Tag: #BitCoin

Satoshi never imagined industrial-scale mining

“Satoshi never imagined industrial-scale mining

As he explained, when you put incentives out there, people learn how to use those incentives for making money in ways that are nearly impossible to predict. He pointed to bitcoin as a prime example, saying its creator probably never imagined bitcoin’s incentive structure would lead to industrial-scale mining pools.

Satoshi wrote this still in 2008: 

Quote

“At first, most users would run network nodes, but as the network grows beyond a certain point, it would be left more and more to specialists with server farms of specialized hardware. A server farm would 
only need to have one node on the network and the rest of the LAN connects with that one node.”

https://bitcointalk.org/index.php?topic=1458.msg16906#msg16906

ribuck’s description is spot on.

Pool operators can modify their getwork to take one additional parameter, the address to send your share to.

The easy way for the pool operator would be to wait until the next block is found and divy it up proportionally as:
user’s near-hits/total near-hits from everyone

That would be easier and safer to start up.  It also has the advantage that multiple hits from the same user can be combined into one transaction.  A lot of your hits will usually be from the same people.

The instant gratification way would be to pay a fixed amount for each near-hit immediately, and the operator takes the risk from randomness of having more or less near-hits before a block is found. 

Either way, the user who submits the hit that solves the block should get an extra amount off the top, like 10 BTC.

New users wouldn’t really even need the Bitcoin software.  They could download a miner, create an account on mtgox or mybitcoin, enter their deposit address into the miner and point it at anyone’s pool server.  When the miner says it found something, a while later a few coins show up in their account.

Miner writers better make sure they never false-positive near-hits.  Users will depend on that to check if the pool operator is cheating them.  If the miner wrongly says it found something, users will look in their account, not find anything, and get mad at the pool operator.

https://bitcointalk.org/index.php?topic=1976.msg25119#msg25119

saying its creator probably never imagined bitcoin’s incentive structure would lead to industrial-scale mining pools.

I kinda feel  the same. 

Hashrate Distribution…

Sometimes it scars me thinking if they plan for a 51% attack. All you need is a syndicating in between few big mining farms. I am not sure if is is possible practically.

Actually, Satoshi did predict industrial scale mining he failed predicting pools because he was unaware of the amount of pressure toward pooling in his implementation of PoW based on the worst principle ever, winner-takes-all.

Industrial scale mining farms are not the threat, mining pools are. Satoshi disappeared in the same time that users were starting to complain about their variance and slush was kick starting his pool. He made just one comment (that op has quoted) regarding this issue which is very disappointing by the way as he is just talking about simple technical issues and avoids more sophisticated strategic implications of the proposal. He disappeared few days later, forever.

So, if it is about whether satoshi was kind of a god and predicted everything or not, the answer would be a big NO, Satoshi Nakamoto was an ordinary human being who made a lot of big and small mistakes designing and implementing bitcoin and this is why we should improve it instead of  being stuck with a legend. 

Cyberspace does not belong to legends (neither original ones like Satoshi nor the fake ones like Vitalik Buterin) it belongs to hard working, committed  mathematicians, developers, hackers  and advocates all over the planet. 

But, for the record, failing to predict the industrial scale mining is not in his failure list anyway.

Sometimes it scars me thinking if they plan for a 51% attack. All you need is a syndicating in between few big mining farms. I am not sure if is is possible practically.

I doubt they would plan a 51%, because the price would drop and they would lose their investment. Those pools are interested in bitcoin success.

Industrial scale mining farms are not the threat, mining pools are. Satoshi disappeared in the same time that users were starting to complain about their variance and slush was kick starting his pool. He made just one comment (that op has quoted) regarding this issue which is very disappointing by the way as he is just talking about simple technical issues and avoids more sophisticated strategic implications of the proposal. He disappeared few days later, forever.

So, if it is about whether satoshi was kind of a god and predicted everything or not, the answer would be a big NO, Satoshi Nakamoto was an ordinary human being who made a lot of big and small mistakes designing and implementing bitcoin and this is why we should improve it instead of  being stuck with a legend. 

Satoshi was a genius, because he knew when to disappear.
This is not satoshi’s blockchain. Satoshi’s existence would make bitcoin centralized on him.

As ethereum is centralized on vitalik Buterin. Vitalik’s blockchain.

The solution to those design issues with btc will come from the community. There are some proposals and one day there will be a solution.

Sometime ago I read something about Changing proof of work in a way that asic hardware would become less effective. I believe there are many interesting proposals out there and soon community will have a consensus about one.

Industrial scale mining farms are not the threat, mining pools are. Satoshi disappeared in the same time that users were starting to complain about their variance and slush was kick starting his pool. He made just one comment (that op has quoted) regarding this issue which is very disappointing by the way as he is just talking about simple technical issues and avoids more sophisticated strategic implications of the proposal. He disappeared few days later, forever.

So, if it is about whether satoshi was kind of a god and predicted everything or not, the answer would be a big NO, Satoshi Nakamoto was an ordinary human being who made a lot of big and small mistakes designing and implementing bitcoin and this is why we should improve it instead of  being stuck with a legend. 

The solution to those design issues with btc will come from the community. There are some proposals and one day there will be a solution.

The 51% attack fear mongering by giant mining corporations is unfounded.  if this happened the miners would take a massive financial hit and bitcoin would crash.  It would make no sense to do it  the negatives far outweigh the positives.  The only way is if some mad man, similar to the joker, just wants to watch the world burn and doesn’t care about the money.

How about those forces who do not want the banking system to be decentralized? They don’t care about value of bitcoin coz they have the printed money. 

I doubt they would plan a 51%, because the price would drop and they would lose their investment. Those pools are interested in bitcoin success. This logic make sense.

Cyberspace does not belong to legends 

For context, Slush Pool emerged in November 2010. It was an independent project, but created within the community.
I would say that the problem is when legends center the whole decision-making process. But Bitcoin always had several people contributing in a decentralized way, several projects arose and many thanks to the economic incentives.

The great advantage of truly decentralized projects is that no matter how much a legend is admired, because it has no coercive power to forbid parallel projects or forks, the project can continue independent of its will.

Ie financial incentives hinder future predictions.

It’s totally different from what happens with some projects like EOS or TRON.”

Fixed vulnerability explanation: Why the signature cache is a DoS protection.

Fixed vulnerability explanation: Why the signature cache is a DoS protection.

January 14, 2013, 02:23:44 PM

I read a transcript of  #bitcoin-dev (http://bitcoinstats.com/irc/bitcoin-dev/logs/2012/11/09) where jgarzik and, Sipa debated whether the signature cache was a performance optimization or a DoS protection and why.
The sig cache is both of them. But the sig cache was included before performance was a problem because of the DoS protection requirement.

The following attack against versions prior 0.6.3, e-mailed to Gavin on May-2012, explains it:

1. The attacker creates a transaction that pays 0.01 BTC to 100 different addresses. (The attacker must have 1 BTC). To avoid paying fees, the attacker can divide the transaction into slices, each one below 1 kilobyte.The attacker broadcasts the transactions and waits for confirmation.

2. Afterwards the attacker builds transactions grabbing 100 of his own prevouts and adding an additional prevout that he does not own.  This prevout is a coinbase that has not been matured (it does not need to have a valid signature, since the method exit point is before the script verification). To create many fake transactions, the order of the first 100 inputs is randomized. 

3. The attacker sends these transactions to the victim. The transaction size would be around 18 Kbytes. The transaction would take around 0.36 seconds to arrive (with a 50 Kbytes/sec connection).

4. The victim’s client app will go with the transaction straight through ConnectInputs() and successfully connect the first 100, and then fail to connect the last. The time required for this check in an average PC is approximately 100 * 4 msec = 400 msec  (an estimation). Then the attacker can hang the vitims app by sending these fake transactions at a rate of around 3 per second. The number of inputs used for the attack is arbitrary (can be as low as 10, giving 10! unique possible transactions).

Note that if the connection bandwidth is higher, then the attack is stronger. If the victim’s CPU is slower, then also the attack also get stronger.

I proposed the solution of a signature cache to Gavin at that time. It turned out that Satoshi himself had thought about adding the sig cache, but I think it was mainly for performance reasons.

List of stuff you can use bitcoin for

” List of stuff you can use bitcoin for

Website – Information

4Chan > do we really need to tell you what this is??

ALFA Top > Top-up your mobile phone with bitcoin or other cryptocurrency

All4btc > Online shop – buy from Amazon, Dell, Ebay, and Lenovo using BTC

Altushost > Hosting service – VPS – dedicated – web hosting – SSL certificates …

Alza > Buy electronic/mobile phones/health&beauty and a lot more (EU based)

Apmex > Buy Gold/Silver/Platinum -Never try,but I think they have good reputation.

Bastone & Co. > Hand made collection shop.

Bit Market > list of store that accept bitcoin in Philippines

Bit Refill > Recharge prepaid phones with Bitcoin

Bit Watches > USA based Luxury watches store.

BitDials > Online shop – Buy watches and jewelry using BTC.

BitGigs > Gigs for bitcoins.

BitPay > bitcoin payment service provider

Bitcoin RealEstate > Buy Real Estate with cryptocurrency – Sell your property for Bitcoin

Bitcoin Travel > Travel agency – Book your flight/hotel using bitcoin.

Bitrefill > Top up your prepaid phone, over 140 countries supported.

CR Servers > Hosting service.

CallWithUs > VOIP service that accepts BTC, pay only for the calls you make! There are no recurring membership fees

CoinPayments > -Payment Gateway -Use them many time for different service.

CoinVet > Coinvet is the groundbreaking new jobs and gigs marketplace where the crowd helps you find the best professionals for your exact needs.

Compusleuth > technical support to recover, restore, search, and produce electronic information (is that still operating??)

Crypto Emporium > offer a huge variety of high-end and luxury goods available for purchase in only cryptocurrency, no fiat.

CryptoGrind > Freelancing platform – Hire a freelancer or work as one, for bitcoins.

Echristopher and sons > Shop online for your jewelry and pay with Bitcoin.

Expedia > Travel agency – provides Hotels, Cheap Flights, Car Rentals & Vacations

Genesis Fire Protection > USA based fire protection company, fire extinguishers and fire suppression systems.

Gray and Sons > Online shop – Jewelry, Watches, and accessories.

Gyft > Buy, Send, & Redeem Gift Cards

HePays > dating website.

Hi-Tech > Computer service provider, website is very bad, probably they’re out of business.

Lamborghini Newport Beach > authorized dealership in Orange County providing Super Sports Cars to Southern California

Microsoft > you can charge your account with BTC

Mint > Finance service, all your finance in single place. “When you’re on top of your money, life is good. We help you effortlessly manage your finances in one place.”

Mosaika > Shop online for your jewelry, and pay with Bitcoin.

My Gemologist > Shop for jewelry, or CREATE your own design, and pay with bitcoin.

Namecheap > Domain Name Registrar

NewEgg > Online shop

OpenBazzar > Decentralized marketplace – Online eCommerce platform that unites buyers/sellers by virtue of the P2P/peer-to-peer network

Overstock > Online shop – designer brands and home goods

Piiko > Send money to your friends and family online or top up while travelling. Almost 600 providers from 137 countries. Pay with Bitcoin, Dash or Stellar at best rates possible.


Pizza for coins > Order Pizza online and pay with BTC

Pure VPN > VPN Service: Access US Netflix Instantly for just $2.87/m Making Security and Freedom Accessible for Anyone, Anywhere!

Purse > Online shop – buy from amazon using BTC and get a discount!

RandyBrito > Freelancer – A web developer with a passion for Bitcoin, Economics and freedom.

Reeds > USA based jewlery – Personally I like their goods (looks only, haven’ bought any yet)

Restaurants list > a map of USA restaurants that accept Bitcoin. (can anyone verify any of them?)

Sad Truth Supply > Pins, Patches, and other accessories for bitcoin.

Save the Children > Charity accepting BTC payment. P.S: probably you’ll need to contact them first to donate in bitcoin.

Silver.ag > Jewelry and Accessories for Bitcoin.

SoftRare > software solutions provider, probably out of business since their website has copyright logo for 2015

SteadyTurtle > Buy Hosting&Domain -I use them for years,great service.

Tanzanite America > North American member of The Tanzanite Authority, a group of like-minded collectors, investors, and who are dedicated to informing and supplying the very finest top quality AAA certified Tanzanite.

XBT Freelancer > Freelancing platform – Hire a freelancer or work as one, for bitcoins.

mclarennb >  Authorized McLaren Dealer

List of stuff you can use bitcoin for.

Website – Information

4Chan > do we really need to tell you what this is??

ALFA Top > Top-up your mobile phone with bitcoin or other cryptocurrency

All4btc > Online shop – buy from Amazon, Dell, Ebay, and Lenovo using BTC

Altushost > Hosting service – VPS – dedicated – web hosting – SSL certificates …

Alza > Buy electronic/mobile phones/health&beauty and a lot more (EU based)

Apmex > Buy Gold/Silver/Platinum -Never try,but I think they have good reputation.

Bastone & Co. > Hand made collection shop.

Bit Market > list of store that accept bitcoin in Philippines

Bit Refill > Recharge prepaid phones with Bitcoin

Bit Watches > USA based Luxury watches store.

BitDials > Online shop – Buy watches and jewelry using BTC.

BitGigs > Gigs for bitcoins.

BitPay > bitcoin payment service provider

Bitcoin RealEstate > Buy Real Estate with cryptocurrency – Sell your property for Bitcoin

Bitcoin Travel > Travel agency – Book your flight/hotel using bitcoin.

Bitrefill > Top up your prepaid phone, over 140 countries supported.

CR Servers > Hosting service.

CallWithUs > VOIP service that accepts BTC, pay only for the calls you make! There are no recurring membership fees

CoinPayments > -Payment Gateway -Use them many time for different service.

CoinVet > Coinvet is the groundbreaking new jobs and gigs marketplace where the crowd helps you find the best professionals for your exact needs.

Compusleuth > technical support to recover, restore, search, and produce electronic information (is that still operating??)

Crypto Emporium > offer a huge variety of high-end and luxury goods available for purchase in only cryptocurrency, no fiat.

CryptoGrind > Freelancing platform – Hire a freelancer or work as one, for bitcoins.

Echristopher and sons > Shop online for your jewelry and pay with Bitcoin.

Expedia > Travel agency – provides Hotels, Cheap Flights, Car Rentals & Vacations

Genesis Fire Protection > USA based fire protection company, fire extinguishers and fire suppression systems.

Gray and Sons > Online shop – Jewelry, Watches, and accessories.

Gyft > Buy, Send, & Redeem Gift Cards

HePays > dating website.

Hi-Tech > Computer service provider, website is very bad, probably they’re out of business.

Lamborghini Newport Beach > authorized dealership in Orange County providing Super Sports Cars to Southern California

Microsoft > you can charge your account with BTC

Mint > Finance service, all your finance in single place. “When you’re on top of your money, life is good. We help you effortlessly manage your finances in one place.”

Mosaika > Shop online for your jewelry, and pay with Bitcoin.

My Gemologist > Shop for jewelry, or CREATE your own design, and pay with bitcoin.

Namecheap > Domain Name Registrar

NewEgg > Online shop

OpenBazzar > Decentralized marketplace – Online eCommerce platform that unites buyers/sellers by virtue of the P2P/peer-to-peer network

Overstock > Online shop – designer brands and home goods

Piiko > Send money to your friends and family online or top up while travelling. Almost 600 providers from 137 countries. Pay with Bitcoin, Dash or Stellar at best rates possible.


Pizza for coins > Order Pizza online and pay with BTC

Pure VPN > VPN Service: Access US Netflix Instantly for just $2.87/m Making Security and Freedom Accessible for Anyone, Anywhere!

Purse > Online shop – buy from amazon using BTC and get a discount!

RandyBrito > Freelancer – A web developer with a passion for Bitcoin, Economics and freedom.

Reeds > USA based jewlery – Personally I like their goods (looks only, haven’ bought any yet)

Restaurants list > a map of USA restaurants that accept Bitcoin. (can anyone verify any of them?)

Sad Truth Supply > Pins, Patches, and other accessories for bitcoin.

Save the Children > Charity accepting BTC payment. P.S: probably you’ll need to contact them first to donate in bitcoin.

Silver.ag > Jewelry and Accessories for Bitcoin.

SoftRare > software solutions provider, probably out of business since their website has copyright logo for 2015

SteadyTurtle > Buy Hosting&Domain

Tanzanite America > North American member of The Tanzanite Authority, a group of like-minded collectors, investors, and who are dedicated to informing and supplying the very finest top quality AAA certified Tanzanite. (first time to hear of tanzanite to be honest, but they look cool)

XBT Freelancer > Freelancing platform – Hire a freelancer or work as one, for bitcoins.

mclarennb >  Authorized McLaren Dealer

schwartzkopff>

KFC Canada > Hunger no more, get your KFC for BTC.

Subway restaurant > Eat healthy, with bitcoins too.

CheapAir > Cheap Airline Tickets, Airfares & Discount Air Tickets

Alza > Largest Czech online retailer accepting BTC.

Pembury Tavern > Snap up a pint in Britain’s first Bitcoin pub.

FC Canada > Hunger no more, get your KFC for BTC.

Subway restaurant > Eat healthy, with bitcoins too.

CheapAir > Cheap Airline Tickets, Airfares & Discount Air Tickets

Alza > Largest Czech online retailer accepting BTC.

Pembury Tavern > Snap up a pint in Britain’s first Bitcoin pub. “

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No, Governments Can’t do a Better Job Developing Crypto

No, Governments Can’t do a Better Job Developing Crypto

Would a state-backed cryptocurrency be better than its decentralized counterpart?

International media has already rolled out their opinions on the matter. It’s a YES-IT-CAN.

The opinions find their inspirations in comments made by Christine Lagarde last week. The head of the International Monetary Fund (IMF) said that a government-backed cryptocurrency would eliminate the issues of trust that have clogged the decentralized cryptocurrencies like Bitcoin.

New York Times reacted to the IMF chief’s remarks, calling it “a hopeful sign for digital tokens,” while predicting it could “have a chilling effect on existing, nongovernmental tokens.”

The Guardian offered its editorial space to a long-time Bitcoin critic and economist Nouriel Roubini to further his plan. He outright called cryptocurrencies worthless when compared to central bank digital currencies (CBDC).“If a CBDC were to be issued, it would immediately displace cryptocurrencies, which are not scalable, cheap, secure, or [actually] decentralized,” Roubini claimed.

The comments mentioned above appear at a time when the cryptocurrency market cap has plunged by more than 70 percent since its all-time high. 

It has allowed critics to jump to the conclusion that decentralized digital currencies, mainly Bitcoin and Ethereum, have no intrinsic value, that they are highly speculative unlike central-bank issued fiat money.

Yet, critics have ignored the whys and whats that prompted the launch of decentralized assets at the first place.

They have been unable to respond to how Federal Reserve stimulus programmes, secret bailouts, and money production have destroyed the value of the US Dollar.

Their focus has turned more towards proving Bitcoin as a sugar-coated false promise of a financial revolution while ignoring the very bads of the existing financial system.

Economy believes that an asset has value when it checks scarcity and utility.

The US Dollar lacks scarcity, for its supply is governed by a centralized body called Federal Reserve. There is no check on how many dollars would get printed, allowing insiders to manipulate a greenback-backed market on their whims.

Bitcoin, on the other hand, has a set cap of 21 million tokens. Its supply is governed by mathematical algorithms, meaning no corrupt human involvement would be able to topple it.

As far as the use-cases are concerned, Bitcoin has been constantly looked at for its potential of becoming a store-of-value asset like Gold, while being constantly considered for settling cross-border payments despite its price volatility.

The critics then say that bitcoin has no intrinsic value.

But even gold and paper money suffers from the same stigma.

According to the World Council, only 15 percent of the global Gold supply is used in industrial applications. The rest goes into making bars, bullions, and jewelry – mainly because people trust they have value.

Trust is the Only Factor

The launch of Bitcoin was a response to a global financial crisis in which – let’s accept it – banks had f***ed up the economy.

The digital currency – more or less – follows the philosophy of the Austrian Monetary Theory.

According to it, money can be sound only when its supply is limited. It believes that money should not be controlled by the state.

These facts are missing from the reports and opinion pieces of anti-Bitcoin economists.

The Federal Reserve and central bankers believe that only they have the right to print money.

Bitcoin is only a beginning towards breaking the myth.

As long as the central banks do not innovate and protect people against currency inflation – as evident in the case of Zimbabwe and Venezuela – there is no chance they would be able to outrun crypto.

People need to trust their banks, but mainstream media and economists are avoiding a broader discussion.

The next financial crisis should bring more evidence to the theory. No rush.

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BitHouse LLC

Strenght in Numbers

BitHouse LLC is a client – focused and result driven CryptoCurrency Consulting and Mining Company that provides broad – based services at an affordable fee to our clients .

We will ensure that we work hard to meet and surpass our Clients’ expectations whenever they hire our services for Consulting or mine bitcoin.

At BitHouse LLC, our Client’s best interest always come first and foremost, and everything we do is guided by our high values and professional ethics.

Services

Cryptocurrency Consulting

General cryptocurrency advice, reviews and due diligence on tokens, blockchain projects, general investment advice and trading strategy.

Security and putting processes in place to backup your crypto.

Cryptocurrency Mining & Staking

Setup and advice on Cryptocurrency mining rigs. Mining does not just include Bitcoin, there are numerous other options to mine, including other tokens, rigs that provide processing power and storage.

Masternodes

Nodes are a great way to generate cryptocurrency, similar to mining just without the expensive hardware.

Setting up and running a node is not straight forward, we can help.

Proof of Stake / Staking Wallets

 Just like mining, storing your cryptocurrency in a wallet that is connected to the blockchain can generate you more crypto of that same token.

If you own POS coins and aren’t staking you are missing out on ROI.

Bitcoin – People’s Money

“Better a diamond with a flaw than a pebble without.”

Confucius

Diamond with a flaw

“Try not to become a man of success. Rather become a man of value.”

Albert Einstein

Man of Value

“If you don’t know what you want, you’ll never find it.

If you don’t know what you deserve, you’ll always settle for less.

You will wander aimlessly, uncomfortably numb in your comfort zone, wondering how life has ended up here.

Life starts now, live, love, laugh and let your light shine!”

Rob Liano

Let your light shine

“A person’s worth is measured by the worth of what he values.”

Marcus Aurelius, “Meditations”

Values

“Mathematics expresses values that reflect the cosmos, including orderliness, balance, harmony, logic, and abstract beauty.”

Deepak Chopra

Mathematics

“Every job from the heart is, ultimately, of equal value.

The nurse injects the syringe; the writer slides the pen; the farmer plows the dirt; the comedian draws the laughter.

Monetary income is the perfect deceiver of a man’s true worth.”

Criss Jami, “Killosophy”

Job from the Heart

“A person that does not value your time will not value your advice.”

Orrin Woodward

Value your time

“Once you embrace your value, talents and strengths, it neutralizes when others think less of you.”

Rob Liano

Embrace your Values

“Bad times have a scientific value. These are occasions a good learner would not miss.”

Ralph Waldo Emerson

Bad times

“I say no wealth is worth my life.”

Homer, “The Iliad”

Life

“But what’s worth more than gold?

Practically everything.

You, for example.

Gold is heavy.

Your weight in gold is not very much gold at all.

Aren’t you worth more than that?”

Terry Pratchett, “Making Money” 

You are worth more than gold

“Knowledge is like money: To be of value it must circulate, and in circulating it can increase in quantity and, hopefully, in value.”

Louis L’Amour, “Education of a Wandering Man”

Knowledge

“Ô, Sunlight! The most precious gold to be found on Earth.”

Roman Payne

Sunlight

“Knowledge is like money: To be of value it must circulate, and in circulating it can increase in quantity and, hopefully, in value.”

Louis L’Amour, “Education of a Wandering Man”

Knowledge

“If life — the craving for which is the very essence of our being — were possessed of any positive intrinsic value, there would be no such thing as boredom at all: mere existence would satisfy us in itself, and we should want for nothing.”

Arthur Schopenhauer, “The Vanity of Existence”

Existence

“Our sole purpose on this earth is to add value to others.

It doesn’t make sense to just exist in people’s lives or to be a drain on them, does it?”

Rob Liano

Sole purpose

“Value judgments are destructive to our proper business, which is curiosity and awareness.”

John Cage

Curiosity & Awareness

“We set no special value on the possession of a virtue until we percieve that it is entirely lacking in our adversary.”

Friedrich Nietzsche, “Human, All Too Human: A Book for Free Spirits”

Virtue

“Maybe you had to come close to losing something before you could remember its value.

Maybe we enjoy the last minute struggle as it slips through our hands.”

Suraj Sani

Struggle

“Always remember that the minority dictates the prices, and the majority governs the value.”

Naved Abdali

Minority vs. Majority

“It is impossible to say whether an asset class valuation is cheap or expensive in isolation.

The valuation of an asset is relative to the valuations of all other assets.”

Naved Abdali

Valuation of an Asset

“Market quotes change every second, but business evolves steadily.

You have ample time to evaluate a business to buy or not to buy.

There is no rush.”

Naved Abdali

Evaluate

“The number one reason people lose money in investing is because they buy assets without giving any thought whatsoever to the fair value.”

Naved Abdali

Fair Value

“If investors do not know or never attempt to know the fair value, they can pay any price.

More often, the price they pay is far greater than the actual value.”

Naved Abdali

Actual Value

“Watching every tick up and every tick down is just wasting your valuable time.

Do yourself a favor, and pick up a book or two about investing each month.”

Naved Abdali

Pick up a book

“An ounce of gold will always be an ounce of gold regardless of the length of possession.

The short-term value will go up or down, but gold prices will follow the general inflation rate in the long run.”

Naved Abdali

General Inflation Rate

“A Collectible’s value is primarily based on the emotions and the perception of potential buyers.”

Naved Abdali

Emotions & Perception