Live Stoner Chat All about Bitcoin and other crypto-currencies

[Groff]

This thread is intended to help anyone out there who is interested in learning about Bitcoin, and/or other crypto-currency.

I will be giving out Potcoins to whoever wants them, provided in the end you send them to AFN to support the forum!!

I am very knowledgeable on the subject, by no means a specialist. Bitcoin has the potential to disrupt centralized banking and already promotes financial freedom to everyone, much in the same way email revolutionized communications.

Lets lets start simple. First of all, what on earth is Bitcoin? (same principle applies to other coins)

https://www.youtube.com/watch?v=Um63OQz3bjo

I won't extend much on the subject so as not to intimidate with information-overload, but feel free to shoot questions. I'd love to get you guys aboard as this is amazing technology, once you start using it, regular "money" really does feel obsolete!

I'll just end with this note. Bitcoin & Potcoin are pseudo-anonymous. Meaning, it can be very anonymous, but it can also do the exact opposite. Just by using Bitcoin your anonymity is NOT guaranteed. But understanding how to use properly, then it can very well be 100% anonymous. Just like email.

If there is enough interest, I am happy to send out some coins for you guys to test. It wont be bitcoins (for technical reasons), but another crypto-currency (probably Potcoin), a great way to get your feet wet!

It would be awesome if you guys would take the time to learn about this as it is certainly the future of money. And while you do so, support AFN by sending some crypto-love!

 

[Groff]

Understanding the Blockchain.

The single most important thing to wrap your head around is the Blockchain. This is by far the hardest thing to explain to non-technical folk, but once understood reveals the beauty of crypto-currencies.

With crypto-currencies, there is no central bank, or an account. You have your own personal wallet (software) and in this wallet you can create infinite number of Receive Addresses. And address works more or less like and email. For example, AutoFlower Network's bitcoin address is this

13hj2ZZn9RFKfbMgBGdJDiANV757dTqQWA

So when you send some bitcoins, that transaction goes into the Blockchain. The blockchain is a public ledger where absolutely ALL transactions are recorded, forever. Yes, that means that ALL the transaction since Bitcoin began are publicly available for everyone to see.
When you send an transaction, in enters a "block". To verify than no-one is trying to subvert, steal, double-spend, attack the Bitcon network, this block is encrypted with a very sophisticated algorithm that needs to be validated by the entire network. Only when at least 6 individual miners decrypt or "crack" that block, is it considered valid, and in enters the ledger, ergo, the blockchain.

Confusing? Reading about it is, but dont worry, as an end-user you just need to be aware of this to understand there is no individual "account" where your money is stored. The bitcoins are not in your computer. they live in the blockchain. That means that quite literally, you can write your private keys in a piece of paper, put it in your back pocket, fly half-way around the world, get on-line and your bicoins will be there.

Yes, you can have bitcoins in a piece of paper But lets not get into that right now...

Essentially just maintain the notion that the the Bitcoins and all transactions are stored in the Blockchain. Through a wallet software, you create addresses, and have a password to protect from anyone else gain access to your funds.

Dont be intimidated if it sound too weird.

 

[Waximus]

Good morning, Groff I'm so glad you started this thread! I've always been curious of how bitcoin (and others) work, but never did my research. I will be following with great interest! Thank you for taking the time to do this Max

 

[Groff]

Creating a Wallet.

Ok, lets get down and dirty! We'll be using Potcoin as AFN uses it. First off, head over the the official website;

http://www.potcoin.com/

Under the wallets tab, select Desktop

Choose you Operating System and download & install. When you run the wallet you will be presented with this;

Notice the red notice saying it is "Out Of Sunc" ? And at the bottom "No Block Source?"
That is because its the first time you're running the software, and you have to download the... drum roll ... Potcoin Blockchain! The blockchain grows everyday a bit, so the first time you run the software it will take a long time until it is up to sync. Just let it run! Soon you will see the progress bar grow. This is the reason I didn't choose Bitcoin as the Bitcoin blockchain is around 20 GB right now. There are light-wallets out there that dont download the blockchain, but this is ideal for you to really get whats going on.

This will be a very slow process the first time, as it needs to get block-by-block, so be patient.

In the meantime, you can explore the immense complexity of the wallet :no: :xlaugh:

You have 5 tabs.

Click on Receive to create a receive address, one without label will be there as default, I created a few for you to see...

So there! Now I just need to copy one of my receive addresses and give it out, and anyone can go to the Send tab, and send me Potcoin to that address. Transaction tab keeps a record of your transaction (duh) and Addresses turns your USB ports into a grinder... :no:

I hope this will be fun, I would be cool for people to start sending out coins to each other and see how wonderfully simple and exciting this is!

I'm going to get some Potcoins, so anyone who wants free coins just has to provide me with an address! Post it here, and I'll send some!

Any and all questions welcome!

 

[Groff]

Good morning, Groff I'm so glad you started this thread! I've always been curious of how bitcoin (and others) work, but never did my research. I will be following with great interest! Thank you for taking the time to do this Max

Great Maximus! Got get that Potcoin address

Damn, I forgot how tedious it is to wait for the blockchain to sync. If someone was to send me some Potcoin right now, it would only now enter the blockchain. I wouldnt be able to see them until we reach "Block height" ... meaning, the most up to date block.

I'm going to an exchange to buy some Potcoins to distribute here, and I could send them to my wallet without problem, but I would only be able to see them when I finish sync'ing.

:Sharing One:

 

[Waximus]

Wallet downloaded/installed, and sync in full bit swap...

 

[steelrat]

I hope it's not the future of money since most people in the world don't own a PC.

On another note, remember the guy who lost £4 million in bitcoins, poor guy :

http://www.bbc.co.uk/news/technology-25138627

 

[Waximus]

Groff, do you have a preferred potcoin broker/exchange?

 

[Groff]

I hope it's not the future of money since most people in the world don't own a PC.

On another note, remember the guy who lost £4 million in bitcoins, poor guy :

http://www.bbc.co.uk/news/technology-25138627

Well I certainly do! How many people are robbed daily on the streets? How many people lost their entire life-saving because of fraudulent bankers?

This is decentralized, no-one can touch your funds, but its up to you to secure them. Just like paper-money, Picasso painting, or gold.

You DONT need a PC. A simple semi-smart-phone will do.

In Kenya, M-Pesa was a cellphone operator that permitted you to transfer cellphone minutes between users. People quickly started trading call minutes and sms credit for milk and eggs. A few years laters, it now represents 40% of Kenya's GDP.

iOS or Android phones can hold your coins.

With crypto-currencies, at very worse, you can issue yourself your own paper-wallet. Papers containing the private keys to the blockchain's funds. You can print these to paper, plastics, metal coins, tattoo them... So in essence you dont strictly need a PC at all.

Oh, and don't forget to backup!! Backup backup backup!! (I will show how soon)

 

[Son of Hobbes]

Well I certainly do! Because you DONT need a PC. A simple semi-smart-phone will do.

In Kenya, M-Pesa was a cellphone operator that permitted you to transfer cellphone minutes between users. People quickly started trading call minutes and sms credit for milk and eggs. A few years laters, it now represents 40% of Kenya's GDP.

With crypto-currencies, at very worse, you can issue yourself your own paper-wallet. Papers containing the private keys to the blockchain's funds. You can print these to paper, plastics, metal coins, tattoo them... So in essence you dont need a PC at all.

What kind of power consumption and heat generation does mining cause to your machine/devices? Is it true they are very taxing on the CPU and GPU, depending on the type of mining? Is the mining venture profitable after paying increased power costs due to the machines running longer and drawing more power? Those have been some of my concerns; I have a few buddies that mine for fun and they say it can get pretty taxing on your gear. Would be nice to get some more opinions on it! :Sharing One: Appreciate the work you're putting into this Groff!