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13

I spent a long time researching this very question a while ago before buying my first bitcoins thinking that Bitstamp is the cheapest way to buy bitcoins (fee wise). I ended up concluding that the cheapest way to deposit money in a Bitstamp account from the United States is with Ripple, which allows you to bypass the $15 wire transfer fee that it would cost ...


13

I think it's necessary to first consider the question: Without ripple, how do banks "actually transfer money" from one bank to another? Suppose that you and I are banks, and I want to send you $10 million. I'm probably not going to actually physically ship you $10 million worth of bills and coins. Instead, there are a few ways we could do this: You and I ...


12

Any of those things can happen. Likely, there will be some "hot potato" going on as people rush to offload any IOUs they hold to people who haven't yet gotten the news. It's unlikely other gateways would honor the IOUs unless they were contractually obligated to. This would likely harm their customers as they'd have to make up the losses somehow -- likely ...


11

You should know that lots of things in life come for free. Specifically when it comes to software, lots of professional developers would rather develop things "their own way" for free, instead of getting paid and "being forced to do it". Most open source developers also simply enjoy the act of creating things. They're engineers and scientists that care more ...


10

This question actually gets at the fundamental nature of Ripple. Ripple is essentially an online P2P implementation of free banking. Free banking is somewhat similar to how banking worked in the United States for much of the 19th Century (with a few major caveats) prior to the Federal Reserve and FDIC systems, and indeed back then banks would sometimes just ...


10

Here all famous scammers/sites: List of Known Bitcoin Scams: Beware of Fraudsters! Bitcoin Scammers list


10

The way Ripple's public ledger system works is that you propose a payment by specifying the source and destination accounts and currencies and then the system gives you a quote based on public offers. You can then specify a maximum amount you are willing to pay to complete the payment and submit it. If the payment is possible for the amount you offered or ...


8

The transaction fees in Ripple are simply destroyed. There is no mining. We had to use ripples because we couldn't use dollars, both because dollars in Ripple can only be represented as debt (Who would owe them to the system? Who would they go to?) and because Ripple is intended to be cross-currency (How would you manage exchange rates?). The beauty of ...


6

XRP are internally represented as an integer number of millionths of a ripple. No term has yet been accepted for naming these units, but some people have (I think jokingly) referred to them as "Jeds". Update: It looks like they will be officially referred to as drops as you suggested. A transaction costs 10 drops. There are a million drops in a ripple.


4

If I understand correctly, IOUs issued by different gateways are not mutually fungible, even if denominated in the same underlying fiat currency. So basically I you were to hold IOUs from a gateway and that gateway vanished, or simply refused to honour its IOUs you'd be out of your money.


4

Fiat currencies can only exist as debt. If you have them, and they're not in your physical possession, it can only mean that someone owes them to you. This is the same way it works outside the Ripple system. If you have $1,000, and you don't have physical bills, then someone (most likely your bank) owes you that $1,000. The Ripple system uses gateways whose ...


4

There is a site where one can submit bounties for proofs of theorems in Coq formal proof management system, and get paid in bitcoin: proofmarket.org Additionally there are other sites that have done competitions in the past: mathgate.info treasure hunt Another project in development (but at the moment not specifically tied to bitcoin) is ProofPeer ...


4

It depends a lot on the circumstances. If the use cases overlap significantly, then the currencies can compete. That could negatively affect Bitcoins. However, if the use cases don't overlap significantly, then the currencies likely won't compete. That could even positively affect Bitcoins. Crypto-currencies aren't fighting over shares of a fixed-sized pie. ...


4

Lots of things called "decentralized" or "defi" are scams, and I vigorously encourage you to stay away from them. Some of them are real, or useful, and have varying degrees of decentralization. Still, nothing is ever going to give you interest if you don't give up custody of your coins. Interest is literally you being paid to take the ...


3

There is the theory first described by Hal Finney that if an alt currency supplants bitcoin (in which Bitcoin's value goes down as coins are sod for transfer to another) then that is something that too can be repeated over and over, and thus crypto currencies lose their ability to be a good store of value. So that happening harms, over the long term, not ...


3

Some developers don't make money from making some open source projects - but they can always use it to showcase their portfolio to get hired to some company. Android Bitcoin Wallet is earning money from donations. Blockchain info recieved about 30.5 M funding to invest in growth - they are building a brand and maybe that can offer some consultancy to ...


3

You can ask the vendor for the transaction id of the transaction where they sent the bitcoin to you. Look it up on https://blockchain.info to check it exists and is sending bitcoin to your receiving address correctly. Look at the date of the transaction. Go into MultiBit, select your wallet and choose the menu option 'Tools | Reset blockchain and ...


3

Money is something that is used as a medium of exchange a unit of account a store of value in a given socio-economic context. In the context of the Bitcoin community, Bitcoin is being used as a medium of exchange (payment vehicle) and – as the existence of "hodlers" shows – as a store of value. You apparently agreed with Bob that some specific amount of ...


2

A true "gold standard" means that a unit of currency (e.g., "dollar") has a certain amount of commodity backing it (gold, in the "gold standard" instance), and that the currency can be exchanged for that commodity at the designated exchange rate. The amount of gold per dollar is fixed under a gold standard, so a dollar on one day gets the exact same ...


2

It's typical to measure the purchasing power of currencies using something like the Consumer Price Index, so this is probably would be used if Bitcoin were to become a dominant currency. Basically, you would develop a "market basket" of goods and services that people commonly buy, and perform some sort of survey to determine what these goods and services ...


2

Most online wallets will create for you a new address each time you indicate that you want to receive a transaction, or give the option of creating a new address. Some enforce this by never showing an address twice and simply handle amalgamation on the backend. Creating a new address for each transaction is a fool-proof way of ensuring that someone has ...


2

There is now a BitcoinPPI (Bitcoin purchasing power index) available: http://bitcoinppi.com/ It uses the BigMac index published by The Economist and calculates a global weighted index and a local index for 41 countries. There is an API for all data and the sources are also available. Disclaimer: I have no opinion on the taste of BigMacs ;)


2

Because he can sell the bitcoin for dollars. And in many cases, his alternative would be to accept a credit card payment which costs him around 2%. Converting bitcoins to dollars costs around 0.2% -- one tenth as much. Also, if he accepts a credit card payment, he has to worry about a chargeback (where you claim the payment was unauthorized and the bank ...


2

You cannot send anything other than bitcoin to (or out of) your Bitcoin Core wallet. You'd need to acquire bitcoin somewhere else first, then you will be able to send it to your Bitcoin Core wallet.


1

The simplest way to track profits and losses from trading is to mark your holdings to market in your local currency each day. That is, each day, value all your holdings in your local currency at their market price and sum them. If that number goes up, you made a profit on your combination of holding and trading currencies. If that number goes down, you took ...


1

No, if the market crashed, you would not get your 1000$ back. That is the nature of a crash, unless there is a recovery afterwards. You can see the historical exchange rate of bitcoins, to get an indication of the stability. The way I see bitcoins is as a tool for money transfer. The advantage of having bitcoins is that you can then transfer money very ...


1

The one marked "Address". It will forward it to the one marked "Forward To".


1

There many possibilities, all of which would lower the demand for BTC and, by extension, its value when compared to worldwide currencies. Off the top of my head I can think of: A large swath of BTC being converted to government-backed monies (e.g., USD). This could be as simple as people "cashing in" on prior investments or as compounded as a run on BTC. ...


1

A crash is a bit like an avalanche. In an avalanche, snow falls and hits other snow; then that snow starts falling too. People who invest under the greater fool theory will sell as soon as the price goes down. Obviously, when they sell, the price goes down more.


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