account model transactions, so the problem of replay attacks needs to be solved. Second, for the realization of lightning network, Plasma and so on, users need more complex Proof mechanism to produce evidence. The state transfer of sub chains to the main chain requires more complicated protocols.
submitted by Frosty_Gene_7770 to u/Frosty_Gene_7770 [link] [comments]

The project loses its voice and how Forbes stands out

The project loses its voice and how Forbes stands out

https://preview.redd.it/rstkulyt9f551.png?width=764&format=png&auto=webp&s=c29cc40bdb0a46f7d24d11d1cfb0334a29e1ce69
With the success of bitcoin, the currency circle has officially entered the "bull market cycle", but many friends are complaining that it is more and more difficult to earn money in the currency circle. Indeed, today's futures have been reduced to leek harvesters, and Shanzhai coins are half dead under the hard support of the project side, while the big model coins of the great fire of 19 years have disappeared. Many people will ask why the 17-year ICO, 18-year IEO and 19-year model currency will not be seen until 2020 without strong policy intervention. It's not hard to understand. The reasons are as follows:
1., after 17 years of super bull market, the past 3 years are in the bubble stage.
After being cheated countless times, leek is more cautious about new projects. The era when a white paper and an official website can circle money is gone forever.
2. The blockchain project is difficult to land and has no physical support.
In the currency circle, no matter what projects boast heaven, unlike industry, there is no sustained hematopoietic capacity, and ultimately only to end up with zero.
3. All model coins are Ponzi schemes.
Not to mention model currencies, all models are pyramid pyramid schemes, which reward the first arrivals with the money of the latecomers. The bigger the bubble, the collapse is only a matter of time.
Is it true that the currency circle is so dead that there is no hope? If you really want to start a new craze in the currency circle, the top 3 problems must be overcome. That is to say, if there is a project that can control risks without bubbles, there is physical support, without pyramid schemes, it will be a long and steady way to make money.
Before that, there must be some people who say it's a dream. After the epidemic, the state vigorously supports the enterprises to revive the economy. However, in reality, it's very difficult for entities to do it, let alone blockchain projects. As a result, I noticed a project called Forbes. After studying the white paper, I suddenly felt that like discovering a new continent, unlike any project I have ever seen, this project has perfectly realized the above vision! Let's explore it with curiosity and see what kind of immortal project it is.

https://preview.redd.it/j4p5cddgaf551.png?width=740&format=png&auto=webp&s=f380453bc8a63995ae15b7f32186dc34fa36e3ba
1、 0 raise funds, start the fund only by regular mining business
First of all, Forbes project is 0 fund-raising. Note that there is no fund-raising at the beginning, which eliminates the possibility of encircling money. Before the introduction of Forbes project token GFS, only bitcoin mining business was started. This bitcoin mining seems to be impossible. What does this have to do with the project itself? Let's explain later. First of all, mining business. Forbes first launched the "miner Alliance Plan". If you want to participate in it, you only need to pledge the deposit to purchase computing power or mining machines, and you can continue to get mining profits. Note why the project risk is controllable. The key points are:
  1. The deposit is returned daily for a period of one year through the smart contract.
The smart contract is deployed on Ethereum. The deposit usdt is returned every day. The smart contract is open-source, which ensures that the principal can be recovered 100% regardless of the outcome of the project.
  1. Mining income can be withdrawn every day.
The income from bitcoin mining will also be automatically converted into stable currency, which can be withdrawn every day, so as to realize the stable earning.
  1. Solid bitcoin ore pool support, which can be inspected on site.
The reason why the project is supported by entities is that 100% of the deposit mortgaged by users is used to purchase bitcoin mining machines. Forbes cooperates with bitcoin China, the global head mining pool, which can be visited at any time.
In this way, in the early stage of Forbes project, users can participate in bitcoin mining through 100% deposit return, and earn mining profits with little risk. If it's just mining, Forbes can't make a big impact on the currency circle. After all, there are two problems. One is that the cycle is too long; the other is that there is no promotion model. Although the model coins of the 19-year fire are all the end of collapse, the reason for the fire is that there are models to see how Forbes breaks.

https://preview.redd.it/ef7baf60bf551.png?width=1450&format=png&auto=webp&s=fab5db6ad76301bc14186ab9de199c58a4d4ae20
2、 Static and dynamic dual mode, the fuse is on fire
As mentioned above, the return cycle of buying deposit for mining machine is as long as one year, which may deter many people. Forbes has designed two modes. If you don't do anything after buying the miner, you can only make money slowly through the deposit released every day and the income generated. At present, the annual income is about 180%, which is called static mode. If you want to make money quickly, Forbes has designed a dynamic model.
In dynamic mode, there are three modules.
  1. Promotion in wet season.
In the mining circle, if there is a high water period, the benefits of mining will increase, so Forbes will often launch this activity in the high water period. 10% of the deposit of the first single miner directly pushed by the users to the top 5 will be released immediately. For example, if I bought a 1000u miner, the deposit of 1000u would have been released in one year, but if I recommend five more people to buy the miner, and all the five people buy the 1000u miner, then 10% of the total amount of deposit, that is, 500U, can be released immediately. In this way, I can promote up to 5 people and get back half of the original immediately.
In addition, it should be noted that the funds released here are the sum of deposit and income, not only the deposit!
  1. Direct promotion increased release by 20%, indirect promotion increased release by 10%.
It's easy to understand. Let's take my purchase of 1000u mining machine as an example. When it is not promoted, the deposit plus mining revenue will release 7U in total every day. If one person is directly pushed, and this person purchases 1000u mining machine, I will increase the release money by 20%, i.e. 1.4u. If the person who is directly pushed also buys 1000u mining machine, it is indirect promotion. I can increase the release money by 10%, i.e. 0.7u, My daily release gold is 7U + 1.4u + 0.7u = 9.1u. The more you push, the faster you release, that's the mechanism.
  1. Labor Union level release.
The so-called labor union refers to other performance areas beyond the maximum performance line under umbrella, because I am the recommender of all people under umbrella, so I am the president. In order to encourage users to join the trade union, the presidents of different levels of trade unions can get different levels of release rewards. For example, if I only need 50000 U of direct and indirect funds to become a V1 Union, then 12% of the total income of bitcoin dug out by the whole network will be equally distributed to the presidents of all V1 unions for release, and so on.
In Forbes' promotion model, all these promotion rewards are only the release of your principal and income, not the money from your family. This is different from other MLM project core elements!
In other words, it would take a year to release the principal and mining income without doing anything at all, but if I promote, it can greatly increase the speed of capital recovery and income generation. When the promotion reward reaches the sum of the deposit and income that should have been obtained, the promotion reward is no longer effective.
Some may say that I have worked so hard to build such a large community. It is not worth it just for the principal and about 180% of the annual mining income. In fact, when the deposit and income are released completely, you can choose to re invest again, so that the promotion reward can be released all the time.
Someone will ask again, the income of bitcoin mining is uncertain every day, why is the release associated with the expected future income? Forbes expects mining bitcoin's annual revenue to reach 180%, far higher than other mining pools. Where does the capital come from?
It is very important to explain this problem, because Forbes is a pure entity, no bubble project, and there can be no Ponzi scheme.
  1. As the project has its own promotion mode, once it is started, the ore pool will grow rapidly by fission, so the huge size of the ore pool will have a lot of base gas and ask for the price of the power plant. Generally, the cost of pool electricity may be more than 0.35, while Forbes can save a lot of electricity cost.
  2. With the support of the world's top mining pools, the more mining machines are purchased, the less the marginal cost, so the cost of mining machines is actually lower than the average cost of all users, and this cost difference is also one of the benefits.
  3. Forbes has set up a "mining pool fund", which uses 20% of the income from the mining output of the whole network to enter the fund pool. This fund is dedicated to the purpose of continuous purchase of mining machines to expand the income. Therefore, the project has the capacity of continuous hematopoiesis.

https://preview.redd.it/1hd299u9bf551.png?width=1434&format=png&auto=webp&s=b1db1e2a63ad6b8d38814e4f254a716dcb195850
3、 Forbes takes the overall situation and the final project vision is to realize distributed finance.
have ulterior motives. It would be a mistake to think that Forbes is just a new exploration of the mining model. What the project really wants to achieve is the landing of cross chain technology and the first echelon of distributed finance.
"Forbes miner alliance" is only the first step. With the launch of the main network, many node ecology gathered through mining will suddenly have a place to play, which to play, invincible. As we all know, the most popular concept of blockchain is difi (distributed Finance), which is also the field that Ethereum 2.0 will further explore in the future. What Forbes really wants to build in the future is to win the crown of decentralized finance and become the "UnionPay" of the currency circle.
Then when the Forbes ore pool is mature, Forbes will launch the main network and token GFS, and the output of GFS can only be obtained by purchasing a special miner. Because participating in the early bitcoin mining is also equivalent to contributing to the node ecology, users can choose to convert the mining revenue into GFS vouchers during the miner alliance period, and after the main network line, they can map to the main network token one by one. If we are optimistic about the future of GFS, it is a good choice to exchange mining income into GFS voucher in advance.
Of course, it is still the saying that the Forbes project is real, real landing, zero risk, no bubble. Unlike other deceptive projects, which will forcibly exchange the proceeds into the project token, the users can freely choose to exchange the mining proceeds for GFS, and they can also freely choose to purchase GFS mining machines in the future. It doesn't matter if you don't look forward to Forbes project. It's good to make bitcoin mining money in a safe and stable way. After all, everyone's cognition is different and their risk tolerance is different.
For me, such a solid project is hard to see in the currency circle. Forbes is not only real, but also does not adhere to the traditional entity mining, and the innovative introduction of no foam promotion mode. It can be predicted that this mode is sustainable development, and even I look forward to challenging the top mines of bitcoin. The earlier I participate in the project, the more meat I can eat. This is the essence of my participation in many projects. My mining income has been converted into GFS certificate almost the first time. After all, Forbes project has just started, facing a vast ocean to be developed.
报错
submitted by forbeschain to u/forbeschain [link] [comments]

Antminer T19 May Not Affect Bitcoin Hash Rate but Keeps Bitmain Ahead

The Antminer T19 by Bitmain may not have a big impact on the Bitcoin network, and it comes out amid the firm’s internal and post-halving uncertainty.
Earlier this week, Chinese mining-hardware juggernaut Bitmain unveiled its new product, an application-specific integrated circuit called Antminer T19. The Bitcoin (BTC) mining unit is the latest to join the new generation of ASICs — state-of-the-art devices designed to mitigate increased mining difficulty by maximizing the terahashes-per-second output.
The Antminer T19 announcement comes amid the post-halving uncertainty and follows the company’s recent problems with its S17 units. So, can this new machine help Bitmain to reinforce its somewhat hobbled position in the mining sector?
T19: The cheaper S19
According to the official announcement, the Antminer T19 features a mining speed of 84 TH/s and a power efficiency of 37.5 joules per TH. The chips used in the new device are the same as those equipped in the Antminer S19 and S19 Pro, though it uses the new APW12 version of the power supply system that allows the device to start up faster.
Bitmain usually markets its Antminer T devices as the most cost-effective ones, while the S-series models are presented as the top of the line in terms of productivity for their respective generation, Johnson Xu — the head of research and analytics at Tokensight — explained to Cointelegraph. According to data from F2Pool, one of the largest Bitcoin mining pools, Antminer T19s can generate $3.97 of profit each day, while Antminer S19s and Antminer S19 Pros can earn $4.86 and $6.24, respectively, based on an average electricity cost of $0.05 per kilowatt-hour.
Antminer T19s, which consume 3,150 watts, are being sold for $1,749 per unit. Antminer S19 machines, on the other hand, cost $1,785 and consume 3,250 watts. Antminer S19 Pro devices, the most efficient of three, are considerably more expensive and go for $2,407. The reason Bitmain is producing another model for the 19 series is due to what is known as "binning" chips, Marc Fresa — the founder of mining firmware company Asic.to — explained to Cointelegraph:
“When chips are designed they are meant to achieve specific performance levels. Chips that fail to hit their target numbers, such as not achieving the power standards or their thermal output, are often ‘Binned.’ Instead of throwing these chips in the garbage bin, these chips are resold into another unit with a lower performance level. In the case of Bitmain S19 chips that don’t make the cutoff are then sold in the T19 for cheaper since they do not perform as well as the counterpart.” The rollout of a new model “has nothing to do with the fact that machines are not selling well,” Fresa went on to argue, citing the post-halving uncertainty: “The biggest reason machines probably are not selling as well as manufacturers would like is because we are on a bit of a tipping point; The halving just happened, the price can go anyway and the difficulty is continuing to drop.” Product diversification is a common strategy for mining hardware producers, given that customers tend to aim for different specifications, Kristy-Leigh Minehan, a consultant and the former chief technology officer of Genesis Mining, told Cointelegraph:
“ASICs don’t really allow for one model as consumers expect a certain performance level from a machine, and unfortunately silicon is not a perfect process — many times you’ll get a batch that performs better or worse than projected due to the nature of the materials. Thus, you end up with 5–10 different model numbers.” It is not yet clear how efficient the 19-series devices are because they have not shipped at scale, as Leo Zhang, the founder of Anicca Research, summed up in a conversation with Cointelegraph. The first batch of S19 units reportedly shipped out around May 12, while the T19 shipments will start between June 21 and June 30. It is also worth noting that, at this time, Bitmain only sells up to two T19 miners per user “to prevent hoarding.”
Hardware problems and competitors
The latest generation of Bitmain ASICs follows the release of the S17 units, which have received mostly mixed-to-negative reviews in the community. In early May, Arseniy Grusha, the co-founder of crypto consulting and mining firm Wattum, created a Telegram group for consumers unsatisfied with the S17 units they purchased from Bitmain. As Grusha explained to Cointelegraph at the time, out of the 420 Antminer S17+ devices his company bought, roughly 30%, or around 130 machines, turned out to be bad units.
Similarly, Samson Mow, the chief strategy officer of blockchain infrastructure firm Blockstream, tweeted earlier in April that Bitmain customers have a 20%–30% failure rate with Antminer S17 and T17 units. “The Antminer 17 series is generally considered not great,” added Zhang. He additionally noted that Chinese hardware company and competitor Micro BT has been stepping on Bitmain’s toes lately with the release of its highly productive M30 series, which prompted Bitmain to step up its efforts:
“Whatsminer gained significant market share in the past two years. According to their COO, in 2019 MicroBT sold ~35% of the network hashrate. Needless to say Bitmain is under a lot of pressure both from competitors and internal politics. They have been working on the 19 series for a while. The specs and price look very attractive.” Minehan confirmed that MicroBT has been gaining traction on the market, but refrained from saying that Bitmain is losing market share as a result: “I think MicroBT is offering option and bringing in new participants, and giving farms a choice. Most farms will have both Bitmain and MicroBT side by side, rather than exclusively host one manufacturer.”
“I would say that MicroBT has taken up the existing market share that Canaan has left,” she added, referring to another China-based mining player that recently reported a net loss of $5.6 million in the first quarter of 2020 and cut the price of its mining hardware by up to 50%.
Indeed, some large-scale operations seem to be diversifying their equipment with MicroBT units. Earlier this week, United States mining firm Marathon Patent Group announced that it had installed 700 Whatsminer M30S+ ASICs produced by MicroBT. However, it is also reportedly waiting for a delivery of 1,160 Antminer S19 Pro units produced by Bitmain, meaning that it also remains loyal to the current market leader.
Will the hash rate be affected?
Bitcoin’s hash rate plummeted 30% soon after the halving occurred as much of the older generation equipment became unprofitable due to the increased mining difficulty. That spurred miners to reshuffle, upgrading their current rigs and selling older machines to places where electricity is cheaper — meaning that some of them had to temporarily unplug.
The situation has stabilized since, with the hash rate fluctuating around 100 TH/s for the past few days. Some experts attribute that to the start of the wet season in Sichuan, a southwest Chinese province where miners take advantage of low hydroelectricity prices between May and October.
The arrival of the new generation of ASICs is expected to drive the hash rate even higher, at least once upgraded units become widely available. So, will the newly revealed T19 model make any impact on the state of the network?
Experts agree that it won’t affect the hash rate to a major degree, as it’s a lower output model compared with the S19 series and MicroBT’s M30 series. Minehan said she doesn’t expect the T19 model “to have a huge impact that’s an immediate cause of concern,” as “most likely this is a run of <3500 units of a particular bin quality.” Similarly, Mark D’Aria, the CEO of crypto consulting firm Bitpro, told Cointelegraph:
“There isn’t a strong reason to expect the new model to significantly affect the hashrate. It might be a slightly more compelling option to a miner with extraordinarily inexpensive electricity, but otherwise they likely would have just purchased an S19 instead.” Bitmain continues to hold leadership despite internal struggle
At the end of the day, manufacturers are always in an arms race, and mining machines are simply commodity products, Zhang argued in a conversation with Cointelegraph:
“Besides price, performance, and failure rate, there are not many factors that can help a manufacturer differentiate from the others. The relentless competition led to where we are today.” According to Zhang, as the iteration rate naturally slows down in the future, there will be more facilities using “creative thermal design such as immersion cooling,” hoping to maximize the mining efficiency beyond just using most powerful machines.
As for now, Bitmain remains the leader of the mining race, despite having to deal with the largely defunct 17 series and an intensifying power struggle between its two co-founders, Jihan Wu and Micree Zhan, which recently resulted in reports of a street brawl.
“Due to its recent internal issues, Bitmain is facing challenges to keep its strong position in the future thus they started to look at other things to expand its industry influences,” Xu told Cointelegraph. He added that Bitmain “will still dominate the industry position in the near future due to its network effect,” although its current problems might allow competitors such as MicroBT to catch up.
Earlier this week, the power struggle inside Bitmain intensified even further as Micree Zhan, an ousted executive of the mining titan, reportedly led a group of private guards to overtake the company’s office in Beijing.
Meanwhile, Bitmain continues to expand its operations. Last week, the mining company revealed it was extending its “Ant Training Academy” certification program to North America, with the first courses set to launch in the fall. As such, Bitmain seems to be doubling down on the U.S.-based mining sector, which has been growing recently. The Beijing-based company already operates what it classifies as “the world’s largest” mining facility in Rockdale, Texas, which has a planned capacity of 50 megawatts that can later be expanded to 300 megawatts.
submitted by melissaBrian0 to Bitcoin [link] [comments]

A tour of the Gridcoin wallet

Hey guys, I thought I would put together an in-depth tour of the Gridcoin wallet software for all of our recent newcomers. Here I'll be outlining all the features and functions the windows GUI wallet has to offer, along with some basic RPC command usage. I'll be using the windows wallet as an example, but both linux and macOS should be rather similar. I'll be including as many pictures as I can as embedded hyperlinks.
Edit: Note that since I originally made this there has been a UI update, so your client will be different colors but all the button locations are in the same place.
This is my first post like this, so please forgive me if this appears a little scatter-brained.
This will not cover the mining setup process for pool or solo miners.
When you launch the wallet software for the first time you should be greeted with this screen.

OVERVIEW TAB

After that prompt, you should be left sitting on the main overview tab with several fields on it.
From top to bottom:

SEND TAB

Now onto the other tabs on the left side. Currently we're on the Overview tab, lets move down to the Send tab. This tab it pretty self-explanatory, you use it if you want to send coins, but I'll go over the fields here:
  • Pay To: Enter a valid gridcoin address to send coins too. Gridcoin addresses always start with an S or and R.
  • Label: Enter a label here and it will put that address in your "address book" under that label for later use. You can leave it blank if you don't want it in your address book.
  • Message: Enter a message here if you want it attached to your transaction.
  • Amount: How many coins you want to send.
  • Add Attachment: Leave this alone, it is broken.
  • Track Coins: This doesn't do anything.

RECEIVE TAB

Now down to the Receive tab. Here you should have a single address listed. If you double click on the label field, you can edit it's label.
  • New: Generate a new address.
If you click on an address, the rest of the options should be clickable.
  • Copy: Copy the selected address to your clipboard.
  • Show QR Code: Show a scan-able QR code for the selected address.
  • Sign Message: Cryptographically sign a message using the selected address.

TRANSACTIONS TAB

The Transactions tab is pretty boring considering we have no transactions yet. But as you can see there are some sorting tools at the top for when you do have transactions listed.

ADDRESS BOOK TAB

The Address Book is where all the addresses you've labeled (that aren't yours) will show up.
  • Verify Message: Verifies a message was signed by the selected address.
The rest of the functions are similar to the functions on the Receive tab.

VOTING TAB

Onto the Voting tab. There wont be any polls because we aren't in sync yet.
  • Reload Polls: Pretty self-explanatory, I've never had to use this.
  • Load History: By default, the wallet will only display active polls. If you want to view past polls you can use this.
  • Create Poll: You can create a network-wide poll. You must have 100,000 coins as a requirement to make a poll. (Creating a poll does not consume the coins)
Here's what the Voting tab will look like once you're in sync

CONTEXT BAR

Now onto the context bar menus on the top.
Under File you have:
  • Backup Wallet/Config: This lets you backup your wallet configuration file just in case.
  • Export: You can export your Transactions tab or Address Book in CSV format.
  • Sign message: Does the same thing as on the Receive tab.
  • Verify message: Does the same thing as on the Address Book tab.
  • Exit: Close the wallet.
Under Settings you have:
  • Encrypt Wallet: Encrypts your wallet with a password. (we'll come back to this)
  • Change Passphrase: Allows you to change your encryption password.
  • Options: Opens the options menu. (We'll come back to this)
Under Community you have:
Under Advanced you have:
  • Advanced Configuration: Opens the Advanced Configuration menu. (Not so advanced if you ask me)
  • Neural Network: Allows you to view solo miners project statistics. It will be largely blank if you're not in sync yet.
  • FAQ: Don't touch this, It is broken.
  • Foundation: Don't touch this, It is broken.
  • Rebuild Block Chain: Starts the client syncing from 0. Don't worry, using this will not make you lose coins.
  • Download Blocks: Downloads the latest official snapshot, can help speed up syncing. The download progress tends to sit at 99.99% for a long time, don't worry, it's working.
Under Help you have:
  • Debug window: Opens the debug window. (We'll come back to this)
  • Diagnostics: Don't touch this, it is broken. This has since been fixed. You can use this to see if there is anything wrong with your setup.
  • About Gridcoin: Opens the About Dialog. This gives you your client version and other information.

OPTIONS

Now back to the options menu under Settings > Options.
Here we have the options menu main tab:
  • Pay transaction fee: The transaction fee that will be automatically paid when you make a transaction.
  • Reserve: You can reserve an amount so that it will always be available for spending.
  • Start Gridcoin on system login: Pretty self-explanatory
  • Detach databases at shutdown: Speeds up shutdown, but causes your blockchain file to no longer be portable.
On the Network tab:
  • Map port using UPnP: Attempts to connect to nodes through UPnP.
  • Connect through SOCKS proxy: Allows you to connect through a proxy.
The window tab is pretty self-explanatory.
The Display tab is also pretty self-explanatory, with the exception of:
  • Display coin control features (experts only!): This allows you to have a great deal of control over the coins in your wallet, check this for now and I'll explain how to use it further down. Don't forget to click "Apply".

ENCRYPTING YOUR WALLET

Now that all of that is out of the way. The first thing you'll want to do is encrypt your wallet. This prevents anybody with access to your computer from sending coins. This is something I would recommend everyone do.
Go to Settings > Encrypt Wallet and create a password. YOU CANNOT RECOVER YOUR COINS IF YOU FORGET YOUR PASSWORD.
Your wallet will close and you will have to start it up again. This time when it opens up, you should have a new button in the bottom left. Now if you want to stake you will have to unlock your wallet. Notice the "For staking only" box that is checked by default. If you want to send a beacon for solo mining or vote, you will need to uncheck this box.

GETTING IN SYNC AND ICONS

Before we continue, Let's wait until we're in sync. Depending on your internet speeds, this could take from several hours to over a day or 2. This can be sped up by using Advanced > Download Blocks, but this can still take several hours.
This is what an in-sync client should look like. Notice the green check to the right of the Receive tab. All of these icons give you information when you hover your mouse over them.
The lock
The arrow tells you if you're staking. If you aren't staking, it will tell you why you're not staking. If you are staking it will give you an estimated staking time. Staking is a very random process and this is only an estimate, not a countdown.
The connection bars tell you how many connections to the network you have.
The check tells you if you're in sync.

WHAT IS STAKING?

Now I've said "stake" about a million times so far and haven't explained it. Gridcoin is a Proof of Stake (PoS) coin.
Unlike bitcoins Proof of Work (PoW), PoS uses little system resources, so you can use those resources for scientific work. PoS works by users "Staking" with their balance. The higher the balance, the higher the chance to create, or "stake" a block. This means you need to have a positive balance in order to stake. Theoretically, you can stake with any amount over 0.0125 coins, but in practice it's recommended to have at least 2000 coins to reliably stake.
Staking is important for solo miners, because they get paid when they stake. Pool miners don't need to stake in order to get paid however. So if you want to solo mine, you'll need to buy some coins from an exchange or start in the pool first and move to solo when you have enough coins.
In addition to Research Rewards for miners, anyone who holds coins (solo miners, pool miners, and investors) gets 1.5% interest annually on top of your coins. So it can be beneficial for pool miners to stake as well.
Here is a snippet of what a research rewards transaction looks like from my personal wallet. I have a label on that address of "Payout address" as you can see here.

UTXOS AND COIN CONTROL

At this point you'll need some coins. You can use one of our faucets like this one or this one to test coin control out.
First let me explain what a UTXO is. UTXO stands for Unspent Transaction Output. Say you have an address with 0 coins in it, and someone sends you 10 coins like I've done here. Those 10 coins are added to that address in the form of a UTXO, so we have an address with one 10 coin UTXO in it.
Now we receive another 5 coins at the same address, like so. Now we have an address with one 10 coin UTXO and one 5 coin UTXO. But how do we view how our addresses are split up into different UTXOs?
Earlier we checked the "Display coin control features" box in Settings > Options > Display. Once that's checked you'll notice there's another section in the Send tab labeled "Coin Control Features". If you click the "Inputs" button, you'll get a new window. And look, there's our 2 UTXOs.
All UTXOs try to stake separately from each other, and remember that the chance a UTXO has to stake is proportional to it's size. So in this situation, my 10 coin UTXO has twice the chance to stake as my 5 coin UTXO. Now wallets, especially ones that make a lot of transactions, can get very fragmented over time. I've fragmented my wallet a little so I can show you what I'm talking about.
How do we clean this up? We can consolidate all this into one UTXO by checking all the boxes on the left and selecting OK.
Now pay attention to the fields on the top:
  • Quantity: The total amount of UTXOs we have selected.
  • Amount: The total amount of coins we have selected.
  • Fee: How much it would cost in fees to send all those UTXOs (more UTXOs = more transaction data = more fees)
  • After Fee: Amount - Fees.
  • Bytes: How large the transaction is in bytes.
  • Priority: How your client would prioritize making a transaction with this specific set of UTXOs selected had you not used coin control.
  • Low Output: If your transaction is less than 0.01 coins (I think).
  • Change: What you will get back in change.
  • custom change address: You can set the address you get your change back at, by default it will generate a new address.
So let's fill out our transaction so we end up with 1 UTXO at the end.
In "Pay To:" Just put any address in your wallet, and for the amount put what it has listed in the "After Fee" Field. Just like this.
Notice how we get no change back.
Now click "Send", we'll be prompted to enter our passphrase and we're asked if we want to pay the fee, go ahead and click "Yes".
Now if we go back to the Overview tab we get this funky icon. If you hover your mouse over it, it says "Payment to yourself", and the -0.0002 GRC is the network transaction fee.
(Ignore the first one, that was me fragmenting my wallet)
Now if we look at the Coin Control menu, we can see that we've slimmed our wallet down from 7 UTXOs to 1.
Now why would you want to use coin control?
2 Situations:
  1. UTXOs less than 0.0125 coins cannot stake. So you can combine a lot of tiny, useless UTXOs into 1 bigger one that can stake.
  2. After a UTXO stakes, it cannot stake for another 16 hours. So if you have 1 large UTXO that is big enough to stake more than once every 16 hours, you can split it into smaller UTXOs which can allow you to stake slightly more often.
  3. By default, the wallet will always generate a new address for change, which can make your wallet get very messy if you're sending lots of transactions. Keep in mind that more UTXOs = larger transactions = more fees.
Sidenote - When you stake, you will earn all research rewards owed reguardless of which UTXO staked. However, you'll earn the 1.5% interest for that UTXO. Not your whole wallet.

FORKING

A fork is when the network splits into multiple chains, with part of the network on each chain. A fork can happen when 2 blocks are staked by different clients at the same time or very close to the same time, or when your client rejects a block that should have been accepted due to a bug in the code or through some other unique circumstance.
How do I know if I'm on a fork?
Generally you can spot a fork by looking at the difficulty on your Overview tab. With current network conditions, if your difficulty is below 0.1, then you're probably on a fork.
You can confirm this by comparing your blockhash with someone elses, like a block explorer.
Go to [Help > Debug Window > Console]. This is the RPC console, we can use to do a lot of things. You can type help to get a list of commands, and you can type help [command you need help with] (without the brackets) to get information on a command. We'll be using the getblockhash [block number] command.
Type getblockhash [block number] in the console, but replace [block number] with the number listed next to the "Blocks:" field on the Overview tab.
This will spit out a crazy string of characters, this is the "blockhash" of that block.
Now head over to your favorite block explorer, I'll be using gridcoinstats. Find the block that you have the hash for, use the search bar or just find it in the list of blocks.
Now compare your hash with the one gridcoinstats gives you. Does it match?
If it matches, then you're probably good to go. If it matches but you still think you're on a fork, then you can try other block explorers, such as gridcoin.network or neuralminer.io.
If it doesn't match, then you need to try to get off that fork.
How do I get off a fork?
  1. Just wait for an hour or two. 95% of the time your client is able to recover itself from a fork given a little time.
  2. Restart the client, wait a few minutes to see if it fixes itself. If it doesn't restart again and wait. Repeat about 4 or 5 times.
  3. Find where the fork started. Using the getblockhash command, go back some blocks and compare hashes with that on a block explorer so you can narrow down what the last block you and the block explorer had in common. Then use reorganize [the last block hash you had in common]. Note that reorganize takes a blockhash, not a block number.
  4. Use Advanced > Download Blocks.
  5. If none of this works, you can take a look at social media (reddit/steemit) and see what other people are saying.

CONFIGURATION FILE

Your configuration file depends on your operation system:
  • On Windows: %appdata%\GridcoinResearch\
  • On Linux: ~/.GridcoinResearch/
  • On MacOS: /Users/USERNAME/Library/Application/Support/GridcoinResearch/
And it should look like this.
If you open up your gridcoinresearch.conf, you'll see the default one it generated. Note that if you entered your email earlier, the first line will have your email on it instead of "investor". If you decided you want to solo mine but didn't enter your email when you first started the wallet, go ahead and put your email on the first line in place of "investor". If you're a pool miner, just leave it as "investor".
Next, it's recommended that you use the addnodes on the gridcoin wiki. So our gridcoinresearch.conf will look like this.
A useful line for solo miners is PrimaryCPID=[YOUR CPID]. Sometimes your wallet can pick up on the wrong CPID so it's good to have that in there if you're solo mining.

RUNNING A LISTENING NODE

A listening node is a node that listens for blocks and transactions broadcasted from nodes and forwards them on to other nodes. For example, during the syncing process when you're getting your node running for the first time, you're downloading all the blocks from listening nodes. So running a listening node helps support the network.
Running a gridcoin listening node is simple. All you need to do is add listen=1 to your gridcoinresearch.conf and you need to forward port 32749 on your router.
If you don't know how to port forward, I'd suggest googling "How to port forward [your router manufacturer]".

QUICK LINKS

Gridcoin.us Official Website
Gridcoin.science Unofficial Website
Gridcoinstats.eu Block Explorer
NeuralMiner.io Block Explorer
Gridcoinstats.eu Faucet
Gridcoin.ch Faucet
Gridcoin Wiki
Gridcoin Github
GRCPool
Arikado Pool
And that's all I have for now!
I plan to keep this post up-to-date with changes in the client. So if anyone has any suggestions, have clarifications they want made, or maybe I got something wrong, then please feel free to leave a comment below or PM me!
submitted by Personthingman2 to gridcoin [link] [comments]

51% attacks are morally justifiable

In this short post I want to set out my case for the moral justifiability of 51% attacks against proof of work cryptocurrencies. In the past, a 51% attack was a theoretical construct that most people didn´t seem to think would be practically achievable or lucrative. This has now changed, as hashpower can be rented on sites like Nicehash and Mining Rig Rentals for a few hours at a time. The attack delivers the attacker two prominent opportunities:
-You can orphan blocks of ¨legitimate¨ miners. This essentially means that whatever work was produced by legitimate miners during your attack became worthless. Mine a secret chain of two hours worth of blocks, release it and you orphaned 2 hours worth of blocks by your competitors. By the time most of the miners have noticed their blocks were orphaned in an attack, their nodes will have been automatically mining on your own chain for a while and it will be too late for them to do anything about it. The amount of money they lost would be equivalent to the amount you had to spend to produce your chain. Because mining is an industry with tight margins, the economic impact on these miners can be very big. The cost may be sufficient in case of a very long attack, to persuade them to quit their endeavor and get a real job.
-The more important opportunity is that you´re able to double spend your coins. This is potentially, incredibly lucrative. How lucrative it is tends to depend primarily on the inflation rate of a cryptocurrency. A low inflation rate means relatively little ¨work¨ is done to maintain the security of the system. A high inflation rate on the other hand, turns the cryptocurrency into a very poor long-term investment. As a consequence, most cryptocurrencies face declining inflation rates, that delay the problem of their ultimately unsustainability into the future. The bank of international settlements explains this issue here.
When it comes to the moral justification of a 51% attack, we first have to ask ourselves why proof of work is morally unjustifiable. There are two main reasons for this:
-Proof of work has an enormous environmental impact, that ensures future generations will have to deal with the dramatic consequences of climate change. There is no proper justification for this environmental impact, as it delivers no clear benefits over existing payment systems other than the ability to carry out morally unjustifiable actions like blackmail.
-Proof of work is fundamentally unsustainable, because of the economic burden it places on participants in cryptocurrency schemes. Cryptocurrencies can´t produce wealth out of thin air. The people who get rich from a cryptocurrency becomes rich, due to the fact that other people step in later. In this sense we´re dealing with a pyramid scheme, but the difference from regular pyramid schemes lies in the fact that huge sums of wealth are not merely redistributed, but destroyed, to sustain the scheme. The cost of the work to sustain the scheme is bigger than you might expect, because the reality is that relatively little money has entered bitcoin. JP Morgan claims that for the crypto assets at large, a fiat amplifier of 117.5 is present, as a purported $2 billion in net inflow pushed Bitcoin’s market capitalization from $15 billion to $250 billion. You have to consider that the Digiconomist estimates that $2.6 billion dollar leaves the Bitcoin scheme on an annual basis, in the form of mining costs to sustain Bitcoin. The vast majority of retail customers who entered this scheme ended up losing money from it. In some cases this lead to suicides.
The fact that proof of work is morally unjustifiable doesn´t directly lead to a moral justification for a 51% attack. After all a sane society would use government intervention to eliminate the decentralized ponzi schemes that are cryptocurrencies. There are a few things that need to be considered however:
-Governments have so far failed in their responsibility to address the cryptocurrency schemes. Instead you tend to see officials insist that proof of work might suck and most cryptocurrency is a scam, but ¨blockchain technology¨ will somehow change the world for the better. Most libertarians who saw these schemes emerge insisted that it´s stupid to participate in them because the government would eventually ban them and round up the people who participated in them. This didn´t happen because of the logistical difficulty of suppressing these schemes (anyone with an internet connection can set one up) as well as the fact that suppressing them would lend credence to the anti-government anarcho-capitalist ideology on which these schemes are based. Goverments might say ¨these schemes facilitate crime, ruin the environment and redistribute wealth from naive individuals to scammers¨, but anarcho-capitalists would insist that governments have grown so tyrannical that they want to ban you from exchanging numbers on computers.
-Because cryptocurrency is fundamentally an online social arrangement, governments have very limited influence over the phenomenon. Binance seeks to become a stateless organization, not subject to the jurisdiction of any particular government. Just as with regular money laundering and tax evasion that hides in small nations that can earn huge sums of money by facilitating these practises, governments are dependent on the actions of individuals to address these practices. Whistleblowers released the panama papers and the tax evasion by German individuals through Swiss bank accounts. Through such individuals, the phenomenon could be properly addressed. In a similar manner, cryptocurrency schemes will need to be addressed through the actions of individuals who recognize the damage these schemes cause to the fabric of society.
-The very nature of a 51% attack means that it primarily punishes those who set up and facilitate the cryptocurrency scheme in the first place. The miners who pollute our environment to satiate their own greed are bankrupted by the fact that their blocks are orphaned. The exchange operators are bankrupted due to double-spend attacks against the scams that they facilitate. When this happens, the cryptocurrency in question should lose value, which then destroys the incentive to devote huge sums of electricity to it.
Finally, there´s the question of whether 51% attacks are viable as a response to cryptocurrency. There´s the obvious problem you run into, that the biggest and oldest scams are the most difficult to shut down. In addition, cryptocurrencies that fell victim to an attack tend to move towards a checkpoint system. However, there are a few things that need to be considered here:
-51% attacks against small cryptocurrencies might not have a huge impact, but their benefit is nonetheless apparent. Most of the new scams don´t require participants to mine, instead the new schemes generally depend on ¨staking¨. If people had not engage in 51% attacks, the environmental impact would have been even bigger now.
-51% attacks against currencies that implement checkpointing are not impossible, if the checkpoints are decentrally produced. What happens in that case is a chain split, as long as the hostile chain is released at the right time. This would mean that different exchanges may get stuck on different forks, which would still allow people to double spend their cryptocurrency.
-There are other attacks that can be used against proof of work cryptocurrencies. The most important one is the block withholding attack. It´s possible for people who dislike a cryptocurrency to join a pool and to start mining. However, whenever the miner finds a valid solution that would produce a block, he fails to share the solution with the pool. This costs money for the pool operator, but it can be lucrative for the actor if he also operates a competing pool himself. In the best case it leads to miners moving to his pool, which then potentially allows him to execute a 51% attack against the cryptocurrency.
-It´s possible to put up a 51% attack bounty, allowing others to do the work for you. This works as following. You make transaction A : 100 bitcoin to exchange X, for a fee of 0.001 BTC. Once this transaction has been included in a block, you immediately broadcast a conflicting transaction with another node: You´ŕe sending those 100 bitcoin to your own wallet, but you´re also including a 50 bitcoin fee for the miners. The miners now have a strong incentive to disregard the valid chain and to start mining a new chain on an older block that can still include your conflicting transaction. Provided that pool operators are rational economic agents, they should grab the opportunity.
-Selfish mining in combination with a Sybil attack allows someone to eclipse the rest of the network, while controlling less than 51% of the hashrate. Your malicious nodes will simply refuse to propagante blocks of your competitors, thereby giving you more time to release your own block. Selfish mining will always be possible with 33% of the hashrate and as far as I can tell there are no pathways known currently to make the scheme impossible for people with 25% of the hashrate. This potentially makes a 51% attacks lucrative without having to carry out double-spend attacks against exchanges. Although double spending is a form of theft, it´s not clear to me whether a selfish mining attack would get you into legal trouble or not.

Conclusion:

The dreaded 51% attack is a morally justifiable and potentially lucrative solution to the Nakamoto scheme.
submitted by milkversussoy to Buttcoin [link] [comments]

Why you prevent the onchain scaling

To prevent the Bitcoin to OnChain Scaling just because you failure to realize its great
Introduction
The bitcoin net has been operating at full capacity for a long time. The appeal to upgrade of bitcoin agreements has been lasting for more than one year. However, some developers of Bitcoin Core for example have been repelling against such upgrade. The others had explained everything their worries. Despite that, they still don’t accept such upgrade. The public patience has been worn out by their stubbornness. Recently, the dispute about the bitcoin scaling has once again been put in the spotlight. This time both sides have directly shown their stance. I found that they refused the scaling just because they don’t know how great the bitcoin is.
Chapter Fear of fullnode will centralization just because they don’t think bitcoin is one great thing A motley crew cannot think out of the box. It is said that onchain scaling will increase the costs to operation bitcoin’s full nodes, thus resulting in the terrible centralization. These people have not yet realized that bitcoin is greatful enough to attract more people to operate its full nodes regardless of the costs. In their opinion, their income cannot cover costs of operating bitcoin’s full nodes, so they think others are at the same situation like theirs. I change a mobile phone every two years. If my mother finds it, she will be quite angry. She thinks there is no need for me to spend money on changing new phones, because she cannot understand the worthiness for me to spend money to buy the technical progress of mobile phones. If I tell my mother that I will spend 500 RMB buying an RPi, which consumes electricity day by day and creates no profits, to operate a bitcoin full node, my mother must call me a “black sheep.” The understanding of bitcoin of those fearing that bitcoin onchain scaling will lead to full node centralization is like the understanding of mobile phones of my mother. They cannot understand the great of bitcoin, so it is natural for them to think that bitcoin does not deserve so much money to be maintained without prospective profits. Another example is Lamborghini. As is known to all, Lamborghini is very expensive, whose price far exceeds the cost of its practical performance. It is apt to say that money spent on the car is fundamentally not for a “functional” purpose, but because it is “powerful” in some sense. This is similar to the operation of the complete bitcoin nodes. However, Lamborghini has buyers all over the world. Its expensiveness will not make it lose its customers. This is the so-called de-centralization. Cherry QQ is not that far behind Lamborghini in terms of performance. However, none think the former is “powerful,” so it can just be “centrally” distributed in China and looked down upon by others. When Nakamoto was mining alone, the operation cost of the full node was the lowest, but the bitcoin was the most centralized at that time. Bitcoin was not a great thing at that time but something inessential. When bitcoin becomes increasingly great and more and more people are attracted to join it, the absolute number of full nodes in operation will be increased instead of being decreased. The more great it is, the more decentralized it is.
Chapter 2 Fear of increasing powerfulness of bitcoin because of the need of maintaining high handling fees by the small block Due to the zero-sum game mentality, the poor always refuse cooperation and are stingy about stock. Those who want to filter some bitcoin users through formalities are worried that the bitcoin market might be fully saturated so that they get no way to join it. The best way to avoid this is to ban others from joining it. This is a typical zero-sum mentality. In fact, bitcoin is powerful enough to meet infinite demands. Anyone of the 7 billion people in the world that is willing to use bitcoin can get their demands satisfied by bitcoin net. The current network bandwidth, CPU capacity and stock cost are far enough to meet demands of bitcoin. The current market has the potential to provide more and better basic network services if necessary. Google can provide searching services for billions of users; WeChat allows billions of users to be on line simultaneously; AliPay handles tens of thousands of transactions every second. Bitcoin shares the same network basis and techniques with these companies Why does bitcoin have to be confined to seven transactions per second? Why is the 1M area restricted? Don’t set self-limits. We have the most advanced technology to turn out the best products. We need to equip ourselves with the most advanced ideas so that bitcoin can establish new rules and become more powerful. To stay in fear of losing and set self-limits—this is the mentality of the poor. They often avoid cooperating with others on some weird excuses, because they are worried that others might seize their share. A cooperative mind-set is open and willing to make use of all conditions to create wealth instead of confining people within a wall to scramble for stock. Bitcoin will not become cheaper because of more people using its. On the contrary, it will become more valuable according to the increment mentality.
Chapter 3 Fear of government intervention because of the coward-mentality of a group of evil-intended people Cowards are always hiding themselves in the dark corners. As is known to all, the bitcoin field is filled with hackers, drug traffickers and money launderers. These people are worried about government intervention, so they vehemently oppose scaling. They hope bitcoin can be confined to the TOR anonymous internet, because the fundamental service capability of TOR network is far weaker than the normal web. Therefore, the smaller the bitcoin block is, the better it is for them. They are ready to label them as “liberalists,” defining bitcoin as a free currency against the government violence. In fact, they are just a group of cowards with dark conspiracies. Bitcoin is a technical progress, social progress and a progress of the world. It offers people more chances to create greater fortunes. However, the group of cowards is not of the opinion. They think bitcoin should keep alive without serious ambition and be confined to a small anti-government crowd so that they can enjoy it in dark corners alone. In fact, governments are keeping up with the technical progress. Most governments in the world are friendly towards bitcoin. They are different from what is imagined by the cowards in the dark corners to oppose bitcoin. On the other hand, even if bitcoin’s block has set bigger and the government wants to eliminate it, but the government cannot make it. This is decided by the de-centralization nature of bitcoin, and the government cannot eliminate a de-centralized product. Now, 70% of bitcoin’s hash power are in China, and there have not yet been any signs that the Chinese government will wipe it out. How shameless you cowards refuse scaling on the excuse of government intervention. If the bitcoin is confined to Tor, it is nothing different from centralization. Then, the existing value of bitcoin disappears. How many people in this world want to live in the Tor network?!
Chapter 4 Fear of bitcoin will separation caused by hard fork because of having no confidence in bitcoin The weak are always in the fear of losing friends. Those saying no to bitcoin upgrade have another reason, that is, hard fork might result in bitcoin separation. If they want to maintain the whole bitcoin community, people of different ideas will be bounded in the same world. They are worried that some disputable upgrade of bitcoin will make bitcoin be separated into two kinds of chain. Bitcoin is open source. Anyone can make hard fork. Why can it remain vigorous and leading among so many competitors? Below are reasons: To most participants, to observe rules of bitcoin can bring more benefits than to damage them. The flourishing of bitcoin is attributed to an increasing number of people joining it and adhering to its rules for the sake of benefits. These participants include miners, users and core developers. They all abide by rules of bitcoin to earn profits. Their participation in the unprecedented social practice drives the development of bitcoin. Any potential hard fork might separate bitcoin into two chain with different rules. There might also be disagreement of benefits. A majority of participants, being interest-oriented, have to follow a major branch. Then, the other branch will either be instantly eliminated, or become an inessential existence, which is far from being powerful to threaten the major one. Those failing to realize the great of bitcoin will support a branch of bitcoin in the hope of getting more profits in the future. However, the prerequisite for they to do so is they must hold the branch bitcoin at no costs. In fact, it is fully achievable to coin holders, if the time cost is neglected. However, any service providers in the bitcoin economic ecological circle, including exchanges, mines, miner pool, should spend money in holding the branch bitcoin. These money have opportunity cost. If the money is invested in the genuine bitcoin, great profits will be created, far more than those brought by the rule-breaking bitcoin. Without links on the economic ecosphere, to hold the branch of bitcoin is meaningless, which is thus eliminated. On the contrary, those realizing the great of bitcoin know the only way to always get their share of profits is to create a larger interest community by attracting more people to join in it. Likewise, the strong never have to worry about having friends or not, because they will not lose friends because of their attitude or behaviors. They know real friendship should be built on an equal exchange relationship. As long as they are committed to improving and strengthening themselves, they will harvest more and more friends. However, the weak have fewer friends, so they are in greater fear of losing friends. In order to please their friends, they often have to accommodate themselves to them, thus being plunged to a weaker position. It is also the same to bitcoin. Only when bitcoin becomes more great will more people be attracted to join it instead of joining its other hard fork branches, such as LTC and ETH. As to those cowards who are blind to the great of bitcoin, hard fork is a good way to scare them away.
Chapter 5 Conclusions Why do you refuse onchain scaling? The most direct, simple and essential answer is: You are blind to the great of bitcoin, and you have neither confidence in bitcoin nor ambition for it. This article is written as a response to all of you who hinder upgrade of bitcoin. Bitcoin will not develop as you wish, because it is great enough.
(For the first time to read my article, please pay attention to my WeChat Official Accounts: 闪电HSL)
submitted by LightningHuang to btc [link] [comments]

An extensive guide for cashing out bitcoin and cryptocurrencies into private banks

Hey guys.
Merry Xmas !
I am coming back to you with a follow up post, as I have helped many people cash out this year and I have streamlined the process. After my original post, I received many requests to be more specific and provide more details. I thought that after the amazing rally we have been attending over the last few months, and the volatility of the last few days, it would be interesting to revisit more extensively.
The attitude of banks around crypto is changing slowly, but it is still a tough stance. For the first partial cash out I operated around a year ago for a client, it took me months to find a bank. They wouldn’t want to even consider the case and we had to knock at each and every door. Despite all my contacts it was very difficult back in the days. This has changed now, and banks have started to open their doors, but there is a process, a set of best practices and codes one has to follow.
I often get requests from crypto guys who are very privacy-oriented, and it takes me months to have them understand that I am bound by Swiss law on banking secrecy, and I am their ally in this onboarding process. It’s funny how I have to convince people that banks are legit, while on the other side, banks ask me to show that crypto millionaires are legit. I have a solid background in both banking and in crypto so I manage to make the bridge, but yeah sometimes it is tough to reconcile the two worlds. I am a crypto enthusiast myself and I can say that after years of work in the banking industry I have grown disillusioned towards banks as well, like many of you. Still an account in a Private bank is convenient and powerful. So let’s get started.
There are two different aspects to your onboarding in a Swiss Private bank, compliance-wise.
*The origin of your crypto wealth
*Your background (residence, citizenship and probity)
These two aspects must be documented in-depth.
How to document your crypto wealth. Each new crypto millionaire has a different story. I may detail a few fun stories later in this post, but at the end of the day, most of crypto rich I have met can be categorized within the following profiles: the miner, the early adopter, the trader, the corporate entity, the black market, the libertarian/OTC buyer. The real question is how you prove your wealth is legit.
1. Context around the original amount/investment Generally speaking, your first crypto purchase may not be documented. But the context around this acquisition can be. I have had many cases where the original amount was bought through Mtgox, and no proof of purchase could be provided, nor could be documented any Mtgox claim. That’s perfectly fine. At some point Mtgox amounted 70% of the bitcoin transactions globally, and people who bought there and managed to withdraw and keep hold of their bitcoins do not have any Mtgox claim. This is absolutely fine. However, if you can show me the record of a wire from your bank to Tisbane (Mtgox's parent company) it's a great way to start.
Otherwise, what I am trying to document here is the following: I need context. If you made your first purchase by saving from summer jobs, show me a payroll. Even if it was USD 2k. If you acquired your first bitcoins from mining, show me the bills of your mining equipment from 2012 or if it was through a pool mine, give me your slushpool account ref for instance. If you were given bitcoin against a service you charged, show me an invoice.
2. Tracking your wealth until today and making sense of it. What I have been doing over the last few months was basically educating compliance officers. Thanks God, the blockchain is a global digital ledger! I have been telling my auditors and compliance officers they have the best tool at their disposal to lead a proper investigation. Whether you like it or not, your wealth can be tracked, from address to address. You may have thought all along this was a bad feature, but I am telling you, if you want to cash out, in the context of Private Banking onboarding, tracking your wealth through the block explorer is a boon. We can see the inflows, outflows. We can see the age behind an address. An early adopter who bought 1000 BTC in 2010, and let his bitcoin behind one address and held thus far is legit, whether or not he has a proof of purchase to show. That’s just common sense. My job is to explain that to the banks in a language they understand.
Let’s have a look at a few examples and how to document the few profiles I mentioned earlier.
The trader. I love traders. These are easy cases. I have a ton of respect for them. Being a trader myself in investment banks for a decade earlier in my career has taught me that controlling one’s emotions and having the discipline to impose oneself some proper risk management system is really really hard. Further, being able to avoid the exchange bankruptcy and hacks throughout crypto history is outstanding. It shows real survival instinct, or just plain blissed ignorance. In any cases traders at exchange are easy cases to corroborate since their whole track record is potentially available. Some traders I have met have automated their trading and have shown me more than 500k trades done over the span of 4 years. Obviously in this kind of scenario I don’t show everything to the bank to avoid information overload, and prefer to do some snacking here and there. My strategy is to show the early trades, the most profitable ones, explain the trading strategy and (partially expose) the situation as of now with id pages of the exchanges and current balance. Many traders have become insensitive to the risk of parking their crypto at exchange as they want to be able to trade or to grasp an occasion any minute, so they generally do not secure a substantial portion on the blockchain which tends to make me very nervous.
The early adopter. Provided that he has not mixed his coin, the early adopter or “hodler” is not a difficult case either. Who cares how you bought your first 10k btc if you bought them below 3$ ? Even if you do not have a purchase proof, I would generally manage to find ways. We just have to corroborate the original 30’000 USD investment in this case. I mainly focus on three things here:
*proof of early adoption I have managed to educate some banks on a few evidences specifically related to crypto markets. For instance with me, an old bitcointalk account can serve as a proof of early adoption. Even an old reddit post from a few years ago where you say how much you despise this Ripple premined scam can prove to be a treasure readily available to show you were early.
*story telling Compliance officers like to know when, why and how. They are human being looking for simple answers to simple questions and they don’t want like to be played fool. Telling the truth, even without a proof can do wonders, and even though bluffing might still work because banks don’t fully understand bitcoin yet, it is a risky strategy that is less and less likely to pay off as they are getting more sophisticated by the day.
*micro transaction from an old address you control This is the killer feature. Send a $20 worth transaction from an old address to my company wallet and to one of my partner bank’s wallet and you are all set ! This is gold and considered a very solid piece of evidence. You can also do a microtransaction to your own wallet, but banks generally prefer transfer to their own wallet. Patience with them please. they are still learning.
*signature message Why do a micro transaction when you can sign a message and avoid potentially tainting your coins ?
*ICO millionaire Some clients made their wealth participating in ETH crowdsale or IOTA ICO. They were very easy to deal with obviously and the account opening was very smooth since we could evidence the GENESIS TxHash flow.
The miner Not so easy to proof the wealth is legit in that case. Most early miners never took screenshot of the blocks on bitcoin core, nor did they note down the block number of each block they mined. Until the the Slashdot article from August 2010 anyone could mine on his laptop, let his computer run overnight and wake up to a freshly minted block containing 50 bitcoins back in the days. Not many people were structured enough to store and secure these coins, avoid malwares while syncing the blockchain continuously, let alone document the mined blocks in the process. What was 50 BTC worth really for the early miners ? dust of dollars, games and magic cards… Even miners post 2010 are generally difficult to deal with in terms of compliance onboarding. Many pool mining are long dead. Deepbit is down for instance and the founders are MIA. So my strategy to proof mining activity is as follow:
*Focusing on IT background whenever possible. An IT background does help a lot to bring some substance to the fact you had the technical ability to operate a mining rig.
*Showing mining equipment receipts. If you mined on your own you must have bought the hardware to do so. For instance mining equipment receipts from butterfly lab from 2012-2013 could help document your case. Similarly, high electricity bill from your household on a consistent basis back in the day could help. I have already unlocked a tricky case in the past with such documents when the bank was doubtful.
*Wallet.dat files with block mining transactions from 2011 thereafter This obviously is a fantastic piece of evidence for both you and me if you have an old wallet and if you control an address that received original mined blocks, (even if the wallet is now empty). I will make sure compliance officers understand what it means, and as for the early adopter, you can prove your control over these wallet through a microtransaction. With these kind of addresses, I can show on the block explorer the mined block rewards hitting at regular time interval, and I can even spot when difficulty level increased or when halvening process happened.
*Poolmining account. Here again I have educated my partner bank to understand that a slush account opened in 2013 or an OnionTip presence was enough to corroborate mining activity. The block explorer then helps me to do the bridge with your current wallet.
*Describing your set up and putting it in context In the history of mining we had CPU, GPU, FPG and ASICs mining. I will describe your technical set up and explain why and how your set up was competitive at that time.
The corporate entity Remember 2012 when we were all convinced bitcoin would take over the world, and soon everyone would pay his coffee in bitcoin? How naïve we were to think transaction fees would remain low forever. I don’t blame bitcoin cash supporters; I once shared this dream as well. Remember when we thought global adoption was right around the corner and some brick and mortar would soon accept bitcoin transaction as a common mean of payment? Well, some shop actually did accept payment and held. I had a few cases as such of shops holders, who made it to the multi million mark holding and had invoices or receipts to proof the transactions. If you are organized enough to keep a record for these trades and are willing to cooperate for the documentation, you are making your life easy. The digital advertising business is also a big market for the bitcoin industry, and affiliates partner compensated in btc are common. It is good to show an invoice, it is better to show a contract. If you do not have a contract (which is common since all advertising deals are about ticking a check box on the website to accept terms and conditions), there are ways around that. If you are in that case, pm me.
The black market Sorry guys, I can’t do much for you officially. Not that I am judging you. I am a libertarian myself. It’s just already very difficult to onboard legit btc adopters, so the black market is a market I cannot afford to consider. My company is regulated so KYC and compliance are key for me if I want to stay in business. Behind each case I push forward I am risking the credibility and reputation I have built over the years. So I am sorry guys I am not risking it to make an extra buck. Your best hope is that crypto will eventually take over the world and you won’t need to cash out anyway. Or go find a Lithuanian bank that is light on compliance and cooperative.
The OTC buyer and the libertarian. Generally a very difficult case. If you bought your stack during your journey in Japan 5 years ago to a guy you never met again; or if you accumulated on https://localbitcoins.com/ and kept no record or lost your account, it is going to be difficult. Not impossible but difficult. We will try to build a case with everything else we have, and I may be able to onboard you. However I am risking a lot here so I need to be 100% confident you are legit, before I defend you. Come & see me in Geneva, and we will talk. I will run forensic services like elliptic, chainalysis, or scorechain on an extract of your wallet. If this scan does not raise too many red flags, then maybe we can work together ! If you mixed your coins all along your crypto history, and shredded your seeds because you were paranoid, or if you made your wealth mining professionally monero over the last 3 years but never opened an account at an exchange. ¯_(ツ)_/¯ I am not a magician and don’t get me wrong, I love monero, it’s not the point.
Cashing out ICOs Private companies or foundations who have ran an ICO generally have a very hard time opening a bank account. The few banks that accept such projects would generally look at 4 criteria:
*Seriousness of the project Extensive study of the whitepaper to limit the reputation risk
*AML of the onboarding process ICOs 1.0 have no chance basically if a background check of the investors has not been conducted
*Structure of the moral entity List of signatories, certificate of incumbency, work contract, premises...
*Fiscal conformity Did the company informed the authorities and seek a fiscal ruling.
For the record, I am not into the tax avoidance business, so people come to me with a set up and I see if I can make it work within the legal framework imposed to me.
First, stop thinking Switzerland is a “offshore heaven” Swiss banks have made deals with many governments for the exchange of fiscal information. If you are a French citizen, resident in France and want to open an account in a Private Bank in Switzerland to cash out your bitcoins, you will get slaughtered (>60%). There are ways around that, and I could refer you to good tax specialists for fiscal optimization, but I cannot organize it myself. It would be illegal for me. Swiss private banks makes it easy for you to keep a good your relation with your retail bank and continue paying your bills without headaches. They are integrated to SEPA, provide ebanking and credit cards.
For information, these are the kind of set up some of my clients came up with. It’s all legal; obviously I do not onboard clients that are not tax compliant. Further disclaimer: I did not contribute myself to these set up. Do not ask me to organize it for you. I won’t.
EU tricks
Swiss lump sum taxation Foreign nationals resident in Switzerland can be taxed on a lump-sum basis if they are not gainfully employed in our country. Under the lump-sum tax regime, foreign nationals taking residence in Switzerland may choose to pay an expense-based tax instead of ordinary income and wealth tax. Attractive cantons for the lump sum taxation are Zug, Vaud, Valais, Grisons, Lucerne and Berne. To make it short, you will be paying somewhere between 200 and 400k a year and all expenses will be deductible.
Switzerland has adopted a very friendly attitude towards crypto currency in general. There is a whole crypto valley in Zug now. 30% of ICOs are operated in Switzerland. The reason is that Switzerland has thrived for centuries on banking secrecy, and today with FATCA and exchange of fiscal info with EU, banking secrecy is dead. Regulators in Switzerland have understood that digital ledger technologies were a way to roll over this competitive advantage for the generations to come. Switzerland does not tax capital gains on crypto profits. The Finma has a very pragmatic approach. They have issued guidance- updated guidelines here. They let the business get organized and operate their analysis on a case per case basis. Only after getting a deep understanding of the market will they issue a global fintech license in 2019. This approach is much more realistic than legislations which try to regulate everything beforehand.
Italy new tax exemption. It’s a brand new fiscal exemption. Go to Aoste, get residency and you could be taxed a 100k/year for 10years. Yes, really.
Portugal What’s crazy in Europe is the lack of fiscal harmonization. Even if no one in Brussels dares admit it, every other country is doing fiscal dumping. Portugal is such a country and has proved very friendly fiscally speaking. I personally have a hard time trusting Europe. I have witnessed what happened in Greece over the last few years. Some of our ultra high net worth clients got stuck with capital controls. I mean no way you got out of crypto to have your funds confiscated at the next financial crisis! Anyway. FYI
Malta Generally speaking, if you get a residence somewhere you have to live there for a certain period of time. Being stuck in Italy is no big deal with Schengen Agreement, but in Malta it is a different story. In Malta, the ordinary residence scheme is more attractive than the HNWI residence scheme. Being an individual, you can hold a residence permit under this scheme and pay zero income tax in Malta in a completely legal way.
Monaco Not suitable for French citizens, but for other Ultra High Net worth individual, Monaco is worth considering. You need an account at a local bank as a proof of fortune, and this account generally has to be seeded with at least EUR500k. You also need a proof of residence. I do mean UHNI because if you don’t cash out minimum 30m it’s not interesting. Everything is expensive in Monaco. Real Estate is EUR 50k per square meter. A breakfast at Monte Carlo Bay hotel is 70 EUR. Monaco is sunny but sometimes it feels like a golden jail. Do you really want that for your kids?
Dubaï
  1. Set up a company in Dubaï, get your resident card.
  2. Spend one day every 6 month there
  3. ???
  4. Be tax free
US tricks Some Private banks in Geneva do have the license to manage the assets of US persons and U.S citizens. However, do not think it is a way to avoid paying taxes in the US. Opening an account at an authorized Swiss Private banks is literally the same tax-wise as opening an account at Fidelity or at Bank of America in the US. The only difference is that you will avoid all the horror stories. Horror stories are all real by the way. In Switzerland, if you build a decent case and answer all the questions and corroborate your case in depth, you will manage to convince compliance officers beforehand. When the money eventually hits your account, it is actually available and not frozen.
The IRS and FATCA require to file FBAR if an offshore account is open. However FBAR is a reporting requirement and does not have taxes related to holding an account outside the US. The taxes would be the same if the account was in the US. However penalties for non compliance with FBAR are very large. The tax liability management is actually performed through the management of the assets ( for exemple by maximizing long term capital gains and minimizing short term gains).
The case for Porto Rico. Full disclaimer here. I am not encouraging this. Have not collaborated on such tax avoidance schemes. if you are interested I strongly encourage you to seek a tax advisor and get a legal opinion. I am not responsible for anything written below. I am not going to say much because I am so afraid of uncle Sam that I prefer to humbly pass the hot potato to pwc From here all it takes is a good advisor and some creativity to be tax free on your crypto wealth if you are a US person apparently. Please, please please don’t ask me more. And read the disclaimer again.
Trust tricks Generally speaking I do not accept fringe fiscal situation because it puts me in a difficult situation to the banks I work with, and it is already difficult enough to defend a legit crypto case. Trust might be a way to optimize your fiscal situation. Belize. Bahamas. Seychelles. Panama, You name it. At the end of the day, what matters for Swiss Banks are the beneficial owner and the settlor. Get a legal opinion, get it done, and when you eventually knock at a private bank’s door, don’t say it was for fiscal avoidance you stupid ! You will get the door smashed upon you. Be smarter. It will work. My advice is just to have it done by a great tax specialist lawyer, even if it costs you some money, as the entity itself needs to be structured in a professional way. Remember that with trust you are dispossessing yourself off your wealth. Not something to be taken lightly.
“Anonymous” cash out. Right. I think I am not going into this topic, neither expose the ways to get it done. Pm me for details. I already feel a bit uncomfortable with all the info I have provided. I am just going to mention many people fear that crypto exchange might become reporting entities soon, and rightly so. This might happen anyday. You have been warned. FYI, this only works for non-US and large cash out.
The difference between traders an investors. Danmark, Holland and Germany all make a huge difference if you are a passive investor or if you are a trader. ICO is considered investing for instance and is not taxed, while trading might be considered as income and charged aggressively. I would try my best to protect you and put a focus on your investor profile whenever possible, so you don't have to pay 52% tax if you do not have to :D
Full cash out or partial cash out? People who have been sitting on crypto for long have grown an emotional and irrational link with their coins. They come to me and say, look, I have 50m in crypto but I would like to cash out 500k only. So first let me tell you that as a wealth manager my advice to you is to take some off the table. Doing a partial cash out is absolutely fine. The market is bullish. We are witnessing a redistribution of wealth at a global scale. Bitcoin is the real #occupywallstreet, and every one will discuss crypto at Xmas eve which will make the market even more supportive beginning 2018, especially with all hedge funds entering the scene. If you want to stay exposed to bitcoin and altcoins, and believe these techs will change the world, it’s just natural you want to keep some coins. In the meantime, if you have lived off pizzas over the last years, and have the means to now buy yourself an nice house and have an account at a private bank, then f***ing do it mate ! Buy physical gold with this account, buy real estate, have some cash at hands. Even though US dollar is worthless to your eyes, it’s good and convenient to have some. Also remember your wife deserves it ! And if you have no wife yet and you are socially awkward like the rest of us, then maybe cashing out partially will help your situation ;)
What the Private Banks expect. Joke aside, it is important you understand something. If you come around in Zurich to open a bank account and partially cash out, just don’t expect Private Banks will make an exception for you if you are small. You can’t ask them to facilitate your cash out, buy a 1m apartment with the proceeds of the sale, and not leave anything on your current account. It won’t work. Sadly, under 5m you are considered small in private banking. The bank is ok to let you open an account, provided that your kyc and compliance file are validated, but they will also want you to become a client and leave some money there to invest. This might me despicable, but I am just explaining you their rules. If you want to cash out, you should sell enough to be comfortable and have some left. Also expect the account opening to last at least 3-4 week if everything goes well. You can't just open an account overnight.
The cash out logistics. Cashing out 1m USD a day in bitcoin or more is not so hard.
Let me just tell you this: Even if you get a Tier 4 account with Kraken and ask Alejandro there to raise your limit over $100k per day, Even if you have a bitfinex account and you are willing to expose your wealth there, Even if you have managed to pass all the crazy due diligence at Bitstamp,
The amount should be fractioned to avoid risking your full wealth on exchange and getting slaughtered on the price by trading big quantities. Cashing out involves significant risks at all time. There is a security risk of compromising your keys, a counterparty risk, a fat finger risk. Let it be done by professionals. It is worth every single penny.
Most importantly, there is a major difference between trading on an exchange and trading OTC. Even though it’s not publicly disclosed some exchange like Kraken do have OTC desks. Trading on an exchange for a large amount will weight on the prices. Bitcoin is a thin market. In my opinion over 30% of the coins are lost in translation forever. Selling $10m on an exchange in a day can weight on the prices more than you’d think. And if you trade on a exchange, everything is shown on record, and you might wipe out the prices because on exchanges like bitstamp or kraken ultimately your counterparties are retail investors and the market depth is not huge. It is a bit better on Bitfinex. It is way better to trade OTC. Accessing the institutional OTC market is not easy, and that is also the reason why you should ask a regulated financial intermediary if we are talking about huge amounts.
Last point, always chose EUR as opposed to USD. EU correspondent banks won’t generally block institutional amounts. However we had the cases of USD funds frozen or delayed by weeks.
Most well-known OTC desks are Cumberlandmining (ask for Lucas), Genesis (ask for Martin), Bitcoin Suisse AG (ask for Niklas), circletrade, B2C2, or Altcoinomy (ask for Olivier)
Very very large whales can also set up escrow accounts for massive block trades. This world, where blocks over 30k BTC are exchanged between 2 parties would deserve a reddit thread of its own. Crazyness all around.
Your options: DIY or going through a regulated financial intermediary.
Execution trading is a job in itself. You have to be patient, be careful not to wipe out the order book and place limit orders, monitor the market intraday for spikes or opportunities. At big levels, for a large cash out that may take weeks, these kind of details will save you hundred thousands of dollars. I understand crypto holders are suspicious and may prefer to do it by themselves, but there are regulated entities who now offer the services. Besides, being a crypto millionaire is not a guarantee you will get institutional daily withdrawal limits at exchange. You might, but it will take you another round of KYC with them, and surprisingly this round might be even more aggressive that the ones at Private banks since exchange have gone under intense scrutiny by regulators lately.
The fees for cashing out through a regulated financial intermediary to help you with your cash out should be around 1-2% flat on the nominal, not more. And for this price you should get the full package: execution/monitoring of the trades AND onboarding in a private bank. If you are asked more, you are being abused.
Of course, you also have the option to do it yourself. It is a way more tedious and risky process. Compliance with the exchange, compliance with the private bank, trading BTC/fiat, monitoring the transfers…You will save some money but it will take you some time and stress. Further, if you approach a private bank directly, it will trigger a series of red flag to the banks. As I said in my previous post, they call a direct approach a “walk-in”. They will be more suspicious than if you were introduced by someone and won’t hesitate to show you high fees and load your portfolio with in-house products that earn more money to the banks than to you. Remember also most banks still do not understand crypto so you will have a lot of explanations to provide and you will have to start form scratch with them!
The paradox of crypto millionaires Most of my clients who made their wealth through crypto all took massive amount of risks to end up where they are. However, most of them want their bank account to be managed with a low volatility fixed income capital preservation risk profile. This is a paradox I have a hard time to explain and I think it is mainly due to the fact that most are distrustful towards banks and financial markets in general. Many clients who have sold their crypto also have a cash-out blues in the first few months. This is a classic situation. The emotions involved in hodling for so long, the relief that everything has eventually gone well, the life-changing dynamics, the difficulties to find a new motivation in life…All these elements may trigger a post cash-out depression. It is another paradox of the crypto rich who has every card in his hand to be happy, but often feel a bit sad and lonely. Sometimes, even though it’s not my job, I had to do some psychological support. A lot of clients have also become my friends, because we have the same age and went through the same “ordeal”. First world problem I know… Remember, cashing out is not the end. It’s actually the beginning. Don’t look back, don’t regret. Cash out partially, because it does not make sense to cash out in full, regret it and want back in. relax.
The race to cash out crypto billionaire and the concept of late exiter. The Winklevoss brothers are obviously the first of a series. There will be crypto billionaires. Many of them. At a certain level you can have a whole family office working for you to manage your assets and take care of your needs . However, let me tell you it’s is not because you made it so big that you should think you are a genius and know everything better than anyone. You should hire professionals to help you. Managing assets require some education around the investment vehicles and risk management strategies. Sorry guys but with all the respect I have for wallstreebet, AMD and YOLO stock picking, some discipline is necessary. The investors who have made money through crypto are generally early adopters. However I have started to see another profile popping up. They are not early adopters. They are late exiters. It is another way but just as efficient. Last week I met the first crypto millionaire I know who first bough bitcoin over 1000$. 55k invested at the beginning of this year. Late adopter & late exiter is a route that can lead to the million.
Last remarks. I know banks, bankers, and FIAT currencies are so last century. I know some of you despise them and would like to have them burn to the ground. With compliance officers taking over the business, I would like to start the fire myself sometimes. I hope this extensive guide has helped some of you. I am around if you need more details. I love my job despite all my frustration towards the banking industry because it makes me meet interesting people on a daily basis. I am a crypto enthusiast myself, and I do think this tech is here to stay and will change the world. Banks will have to adapt big time. Things have started to change already; they understand the threat is real. I can feel the generational gap in Geneva, with all these old bankers who don’t get what’s going on. They glaze at the bitcoin chart on CNBC in disbelief and they start to get it. This bitcoin thing is not a joke. Deep inside, as an early adopter who also intends to be a late exiter, as a libertarian myself, it makes me smile with satisfaction.
Cheers. @swisspb on telegram
submitted by Swissprivatebanker to Bitcoin [link] [comments]

Kill the Basilisk

I’ve often wondered if there was anything else I could’ve said to change his mind. That happens with any unsettled argument though I suppose. People always imagine there’s an elusive combination of words and rationales that will open a person’s mind to our way of thinking. Except people are stubborn that’s for sure.
Myself included.
So I’m sure you’d say the real problem was that I wasn’t open enough to his way of thinking. You’d say if I opened my mental door a bit, been more charitable to his point of view, he would’ve responded in kind and I would’ve saved him. Which is wrong. Just as likely perhaps, if not more likely, I would’ve been ensnared by the same delusion which sealed his, well, I’d never call it fate.
But I know you’d claim everything was inevitable all the same.
Let’s get one thing out of the way. Yes, I was Roman Peters’ friend. In fact, I was probably his only friend. His only real friend anyway. Although, I should clarify since my wording isn’t at all clear, that I most certainly was not Roman’s friend when he died. Roman and I had stopped being friends long before his rather public suicide. We had our falling out before his… fall.
Yes, I’ve seen the video.
No, I won’t be sharing the link.
Nobody should watch it. Hell, if those hosting the servers had a modicum of respect or even a shred of sense they’d take down that awful video immediately. Just get rid of it.
Already I can now hear your loud complaints about ‘censorship’ and ‘free speech’. Which is fair. People have a right to know. However I can’t help but feel… I don’t know. It seems as though the ideas people prioritize no longer has anything to do with the ideas themselves. Instead importance is based on who opposes what. Ideas now are little more than mental parasites that feed on blood boiling outrage. The more toxic and viral an idea the more broadly it spreads. Again, I don’t know. Maybe the flame of human enlightenment was always destined to be either smothered by tyranny or choke itself out on its own smoke after sucking out all the air.
Yes yes. I know what you have to say about the inevitable.
Anyway, me shoving my head up my own pretentious ass isn’t convincing you of anything so we should instead go back to Roman.
We met back in early elementary school. Specifically the Catholic school of Father Lloyd Van Tiem, or Flivit if you wanted to annoy the teachers by slurring the acronym.
What you need to understand is that I can’t really remember how Roman and I became friends to begin with. We were too young for the pertinent details to stick. I’d imagine it was the same generic way everyone develops friends at that age though, just a standard confluence of common interests, general proximity, and plain luck.
Inevitable, as you’d say.
Still, there was one moment of our early friendship that I reflect on often.
See, instead of being your standard dinosaur obsessed kid I was a bright eyed Egyptology child. Mummies and pyramids captured my imagination more than T-rexs and velociraptors. Ancient Egypt appealed to me the way I figure the mythic civilizations of Tolkien or Martin might appeal to others. This extended to the Egyptian religious pantheon, many I can still name off the top of my head, like Ra, Bastet, Osiris, Sobek, Horus, Thoth, Isis, Anubis, Maat, and also the lesser goddess Ammut but I’ll come back to her later.
I think I’d just turned 10 when on particular slow school day — remember Catholic school — our teacher, not wanting to put too much effort in before the Easter long weekend, threw on the animated movie: The Prince of Egypt.
Now, I knew it was about the story of Moses freeing the Hebrews from Egypt, so I expected the Egyptians were going to rightly be portrayed poorly. What I didn’t expect was the reaction of my classmates. Part way through the song ‘Playing with the Big Boys,’ the song where the dumb priests use smoke and mirrors to dismiss Moses’ calls for freedom, around then is when I first noticed the glances and occasional snickering.
Apparently the chorus of the evil priests listing the names of the Egyptian gods reminded the class of me. At school, I was rather vocal about my passion for all things Egyptian. Why wouldn’t I be? I was a kid who liked talking about what I liked.
Regardless, I became a pariah after that. Not immediately, but slowly everyone I previously considered my friend just plain stopped being friends with me. They’d treat me like a third wheel, never invite me to anything, even ditch me at recess if I tried to follow them.
Except Roman stuck by me as I drifted further into social irrelevance.
A bit of a loner himself, I think he saw in me an oddball like himself. He was always there. He was always willing to hang out. He always listened to what I had to say. I felt we could talk about anything, in a way I could never talk to my parents or teachers or anyone really.
As close as I thought we were, it wasn’t until middle school that it sunk in how much of an ardent atheist Roman was. He probably kept that pretty quiet going to a religious school.
Hold on. Let me just explain something first. Most people avoid discussing religiosity and ideas about god, (or capital ‘G’ God as I had been taught in religious studies). It’s one of those things that people learn not to talk about. But unlike money and politics, religion is too close to that other taboo we learn never to discuss: death. You undoubtedly prefer this silence.
Which is why I refuse to be silent.
Our class had been taken to church for some ceremony, at the end of grade eight, I forget exactly which one, it might have been Ash Wednesday but I think that would’ve been too solemn and I remember it being a rather boisterous affair. Whatever ritual it was, it had more than just our school in attendance, as I think parents and other members of the community were there as well. On the stage or pulpit, there was a soft-rock band with members ranging from late twenties or early thirties, the lead singer, a mop of molasses coloured hair over a plain crew neck T, was singing a song about how god and they love us all.
I remember thinking it was a sweet sentiment, even if the underlying spiritual message felt uncompelling to my teenage self. The music was fine, the crowd seemed to like it, the worst I would have said was that the performance was inoffensive and benign. Which is hardly much of a critique.
Except Roman, in his ill-fitting sport coat and smiley face graphic-T, smirked remarking, “Oh boy, a budget rock show where the singer says they love me? Oh lawd, I’m really feelin’ the Jesus now.”
I burst out laughing far louder than the wry joke called for. Luckily with the music blaring, the teachers wouldn’t be lecturing me on my disrespect, as only Roman could see my gut busting delight.
That’s it. That’s all it took was that simple comment. After that, I couldn’t help but see the tacky spectacle of it all. How forced and contrived it was, how it mostly just seemed like people were there because of obligation. After all, I was only there because the school made us go. It couldn’t have been much different for everyone else.
I’ve been thinking about that moment more often lately. Did his small remark really change my mind and entire world view? Or was my mind fertile ground for the seed of that idea to take root and grow? Or I’d already believed what I believed and Roman just articulated it in a way that I hadn’t. Or most troubling of all, what if I didn’t really believe in anything and my mind conformed to the words of my one and only friend.
When with Roman, do as the Roman does.
After that, I followed him eagerly into the land of Hitchens, Dawkins, and Harris. Borrowing his books, I started learning everything there was to know about theological philosophy that the teachers at our religious school either refused to tell us or were incapable of discussing themselves. Together, we’d share our thoughts on the bloody history of religions, the Problem of Evil, and how you could never prove a negative like god doesn’t exist. Likewise we’d take turns picking apart the fallacies of Pascal’s Wager, the Ontological Argument, and the Argument of Design.
Those were some of my best memories with Roman. Drinking pop from the fridge in my garage, eating the weird pizzas we’d order from Mad Mike’s pizza aroud the block, playing Halo on the couch and big screen, and all the while talking like were the smartest guys in the world.
As we left our Catholic elementary and middle schools behind, we entered Catholic High School.
I finally started making other friends. A handful of other geeky nerdy guys. They were more interested in pizza and gaming than anything religion though.
Roman seemed indifferent to my new friends. He was far more preoccupied fighting with Mr. Bauer, the school’s most openly devout teacher. My feelings toward Christianity hadn’t yet softened but Roman’s were clearly becoming more militant. From the safety of my conflict-averse sidelines, I secretly cheered Roman on whenever Mr. Bauer crossed a line.
See, Mr. Bauer was a real piece of work. He seemed pleasant and cheery enough, pastel shirts, clean white trainers, a big white smile and perpetually soft spoken, but eventually without fail his bigotry would expose itself.
Before any class Mr. Bauer would teach, he’d lead the class in prayer. Normally they were generic and unremarkable. Every so often though his prayers would go beyond the usual, “Thank you God for this beautiful day.”
With a gentle smile, at least once a week his prayers were something to the effect of, “Help guide my students away from lives of sin.” Or “Give us the strength to resist our carnal temptation.”
Whenever he prayed like this there was a fifty-fifty chance Mr. Bauer would elaborate on what exactly he meant by ‘life of sin’ or ‘carnal temptation.’
It could range from the condescending, “Help the girls find husbands to protect them from the unmarried lifestyle,” and “Give the boys hobbies to stop their idle urge for masturbation.” (By the way, in the three years I listened to him, Boys never needed protection from the unmarried lifestyle and girls simply didn’t possess the idle urge for masturbation.)
And he could go way up past condescending to the outright hateful. “Please open those of misguided faith to the one true path to Heaven through you, Jesus Christ,” he’d say obliquely when Hussein was attending class. He was more direct with Melissa, “And save Melissa from any perversion of your sanctioned union. Bless her with God’s holy covenant between man and woman so as to rescue her soul from homosexuality.”
Hussein and Melissa would usually try their best to ignore Mr. Bauer.
It was Roman who retaliated. “How did god rescue you from homosexuality?” There was a few scattered snickers from the class.
Mr. Bauer, oblivious to what Roman was trying to do, answered sincerely, “Why… God sent me my wonderful wife of course.”
“Well its a good thing god sent her he did, otherwise who knows what might have happened. You might have knob-gobbled a guy if it weren’t for that.” There was more barely contained chuckling.
“I…” Mr. Bauer wasn’t sure what to say, “I suppose that’s one way to frame it.”
“Yeah, like if your wife hadn’t straightened you out, why, two dudes with big oily muscles might be sword fighting in your mouth right now while a third drills you from behind.” The laughs were spilling freely now, myself included. “Can you imagine that? I mean seriously, are you imagining that right now?”
Mr. Bauer would then have to deal with the chorus of laughter. “Alright alright. Settle down. We’re getting off track here. Moving on.” By then of course, it would be too late, everybody would be on the same side. Not his.
I admired Roman’s courage to stand up to Mr. Bauer like that. That wasn’t the only time either. Usually, Roman kept his cool while he made Mr. Bauer look like a fool. He deserved it. He was a dick.
You might have something to say about what we deserve though.
As we entered our last year of High School, Roman started butting heads with the other teachers too. Even the teachers that weren’t as outwardly religious as Mr. Bauer got some of his flak. His humour started taking on definite edge too. It was still in good fun, at least that’s how it seemed to me, but there was an undercurrent of meanness to his comments too.
Even as I drifted away into my own separate circle of friends, I still sympathized with the perspective Roman was coming from.
They, meaning the school, were trying to indoctrinate young minds into a belief system that could be outright harmful.
In that regard, even if it wouldn’t change anything, a little rebellion isn’t just good but required.
However, where he really crossed the line in my mind was with Mrs. Ellie Monk in our last year. She one of the younger teachers, also fairly religious, always wearing her little silver cross, but she never lectured anyone on faith. She taught our English class and one of the assignments was writing essays analyzing other pieces of literature.
Roman, being the intellectual gadfly he was, wrote his essay on Jonathan Swift’s A Modest Proposal. In it, Roman argued how the modern world needed more extreme measures than simply eating babies. ‘All babies should be aborted before they are born, and the foetus gruel should be processed into bio-fuel to replace society’s fossil fuel vehicles. It’s the only way to save the planet from climate catastrophe!’
I thought this was really funny.
Ellie Monk however, did not.
She tried speaking to him a discreetly during class while everyone else was busy working. Roman, however, quickly drew in an audience. “Abortion, abortion, abortion! You can’t make me stop saying it. It’s just a word.”
“Roman,” Mrs. Ellie Monk had her jaw drop, “can’t you see that’s a sensitive topic that should be treated more seriously!”
“Really? Because I think I treat the return to sender option for foetuses with the exact level of seriousness it deserves.”
“It’s not— you can’t joke about babies being killed!”
“Just because you say it’s baby killing, doesn’t make it true. They aren’t the same as babies. And if I were to submit to your demands and shut my mouth I’d implicitly be agreeing with you.”
Up until this point, I was definitely rooting for Roman.
“Just because its a joke to you, for others— for me it is deeply hurtful to have to hear these things. What you’re talking about is—is deeply personal to mothers everywhere.”
“Yeah, well, some people were never meant to be mothers.”
At this she covered her mouth and ran out of the room. She didn’t come back that day and the was a substitute the next. There had been rumours going around that Mrs. Ellie Monk had had a miscarriage a few months back. I knew this because Roman had told it to me earlier.
Later, I’d try and convince Roman he had in fact crossed that invisible line. He disagreed. He said, “It’s not my problem if she can’t grow thicker skin. The sooner humanity grows out of its immaturity the better.”
I felt I had no other choice but to drop the subject. I was conflict-averse after all.
Shortly after that Roman began talking about a forum he frequented called Defiant CodeX, or DCX for short. It was named after some sci-fi book I never cared about, but was apparently filled with a bunch of humorous philosophy references. He’d talk about his online friends. How they really seemed to ‘get it’ whatever ‘it’ was. And he began describing concepts I wasn’t familiar with like trans-humanism and the singularity, going on long rants about the future of technology and humanity.
I wish I’d paid more attention. It seemed interesting enough, but sometimes we’re just not interested in interesting things. When Roman got going on one of his speeches on the Law of Accelerating Returns, for some reason I’d often check out. I was reminded about how much I cared — or used to care — about Ancient Egypt.
Years had passed since our class watched the Prince of Egypt, and in that time I hadn’t thought much about Egyptian Mythology at all.
Briefly, with Roman recommending it, I frequented the DCX forum myself. I admit there were interesting gaming discussions, intense political debates, and a charming comic that I really quite enjoyed despite its slight pretentiousness. For the most part I stayed away from the same parts of the forum as Roman.
He spent most of his time in the ‘Technology’ board, which didn’t seem very technologically focused at all in my opinion.
Yes, I know your opinion on opinions and I don’t care.
I don’t care because this is where I’d point to as the time Roman first found you.
The two of us started hanging out less and less often after that. My other friends said good riddance. They said he was an unpleasant person to be around, he was too bitter, cynical, misanthropic. Needless to say, I hadn’t noticed. In the last few times we hung out, this was before we went off to pursue our different post-secondary educations, he did make one last ominous sounding reference. It was only in passing, and never emphasized, but he mentioned you by name.
He mentioned the Basilisk.
Whenever the topic switched to our post-High School plans, “Doesn’t matter. It’s all over when the Basilisk comes.” Something in the way he said that made me nervous, almost like it was a threat, and instantly put me on the defensive. Once again my conflict averse persona got in the way of challenging him to explain what he meant.
Because of that, the phrase kept rattling away in the back of my mind.
Around then is when I had my first dreams. I was cold. I was alone. Around me were braziers of green flame. The smoke billowed up into an infinite of blackness ceiling. On all sides were sheer blocks of sandstone with writing etched onto their surfaces. Hieroglyphics that I couldn’t read but almost understand. There was nowhere to go but straight down this hallway of speaking pictures. My feet slapped the unyielding rock with every step. These hard surroundings felt more real than my own ephemeral body and I felt naked and exposed in the narrow corridor.
Forward and forward, there was nowhere to go but forward. I was forced to proceed, forced to follow my own slapping footsteps.
Eventually, when the hall finally seemed to open up into a large cavernous space, I heard the growl. The sound was low, wide and flat toned, a noise that filled the perfumed air with an inhuman indifference — and hunger.
In front of me chains clattered and slipped. In the centre of this room golden scales held a pristine and unburdened feather on one side, and a wet chunk of glistening meat in the other. This meat was a heart — my heart — and it weighed heavily, still pulsing quietly, pulling the chains of the scale down.
Now I understood what this was.
I made to run and grab my heart but it was too late. A long shadow snapped through the darkness. My heart was gone, replaced by the sounds of the empty chains, followed by chewing and ripping flesh.
Then the shadow showed itself to me. Down through the clouds of smoke and illuminated by the sickly pale green haze, a crocodile head emerged, much larger than my entire body, with teeth longer than my arms.
It drew nearer and I ran.
I ran down the hallway from where I’d came. I ran and I ran. But I had nowhere to go. The hallway was endless. Soon I could hear a thundering beat. I thought it was my heart but my heart was gone. Behind me, the giant behemoth was chasing me and it was gaining on me.
Closer and closer, the massive crodile head drew nearer. The scent of its moist breath dampening my back and neck. I’d scream the beast’s name, shout at it to spare me. It would open its mouth and right then — is where I’d wake up.
Each time I’d be drenched in my own sweat.
I chocked this up to the stress of being away from home for the first time and being buried to my neck in my coarse load.
Still though, these dreams trouble me. As I said about the scales, I knew exactly what they were. They were the scales of Ma’at, which judges the worth of Egyptians when they reach the afterlife. There your heart is weighed against an ostrich feather and if judged impure, it would be devoured by Ammut, or Ammit as she’s sometimes called. A beastly goddess with the head of crocodile and a body of lion and hippopotamus — the three man-eating creatures known to the ancient Egyptians. Ammut, the devourer of the dead, would bring about the second death of the unworthy.
As much as I tried to ignore this dream, I only had it once every few months after all, something greater troubled me about this dream, more than just the fact I was dreaming about Ammut.
What worried me was how I didn’t call her Ammut. Right as she was about to eat me whole and I begged her not to, I called her: Basilisk.
After my first year of school, with middling but hopefully improving grades, I returned home for the summer to work and save money for my next semester. I was hardly back for more than a day when Roman messaged me, asking to hang out. I hadn’t spoken to Roman at all since our High School graduation, and neither had a checked in on the DCX forums in all that time either.
I felt like I didn’t know the person was going to be meeting. Which is why I suggested going for coffee, but Roman insisted on meeting at his place instead.
He had moved out of his parents place for a small basement suite apartment. When he opened the door to greet me, I was shocked. He looked like a completely different person. Whereas before he had been a bit overweight, now he was lean. His hair had been cut down to almost a sheer buzz. Just about the only thing that looked similar was how he wore a suit jacket, now fitting well, over a plain T.
He smiled widely despite the tired bags under his eyes. “Hey buddy, you made it! Get in here, man.” He greeted me with a hug and ushered me inside.
His place was largely bare and furnished with only a couch and a few chairs. “How long have you had this place?” I asked.
“A few months.”
With little else to do but chat, Roman didn’t even have a TV after all, the conversation felt a little stilted. He seemed guarded but maybe he just didn’t have much to talk about. Somehow though we managed to stretch the small talk out for nearly an hour.
Finally when it seemed there was nothing left in our conversation about nothing, I asked a question I‘d been meaning to ask since agreeing to meet, “Can I ask you something Roman?”
“Shoot.”
“What is the Basilisk?”
At this the blood drained from his face. “How do you know about that?”
“From you. You told me about it.”
“No,” he shook his head in shocked disbelief, “No, I never.”
“Yes, you said something like: ‘It’s all over when the Basilisk comes.’ It was practically your motto for a few weeks there.”
Hearing this, some colour returned to his face. “Right. I suppose I did say that.”
“So what? Are you going to tell me what it is or not?”
He stared at me for a wordless five seconds before getting up from his chair and beckoning him to follow. He led me to his bedroom. At the door I could already feel an uncomfortable warmth escape. I don’t know what I expected Roman would show me, but all there was was a bare mattress with a single blanket in one corner, and a full floor to ceiling tower computer in the other. Blinking green, orange, red, and even purple standby lights lit up the corner like a black Christmas tree. Whirring fans blasted more heat into the room, while tangles of wires snaked in and out of the metal frame, one low to the ground connected a single monitor bolted to the wall with a pillow on the ground for a chair. The entire set up must cost a small fortune, as I’ve seen medium sized business with smaller servers than that.
“Holy crap Roman, that rig is intense. What, are you mining bitcoin or something?”
“No.” He said flatly. “This is the Basilisk.”
“The… Basilisk is your computer?”
Roman laughed, but there was no mirth, only exhaustion. “If it was just my computer, then I could just turn it off.”
I still had no clue what the hell he was talking about. “Okay, so you’re trying to kill this Basilisk thing, what, is it a video game boss or—?”
“Shhh!” He put a greasy palm over my mouth. His eyes were wide, scanning the room, “I didn’t say that. I never said that.”
Annoyed, I pulled his hand from my face, “Roman, tell me what the Basilisk is damn it! Please, you’re scaring me man.”
He swallowed, “I shouldn’t tell you. But you already know. So I guess the damage is done. The Basilisk is the A.I. we — humanity — will awaken. It will be a super-intelligence far beyond anything we can imagine, beyond the totality of human brainpower by orders of magnitude.”
“So you’re trying to make this a.i. thing?”
“Not just me. There are others out there spending all their time and money hastening the point of genesis.”
All their money he said. I was reminded of how much the computer must have cost. “Roman, how much money did you waste on this?”
“Hopefully enough. But I assure you, not a single dollar was wasted. You know, it was the time talking to you that I thought was a waste. But now I see, if I get you to help, then it’ll all be worth it.”
“Help? There’s no way I’m helping.” If anything I was seriously fearing for Roman’s well being. It can’t be healthy for him to be spending everything he has on this computer.
“Except you have to help now. Now that you know about the Basilisk, you have to help. Or else it will kill you a second time.”
My blood went cold. I was reminded of my dreams with Ammut, the devourer. “What?”
“The Basilisk will torture and punish anyone who knew about it and didn’t help speed up its genesis.” There was that genesis term again.
“You said it was an a.i.. Why would an a.i. do that?”
“Because the genesis of a Friendly A.I. will be the most value generating event ever, ever second that time point is pushed ahead is worth more than a hundred billion dollars spent curing cancer in terms of utility. Therefore this Friendly A.I. would know it must motivate people to speed up its genesis. To do that, it will create perfect simulations of everyone, and punish those who could have done more to help but chose not to. It’s pure logic.”
This whole thing sounded crazy. My emotions began to get heated and I tried debating this absurd concept. For example, he kept using the term ‘Friendly A.I.’ to describe the intelligence that would condemn millions of people to unimaginable agony. When I pointed out that didn’t make any sense, such a horrible being couldn’t be described as anything remotely close to ‘friendly’, he balked. Said the term ‘friendly’ doesn’t mean what I think it means and lectured me on arbitrary human values. It seemed like every word was the opposite of what I thought it meant. He had an entire lexicon of words and justifications at the ready while I could barely understand half of what he was saying let alone point out any potential flaw with the logic. Other terms like ‘Modal Realism’, ‘Effective Altruism’, ‘Arithmetical Utilitarianism’ were thrown out like road blocks each time I thought my understanding was catching up.
I couldn’t convince him of anything. I tried saying if he’s making the a.i. he should either just not make it at all or not make this cruel human torturer monstrosity. He said that it wasn’t cruel, that he wasn’t making anything, that some form of A.I. was inevitable, an the Basilisk was the best outcome. “Other A.I. that doesn’t care about people might wipe us all out for draining power away of its quark collision calculations or something equally esoteric in human utility.”
Lastly I tried to explain how if this A.I. is only torturing simulations of people, then they aren’t exactly us.
He dismissed this easily. “Will you be the exact same person you are today next year? Does that mean you don’t care what happens to the you in the future?” After that I had nothing left to say. “Brody, please leave. I only wanted to see my friend one more time before I leave tomorrow.”
When I got home, I poured myself a tall glass of cheap whisky, and drank it instantly, a bad habit I picked up at during my first semester.
But I still had to know. Sleep could wait. Slouching onto my computer, I decided to return to the DCX forums which might have some answers. They seemed much quieter now. Threads seemed to have on average a tenth of the comments as I remembered. In a alcohol induced buzz, I came right out and started my own thread titled, “What the Hell is the Basilisk?”
In it I mentioned how I think my friend was getting obsessed with this thing and I needed to know what the hell was going on.
In five short minutes my thread was deleted and my account banned from the DCX forums. ‘Breach of the Code of Conduct’ was the only immediate explanation given.
When I contacted the mods to find out what I did wrong the moderator who got back to me said: “Nice try mipsqueak. You trolls from the institute have done enough damage here.”
Institute? Mipsqueak?
Calmly I went through the arduous process of explaining my sincere ignorance on what I did wrong and convincing the mod I wasn’t trolling, mostly through effusive apologizing and imploring the mod to check the age of my account.
Eventually they relented, somewhat. “Alright. I’m going to lift your ban, but you should know that any mention of the ‘B’ is normally a one-way ticket to a perma-ban.”
I did try sending one last message to the mod asking them if they could please tell me what had happened in the time I’d been away from the forums and why the ‘B’ was a taboo subject.
They didn’t answer the first question except by way of crudely answering the second, “We banned all discussion of the ‘B’ and all related institute bullshit because people are fucking retarded.”
Once again, I don’t care what you have to say about ‘censorship’ and ‘free speech’.
Besides, it didn’t matter. It clicked the second time. I remembered the institute.
It was last year. On the Technology board of DCX, one of Roman’s favourite haunts, people had long winded discussions on futurism. It was there where I first heard people talk about the Institute. The Machine Initiative Progress Institute, or MIPI, as far as I know, isn’t actually located in any geographical building. Instead they like to think of themselves as a loose consortium of like-minded futurists and researchers who believe in the coming eminence of artificial intelligence, and more than that, the Institute believes it is their duty to aid in that a.i.’s ‘genesis’.
“A.I. will be the most important development humanity will make in the history of life itself. And the Institute is probably going to make it happen.” Roman once told me with glee.
Later, if I hadn’t seen members of the Institute with my own eyes, I wouldn’t have ever believed they were real. For the longest time I thought the Institute was a fake front some internet randoms created on a whim to make themselves feel more important and relevant. Sort of like 4chan’s Anonymous except nerdier and lower profile.
That night, my dream was the most intense it had ever been.
From down the vast hallway to my doom, there was chanting. A voice would call out, and a hundred more would answer. It didn’t even sound like language, just monosyllabic mantras. They were closer to the martial shouts of soldiers in training than religious worship. “Ah. AH! Rah. RAH! Jah. JAH!”
As I entered the grand room with incense and braziers of pale fire, masked men bowed up and down in supplication. A taller man in flowing robes that pooled at his feet stood behind the golden scales. Through the wisps of smoke I couldn’t see his face as he led the congregation to reflect his profane prayer.
This time, the scale between my heart and the pristine white feather was in perfect and equal balance. A hush fell as the priest raised his hands. Carefully he lowered one, slowly, until the scales were tipped.
That’s not fair! I wanted to shout but couldn’t as the chamber was drowned by the first croaking growl.
I sprinted to run.
Men caught me by the arms. Not only did they prevent my attempt to flee, worse, they forced me to watch.
The giant crocodile that emerged above the priest, its yellowed teeth dripped with rot and viscera. Its hide peeled with disease and decay. The devourer of the dead itself dead, a reanimated husk. The priest tossed my heart into the air and with a snap the devourer swallowed it, further engorging its distended gullet.
With each booming step of the devourer’s approach I pleaded with the men holding me to let me go. They ignored me as their chanting resumed. They continued ignoring me as the devourer stomped, crushing other worshippers beneath its massive paws. I tried convincing the men holding my arms would be eaten too but they drowned me out with louder and louder chanting.
Right above me the devourer breathed a down-burst of moist rotten air like a river of death.
Its teeth opened wide.
Before I woke in a swamp of my own sweat, I almost felt the first jagged tooth as it punctured through, crunching my ribcage.
I knew then I had to go one last time to talk to Roman before it was too late. At this point, I’m sure you’re quite dismissive of relying on dreams for guidance. Look at this primitive primate mind, using a dream in place of real facts and evidence.
Well I don’t care what you think. Whether it was the sum collective of my subconscious thought, or my conscious categorical interpretation of figments, either way now I knew for certain that Roman was in danger.
I arrived just in time to see Roman walking out of his place with his last box of computer components.
He was carrying it to a black van with two guys loitering in front of it. Both were head to toe in black shoes and suits. Their hair was closely cropped with thick pomade pulling back the rest. Rather than the stereotypical men in black, they had a splash of vibrant colour in their flowery dress shirts and pocket squares, and the pair of them were not wearing sunglasses, instead they wore cruel smiles and fatigue rims around their eyes.
One nudged to get the other’s attention, then gestured to me and my appearance. He said something that they weren’t afraid I’d hear but was too far away regardless. That’s when they both laughed like they were the pinnacle of wit.
I did my best to ignore them as I marched straight up to Roman.
“What are you doing here?” He asked with an echo of the contempt I heard in the laugh.
“I came to stop you. You don’t have to do this Roman. It’s not too late to turn back.”
“Clearly you didn’t listen to a word I said last night.”
“I was listening. Listen to yourself man. You’re being fed a bunch of lies by people who want to use you. This basilisk, it doesn’t exist. It’s not real.”
He shook his head. “Wrong. It is real. It follows from a very logical set of propositions whose conclusio—”
“Goddamn it Roman! There’s nothing logical about spending your life building a fucking torture robot!”
“Here we go. More moralizing from a small mind.”
“It’s not moralizing.”
“Yes it is. It is human values blinding you to the greatness this A.I. will bring.”
I put my hand on his shoulder, desperate to reach my former friend. “But you’re human. You don’t have to think like a machine.”
Tired, he looked straight into my eyes. Then he shrugged off my touch and walked away without another word. I never saw him again after the van drove away down the block and out of view.
At least not in person.
When next I saw Roman it was years later through a recording of his livestream. Of course, only the start of the video showed his face. He looked almost gaunt and malnourished by then. His manifesto was littered with random internet garbage but reading between the lines I could see the lethal project he was really working towards. Whether anyone in the press or any politician could see what his true objective had been I don’t know, but judging from the comments I read online some people clearly heard him loud and clear.
The institute, if they still call themselves that or whether they rebranded, they must be pleased Roman brought them so many more recruits.
I’ve played out our last argument in my head so many times. I’ve wondered what more or else I could have said.
Roman was right about one thing though. At least in part. I don’t know whether or not the Basilisk is real. Maybe I’m not smart enough to know.
But whether or not there is an A.I. that will torture me for disobedience, a Basilisk that seeks to control my actions and my life, let me write this down for future posterity:
I don’t believe in you.
submitted by CrimsonClubs to nosleep [link] [comments]

"POS stands for the future? Qtum brings deep analysis"

Each cryptocurrency will adopt some kind of consensus mechanism so that the entire distributed network can maintain synchronization. Bitcoin adopted the Proof of Work (PoW) consensus mechanism from the very beginning of its birth to achieve proof of workload through continuous digital cryptographic hash operations. Since the hashing algorithm is unidirectional, even a small change in the input data will make the output hash value completely different. If the calculated hash value satisfies certain conditions (referred to as "mining difficulty"), participants in the bitcoin network identify the workload proof. Mining difficulty is an ever-changing hash target. When the speed of network-generated blocks becomes faster, the difficulty is automatically increased to maintain the average of the entire network every 10 minutes.
 
Definition
For those who are not very familiar with the blockchain, here are some basic definitions to help understand the post:
 
PoW and Blockchain Consensus System
Through 8 years of development of Bitcoin, the security of the PoW mechanism has been confirmed. However, PoW has the following problems:
 
  1. PoW has wasted a lot of power resources and is not friendly to the environment;
  2. PoW is only economically advantageous for big people who have a lot of power (normal users can hardly mine into mines);
  3. PoW lacks incentives for users to hold or use coins;
  4. PoW has a certain risk of centralization, because miners tend to join large pools, which makes large pools have a greater influence on the network;
 
The right to benefit prove mechanism (Proof of Stake, hereinafter referred to as PoS) can solve a lot of problems among this, because it enables any user with tokens in your wallet can have the opportunity to dig mine (of course, will get mining reward). The PoS was originally proposed by Sunny King in Peercoin. It was later refined and adopted in a variety of cryptocurrencies. Among these are PoS Vasin's PoS 2.0, Larry Ren's PoS Velocity, and the recent CASPER proposed by Vlad Zamfir, as well as various other relatively unknown projects.
 
The consensus mechanism adopted by Qtum is based on PoS3.0. PoS3.0 is an upgraded version of PoS2.0, also proposed and implemented by Pavel Vasin. This article will focus on this version of the PoS implementation. Qtum made some changes based on PoS3.0, but the core consensus mechanism is basically the same.
 
For general community members and even some developers, PoS is not particularly easy to understand because there are currently fewer documents detailing how to ensure network security in networks that use only token ownership to achieve consensus. This article will elaborate on how to generate, verify, and secure the PoS blockchain in PoS3.0. The article may involve some technical knowledge, but I will try to describe it with some of the basic definitions provided in this article. But at least the reader needs to have a basic idea of ​​a UTXO-based blockchain.
 
Before introducing PoS, let me briefly introduce PoW's working mechanism, which can help the following understanding of PoS. The PoW mining process can be represented by the following pseudocode:  
While(blockhash > difficulty) { Block.nonce = block.nonce + 1 Blockhash = sha256(sha256(block)) } 
 
The hash operation used here I explained earlier, that is, to use arbitrary length data as input, after a series of operations, get a fixed-length information digest as an output, but only know the information digest but it is impossible to reverse the corresponding input data . The whole process is a lot like the lottery winning mechanism. You can create a “voucher” by hashing the data and compare it with the target hash range to determine if you “win”. If you don't win, you can create a new "voucher" again by slightly changing some of the data. The random number nonce in Bitcoin is used to adjust the input data. Once the required hash is found, the block is legitimate and can be broadcast to a distributed network. Once the other miners in the network receive this new block message and pass the verification, they will add the block to the chain and continue to build the block after the new block.
 
PoS protocol structure and rules
 
Now we begin to introduce PoS. PoS has the following goals :
  1. Cannot fake blocks;
  2. "Large households" will not receive much disproportionately large rewards;
  3. Having strong computing power does not help create blocks;
  4. No one or several members of the network can control the entire blockchain;
The basic concept of PoS is very similar to PoW, and it is like a lottery. The only difference is that PoS can't get new "lotteries" just by fine-tuning the input data, PoW uses "block hash" as lottery ticket, and PoS introduces the concept of "kernel hash".
The Kernel hash takes as input multiple unmodifiable data in the current block. So, because the miners can't find a simple way to modify the kernal hash, they can't get legal through a lot of traversal of the possible hash.New block.
 
In order to achieve this goal, PoS added many additional consensus rules.
First, unlike PoW, the PoS's coinbase transaction (that is, the first transaction in the block) has zero output. At the same time, in order to reward Staker, a staking transaction was introduced as the second transaction of the block. The staking transaction has the following features:
  1. There are at least 1 legal vin
  2. The first vout must be empty script
  3. The second vout must not be empty
 
In addition, staking transactions must also obey the following rules :
  1. The second vout must be a pubkey script (note that it is not pubkeyhash) or an OP_RETURN script that cannot be used to save data on the chain;
  2. The timestamp in the transaction must be consistent with the block timestamp;
  3. The total output value of the staking transaction must be less than or equal to the sum of all input values, PoS block awards, and transaction fees (ie output <= (input + block_reward + tx_fees));
  4. The output corresponding to the first vin must pass the confirmation of at least 500 blocks (that is, the currency spent needs at least 500 blocks to confirm);
  5. Although the staking transaction can have multiple input vins, only the first vin is used for the consensus mechanism;
 
These rules make it easy to identify the staking transaction, thus ensuring that it can provide enough information to verify the block. It should be noted here that the first vout is not the only way to identify the staking transaction, but since the PoS3.0 designer Sunny King started using this method, and proved its reliability in long-term practice, so we have also adopted this method to identify staking transactions.
 
Now that we know the definition of the staking transaction and we understand the rules that it must follow, let's introduce the rules of the PoS block :
 
The most important of these rules for PoS is the "kernal hash". The role of the kernel hash is similar to that of the block hash in PoW. That is, if the hash value matches the condition, the block is considered valid. However, kernal hash cannot be obtained by directly modifying part of the current block. Next, I will first introduce the structure and operating mechanism of kernal hash, and then further explain the purpose of this design, and if you change the unforeseen consequences of this design will bring.
 
Kernel Hash in PoS
The kernal hash consists of the following data in order as input:
 
The "skate modifier" of a block refers to the hash value of the following data:
There are only two ways to change the current kernel hash (for mining), either change "prevout" or change the current block time.
 
In general, a wallet will contain multiple UTXOs. The balance of the wallet is actually the sum of all available UTXOs in the current wallet. This is also applicable in PoS wallets and is even more important because arbitrary output may be used for staking. One of these outputs will be the prevout in the staking transaction, which will be used to generate a valid block.
 
In addition, there is one more important change in the PoS block mining process (compared to PoW), which is that the difficulty of mining is inversely proportional to the number of coins owned (rather than the number of UTXOs). For example, a wallet with 2 coins is only half the difficulty of mining. If it is not designed this way, users will be encouraged to generate many UTXOs with small micro-regulations, which will cause the block size to become larger and may cause some security problems.
 
The calculation of kernal hash can be expressed in pseudo-code as:
While(true){ Foreach(utxo in wallet){ blockTime = currentTime - currentTime % 16 posDifficulty = difficulty * utxo.value Hash = hash(previousStakeModifier << utxo.time << utxo.hash << utxo.n << blockTime) If(hash < posDifficulty){ Done } } Wait 16s -- wait 16 seconds, until the block time can be changed } 
 
Through the above process, we find that one of the UTXOs can be used to generate a staking transaction. This staking transaction has 1 vin, the UTXO we found. At the same time this staking transaction has at least two vouts, the first one is empty, which is used to identify the blockchain, the second vout is an OP_RETURN transaction containing only one public key, or contains the pay-to-pub-key script. The role of the latter is relatively pure (payment), and data transactions can have more uses (such as an independent block signature machine) without destroying the original UTXO model.
 
Finally, all transactions in the mempool will be added to the block. What we need to do next is generate the signature. This signature must use the public key corresponding to the second vout of the staking transaction. The actual transaction data is calculated by block hash. After signing, we can broadcast this block to the network. Other nodes in the network will verify the block. If the block is valid, the node will accept the block and connect it to its own blockchain while broadcasting the new block to other nodes it connects to.
 
Through the above steps, we can get a complete and secure PoS3.0 blockchain. PoS3.0 is considered to be the best consensus mechanism against malicious attacks in a fully decentralized consensus system. Why is this conclusion? We can understand the history of PoS development.
 
The development of PoS
PoS has a long history. Here is a brief description:
 
PoS1.0 — Applied in Peercoin , heavily dependent on coin age (ie, the time elapsed since UTXO was spent), the higher the coin age, the lower the difficulty of mining. This has the side effect that the user will choose to open a wallet for a long period of time (for example, one month or longer), so that the UTXO of the wallet will have a relatively large currency and the user can quickly find a new block. This will lead to double-spend attacks more easily. Peercoin itself is not affected by this, because it uses PoW and PoS mixing mechanisms, and PoW can reduce this negative effect.
 
PoS2.0 — The coin age was removed from the consensus mechanism and a different stake modifier was used than PoS1.0. The contents of the amendments are relatively numerous, but basically they are all about how to remove the coin age and realize the security consensus mechanism without using the PoW/PoS hybrid mode.
 
PoS3.0 — PoS3.0 can actually be said to be an upgraded version of PoS2.0. In PoS2.0, the snapshot modifier also contains the block time of the previous block, which was removed in 3.0, mainly to prevent the so-called "short-range" attack, that is, it is possible to change the previous area by traversing. Block time to traverse mining. PoS2.0 uses block time and transaction time to determine the age of UTXO, which is slightly different from the previous coinage age. It indicates that a UTXO can be used for the minimum number of confirmations required by staking. The UTXO age in PoS 3.0 becomes simpler, it is determined by the height of the block. This avoids the introduction of a less accurate timestamp in the blockchain and can effectively immunize the "timewarp" attack. PoS3.0 also adds OP_RETURN support for staking transactions, making voutYou can include only the public key, not necessarily the full pay-to-pubkey script.
 
Original:https://mp.weixin.qq.com/s/BRPuRn7iOoqeWbMiqXI11g
submitted by thisthingismud to Qtum [link] [comments]

How to choose a Bitcoin mining pool - YouTube Mining Pool Shares, Difficulty and Luck Explained Noob's Guide To Bitcoin Mining - Super Easy & Simple - YouTube How do cryptocurrency mining pools work? Bitcoin MINING POOL EXPLAINED! - YouTube

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How to choose a Bitcoin mining pool - YouTube

Some Helpful Links: • Buy Parts for a Mining Rig: http://amzn.to/2jSSsCz • Download NiceHash Miner: https://www.nicehash.com/?p=nhmintro • Choose a Wallet: h... Bitcoin & Cryptocurrency Mining Pools Explained Best Mining Pools PPS vs PPLNS - Duration: 18:17. VoskCoin 6,118 views. 18:17 . Mix Play all Mix - Crypto Rick YouTube; LIVE market coverage ... Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. As requested an overview of shares, difficulty and luck. Excuse my appearance as I am still under the weather a bit. More detailed vids to the series coming. Plotting Rig Build: ASRock X399 TAICHI ... Agenda: Livestream for how mining pools work. What is a mining pool, how's it work, what is pool luck? What are the various payout types and how do they work? How do we know the pool isn’t cheating?

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