Welcome…

To the rabbit hole…



Why this crazyness with rabbits ?!? And their holes, you would ask ?!? Why is the rabbit hole so deep ?¿

And what does the rabbit hole has to do with that BitCorn thing  I keep hearing about all over the place ?¿

I like to start from the begining, as I think so I am 😋😂


Rabbit Hole is a play written by David Lindsay-Abaire. It was the recipient of the 2007 Pulitzer Prize for Drama. The play premiered on Broadway in 2006, and it has also been produced by regional theatres in cities such as Los Angeles, Philadelphia and Pittsburgh. The play had its Spanish language premiere in San Juan, Puerto Rico in Autumn of 2010.

The play deals with the ways family members survive a major loss, and includes comedy as well as tragedy. Cynthia Nixon won the 2006 Tony Award for Best Performance by a Leading Actress in a Play for her performance as Becca in the New York production, and the play was nominated for several other Tony awards.


Rabbit Hole


A situation, journey, or process that is particularly strange, problematic, difficult, complex, or chaotic, especially one that becomes increasingly so as it develops or unfolds.

An allusion to “Alice’s Adventures in Wonderland” by Lewis Carroll, it is used especially in the phrase “(go) down the rabbit hole.”

Overhauling the current tax legislation is a rabbit hole I don’t think this administration should go down at this point.I’ve stayed away from drugs and alcohol since coming to college. I have an addictive personality, so I decided to just avoid that rabbit hole altogether.


What does rabbit hole mean?

Used especially in the phrase going down the rabbit hole or falling down the rabbit hole, a rabbit hole is a metaphor for something that transports someone into a wonderfully (or troublingly) surreal state or situation.

On the internet, a rabbit hole frequently refers to an extremely engrossing and time-consuming topic.


Where does rabbit hole come from?


Alice falling down a hole with a jar in hand
Alice’s Adventures in WonderLand

Literally, a rabbit hole is what the animal digs for its home. The earliest written record of the phrase dates back to the 17th century. But the figurative rabbit hole begins with Lewis Carroll’s 1865 classic, Alice’s Adventures in Wonderland.

In its opening chapter, “Down the Rabbit-Hole,” Alice follows the White Rabbit into his burrow, which transports her to the strange, surreal, and nonsensical world of Wonderland.

Since then, Carroll’s rabbit hole has proved a popular and useful reference. The Oxford English Dictionary finds the first allusive rabbit hole in a 1938 edition of The Yale Law Journal: “It is the Rabbit-Hole down which we fell into the Law, and to him who has gone down it, no queer performance is strange.”

Over much of the 20th century, rabbit hole has been used to characterize bizarre and irrational experiences. It’s especially used to reference magical, challenging, and even dangerous places or positions, similar to Carroll’s topsy-turvy Wonderland.

Rabbit hole has many metaphorical applications—from frustrating red tape to the mind-bending complexity of science to hallucinations during altered states—all united by a common sense of passing into some labyrinthine, logic-defying realm that, once entered, is hard to get out of.

One can fall down the rabbit hole of government bureaucracy, healthcare, obtaining a green card, tax law, the political economy of modern Japan, puberty, college admissions, or quantum mechanics.

If you’re Neo in the hit film The Matrix, you can take the red pill—a pill that shows you the truth, as opposed to the blue pill, which keeps you in ignorance—and “see how deep the rabbit hole goes.”

In a related note, some people literally take pills and go down the rabbit hole of a psychedelic drug trip.

But as Kathryn Schulz observed for The New Yorker in 2015, rabbit hole has further evolved in the information age: “These days…when we say that we fell down the rabbit hole, we seldom mean that we wound up somewhere psychedelically strange. We mean that we got interested in something to the point of distraction—usually by accident, and usually to a degree that the subject in question might not seem to merit.”

Thanks to the abundance, variety, and instant access of content online, many fall down internet rabbit holes which are often spectacularly, and addictively, niche: scary stories, obscure conspiracy theories, or famous last meals, for instance.

Other rabbit holes tend to be opened up by specific services or social media, which serve users item after item, link after link: Wikipedia, Netflix, Amazon, Facebook, YouTube, and so forth.

These rabbit holes have become so common that people sometimes swap out rabbit for the name of the particular site, e.g. “I’ve fallen down an Instragram hole or “I’m falling down a wikihole.”


Who uses rabbit hole?


From formal documents to internet status updates, rabbit hole is a very popular and widespread expression. Unlike earlier iterations of the metaphor, internet rabbit holes convey less a sense of weirdness, disorientation, or difficulty than they do of an intensely captivating diversion.

Rabbit hole is also showing increasing use as a modifier, e.g. a rabbit-hole question or phenomenon.


Now… that we have a basic and broader understanding about this Hole and it’s rabbit that digged it 😋😂

Let me show you a journey that I took to get to know, understand, admire, be amazed and support the BitCorn everybody is so crazy about …


Bitcoin Glossary


Block

Blocks are found in the Bitcoin blockchain. Blocks connect all transactions together. Transactions are combined into single blocks and are verified every ten minutes through mining. Each subsequent block strengthens the verification of the previous blocks, making it impossible to double spend bitcoin transactions (see double spend below).

BIP

Bitcoin Improvement Proposal or BIP, is a technical design document providing information to the bitcoin community, or describing a new feature for bitcoin or its processes or environment which affect the Bitcoin protocol. New features, suggestions, and design changes to the protocol should be submitted as a BIP. The BIP author is responsible for building consensus within the community and documenting dissenting opinions.

Blockchain

The Bitcoin blockchain is a public record of all Bitcoin transactions. You might also hear the term used as a “public ledger.” The blockchain shows every single record of bitcoin transactions in order, dating back to the very first one. The entire blockchain can be downloaded and openly reviewed by anyone, or you can use a block explorer to review the blockchain online.

Block Height

The block height is just the number of blocks connected together in the block chain. Height 0 for example refers to the very first block, called the “genesis block.”

Block Reward

When a block is successfully mined on the bitcoin network, there is a block reward that helps incentivize miners to secure the network. The block reward is part of a “coinbase” transaction which may also include transaction fees. The block rewards halves roughly every four years; see also “halving.”

Change

Let’s say you are spending $1.90 in your local supermarket, and you give the cashier $2.00. You will get back .10 cents in change. The same logic applies to bitcoin transactions. Bitcoin transactions are made up of inputs and outputs. When you send bitcoins, you can only send them in a whole “output.” The change is then sent back to the sender.

Cold Storage

The term cold storage is a general term for different ways of securing your bitcoins offline (disconnected from the internet). This would be the opposite of a hot wallet or hosted wallet, which is connected to the web for day-to-day transactions. The purpose of using cold storage is to minimize the chances of your bitcoins being stolen from a malicious hacker and is commonly used for larger sums of bitcoins.

Confirmation

A confirmation means that the bitcoin transaction has been verified by the network, through the process known as mining. Once a transaction is confirmed, it cannot be reversed or double spent. Transactions are included in blocks.

Cryptography

Cryptography is used in multiple places to provide security for the Bitcoin network. Cryptography, which is essentially mathematical and computer science algorithms used to encrypt and decrypt information, is used in bitcoin addresses, hash functions, and the blockchain.

Decentralized

Having a decentralized bitcoin network is a critical aspect. The network is “decentralized,” meaning that it’s void of a centralized company or entity that governs the network. Bitcoin is a peer-to-peer protocol, where all users within the network work and communicate directly with each other, instead of having their funds handled by a middleman, such as a bank or credit card company.

Difficulty

Difficulty is directly related to Bitcoin mining (see mining below), and how hard it is to verify blocks in the Bitcoin network. Bitcoin adjusts the mining difficulty of verifying blocks every 2016 blocks. Difficulty is automatically adjusted to keep block verification times at ten minutes.

Double Spend

If someone tries to send a bitcoin transaction to two different recipients at the same time, this is double spending. Once a bitcoin transaction is confirmed, it makes it nearly impossible to double spend it. The more confirmations that a transaction has, the harder it is to double spend the bitcoins.

Full Node

A full node is when you download the entire blockchain using a bitcoin client, and you relay, validate, and secure the data within the blockchain. The data is bitcoin transactions and blocks, which is validated across the entire network of users.

Halving

Bitcoins have a finite supply, which makes them scarce. The total amount that will ever be issued is 21 million. The number of bitcoins generated per block is decreased 50% every four years. This is called “halving.” The final halving will take place in the year 2140.

Hash Rate

The hash rate is how the Bitcoin mining network processing power is measured. In order for miners to confirm transactions and secure the blockchain, the hardware they use must perform intensive computational operations which is output in hashes per second.

Hash (txid)

A transaction hash (sometimes referred to as a transaction ID or txid) is a unique identifier that can be used on any block explorer to look up all of the public details of a particular transaction. Every on-chain transaction has a unique hash made up of a long string of alphanumeric characters.

Mining

Bitcoin mining is the process of using computer hardware to do mathematical calculations for the Bitcoin network in order to confirm transactions. Miners collect transaction fees for the transactions they confirm and are awarded bitcoins for each block they verify.

Pool

As part of bitcoin mining, mining “pools” are a network of miners that work together to mine a block, then split the block reward among the pool miners. Mining pools are a good way for miners to combine their resources to increase the probability of mining a block, and also contribute to the overall health and decentralization of the bitcoin network.

Private Key

A private key is a string of data that shows you have access to bitcoins in a specific wallet. Think of a private key like a password; private keys must never be revealed to anyone but you, as they allow you to spend the bitcoins from your bitcoin wallet through a cryptographic signature.

Proof of Work

Proof of work refers to the hash of a block header (blocks of bitcoin transactions). A block is considered valid only if its hash is lower than the current target. Each block refers to a previous block adding to previous proofs of work, which forms a chain of blocks, known as a blockchain. Once a chain is formed, it confirms all previous Bitcoin transactions and secures the network.

Public Address

A public bitcoin address is cryptographic hash of a public key. A public address typically starts with the number “1.” Think of a public address like an email address. It can be published anywhere and bitcoins can be sent to it, just like an email can be sent to an email address.

RBF

RBF stands for Replace By Fee, and refers to a method that allows a sender to replace a “stuck” or unconfirmed transaction with a new one that uses a higher fee. This is done to make sure a transaction confirms as quickly as possible. The “replacement” transaction uses the same inputs as the original one. This is not considered a double spend, as the receiving address(es) typically remain the same.

Satoshi Nakamoto

Bitcoin’s existence began with an academic paper written in 2008 by a developer under the name of Satoshi Nakamoto. Satoshi is the name used as the original inventor of Bitcoin.

Transaction

A transaction is when data is sent to and from one bitcoin address to another. Just like financial transactions where you send money from one person to another, in bitcoin you do the same thing by sending data (bitcoins) to each other. Bitcoins have value because it’s based on the properties of mathematics, rather than relying on physical properties (like gold and silver) or trust in central authorities, like fiat currencies. 

Wallet

Just like with paper dollars you hold in your physical wallet, a bitcoin wallet is a digital wallet where you can store, send, and receive bitcoins securely. There are many varieties of wallets available, whether you’re looking for a web or mobile solution. Ideally, a bitcoin wallet will give you access to your public and private keys. This means that only you have rightful access to spend these bitcoins, whenever you choose to.


Sources:

https://dictionary.com/

https://wikipedia.com/

https://blockchain.com/

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With 💚

Mining Pool Payouts

Mining Pool Payouts explained: PPS vs. FPPS vs. PPLNS vs. PPS+

What is a Mining Pool?

Mining Pools

A Mining pools is a hub where a group of Crypto currency miners share their processing power to the network in order to solve the blocks quicker.

The rewards will be split equally based on the amount of shares that they contributed in finding a block.

Pool mining was introduced during early Bitcoin mining days when solo mining became non-viable.

The more powerful your hardware is, the more shares you’ll submit, the more shares you submit, the more you’ll earn.

In order for the pool to pay its miners each pool uses its own payment scheme. Two of the most popular option is PPS and PPLNS.


Mining Pool payouts explained PPS vs. FPPS vs. PPLNS vs. PPS+
Mining pool payouts explained: Pay-per-share (PPS)
Pay-Per-Share (PPS)
Pay-per-last-n-shares (PPLNS) MineBest
Pay-Per-Last-N-Shares (PPLNS)
Different mining pool payouts explained: PPS vs. FPPS vs. PPLNS vs. PPS+

The first thing a miner has to decide is which pool mining payout is best for their requirements.

PROP (proportional), FPPS (Full Pay Per Share), SMPPS (Shared Maximum Pay Per Share), ESMPPS (Equalized Shared Maximum Pay Per Share), CPPSRB (Capped Pay Per Share with Recent Backpay), PPS (Pay Per Share), PPLNS (Pay Per Last N Share) and lastly PPS+ (Pay Per Share Plus).

Among them PPS and PPLNS are the two types of payment models that are mostly used by mining pools currently. Before we explain both PPS and PPLNS we’ll make a short note on mining pool.

There are numerous payment systems (over 15), but the vast majority of the pools operate on a PPS, FPPS, PPS+ and PPLNS basis.

However, before trying to understand the different settlement models, it is important to come to a consensus on some terms used in crypto mining.

Block Reward: Block reward refers to the new coins issued by the network to miners for each successfully solved block.

Hashing PowerHash rate is the speed at which a computer completes an operation in the cryptocurrency’s code. A higher hashrate increases a miner’s opportunity of finding the next block.

Luck: Luck, in mining, is the probability of success. Imagine that each miner is given a lottery ticket for a certain amount of hashing power they provide. If they are to provide 1 TH/s hashing power when the overall hashing power in the network is 10 TH/s, then they would receive 1 of 10 total lottery tickets. The probability of winning the lottery (in this case finding the block reward) would be 10%.

Transaction Fees: Some networks (like Bitcoin) also have substantial amounts of transaction fees rewarded to miners. These fees are the total fees paid by users of the network to execute transactions.

Pay-Per-Share (PPS)

PPS offers an instant flat payout for each share that is solved. With this payment method, a miner gets a standard payout rate for each share completed. Each share is worth a certain amount of mineable cryptocurrency.

After deducting the mining pool fees, the miners are given a fixed income every day. Therefore, under the PPS mode, the returns are relatively stable. Miners are exposed to risk here. They may not get the transaction fees.

It is ideal for low priced orders for an extended period. This model becomes lucrative during a bearish run of a particular coin.

Pay-Per-Last-N-Shares (PPLNS)

With this payout, profits will be allocated based on the number of shares miners contribute. This kind of allocation method is closely related to the block mined out. If the mining pool excavates multiple blocks in a day, the miners will have a high profit; if the mining pool is not able to mine a block during the whole day, the miner’s profit during the whole day is zero.

Notably, in the short term, the PPLNS model is highly correlated with a pool’s luck. If the luck factor of a particular mining pool decreases in the short term, the miner’s income will also decrease accordingly (the opposite case of the mining pool being lucky in the short term is possible too). However, in the long term, the luck factor tends to average out to the mean.

Hence, this model is ideal for fixing orders on a big pool that has a high chance of finding a block within the order time limit. Or a standard order which will have miners connected for a longer time.

Pay Per Share + (PPS+)

PPS+ is a blend of two modes mentioned above, PPS and PPLNS. The block reward is settled according to the PPS model. And the mining service charge /transaction fee is settled according to the PPLNS mode.

That is to say, in this mode, the miner can additionally obtain the income of part of the transaction fee based on the PPLNS payment method. This was a major drawback in the PPS model.

Full Pay Per Share (FPPS)

With this pool payout, both the block reward and the mining service charge are settled according to the theoretical profit. Calculate a standard transaction fee within a certain period and distribute it to miners according to their hash power contributions in the pool. It increases the miners’ earnings by sharing some of the transaction fees.

With the PPS and FPPS payment methods, you will get paid no matter if the pool finds a block or not. This is the most significant advantage over PPLNS. The risks and rewards are higher with the PPLNS plan.

The decision on which mining plan to choose from needs to be preceded by the decision of choosing the right mining infrastructure.


Difference between PPS vs PPLNS payment models?

PPLNS

PPLNS stands for Pay Per Last (luck) N Shares. This method calculates your payments based on the number of shares you submitted during a shift.

It includes shift system which is time based or by number of shares submitted by the miners on the pool.

Your pool may find blocks consistently or in overtime it may have huge variations in winning a block and that ultimately affects your payments. PPLNS greatly involves luck factor and you’ll notice huge fluctuations in your 24 hour payout.

If you maintain your mining on a single pool then your payouts will remain consistent and it only differs when new miners join or leave the pool.

PPS

Pay Per Share pays you an average of the number of shares that you contributed to the pool in finding blocks.

PPS pays you on solid rate and is more of a direct method which completely eliminates luck factor.

In PPS method regardless of the pools lucky at winning blocks you’re going to get 100% payout at the end of the day. This is because there is a standard payout set for each miners based on their hash power.

It won’t be more than 100% or less than that and with this PPS method you can easily calculate your potential earnings.

On the other hand with PPLNS payment system on average you can either get more than 100% or less than that. It is based on how lucky the pool is at finding blocks.

Should I choose PPS or PPLNS?

This is one of the common questions most miners have initially.

Should I choose Pay Per Share or Pay Per Last N Share pools?

If you are the person who don’t switch pools often then PPLNS is definitely for you as such pools are good at rewarding its loyal miners.

Pay Per Share: No matter what, if you need a fixed payouts at the end of the day to liquidate or for whatsoever reason then your choice would be PPS.

Pay Per Share works well for large mining farms who can calculate and have statistics based on their mining power.

PPS is good for large miners but really bad for pool owners as there is a guaranteed payout for work no matter if the pool hits the block or not.

For this reason and because of pool hoppers (not loyal miners of the pool) most of the mining pools have switched to PPLNS payment model.

Pay Per Last N Shares: If you are the one that is looking to accumulate and hold more coins then PPLNS is recommended.

For each block that your pool finds you’ll get a share based on your hashrate.

Unlike PPS, in PPLNS you’ll get payouts more often and in the long run you’ll be rewarded more with PPLNS than PPS.

However due to huge variance it’s really hard to calculate your mining income.

PPLNS is good for both mid-range miners and pool owners as the payouts is only based on the blocks found.

If your pool is more lucky  then you’ll see payments more often. This is the reason why miners stick to a pool where there is more hash power assuming the pool finds block very often.

You can find more comparison of mining pools payment system here.

How to find out if a pool is PPS or PPLNS?

Cryptocurrency mining can be a lucrative process. However it’s very important that you find out what payment scheme your pool is using before committing your hashing power.

Most of the mining pools has this information listed on FAQ page or at payouts page. If you’re unable to find this information then the only option is to contact the pool support.

Hope the information on this page is helpful for you to decide the right mining pool.


Happy Hashing


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#1 Book of the Year I recomend reading…

“Ego is the Enemy”


“Re-read it each year. It’s that important.”

Derek Sivers, author of “Anything you want”

“This is a book I want every athlete, aspiring leader, entrepreneur, thinker and doer to read. Ryan Holiday is one of the most promising young writers of his generation.”

George Raveling, Hall of Fame Basketball Coach

“Ryan Holiday is one of his generation’s finest thinkers, and this book is his best yet.”

Steven Pressfield, author of “The War of Art” and “Gates of Fire

“Ryan Holiday has written a brilliant and engaging book, well beyond his years… It is invaluable.”

Brian Koppelman, screenwriter and director, “Rounders”, “Ocean’s Thirteen” and “Billions”

Ego Is the Enemy

“While the history books are filled with tales of obsessive, visionary geniuses who remade the world in their image with sheer, almost irrational force, I’ve found that history is also made by individuals who fought their egos at every turn, who eschewed the spotlight, and who put their higher goals above their desire for recognition.” – from the Prologue

Many of us insist the main impediment to a full, successful life is the outside world. In fact, the most common enemy lies within: our ego. Early in our careers, it impedes learning and the cultivation of talent. With success, it can blind us to our faults and sow future problems. In failure, it magnifies each blow and makes recovery more difficult. At every stage, ego holds us back.

The Ego is the Enemy draws on a vast array of stories and examples, from literature to philosophy to history. We meet fascinating figures like Howard Hughes, Katharine Graham, Bill Belichick, and Eleanor Roosevelt, all of whom reached the highest levels of power and success by conquering their own egos. Their strategies and tactics can be ours as well.

But why should we bother fighting ego in an era that glorifies social media, reality TV, and other forms of shameless self-promotion?  Armed with the lessons in this book, as Holiday writes, “you will be less invested in the story you tell about your own specialness, and as a result, you will be liberated to accomplish the world-changing work you’ve set out to achieve.


RYAN HOLIDAY


Ryan Holiday is a strategist and writer. He dropped out of college at nineteen to appren­tice under Robert Greene, author of “The 48 Laws of Power”, and later served as the director of mar­keting for American Apparel.

His company, Brass Check, has advised clients like Google, TASER, and Complex, as well as many prominent bestselling authors.

Holiday has written four previous books, most recently The Obstacle Is the Way, which has been translated into seventeen languages and has a cult following among NFL coaches, world-class athletes, TV personalities, political leaders, and others around the world.

He lives on a small ranch outside Austin, Texas. 


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If so, please consider a donation to help the evolution and development of more helpful articles in the future, and show your support for alternative articles.

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You can donate in any crypto your 💚 desires 😊

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Cardano(ADA) :

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BinanceCoin(BNB) :

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Stellar(XLM) :

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Bitcoin Halving

Bitcoin Halving

What Is a Bitcoin Halving?

Bitcoin’s most recent halving occurred on May 11, 2020. To explain what a Bitcoin halving is, we must first explain a bit about how the Bitcoin network operates.

Bitcoin’s underlying technology, blockchain, basically consists of a collection of computers (or nodes) that run Bitcoin’s software and contain a partial or complete history of transactions occurring on its network.

Each full node, or a node containing the entire history of transactions on Bitcoin, is responsible for approving or rejecting a transaction in Bitcoin’s network.

To do that, the node conducts a series of checks to ensure that the transaction is valid. These include ensuring that the transaction contains the correct validation parameters, such as nonces, and does not exceed the required length.

A transaction occurs only after all the parties operating in Bitcoin’s network approve it within the block on which the transaction exists. After approval, the transaction is appended to the existing blockchain and broadcast to other nodes.

The blockchain serves as a pseudonymous record of transactions (i.e., its contents are visible to everyone, but it is difficult to identify transacting parties in the network). This is because the blockchain assigns encrypted addresses to each transacting party in the network. That said, even those who do not participate in the network as a node or miner can view these transactions taking place live by looking at block explorers.

More computers (or nodes) added to the blockchain increase its stability and security.

There are currently 12,035 nodes estimated to be running Bitcoin’s code. Though anyone can participate in Bitcoin’s network as a node, as long as they have enough storage to download the entire blockchain and its history of transactions, not all of them are miners.

KEY TAKEAWAYS

  • A Bitcoin halving event is when the reward for mining bitcoin transactions is cut in half.
  • This event also cuts in half Bitcoin’s inflation rate and the rate at which new bitcoins enter circulation.
  • Both previous halvings have correlated with intense boom and bust cycles that have ended with higher prices than prior to the event.
  • Bitcoin last halved on May 11, 2020, around 3 p.m. EST, resulting in a block reward of 6.25 BTC.

Bitcoin Mining

Bitcoin mining is the process by which people use their computers to participate in Bitcoin’s blockchain network as a transaction processor and validator.

Bitcoin uses a system called proof of work (PoW). This means that miners must prove they have put forth effort in processing transactions to be rewarded. This effort includes the time and energy it takes to run the computer hardware and solve complex equations.

Faster computers with certain types of hardware yield larger block rewards and some companies have designed computer chips specifically built for mining. These computers are tasked with processing Bitcoin transactions, and they are rewarded for doing so.

The term mining is not used in a literal sense but as a reference to the way precious metals are gathered.

Bitcoin miners solve mathematical problems and confirm the legitimacy of a transaction. They then add these transactions to a block and create chains of these blocks of transactions, forming the blockchain.

When a block is filled up with transactions, the miners that processed and confirmed the transactions within the block are rewarded with bitcoins.

Transactions of greater monetary value require more confirmations to ensure security. This process is called mining because the work performed to get new bitcoins out of the code is the digital equivalent to the physical work done to pull gold out of the Earth.

El Salvador made Bitcoin legal tender on June 9, 2021. It is the first country to do so. The cryptocurrency can be used for any transaction where the business can accept it. The U.S. dollar continues to be El Salvador’s primary currency.

Bitcoin Halving

After every 210,000 blocks mined, or roughly every four years, the block reward given to Bitcoin miners for processing transactions is cut in half.

This cuts in half the rate at which new bitcoins are released into circulation. This is Bitcoin’s way of using a synthetic form of inflation that halves every four years until all bitcoins are released into circulation.

This system will continue until around the year 2140.

At that point, miners will be rewarded with fees for processing transactions, which network users will pay. These fees ensure that miners still have the incentive to mine and keep the network going. The idea is that competition for these fees will cause them to remain low after the halvings are finished.

The halving is significant because it marks another drop in the rate of new Bitcoins being produced as it approaches its finite supply: the total maximum supply of bitcoins is 21 million. As of October 2021, there are about 18.85 million bitcoins already in circulation, leaving just around 2.15 million left to be released via mining rewards.

In 2009, the reward for each block in the chain mined was 50 bitcoins. After the first halving, it was 25, and then 12.5, and then it became 6.25 bitcoins per block as of May 11, 2020.

To put this in another context, imagine if the amount of gold mined out of the Earth was cut in half every four years. If gold’s value is based on its scarcity, then a “halving” of gold output every four years would theoretically drive its price higher.

Coin Metrics Bitcoin Halving
Coin Metrics logarithmic chart of Bitcoin price action following halvings.

Halving Implications

These halvings reduce the rate at which new coins are created and thus lower the available amount of new supply, even as demand might increase.

This can cause some implications for investors as other assets with low or finite supply, like gold, can have high demand and push prices higher.

In the past, these Bitcoin halvings have correlated with massive surges in Bitcoin’s price.

The first halving, which occurred on Nov. 28, 2012, saw an increase from $12 to $1,217 on Nov. 28, 2013.

The second Bitcoin halving occurred on July 9, 2016. The price at that halving was $647, and by Dec. 17, 2017, a bitcoin’s price had soared to $19,800. The price then fell over the course of a year from this peak down to $3,276 on Dec. 17, 2018, a price 506% higher than its pre-halving price.

The most recent halving occurred on May 11, 2020. On that date, a bitcoin’s price was $8,787. On April 14, 2021, a bitcoin’s price soared to $64,507 (an astonishing 634% increase from its pre-halving price). A month later, on May 11, 2021, a bitcoin’s price was $54,276, representing a 517% increase that seems more consistent with the behavior of the 2016 halving.

On May 12, 2021, Elon Musk, CEO of Tesla, announced that Tesla would no longer accept Bitcoin as payment, resulting in further price fluctuations.

In the week that followed Musk’s statements, the price of a bitcoin plunged below $40,000 after Chinese regulators announced restrictions banning financial institutions and payment companies from providing cryptocurrency-related services.

Though these two announcements may have temporarily created a price drop in Bitcoin, there is the potential that the price fluctuations are more related to the halving behavior we have observed previously.

The theory of the halving and the chain reaction that it sets off works something like this:

The reward is halved → half the inflation → lower available supply → higher demand → higher price → miners incentive still remains, regardless of smaller rewards, as the value of Bitcoin is increased in the process

In the event that a halving does not increase demand and price, then miners would have no incentive. The reward for completing transactions would be smaller, and the value of Bitcoin would not be high enough.

To prevent this, Bitcoin has a process to change the difficulty it takes to get mining rewards, or in other words, the difficulty of mining a transaction.

In the event that the reward has been halved, and the value of Bitcoin has not increased, the difficulty of mining would be reduced to keep miners incentivized.

This means that the quantity of bitcoins released as a reward is still smaller, but the difficulty of processing a transaction is reduced.

This process has proved successful twice. So far, the result of these halvings has been a ballooning in price followed by a large drop.

The crashes that have followed these gains, however, have still maintained prices higher than before these halving events.

For example, as mentioned above, the 2017 to 2018 bubble saw the value of a bitcoin rise to around $20,000, only to fall to around $3,200. This is a massive drop, but a bitcoin’s price before the halving was around $650.3

Though this system has worked so far, the halving is typically surrounded by immense speculation, hype, and volatility, and how the market will react to these events in the future is unpredictable.

The third halving occurred not only during a global pandemic, but also in an environment of heightened regulatory speculation, increased institutional interest in digital assets, and celebrity hype. Given these additional factors, where Bitcoin’s price will ultimately settle in the aftermath remains unclear.

What Happens When Bitcoin Halves?

The term “halving” as it relates to Bitcoin has to do with how many Bitcoin tokens are found in a newly created block.

Back in 2009, when Bitcoin launched, each block contained 50 BTC, but this amount was set to be reduced by 50% roughly every four years.

Today, there have been three halving events, and a block now only contains 6.25 BTC.

When the next halving occurs, a block will only contain 3.125 BTC.

When Have the Halvings Occurred?

The first bitcoin halving occurred on Nov. 28, 2012, after a total of 10,500,000 BTC had been mined. The next occurred on July 9, 2016, and the latest was on May 11, 2020. The next is expected to occur in early 2024.

Why Are the Halvings Occurring Less Than Every Four Years?

The Bitcoin mining algorithm is set with a target of finding new blocks once every 10 minutes.

However, if more miners join the network and add more hashing power, the time to find blocks will decrease.

This is remedied by resetting the mining difficulty (or how hard it is for a computer to solve the mining algorithm) once every two weeks or so to restore a 10-minute target.

As the Bitcoin network has grown exponentially over the past decade, the average time to find a block has consistently remained below 10 minutes (roughly 9.5 minutes).

Does Halving Have Any Effect on the Bitcoin Price?

The price of Bitcoin has risen steadily and significantly from its launch in 2009, when it traded for mere pennies or dollars, to April 2021 when the price of one bitcoin traded for over $63,000.3

Because halving the block reward effectively doubles the cost to miners, who are essentially the producers of bitcoins, it should have a positive impact on price because producers will need to adjust their selling price to their costs.

Empirical evidence does show that Bitcoin prices tend to rise in anticipation of a halvening, often several months prior to the actual event.

What Happens When There Are No More Bitcoins Left in a Block?

Around the year 2140, the last of the 21 million bitcoins ever to be mined will have been mined.

At this point, the halving schedule will cease because there will be no more new bitcoins to be found.

Miners, however, will still be incentivized to continue validating and confirming new transactions on the blockchain because the value of transaction fees paid to miners is expected to rise into the future, the reasons being that a greater transaction volume that has fees will be attached, plus bitcoins will have a greater nominal market value.

TRUSTe

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Profitability Guide

Mining Profitability Guide

To calculate mining profitability, you should follow these steps, no matter which calculator you are using:

🔸️Be sure you know your GPU models and the Hash rates.

🔸️Be sure you know the algorithm of the coin.

🔸️Choose the exchange you plan to use for selling coins. This is necessary if you want more precise results.

🔸️Be sure you know your electricity cost.


You can find a list of calculators online that are used by miners, here:

https://bithouseco.home.blog/2021/09/12/mining-calculators/


🔹️ Be sure to keep track of what’s happening in the cryptocurrency world, if you aren’t doing so already. If a coin has problems, it will definitely affect the price and mining profitability, and may even prevent you from selling mined coins.

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$10 Million each coin 🤯😳🤯

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Crypto Anarchy and Virtual Communities

Crypto Anarchy and Virtual Communities

Timothy C. May

December 1994

Extended Abstract

” The combination of strong, unbreakable public key cryptography and virtual network communities in cyberspace will produce interesting and profound changes in the nature of economic and social systems.

Crypto anarchy is the cyberspatial realization of anarcho-capitalism, transcending national boundaries and freeing individuals to make the economic arrangements they wish to make consensually.

Strong cryptography, exemplified by RSA (a public key algorithm) and PGP (Pretty Good Privacy), provides encryption that essentially cannot be broken with all the computing power in the universe.

This ensures security and privacy. Public key cryptography is rightly considered to be a revolution.

Digital mixes, or anonymous remailers, use crypto to create untraceable e-mail, which has many uses. (Numerous anonymous remailers, in several countries, are now operating. Message traffic is growing exponentially.)

Digital pseudonyms, the creation of persistent network personas that cannot be forged by others and yet which are unlinkable to the “true names” of their owners, are finding major uses in ensuring free speech, in allowing controversial opinions to be aired, and in providing for economic transactions that cannot be blocked by local governments.

The technology being deployed by the Cypherpunks and others, means their identities, nationalities, and even which continents they are on are untraceable — unless they choose to reveal this information.

This alters the conventional “relationship topology” of the world, allowing diverse interactions without external governmental regulation, taxation, or interference.

Digital cash, untraceable and anonymous (like real cash), is also coming, though various technical and practical hurdles remain.

“Swiss banks in cyberspace” will make economic transactions much more liquid and much less subject to local rules and regulations.

Tax avoidance is likely to be a major attraction for many.

An example of local interest to Monte Carlo might be the work underway to develop anonymous, untraceable systems for “cyberspace casinos.”

While not as attractive to many as elegant casinos, the popularity of “numbers games” and bookies in general suggests a opportunity to pursue.

Data havens and information markets are already springing up, using the methods described to make information retrievable anonymously and untraceably.

Governments see their powers eroded by these technologies, and are taking various well-known steps to try to limit the use of strong crypto by their subjects.

The U.S. has several well-publicized efforts, including the Clipper chip, the Digital Telephony wiretap law, and proposals for “voluntary” escrow of cryptographic keys.

Cypherpunks and others expect these efforts to be bypassed. Technology has let the genie out of the bottle.

Crypto anarchy is liberating individuals from coercion by their physical neighbors—who cannot know who they are on the Net—and from governments.

For libertarians, strong crypto provides the means by which government will be avoided.

The presentation will describe how several of these systems work, briefly, and will outline the likely implications of this combination of crypto anarchy and virtual cyberspace communities.

1. Introduction

This paper describes the combination of two major technologies:

Strong Crypto: including encryption, digital signatures, digital cash, digital mixes (remailers), and related technologies.

Cyberspatial Virtual Communities: including networks, anonymous communications, MUDs and MOOs, and “Multiverse”-type virtual realities.

This paper describes the combination of two major technologies:

These areas have generally remained separate, at least in published papers.

Certainly the developers of cyberspace systems, such as MUDs, MOOs, and Habitat-like systems, appreciate the importance of cryptography for user authentication, overall security, and certainly for (eventual) digital purchase of services.

But for the most part the combination of these two areas has been the province of the science fiction writer, notably writers such as Vernor Vinge, William Gibson, Bruce Sterling, and Orson Scott Card.

The “Cypherpunks” group, a loose, anarchic mailing list and group of hackers, was formed by several of us in 1992 as a group to make concrete some of the abstract ideas often presented at conferences.

We’ve had some successes, and some failures.

The Cypherpunks group also appeared at a fortuitous time, as PGP was becoming popular, as Wired magazine appeared (they featured us on the cover of their second issue), and as the publicity (hype?) about the Information Superhighway and the World Wide Web reached a crescendo.

The site ftp.csua.berkeley.edu has a number of essays and files, including crypto files, in the directory pub/cypherpunks. I have also written/ compiled a very large 1.3 MB FAQ on these issues, the Cyphernomicon, available at various sites, including my ftp directory, ftp.netcom.com, in the directory pub/tc/tcmay.

The Cypherpunks group is also a pretty good example of a “virtual community.” Scattered around the world, communicating electronically in matters of minutes, and seeming oblivious to local laws, the Cypherpunks are indeed a community, and a virtual one. Many members use pseudonyms, and use anonymous remailers to communicate with the list. The list itself thus behaves as a “message pool,” a place where information of all sort may be anonymous deposited—and anonymous received (since everyone sees the entire list, like a newspaper, the intended recipient is anonymized).

Legal Caveat: Consult your local laws before applying any of the methods described here.

In some jurisdictions, it may be illegal to even read papers like this (seriously).

In particular, I generally won’t be giving ftp site addresses for copies of PGP, remailer access, digital cash systems, etc.

These are well-covered in more current forums, e.g., sci.crypt or talk.politics.crypto, and there are some unresolved issues about whether giving the address of such sites constitutes (or “aids and abets”) violation of various export and munitions laws (crypto is considered a munition in the U.S. and probably elsewhere….some nations consider a laser printer to be a munitions item!).

2. Modern Cryptography

The past two decades have produced a revolution in cryptography (crypto, for short) the science of the making of ciphers and codes.

Beyond just simple ciphers, useful mainly for keeping communications secret, modern crypto includes diverse tools for authentication of messages, for digital timestamping of documents, for hiding messages in other documents (steganography), and even for schemes for digital cash.

Public key cryptography, the creation of Diffie and Hellman, has dramatically altered the role of crypto.

Coming at the same time as the wholesale conversion to computer networks and worldwide communications, it has been a key element of security, confidence, and success.

The role of crypto will only become more important over the coming decades.

Pretty Good Privacy, PGP, is a popular version of the algorithm developed by Rivest, Shamir, and Adleman, known of course as RSA.

The RSA algorithm was given a patent in the U.S., though not in any European countries, and is licensed commercially.

These tools are described in detail in various texts and Conference proceedings, and are not the subject of this paper.

The focus here is on the implications of strong crypto for cyberspace, especially on virtual communities.

Mention should be made of the role of David Chaum in defining the key concepts here.

In several seminal papers, Chaum introduced the ideas of using public key cryptography methods for anonymous, untraceable electronic mail, for digital money systems in which spender identity is not revealed, and in schemes related to these. (I make no claims of course that Chaum agrees with my conclusions about the political and socioeconomic implications of these results.)

3. Virtual Communities

Notes: cyberspace, Habitat, VR, Vinge, etc. Crypto holds up the “walls” of these cyberspatial realities. Access control, access rights, modification privileges.

Virtual communities are the networks of individuals or groups which are not necessarily closely-connected geographically.

The “virtual” is meant to imply a non-physical linking, but should not be taken to mean that these are any less community-like than are conventional physical communities.

Examples include churches, service organizations, clubs, criminal gangs, cartels, fan groups, etc.

The Catholic Church and the Boy Scouts are both examples of virtual communities which span the globe, transcend national borders, and create a sense of allegiance, of belonging, and a sense of “community.”

Likewise, the Mafia is a virtual community (with its enforcement mechanisms, its own extra-legal rules, etc.)

Lots of other examples: Masons, Triads, Red Cross, Interpol, Islam, Judaism, Mormons, Sindero Luminoso, the IRA, drug cartels, terrorist groups, Aryan Nation, Greenpeace, the Animal Liberation Front, and so on.

There are undoubtedly many more such virtual communities than there are nation-states, and the ties that bind them are for the most part much stronger than are the chauvinist nationalism emotions.

Any group in which the common interests of the group, be it a shared ideology or a particular interest, are enough to create a cohesive community.

Corporations are another prime example of a virtual community, having scattered sites, private communication channels (generally inaccessible to the outside world, including the authorities), and their own goals and methods.

In fact, many “cyberpunk” (not cypherpunk) fiction authors make a mistake, I think, in assuming the future world will be dominated by transnational megacorporate “states.”

In fact, corporations are just one example—of many—of such virtual communities which will be effectively on a par with nation-states.

(Note especially that any laws designed to limit use of crypto cause immediate and profound problems for corporations-countries like France and the Philippines, which have attempted to limit the use of crypto, have mostly been ignored by corporations. Any attempts to outlaw crypto will produce a surge of sudden “incorporations,” thus gaining for the new corporate members the aegis of corporate privacy.)

In an academic setting, “invisible colleges” are the communities of researchers.

These virtual communities typically are “opaque” to outsiders.

Attempts to gain access to the internals of these communities are rarely successful. Law enforcement and intelligence agencies (such as the NSA in the U.S., Chobetsu in Japan, SDECE in France, and so on, in every country) may infiltrate such groups and use electronic surveillance (ELINT) to monitor these virtual communities. Not surprisingly, these communities are early adopters of encryption technology, ranging from scrambled cellphones to full-blown PGP encryption.[6]

The use of encryption by “evil” groups, such as child pornographers, terrorists, abortionists, abortion protestors, etc., is cited by those who wish to limit civilian access to crypto tools.

We call these the “Four Horseman of the Infocalypse,” as they are so often cited as the reason why ordinary citizen-units of the nation-state are not to have access to crypto.

This is clearly a dangerous argument to make, for various good reasons.

The basic right of free speech is the right to speak in a language one’s neighbors or governing leaders may not find comprehensible: encrypted speech.

There’s not enough space here to go into the many good arguments against a limit on access to privacy, communications tools, and crypto.

The advent of full-featured communications systems for computer-mediated virtual communities will have even more profound implications.

MUDs and MOOs (multi-user domains, etc.) and 3D virtual realities are one avenue, and text-centric Net communications are another. (Someday, soon, they’ll merge, as described in Vernor Vinge’s prophetic 1980 novella, True Names.)

4. Observability and Surveillance

An interesting way to view issues of network visibility is in terms of the “transparency” of nodes and links between nodes.

Transparent means visible to outsiders, perhaps those in law enforcement or the intelligence community.

Opaque mean not transparent, not visible. A postcard is transparent, a sealed letter is opaque.

PGP inventor Phil Zimmermann has likened the requirement for transparency to being ordered to use postcards for all correspondence, with encryption the equivalent of an opaque envelope (envelopes can be opened, of course, and long have been).

Transparent links and nodes are the norm in a police state, such as the U.S.S.R., Iraq, China, and so forth. Communications channels are tapped, and private use of computers is restricted. (This is becoming increasingly hard to do, even for police states; many cite the spread of communications options as a proximate cause of the collapse of communism in recent years.)

There are interesting “chemistries” or “algebras” of transparent vs. opaque links and nodes.

What happens if links must be transparent, but nodes are allowed to be opaque? (The answer: the result is as if opaque links and nodes were allowed, i.e., full implications of strong crypto.

Hence, any attempt to ban communications crypto while still allowing private CPUs to exist….)

If Alice and Bob are free to communicate, and to choose routing paths, then Alice can use “crypto arbitrage” (a variation on the term, “regulatory arbitrage,” the term Eric Hughes uses to capture this idea of moving transactions to other jurisdictions) to communicate with sites—perhaps in other countries—that will perform as she wishes.

This can mean remailing, mixing, etc. As an example, Canadian citizens who are told they cannot access information on the Homolka-Teale murder case (a controversial case in which the judge has ordered the media in Canada, and entering Canada, not to discuss the gory details) nevertheless have a vast array of options, including using telnet, gopher, ftp, the Web, etc., to access sites in many other countries–or even in no country in particular.

Most of the consequences described here arise from this chemistry of links and nodes: unless nearly all node and links are forced to be transparent, including links to other nations and the nodes in those nations, then the result is that private communication can still occur. Crypto anarchy results.

5. Crypto Anarchy

“The Net is an anarchy.”

This truism is the core of crypto anarchy.

No central control, no ruler, no leader (except by example, reputation), no “laws.”

No single nation controls the Net, no administrative body sets policy. The Ayatollah in Iran is as powerless to stop a newsgroup—alt.wanted.moslem.women or alt.wanted.moslem.gay come to mind—he doesn’t like as the President of France is as powerless to stop, say, the abuse of French in soc.culture.french. Likewise, the CIA can’t stop newsgroups, or sites, or Web pages, which give away their secrets.

At least not in terms of the Net itself…what non-Net steps might be taken is left as an exercise for the paranoid and the cautious.

This essential anarchy is much more common than many think.

Anarchy—the absence of a ruler telling one what to do—is common in many walks of life: choice of books to read, movies to see, friends to socialize with, etc.

Anarchy does not mean complete freedom—one can, after all, only read the books which someone has written and had published—but it does mean freedom from external coercion.

Anarchy as a concept, though, has been tainted by other associations.

First, the “anarchy” here is not the anarchy of popular conception: lawlessness, disorder, chaos, and “anarchy.”

Nor is it the bomb-throwing anarchy of the 19th century “black” anarchists, usually associated with Russia and labor movements.

Nor is it the “black flag” anarchy of anarcho-syndicalism and writers such as Proudhon.

Rather, the anarchy being spoken of here is the anarchy of “absence of government” (literally, “an arch,” without a chief or head).

This is the same sense of anarchy used in “anarchocapitalism,” the libertarian free market ideology which promotes voluntary, uncoerced economic transactions. 

I devised the term crypto anarchy as a pun on crypto, meaning “hidden,” on the use of “crypto” in combination with political views (as in Gore Vidal’s famous charge to William F. Buckley: “You crypto fascist!”), and of course because the technology of crypto makes this form of anarchy possible.

The first presentation of this was in a 1988 “Manifesto,” whimsically patterned after another famous manifesto.

Perhaps a more popularly understandable term, such as “cyber liberty,” might have some advantages, but crypto anarchy has its own charm, I think.

And anarchy in this sense does not mean local hierarchies don’t exist, nor does it mean that no rulers exist. Groups outside the direct control of local governmental authorities may still have leaders, rulers, club presidents, elected bodies, etc. Many will not, though.

Politically, virtual communities outside the scope of local governmental control may present problems of law enforcement and tax collection. (Some of us like this aspect.)

Avoidance of coerced transactions can mean avoidance of taxes, avoidance of laws saying who one can sell to and who one can’t, and so forth.

It is likely that many will be unhappy that some are using cryptography to avoid laws designed to control behavior.

National borders are becoming more transparent than ever to data.

A flood of bits crosses the borders of most developed countries—phone lines, cables, fibers, satellite up/downlinks, and millions of diskettes, tapes, CDs, etc.

Stopping data at the borders is less than hopeless.

Finally, the ability to move data around the world at will, the ability to communicate to remote sites at will, means that a kind of “regulatory arbitrage” can be used to avoid legal roadblocks.

For example, remailing into the U.S. from a site in the Netherlands…whose laws apply? (If one thinks that U.S. laws should apply to sites in the Netherlands, does Iraqi law apply in the U.S.? And so on.)

This regulatory arbitrage is also useful for avoiding the welter of laws and regulations which operations in one country may face, including the “deep pockets” lawsuits so many in the U.S. face.

Moving operations on the Net outside a litigious jurisdiction is one step to reduce this business liability. Like Swiss banks, but different.

6. True Names and Anonymous Systems

Something needs to be said about the role of anonymity and digital pseudonyms.

This is a topic for an essay unto itself, of course.

Are true names really needed? Why are they asked for? Does the nation-state have any valid reason to demand they be used?

People want to know who they are dealing with, for psychological/evolutionary reasons and to better ensure traceability should they need to locate a person to enforce the terms of a transaction.

The purely anonymous person is perhaps justifiably viewed with suspicion.

And yet pseudonyms are successful in many cases.

And we rarely know whether someone who presents himself by some name is “actually” that person.

Authors, artists, performers, etc., often use pseudonyms.

What matters is persistence, and nonforgeability.

Crypto provides this.

On the Cypherpunks list, well-respected digital pseudonyms have appeared and are thought of no less highly than their “real” colleagues are.

The whole area of digitally-authenticated reputations, and the “reputation capital” that accumulates or is affected by the opinions of others, is an area that combines economics, game theory, psychology, and expectations.

A lot more study is needed.

It is unclear if governments will move to a system of demanding “Information Highway Driver’s Licenses,” figuratively speaking, or how systems like this could ever be enforced. (The chemistry of opaque nodes and links, again.)

7. Examples and Uses

It surprises many people that some of these uses are already being intensively explored.

Anonymous remailers are used by tens of thousands of persons-and perhaps abused.

And of course encryption, via RSA, PGP, etc., is very common in some communities. (Hackers, Net users, freedom fighters, white separatists, etc….I make no moral judgments here about those using these methods).

Remailers are a good example to look at in more detail. There are two current main flavors of remailers:

“Cypherpunk”-style remailers, which process text messages to redirect mail to another sites, using a command syntax that allows arbitrary nesting of remailing (as many sites as one wishes), with PGP encryption at each level of nesting.

“Julf”-style remailer(s), based on the original work of Karl Kleinpaste and operated/maintained by Julf Helsingius, in Finland.

No encryption, and only one such site at present. (This system has been used extensively for messages posted to the Usenet, and is basically successful. The model is based on operator trustworthiness, and his location in Finland, beyond the reach of court orders and subpoenas from most countries.)

The Cypherpunks remailers currently number about 20, with more being added every month. There is no reason not to expect hundreds of such remailers in a few years.

One experimental “information market” is BlackNet, a system which appeared in 1993 and which allows fully-anonymous, two-way exchanges of information of all sorts.

There are reports that U.S. authorities have investigated this because of its presence on networks at Defense Department research labs. Not much they can do about it, of course, and more such entities are expected.

(The implications for espionage are profound, and largely unstoppable. Anyone with a home computer and access to the Net or Web, in various forms, can use these methods to communicate securely, anonymously or pseudonymously, and with little fear of detection. “Digital dead drops” can be used to post information obtained, far more securely than the old physical dead drops…no more messages left in Coke cans at the bases of trees on remote roads.)

Whistleblowing is another growing use of anonymous remailers, with folks fearing retaliation using remailers to publicly post information. (Of course, there’s a fine line between whistleblowing, revenge, and espionage.)

Data havens, for the storage and marketing of controversial information is another area of likely future growth.

Nearly any kind of information, medical, religious, chemical, etc., is illegal or proscribed in one or more countries, so those seeking this illegal information will turn to anonymous messaging systems to access—and perhaps purchase, with anonymous digital cash—this information.

This might include credit data bases, deadbeat renter files, organ bank markets, etc. (These are all things which have various restrictions on them in the U.S., for example….one cannot compile credit data bases, or lists of deadbeat renters, without meeting various restrictions.

A good reason to move them into cyberspace, or at least outside the U.S., and then sell access through remailers.)

Matching buyers and sellers of organs is another such market. A huge demand (life and death), but various laws tightly controlling such markets.

Digital cash efforts. A lot has been written about digital cash.

David Chaum’s company, DigiCash, has the most interesting technology, and has recently begun market testing.

Stefan Brands may or may not have a competing system which gets around some of Chaum’s patents. (The attitude crypto anarchists might take about patents is another topic for discussion. Suffice it to say that patents and other intellectual property issues continue to have relevance in the practical world, despite erosion by technological trends.)

Credit card-based systems, such as the First Virtual system, are not exactly digital cash, in the Chaumian sense of blinded notes, but offer some advantages the market may find useful until more advanced systems are available.

I expect to see many more such experiments over the next several years, and some of them will likely be market successes.

8. Commerce and Colonization of Cyberspace

How will these ideas affect the development of cyberspace?

“You can’t eat cyberspace” is a criticism often levelled at argument about the role of cyberspace in everyday life.

The argument made is that money and resources “accumulated” in some future (or near-future) cyberspatial system will not be able to be “laundered” into the real world.

Even such a prescient thinker as Neal Stephenson, in Snow Crash, had his protagonist a vastly wealthy man in “The Multiverse,” but a near-pauper in the physical world.

This is implausible for several reasons.

First, we routinely see transfers of wealth from the abstract world of stock tips, arcane consulting knowledge, etc., to the real world. “Consulting” is the operative word.

Second, a variety of means of laundering money, via phony invoices, uncollected loans, art objects, etc., are well-known to those who launder money…these methods, and more advanced ones to come, are likely to be used by those who wish their cyberspace profits moved into the real world.

(Doing this anonymously, untraceably, is another complication. There may be methods of doing this–proposals have looked pretty solid, but more work is needed.)

The World Wide Web is growing at an explosive pace. Combined with cryptographically-protected communication and digital cash of some form (and there are several being tried), this should produce the long-awaited colonization of cyberspace.

Most Net and Web users already pay little attention to the putative laws of their local regions or nations, apparently seeing themselves more as members of various virtual communities than as members of locally-governed entities.

This trend is accelerating.

Most importantly, information can be bought and sold (anonymously, too) and then used in the real world.

There is no reason to expect that this won’t be a major reason to move into cyberspace.

9. Implications

I’ve touched on the implications in several places.

Many thoughtful people are worried about some of the possibilities made apparent by strong crypto and anonymous communication systems.

Some are proposing restrictions on access to crypto tools. The recent debate in the U.S. over “Clipper” and other key escrow systems shows the strength of emotions on this issue.

Abhorrent markets may arise. For example, anonymous systems and untraceable digital cash have some obvious implications for the arranging of contract killings and such. (The greatest risk in arranging such hits is that physical meetings expose the buyers and sellers of such services to stings. Crypto anarchy lessens, or even eliminates, this risk, thus lowering transaction costs. The risks to the actual triggermen are not lessened, but this is a risk the buyers need not worry about. Think of anonymous escrow services which hold the digital money until the deed is done. Lots of issues here. It is unfortunate that this area is so little-discussed….people seem to have an aversion for exploring the logical consequences in such areas.)

The implications for corporate and national espionage have already been touched upon.

Combined with liquid markets in information, this may make secrets much harder to keep. (Imagine a “Digital Jane’s,” after the military weapons handbooks, anonymously compiled and sold for digital money, beyond the reach of various governments which don’t want their secrets told.)

New money-laundering approaches are of course another area to explore.

Something that is inevitable is the increased role of individuals, leading to a new kind of elitism.

Those who are comfortable with the tools described here can avoid the restrictions and taxes that others cannot.

If local laws can be bypassed technologically, the implications are pretty clear.

The implications for personal liberty are of course profound.

No longer can nation-states tell their citizen-units what they can have access to, not if these citizens can access the cyberspace world through anonymous systems.

10. How Likely?

I am making no bold predictions that these changes will sweep the world anytime soon.

Most people are ignorant of these methods, and the methods themselves are still under development.

A wholesale conversion to “living in cyberspace” is just not in the cards, at least not in the next few decades.

But to an increasingly large group, the Net is reality.

It is where friends are made, where business is negotiated, where intellectual stimulation is found.

And many of these people are using crypto anarchy tools. Anonymous remailers, message pools, information markets.

Consulting via pseudonyms has begun to appear, and should grow. (As usual, the lack of a robust digital cash system is slowing things down.

Can crypto anarchy be stopped?

Although the future evolution in unclear, as the future almost always is, it seems unlikely that present trends can be reversed:

Dramatic increases in bandwidth and local, privately-owned computer power.

Exponential increase in number of Net users.

Explosion in “degrees of freedom” in personal choices, tastes, wishes, goals.

Inability of central governments to control economies, cultural trends, etc.

The Net is integrally tied to economic transactions, and no country can afford to “disconnect” itself from it. (The U.S.S.R. couldn’t do it, and they were light-years behind the U.S., European, and Asian countries. And in a few more years, no hope of limiting these tools at all, something the U.S. F.B.I. has acknowledged.

Technological Inevitability: These tools are already in widespread use, and only draconian steps to limit access to computers and communications channels could significantly impact further use. (Scenarios for restrictions on private use of crypto.)

As John Gilmore has noted, “the Net tends to interpret censorship as damage, and routes around it.” This applies as well to attempts to legislate behavior on the Net. (The utter impossibility of regulating the worldwide Net, with entry points in more than a hundred nations, with millions of machines, is not yet fully recognized by most national governments. They still speak in terms of “controlling” the Net, when in fact the laws of one nation generally have little use in other countries.)

Digital money in its various forms is probably the weakest link at this point. Most of the other pieces are operational, at least in basic forms, but digital cash is (understandably) harder to deploy. Hobbyist or “toy” experiments have been cumbersome, and the “toy” nature is painfully obvious. It is not easy to use digital cash systems at this time (“To use Magic Money, first create a client…”), especially as compared to the easily understood alternatives.[14] People are understandably reluctant to entrust actual money to such systems. And it’s not yet clear what can be bought with digital cash (a chicken or egg dilemma, likely to be resolved in the next several years).

And digital cash, digital banks, etc., are a likely target for legislative moves to limit the deployment of crypto anarchy and digital economies. Whether through banking regulation or tax laws, it is not likely that digital money will be deployed easily. “Kids, don’t try this at home!” Some of the current schemes may also incorporate methods for reporting transactions to the tax authorities, and may include “software key escrow” features which make transactions fully or partly visible to authorities.

11. Conclusions

Strong crypto provides new levels of personal privacy, all the more important in an era of increased surveillance, monitoring, and the temptation to demand proofs of identity and permission slips. Some of the “credentials without identity” work of Chaum and others may lessen this move toward a surveillance society.

The implications are, as I see it, that the power of nation-states will be lessened, tax collection policies will have to be changed, and economic interactions will be based more on personal calculations of value than on societal mandates.

Is this a Good Thing? Mostly yes. Crypto anarchy has some messy aspects, of this there can be little doubt. From relatively unimportant things like price-fixing and insider trading to more serious things like economic espionage, the undermining of corporate knowledge ownership, to extremely dark things like anonymous markets for killings.

But let’s not forget that nation-states have, under the guise of protecting us from others, killed more than 100 million people in this century alone. Mao, Stalin, Hitler, and Pol Pot, just to name the most extreme examples. It is hard to imagine any level of digital contract killings ever coming close to nationstate barbarism. (But I agree that this is something we cannot accurately speak about; I don’t think we have much of a choice in embracing crypto anarchy or not, so I choose to focus on the bright side.)

It is hard to argue that the risks of anonymous markets and tax evasion are justification for worldwide suppression of communications and encryption tools. People have always killed each other, and governments have not stopped this (arguably, they make the problem much worse, as the wars of this century have shown).

Also, there are various steps that can be taken to lessen the risks of crypto anarchy impinging on personal safety.

Strong crypto provides a technological means of ensuring the practical freedom to read and write what one wishes to. (Albeit perhaps not in one’s true name, as the nation-state-democracy will likely still try to control behavior through majority votes on what can be said, not said, read, not read, etc.) And of course if speech is free, so are many classes of economic interaction that are essentially tied to free speech.

A phase change is coming. Virtual communities are in their ascendancy, displacing conventional notions of nationhood. Geographic proximity is no longer as important as it once was.

A lot of work remains. Technical cryptography still hasn’t solved all problems, the role of reputations (both positive and negative) needs further study, and the practical issues surrounding many of these areas have barely been explored.

We will be the colonizers of cyberspace.

12. Acknowledgments

My thanks to my colleagues in the Cypherpunks group, all 700 of them, past or present. Well over 100 megabytes of list traffic has passed through he Cypherpunks mailing list, so there have been a lot of stimulating ideas. But especially my appreciation goes to Eric Hughes, Sandy Sandfort, Duncan Frissell, Hal Finney, Perry Metzger, Nick Szabo, John Gilmore, Whit Diffie, Carl Ellison, Bill Stewart, and Harry Bartholomew. Thanks as well to Robin Hanson, Ted Kaehler, Keith Henson, Chip Morningstar, Eric Dean Tribble, Mark Miller, Bob Fleming, Cherie Kushner, Michael Korns, George Gottlieb, Jim Bennett, Dave Ross, Gayle Pergamit, and—especially—the late Phil Salin. Finally, thanks for valuable discussions, sometimes brief, sometimes long, with Vernor Vinge, David Friedman, Rudy Rucker, David Chaum, Kevin Kelly, and Steven Levy.

Source:

https://nakamotoinstitute.org/virtual-communities/#ref10

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Door of Opportunity…

Oliver Napoleon Hill (October 26, 1883 – November 8, 1970) was an American  self-help author.

He is best known for his book Think and Grow Rich (1937), which is among the 10 best-selling self-help books of all time.

Hill's works insisted that fervid expectations are essential to improving one's life.

Most of his books were promoted as expounding principles to achieve "success".
Napoleon Hill

Born : October 26, 1883
Pound, Virginia, U.S.

Died : November 8, 1970 (aged 87)
Greenville, South Carolina, U.S.

Occupation : Author,  journalist,  salesman, lecturer

Citizenship : American

Period : 1928–1970

Genre : Non-fiction, self-help


Notable works :

Think and Grow Rich (1937)
• The Law of Success (1928)
Outwitting the Devil (1938)

Spouse :

Florence Elizabeth Horner (1910–1935)

Rosa Lee Beeland (1937–1940?)

Annie Lou Norman (1943–1970)

Children : 3


Hill is, in modern times, a controversial figure.

Accused of fraud, modern historians also doubt many of his claims, such as that he met Andrew Carnegie and that he was an attorney.

Gizmodo has called him "the most famous conman you've probably never heard of".

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“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.

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Let your light shine

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Marcus Aurelius, “Meditations”

Values

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Deepak Chopra

Mathematics

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Criss Jami, “Killosophy”

Job from the Heart

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Rob Liano

Embrace your Values

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Bad times

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Homer, “The Iliad”

Life

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You are worth more than gold

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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.

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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

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Valuation of an Asset

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Naved Abdali

Evaluate

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Fair Value

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Actual Value

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

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Naved Abdali

Pick up a book

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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


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