Simplifying Bitcoin

Investing in Bitcoin is basically betting that no one cannot "break" the 256 bit private key that you own. When a person obtains your private key, they can send your bitcoins to themselves, and cash them out.

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Bitcoin public/private keys use something called ECDSA (en.bitcoin.it/wiki/Elliptic_Curve_Digital_Signature_Algorithm).

The reason why Bitcoin is currently safe, is because an attack needed for obtaining a private key requires a very large computation power, in order to solve the ECDSA equation.

Everytime computer power technology increases, the risk of breaking a Bitcoin private key increases.

The problem is that there is no way to know what the next breakthru computer power technology will be available in the near future.

There is always a chance that the next breakthru could easily allow for anyone to break a private key in a matter of seconds. And the consequences of that happening can be serious such as dropping the BTC price to near zero, and losing all the invested capital in the virtual currency.

If you are going to invest in BTC, be aware of the risks mentioned. There is always a chance that the risk of BTC price droping back to Zero, could happend in the next minute.

My advice is to consider BTC as a risky investment. Don´t leave your investments in BTC. Cash them out as soon as possible, and diversify your investment porfolio.

Other urls found in this thread:

andrea.corbellini.name/2015/06/08/elliptic-curve-cryptography-breaking-security-and-a-comparison-with-rsa/
en.bitcoin.it/wiki/Private_key
motherboard.vice.com/en_us/article/nzpv8m/the-large-bitcoin-collider-is-generating-trillions-of-keys-and-breaking-into-wallets
motherboard.vice.com/en_us/article/3d9bv8/the-large-bitcoin-collider-is-a-security-nightmare
directory.io
jsonline.com/story/news/education/2017/11/01/uw-madison-students-report-disparities-campus-climate/819231001/
zerohedge.com/news/2017-11-01/amazon-registers-crypto-ethereum-domains-rumors-swirl-it-may-soon-accept-bitcoin
youtube.com/watch?v=V9EbPxTm5_s
twitter.com/SFWRedditGifs

>"invest" in buttcoin
no thanks
keep your bags

It shouldn´t even be calling it investing. It should be called "Betting that some nigger wont break my 256 bit private key".

The fact that it has not happened yet, increases the false sensation of security about that "currency".

When technology advances, they just switch it to 512 bit you faggot.

>don't trust most important non jewish controlled money system

do you happen to own a cristal ball that can let you know what the next technology advance would be relased next month?

of course the chances of a MASSIVE technological advance happening are minuscule, but the chance is still there.

also, I am not saying that you shouldn´t put your money in bitcoin. Just want to let people know that there is always a chance that you could lose it all. Even a dumb trojan virus could easily get your private key if you don´t know what you are doing.

Move along people, just an other fucking retard who doesn't fucking know anything about math, cryptography, blockchain and how bitcoins works.

I suggest never trusting a Mexican

Do you think it is imposible for someone to create a new technology, so powerful, that could easily break ECDSA private keys?

Here is a little reminder that in 2004, people broke a 109 bit length ECDSA key

andrea.corbellini.name/2015/06/08/elliptic-curve-cryptography-breaking-security-and-a-comparison-with-rsa/

This proves that there is a relationship between computer power and private key bit length.

It is a fact that with enough computer power, you could break a 512 bit key.

It is a fact that there is no way how much computer power could be available in the near future.

Out of the blue - of course it is impossible. In 60 years - maybe. Are there any schools in mexico that teach tech? Consider going into one.

>/biz/ thread #374663773 of the week

Okay, I am not a financial expert, but I do have a base understanding of investment, like most people. Crypto-currency is just speculation investment. Speculation investment is the riskiest form of investment. It's predicated on the idea that something will have a set value in the future, based on market predictions. Yes BTC has sky rocketed in value, and those who invested in it early are sitting on small to large fortunes, depending on the original value. However the constant promotion of BTC by some shills isn't going to help those who are considering investing now. In fact it will likely hinder them. Nothing can rise exponentially, infinitely. It must fluctuate or crash. If BTC becomes beyond the reach of the average person to purchase, it will crash that's how the market works. So if you are considering investing in BTC, don't, the time to do that has long passed.

If Dwave comes up with a "real" (tm) quantum computer, they could easily break any trivial size key length

andrea.corbellini.name/2015/06/08/elliptic-curve-cryptography-breaking-security-and-a-comparison-with-rsa/

Private keys get COMPED all the time.

The system is not as secure as your spic brain might lead you to think.

A bitcoin wallet is basically a public key with a certificate and a private key.

That private key does not change because of the transactions that you do, that´s that the blockchain (ledger) is for.

en.bitcoin.it/wiki/Private_key

>China bans bitcoin
>Russia bans bitcoin
>US goys buy on top of the bubble

Again, you know why bitcoin got to $6k? Because it demonstrated an amility to change. WIth it, they'll just pick whatever keys are good if it's necessary.

someone should create an alt coin where miners contribute to breaking ECDSA.

Are you mentally retarded? Learn some cryptography.

Symmetric encryption, even in the system of bitcoin, has it's flaws particularly when the programming is shit.

Private keys get cracked all the time.

The amount of computing power need to own 51% of the has rate is Insane. Unless quantum computing is available to the public within the next years, there really is no reason to FUD.

>Again, you know why bitcoin got to $6k?
Because in Communist China electricity is free for the government workers you idiots. I can already see you fuck crying that Chinese tricked you again.

Here's one example.

motherboard.vice.com/en_us/article/nzpv8m/the-large-bitcoin-collider-is-generating-trillions-of-keys-and-breaking-into-wallets

This is just one group that's making a ton of money off it's relatively weak cryptographical system.

>The amount of computing power need to own 51% of the has rate is Insane

Again, China that makes all of your electronics including miners pay 0, nothing, null for electricity.
They control the market and you are falling for the shit chinese influencers are selling you on Sup Forums.

Became a multi-millionaire off BTC. AMA

OP is a complete moron. The only known crack for a private key is brute force, meaning you need to try something like 10^77 combinations. That about the same number as atoms in the universe. I don't care how fast computers get, you cannot crack 256-bit keys.

What if I tell you there is a backdoor?

motherboard.vice.com/en_us/article/3d9bv8/the-large-bitcoin-collider-is-a-security-nightmare

Prove it:

1CoDfBP119FkQgk4wHVhVQMAUwYe97hVbM

Send something that means nothing to you.

Question:
How? Is it too late? Will bitcoin be worth 25000 in a couple of years? Will it fail

You can find all bitcoin private and public keys at directory.io

No one cares. Unlike stocks and ForEx, what you did required no skill.

Bitcoin will fail hard because once the hard drive or password gets lost, bittcoins get lost forever and you can't have more than 21 mil. Expect jewish tricks like forking and inflating prices for no reason to continue.

>Is it too late?
No.
>Will bitcoin be worth 25000 in a couple of years?
No.
>Will it fail
Yes.

t. Analyst at $4.4 trillion wealth management firm

I won't because I don't want any anons to know my public address. ya never know..

We'll likely be over 10k by the end of this year. Now's the time to buy.

My biggest regret was not going all in when I found out about it, price was $25 each. I told my dad I was thinking of putting my whole live savings into it and he talked me out of it, LOL.

Tell me more, also quantum computers

Also, say I want to pay the pizza delivery man in Bitcoin, it costs $5 Just to process that transaction. That will be the true fall of bitcoin.

>Analyst
So you pull horoscopes out of your ass for money with 50% accuracy?

You said the same thing in the last thread

Yep, once atomic computers come out nothing is safe. Hackers will be able to break any encryption in milliseconds. They better start working on a solution.

The needed power does not scale linearly. And it's possible to calculate the sheer amount of power necessary to break 256 or 512bit encryption, it's not economical and will likely never be.
(or as good as never)

Cash out. They'll be worth a lot less in a few years. There are a couple firms on Wall Street planning a value captures via massive shorts.

Once the police shuts down Silkroad 2.0 all coins will crash so hard, fags will start jumping off buildings without the help of Muslims.

In the past encryption had been broken by discovering a loophole or technique. So breaking the block chain is not entirely dependent on advances in processing power.

What makes you feel it will fail?

What do you mean by atomic? Atomic length scales are maybe 1/100th of current processor architecture. This could potentially give a 100x increase I processing power?

No, it's not too late. It's still early, actually. There's a long ride left to go, including to $25,000.

Governments and central banks are already developing their own crypto's. It's the future.

Ironically, because of this, while they were born out of the idea of freedom, they'll eventually lead to the ultimate control and loss of freedom once central banks and governments mandate them.

Silver and gold first (especially silver) but go ahead and get some BTC too. I've made a small fortune, personally. As a miner and day trader in the crypto markets I can tell you there's PLENTY of action left.

He probably means quantum computing.

I wish it were that simple. I wouldn't have had to get a PhD, then.

The last I checked, I'm at 82% accuracy this year with my calls and 87% with my puts this year... so I'm a bit better than 50%... I'm in the top percentile of analysts.

It will be. Quantum computing is closer than you think, and make no mistake crypto will be there before you can blink. China is working on it right now; in fact, China's already launched the world's first quantum satellite.

Pay attention, major paradigm shifts are coming.

This

Just buy some and hold it? I don't have time to day trade.

I feel like whatever I put in I have to be willing to lose completely. I mean the stock market corrects and that sucks, but you don't lose it completely even in a crash.

If they break 256 bit keys tomorrow, the whole fucking internet and the banking system and everything in between will also break you fucking idiot. At that point it won't matter if you're invested in bitcoin or in dollar.

A more realistic outcome would be advancements in quantum computing may make it possible to break these hashing algorithms. But we'd be switching to something that's prone to that before that happens.

Thank's for the (you's)

millions of bitcoins have already been stolen.
the problem is when people leave their keys on something that can be hacked, like a phone or PC.
smart people have multiple wallets and don't keep all their coins in the same wallet.
also it is best to keep your key on a USB drive or something like that,
noobs and their bitcoins are soon departed.

GUYS within the last 2 months i literally fantasized about spray painting its ok to be white downtown. I live in uw madison aka trigglypuff central, I'll try to do some work, the asshurt would be insane

Also

>Half of UW-Madison students of color feel like they don't 'belong' on campus, survey shows
>jsonline.com/story/news/education/2017/11/01/uw-madison-students-report-disparities-campus-climate/819231001/

If it weren't for the black market I don't know how I would spend my Bitcoin. At least while I have my fix I can daytrade with other cryptocurrencies, but that doesn't define value.

It won't completely fail, it's just well-accepted that this is a bubble in the finance sector and I've heard a couple firms are planning to set up a means to short it.

Beyond that, possible future internet regulations, possible anti-money laundering legislation on crypto being pushed by big banks, the US government being able devalue through flooding the market via the reserves they have seized via the FBI, and the security concerns OP brought up are also huge concerns.

I personally think a hedge fund (or hedge funds) will pop the bubble and seize the wealth in the ensuing panic.

kill yourself OP i really mean it

Remember the thousands of coins stolen from MtGox? Other exchanges have also been hit.

Bitcoins are not as safe as people think.

To me the biggest problem with bitcoin, as a complete novice that knows nothing about anything, is there isn't really a closed loop for it yet. I mean you buy some shit on overstock.com and then they just convert that back to dollars. Might as well have just bought it in dollars to begin with.

How long you think I have before the bubble pops? Should I put some money in now?

This is more a probpem of trusting other people, not the technology itself.

literally space cash

OP, are you aware that if someone finds the privkey to your wallet, in some cases they still cannot spend it?

If that happens and ECDSA is broken all of the sudden, I'd bet bitcoin would probably be the least of our problems.

Banks, our private information, all depends on symmetric key encryption.

You are forgetting that bitcoin is decentralized and the ledger can just be forked from the point before it was compromised, security improvements applied.

I don't believe you. Everyone claiming to be able to predict the future of markets is a liar. Sorry bro. Not giving you any money.

Holding is all you have to do, but you can't hold for infinity, right? You need to understand and map out how far you're willing to go. But yes, just buy and hold.

I speculate that precious metals will finally be redeemed during the coming financial crisis, and crpyto's will likely take a major hit on the onset as people liquidate for fiat in order to pay bills and buy groceries.

Phase 2 of the collapse will be the "reconstruction" so to speak, and here I believe you will see crpyto rise from the ashes of our old systems like a phoenix and usher in a new paradigm. It's very possible that precious metals will have a large role in this, as well. China is certainly angling for both, as is all of BRICS and Japan.

>555777

kek vouches for this guy

...

Don't be silly. They'll just upgrade to a 2048 bit key whenever that shit happens, who cares.

The downfall of bitcoin will be that there isn't an actual State backing it, so it's not real money. Pleople are just buying and selling wasted computing time.

>have 2 btc
>also have approx 1 btc worth of altcoins
>watching that money bleed away by the hour as all alts get dropped
i'm too low iq for this

Stock market is going to tank too right? I mean it is crazy right now how high the stock market is. It reminds me of before the last crash.

How do I diversify well to help withstand a crash? I have a vanguard four-portfolio fund, cash, some precious metals, and actually some physical gold. I've kinda been kicking myself for not being in the stock market with more money since it has done so well, but I graduated in 2008 from college and remember that aftermath well...kinda scared me off from being too active in it

You obviously have no concept of money, currency, or what constitutes legitimacy in either one. To suggest money is real because it's backed by a state or central bank, or that it's not because it has neither, is to tell the entire thread you have no fucking clue what you're talking about.

(((dollars)))

No, it's not that trivial. Remember that bitcoin themselves do not exist, there's just the blockchain which is a huge record of every transaction ever that ever occured since the genesis block.

You cannot just change the encryption method in the client without that being incompatible with the existing blockchain. Bitcoin would be effectively dead in that scenario. Thankfully, its extremely unlikely to happen, at least for a couple of decades.

You can't buy legal shit with buttcoins. That's why they are a scam. Inb4 that one shop in California.

You can literally go on Overstock.com and buy a toaster.

Yes it is. The crash you refer to in '08 was never allowed to happen the way the free market wanted it to, as the Fed introduced QE, lowered interest rates, bought up toxic assets, bailed out malinvestments and artificially propped up a dead horse.

The coming crash will not be a "new" crash so to speak, it'll merely be the second half of '08 that never happened, and because it's been artificially prolonged for so long, it'll be far worse now than it would have otherwise been 10 years ago.

Metals, cash on hand, some crypto, guns, ammo, cigarettes and alcohol (vodka, whiskey) etc. will be extremely nice to have in an all-out worst case scenario.

On the mild side, silver is probably the most undervalued asset in history right now.

Actually you can.

And actually, this:

zerohedge.com/news/2017-11-01/amazon-registers-crypto-ethereum-domains-rumors-swirl-it-may-soon-accept-bitcoin

I'll be here passing out school lessons all day.

The same logic applies to regularl money though in a way. There's always the risk of criminals ruining your currency.

Just like we update paper bills with increased security measures every couple of years, bitcoin too can upgrade their security if the need arises.

wow

Tell me how China will not fuck up bitcoin to harm USA and their new economic war against china?

Thats now how bit coin works you fucking artard, bit coins are tied to a wallet, and guess what, all that information is fucking public you mongaloid. Every transaction from ever is recorded. In order to "Hack" Bit coin a single entity needs to posses great then 50% of all the computing power being used for all mining operations. This is because all transations are recorded in a public ledger that every single miner has. The reason you need 50% or more is because once you have that, you basically have a 50%+ say in what the public ledgers report. And since you would then control the majoirty any thing you say goes. Why that can never happen is because as computer power gets more powerful all the other miners also can gain more processing power, so it becomes more more difficult to obtain that 50%+ Additionally, since all these ledgers are public, the mining community can see when someone is approching that 50% mining point, this happened a few years ago with Mtn Gox, which was around 48% and guess what, all the miners dropped out, and even mnt gox backed out because once that 50% mark is reached all the miners know its fucked. Not to mention bit coin ALSO has the ability to make not only the block chains harder to solve, but also the ability to award less bit coins per solve, meaning the rate at which coins are discovered can be controlled in a perportional rate to the mining speed. This is why when the mining rigs that could pull assinine amount of computations, faster then any GPU could, did not crash the market because the difficulty was adjusted to deal with it.
Also fucking reddit spacing.

>rumors
>amazon

Unlike you, who are obviously a renowned internet expert :^)

Try paying your taxes in Bitcoin, genius.

build a quantum computer in 60 seconds, GO !

see tech doesn't work that way, you need to build up the theory, than a blueprint/architecture, than build it, test it, etc, than after all that is done you get to use it.

What are the signs of this impending crash? Is there anyone prominent writing about this? Seems like lending is still pretty tight, so, I don't think overleveraging would trigger it. And we do have lots of growth, I don't know if the stock market really matches that though or if it is overblown.

I mean look at Tesla's value. They don't even make money...

Hurting bitcoin wouldn't hurt the US as much as it would other countries that don't have strong currencies. I mean look at all the Venezuelans stuffing money in it to get their assets out of the country.

You wouldn't be changing the encryption for bitcoin, just adding another layer of stronger encryption on top of it.

>hurr dee durr
every additional digit basically doubles the amount of brute force attempts you need to make. With a 256 bit key, you're talking about needing to make more attempts than there are atoms in the observable universe.
And no, we won't have the kind of computer power in the near future, because we've hit the limits of moore's law. Computer tech has hit maturity, we aren't going to miniaturize chips any further.

>Hurting bitcoin wouldn't hurt the US as much as it would other countries

Nigga, you are the ones investing most money in bitcoins. Slavs don'tbuy bitcoins. We get them as rans om for your encrypted files. Also
>Dollar
>Strong currency

Give me money you cowards

i'll post more rare cuties as reward:

1CoDfBP119FkQgk4wHVhVQMAUwYe97hVbM

fuck your memecoin

You're done.

Depends on your definition of "prominent." You could've always gotten this golden nugget 2 days before the '08 crash...

youtube.com/watch?v=V9EbPxTm5_s

The MSM pushes the government prop up, you'll never be warned about the crash. Stick with guys like Peter Schiff.

>Trusting Cryptocurrency
>Trusting Mexicans
WHAT DOES Sup Forums PICK?

Quantum computing is a fairy tale.

no it doesnt. you can literally pay him 1 cent, it will just take longer for the transaction to be confirmed
5$ is like near-instant confirmation even these days

also, the bitcoin software is being updated to tackle this problem

Alright, friend, enjoy playing with your toy money while you can, which I guess won't be much longer ;-)

Thanks

BTC is $.10
>BUBBLE!! SELL SELL!!
BTC is $1.00
>BUBBLE!! SELL SELL!!
BTC is $10.00
>BUBBLE!! SELL SELL!!
BTC is $100.00
>BUBBLE!! SELL SELL!!
BTC is $1,000
>BUBBLE!! SELL SELL!!

No professional investor, analyst, or billionaire can figure out what the hype is about because they are too busy butt fucking each other in boiler room deals among themselves and politicians that they bought off to notice that us plebs they've been fucking all along through QE and inflation, have figured out how to circumvent (((their))) little gang bang.