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18

Bitcoin amounts in the protocol and software are expressed as an integer number of "satoshis". 1 BTC is defined as 10^8 satoshis. So a block reward that is internally represented as 5*10^9 satoshis is displayed in the GUI as 50 BTC. Splitting bitcoins to even smaller fractions will require a change in the protocol and software, and may be done when their ...


14

Here's a list of the most notable scams, thefts, and hacks: https://bitcointalk.org/index.php?topic=83794


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

Today, it primarily serves as a store of value. It is inherently more useful as a medium of exchange, its intended purpose. Perhaps a bit ironically, its expected future usefulness as a medium of exchange is what is driving its present usefulness as a store of value. The thinking is that if you get them now when they're cheap, in the future when they're used ...


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 ...


9

A psychological perspective Most currencies allow for 2 decimal places for common use because they are strongly regulated by their issuing government. Some provide 3dp, others, like the Yen provide none (integer only). It should be noted that stock exchanges offer shares priced down to 4dp but given the surrounding fees it is not economical to purchase a ...


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

It's a short list. Cash Liberty Reserve (though they did freeze some customer funds recently until they became verified) Bank Wire (though see comment below) Webmoney (supposedly) Here's the payment methods hardness list: http://en.bitcoin.it/wiki/Payment_methods


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

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

Liberty Reserve (which was closed in May 2013) doesn't allow charge backs.


4

If you look at a graph of the value of 1 bitcoin, that huge spike and drop was caused by someone hacking Mt.Gox and selling everyone's bitcoins to him/her for $0.00, dropping down the value to $0, and it stayed low as more people sold their bitcoins to make sure it wouldn't happen to them. It's been slowly rising since then.


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

This much less likely for a number of reasons: Banks have advanced, robust and well-tested anti-fraud infrastructure, making such thefts much more likely to be detected. Legally it is much much easier to prosecute for fraud cases in fiat than BTC (I do not know any prosecution over stolen Bitcoins) Fiat transactions are reversible meaning the exchange could ...


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

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 ...


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

It is unlikely you'ld find an exchange that hasn't lost funds due to theft. Mt. Gox, before Tibanne bought it, used to accept PayPal for payment. It was fraudulent PayPal transactions that assisted in driving the exchange rate from $0.06 per BTC (yes, that is correct) in October, 2010 to a level twice that in about two days. PayPal closed the account and ...


3

Trade with others who might be local: http://www.LocalBitcoins.com Forum users might check in on a thread like this: http://bitcointalk.org/index.php?topic=109453.0


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

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

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 ...


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