Bitcoin 101 - CoinDesk

semi-quick answers to common questions of new people

so people often ask similar questions over here and because they are getting probably kinda annoying over time to many I just try to answer as many as I find. if you have more that would fit here, add them to the comments

submitted by My1xT to ledgerwallet [link] [comments]

BTCPay Server Questions for key security with LN capabilities.

Read over the docs and the Getting Started with BTCPay Server post. Played around on TorProject's donation page. All in all looks really awesome. Did have a few questions on LN with BTCPay.
As the docs point out, for BTC payments, you can keep your xprv off server so you can receive payments to a cold wallet. For LN payments though, I'd imagine you have to have a hot-wallet on the BTCPay server. The docs seem to imply this as well. This would mean if I drop the ball on my firewall or BTCPi setup, that someone more clever than I could launch a remote attack and possibly empty my LND wallet.
Is there a way around this? I would imagine I have to keep an xprv in LND for it to do invoicing. But is there any way I point BTCPay to another LN node to always empty the BTCPay-LN wallet to? I guess it would need a batch of non-denominational invoices to pay-to with some real long expiration. I would think you could upload a new batch of invoices every few days. Obviously if the server ran out of back-end invoices, it would just hold funds on server.
Anyway, has this been discussed before in a PR or anything. There are likely far more elegant suggestions, but my basic idea is just to keep the BTC-LN hot wallet as empty as possible. Let it receive payments then dump them to another location that is "less-hot" with fewer open ports.

Update

Thanks for the feedback guys. I suppose I didn't really phrase my question right, so I guess that's why it missed its mark. I'm coming at it from an OPSEC view point, so from that standpoint here is my view:

Assumptions

  1. Anything with an open port accepting bind connections (aka web-server) has a risk of getting completely compromised by an attacker.
  2. Something with no open ports but still online (aka LN wallet without inbound conns) has a lower risk of getting completely compromised by an attacker.
  3. If an attacker can compromise the security of the OS, it is assumed the risk of the wallets keys being compromised is > 0.000000%
  4. If an attacker compromises the wallet private keys, they will have access to whatever funds are in the wallet both past and future.

Conclusion

Given that the a BTCPay server with LN enabled keeps an open internet port to service payment requests and keeps private keys on the server, the risk of [4] above is basically the odds of [1] times the odds of [3], both of which are > 0.00000%. So if you are at a non-zero risk of loosing previous and future payments, the rational thing to do (in my opinion) is to move funds out of the at-risk wallet. This would mean that from the point in time T of point 4, the only funds at risk would be future payments, and not past ones. Furthermore any movement of funds would signal the compromise allowing the operator to shutdown the server. So realistically the risk window would be drastically reduced.

Proposal

Given that moving funds off of the at risk wallet reduces exposure, my proposal is to move funds (via LN) from the high-risk wallet to a lower-risk wallet. Since they are LN TXNs the cost is serviceable. Although the low-risk wallet still has a risk > 0.000000%, it is still significantly lower risk than the BTCPay server since the low-risk wallet does not accept inbound connections. There are likely dozens of protocol specific ways to get this done. My suggestions was to house a collection of 1000 invoices on the BTCPay server with a 800 hour expiration. This would allow the operator to refresh the invoice collection once a month and allow the BTCPay server a collection of invoices to use to move funds from the high-risk to low-risk wallet.

Postscript

Hopefully that defines my concerns a bit more clearly.
submitted by brianddk to Bitcoin [link] [comments]

BTCPay Server Questions for key security with LN capabilities.

Read over the docs and the Getting Started with BTCPay Server post. Played around on TorProject's donation page. All in all looks really awesome. Did have a few questions on LN with BTCPay.
As the docs point out, for BTC payments, you can keep your xprv off server so you can receive payments to a cold wallet. For LN payments though, I'd imagine you have to have a hot-wallet on the BTCPay server. The docs seem to imply this as well. This would mean if I drop the ball on my firewall or BTCPi setup, that someone more clever than I could launch a remote attack and possibly empty my LND wallet.
Is there a way around this? I would imagine I have to keep an xprv in LND for it to do invoicing. But is there any way I point BTCPay to another LN node to always empty the BTCPay-LN wallet to? I guess it would need a batch of non-denominational invoices to pay-to with some real long expiration. I would think you could upload a new batch of invoices every few days. Obviously if the server ran out of back-end invoices, it would just hold funds on server.
Anyway, has this been discussed before in a PR or anything. There are likely far more elegant suggestions, but my basic idea is just to keep the BTC-LN hot wallet as empty as possible. Let it receive payments then dump them to another location that is "less-hot" with fewer open ports.

Update

Thanks for the feedback guys. I suppose I didn't really phrase my question right, so I guess that's why it missed its mark. I'm coming at it from an OPSEC view point, so from that standpoint here is my view:

Assumptions

  1. Anything with an open port accepting bind connections (aka web-server) has a risk of getting completely compromised by an attacker.
  2. Something with no open ports but still online (aka LN wallet without inbound conns) has a lower risk of getting completely compromised by an attacker.
  3. If an attacker can compromise the security of the OS, it is assumed the risk of the wallets keys being compromised is > 0.000000%
  4. If an attacker compromises the wallet private keys, they will have access to whatever funds are in the wallet both past and future.

Conclusion

Given that the a BTCPay server with LN enabled keeps an open internet port to service payment requests and keeps private keys on the server, the risk of [4] above is basically the odds of [1] times the odds of [3], both of which are > 0.00000%. So if you are at a non-zero risk of loosing previous and future payments, the rational thing to do (in my opinion) is to move funds out of the at-risk wallet. This would mean that from the point in time T of point 4, the only funds at risk would be future payments, and not past ones. Furthermore any movement of funds would signal the compromise allowing the operator to shutdown the server. So realistically the risk window would be drastically reduced.

Proposal

Given that moving funds off of the at risk wallet reduces exposure, my proposal is to move funds (via LN) from the high-risk wallet to a lower-risk wallet. Since they are LN TXNs the cost is serviceable. Although the low-risk wallet still has a risk > 0.000000%, it is still significantly lower risk than the BTCPay server since the low-risk wallet does not accept inbound connections. There are likely dozens of protocol specific ways to get this done. My suggestions was to house a collection of 1000 invoices on the BTCPay server with a 800 hour expiration. This would allow the operator to refresh the invoice collection once a month and allow the BTCPay server a collection of invoices to use to move funds from the high-risk to low-risk wallet.

Postscript

Hopefully that defines my concerns a bit more clearly.
submitted by brianddk to lightningnetwork [link] [comments]

Andreas Antonopoulos' depiction of the day he became aware of the donations that made him a millionaire

I'm not sure if this already has been posted here, but I just came across this post from A. Antonopoulos' Patreon page (it's a public entry posted on 16th of December. The readability and formatting is better there btw):
Edit: direct link to the post: https://www.patreon.com/posts/emotional-15912702
On December 6th, my life changed trajectory... again. I went to sleep on a wave of positive messages and support from the bitcoin community, in response to a letter I had posted on Patreon titled “In defense of optimism” that had leaked to Reddit. I had spent the day reading messages of support pouring in on Twitter, Patreon, and email, literally thousands of them. It was a life-affirming experience. Like everyone else on social media, the messages I receive are not always kind and supportive. Often the critical messages and trolls are far louder than the supporters. Our brains don't evaluate praise and criticism in equal measure - it's easy to believe the criticism and see the praise as undeserved. That’s why each little message of support makes a difference, each one helps me ignore the critics and see the impact of my work. In addition to all of the written messages, people were signing up to support me on Patreon and some were even sending bitcoin to my donation address. By the time I went to sleep, I was filled with gratitude, humbled by the overwhelmingly positive, viral response of the community.
Here’s what happened next...
I wake up on December 7th, the notifications list on my phone was too long to scroll. Hundreds more messages of support had come in while I was asleep.
Then my phone rings and I recognize the number of a dear friend. "Strange," I think. I’m not expecting a call. "Don't open your laptop yet," she says. "You got some big bitcoin donations overnight. Are you sitting down?" I sit down. I open my laptop, I look at the balance in my 1andreas bitcoin donation address.
Surprise, gratitude, fear, shock, joy, elation, anxiety. My emotions achieved a level of volatility that mirrored that of the bitcoin exchange rate. Good thing I was sitting down.
You're probably thinking that between the supportive messages and the large donations, I’d have been celebrating without a care in the world. But I'm a security professional who works in bitcoin. Could I come up with a doomsday scenario to taint this experience? Hold my beer.
I'm in a taxi on the way to the airport. I’m cycling through emotions again, a bit faster now.
Joy, Terror, Tears, Gratitude, Fear, Elation, Dread, Cold Sweat. It's a good thing I'm sitting down. I can't feel my fingers.
Anxiety
Wouldn't it be ironic if I get hacked and this massive donation is stolen the same day it was given? Shudder. That was a real possibility. Funds were sent to a vanity address, posted on my website, which was mainly used to support my habit of giving small amounts of bitcoin to strangers at meetups and conferences. Before December 6th, the address typically received small gifts each month and I emptied it every now and then in a spree of small donations.
Gratitude
I still can’t believe how many people have responded. I had no idea how many people could identify with the feelings expressed “In defense of optimism” and would want to show their support. I’m grateful to be a part of this community.
Fear
This vanity address is secured with a single private key which was stored on my phone in a “hot” wallet, so that I can give away bitcoin at meetups. The address has maximum public visibility and no Segwit (segregated witness) support. My security model just tipped over and I'm freaking out.
Happiness
I’m so happy! This is incredible, unimaginable. My fingers are numb, in a good way. Is this really happening?!?
Cold Sweats
I have to move the funds out. Now. Right now. But I only have this key on a wallet that doesn't handle RBF (replace-by-fee), CPFP (child-pays-for-parent), and it's not a Segwit address. I'm traveling; I’m about to get on two long flights and the mempool is slammed with transactions. Of all the days!
Joy
I’m crying. Tears of joy. This is something most people never get to experience in the most meaningful of careers, a loud acknowledgement from an entire community and financial security. I’m thinking about my family members and close friends who are struggling and overjoyed at the opportunity I now have to help them.
Terror
Then it dawns on me: a perfect nightmare scenario. What if this is considered "income" in the US and I have to pay taxes at a 39.6% rate? Those taxes would be evaluated on the USD value of the donation at the time it was made, at an all-time-high price of bitcoin. If bitcoin's bubble bursts by 50% today, I will owe more taxes than the donation is worth. I will be bankrupt but will owe the IRS and those debts can't be discharged in bankruptcy. I'm going to be in debt for a decade!
Elation
I can HODL! I don’t have to keep selling to pay bills. Patreon has grown too, so I should be able to cover my expenses and build the business with their support. I can really HODL!
[Alarm buzzes on my phone]
“Boarding on Gate D15”. Pack everything back up, run to the gate. Find my seat. Unpack all my electronics. Re-establish connections. No Wifi yet. 3G if I hold my phone just so against the window. We're taking off. No Wifi at all on this flight. 4 hours, offline, me and my thoughts. What is the opposite of a state of mindfulness? Head spinning.
Fear
What if the price crashes. Should I sell some?
Silliness
I'm buying a lambo (I laugh out loud at the thought of that. No, I'd never waste money on something so silly).
Dread
What if the donations had zero fees and will never confirm? What if this was all a cruel joke?
Joy
My dad will be so proud!
[Landed]
Turn on smartphone. Too many notifications. Turn on VPN, Tor. Sync wallet. Too slow. Too slow.
Run to the lounge. Get on Wifi. Fire up VPN, Tor. Start electrum. Import keys. Child-pays-for-parent the stuck transactions, Replace-by-fee new transactions. Careful coin selection. Send to cold storage (so glad I keep an unused cold storage address handy). Overpay fees more than ever before. 2000 satoshi per byte? Fuck yeah. This is the highest priority transaction of my life. 8 agonizing minutes. 1st block. Confirmations ripple down my screen. Exhaling... I hadn't noticed I was holding my breath.
“Boarding gate C51”. Pack everything, run to the gate. Board the plane. Unpack everything. This flight has Wifi. Bet it doesn't work. Yup, it doesn't work. 6.5 hour flight. I'll just read a book. I've read the same paragraph 8 times and don't know what it says. I'll sleep. Nope. Ok fine, I'll fret - seems I'm good at that and nothing else right now.
[Landed]
That was the longest flight ever. Boot up, 4G, VPN, Tor. Sync.... slow, too slow.
ANOTHER GIANT DONATION. WTF! Is this really happening? Is my wallet counting the balance incorrectly? This isn't possible. WTF IS GOING ON?
Joy, Terror, Tears, Gratitude, Fear, Elation, Dread. I’m cycling faster now.
I just emptied my wallet into cold storage and now it's carrying a ridiculous amount again. Boot up, VPN, Tor, Electrum, CPFP, RBF, cold sweat, 1 confirmation. Phew.
I realize that I just conducted the 4 biggest transactions of my life. I'm shaking. Hope I didn't screw anything up.
Finally I get to my hotel. “Long day” doesn’t even begin to describe it. I am grateful, giddy, jetlagged and exhausted, so sleep should come easy, right? Not happening. Two hours of tossing and turning while my mind is racing. In the end I just pass out from exhaustion. I wake up in a state of anxiety.
I open my inbox. I have a dozen interview requests from newspapers, TV, radio. They don’t want to talk about bitcoin. They want to talk about “my story.” It’s never been about “my story” and I’m not about to change that. Denied, denied, denied. That’s it. I’m going offline for a few days. I need time to process everything that has happened over the past couple of days and strategize about what to do next.
There are no words to adequately convey my appreciation, my gratitude.
These are life-changing gifts, but I don’t intend to change my life. I’m highly suspicious and careful about “lifestyle inflation”: I resist any urges to increase my spending as my income increases because as a self-employed entrepreneur I know my income can decrease significantly at any moment.
First, the practical side: For legal and tax reasons the gifts should remain mostly untouched for at least three years. This is a new situation and no one knows for sure how the authorities will characterize it. I wanted to HODL anyway, so that’s fine with me.
Second, and the much more important side, I love what I do. I’m obviously not going to “retire” or slow down. Receiving your messages and support has energized me and I’m excited to do more, much more.
The number of people supporting me on Patreon has grown significantly and with that support I’ll actually be able to do a lot more. And there are many things I want to do: a new website with more materials, in as many formats and languages as possible; more books; an epic tour; and that’s just the beginning! I also plan to grow my team, which serves two goals: I can get help for the things that need to be done, but I can also bring more people success and security with a steady paycheck.
While I’m excited about all of these new projects, I want you to know that the ultimate goal remains the same: to educate as many people as possible about this transformational technology and remain an independent voice, working directly for the community.
A week has passed. The one feeling that keeps returning, among the barrage of feelings, is gratitude. After taking time to process and calm down, the fear and stress is gone and all that is left is gratitude. I am so thankful for all the messages of support. I am so touched to hear stories of how my work has affected others in a positive way. I am thankful for all the donors who rallied behind me to help me in my advocacy and education.

THANKYOUBITCOINCOMMUNITY

Thank you for being so generous, so kind, so supportive; I’ll never forget this experience. Now, back to work!
submitted by TheGreatMuffin to Bitcoin [link] [comments]

I Created a Custom Lightning Payment Jackpot Website from Scratch, This Is What I Learnt

TL;DR: I wanted to learn how the Lightning Network operates. So I came up with an idea for a jackpot site using the Lightning Network to handle micro-payments. Operating a Lightning node is complicated and challenging for a beginner. Using custodial wallets like Wallet of Satoshi, BlueWallet or Breez is easy to use but not your keys. Please come by and help me test my Lightning integrated new website. I’m happy to help anyone that’s new to Lightning setup a wallet and play a game. It all helps with learning and adoption, that’s why we’re all here! Long Bitcoin, Short the Bankers!

Introduction: Welcome to a brand new concept in random number seeding. Generating a truly random number is quite hard. You could use the current time, divided by the RPM spin of your hard disk, squared by the temperature of your CPU, and so on. Other extreme methods include measuring quantum fluctuations in a vacuum, see ANU Quantum Random Number. All these methods are fine but none of these are really verifiable by a 3rd party. Whoever running the system can change the outcome. I'm not saying they do, simply stating that if the payoff was great enough to alter the 'reported' outcome they could. So what's different here? We're using the Bitcoin blockchain itself as the arbitrator. Every outcome is not only provably fair but verifiably fair and immutable. Trying to cheat this system is impossible.

So that’s the pitch. Make a website using the idea of whoever’s guess is closest, wins the jackpot; using Lightning to handle all the incoming and outgoing payments. I started to look around at other fully functional websites offering Lightning as a payment method. It turns out most use a 3rd party like OpenNode or CoinGate. To me, this defeats the whole purpose of Bitcoin. Why build a website/offer a service/offer Lightning as a payment method if you don’t even own or control your funds. A payment processor could simply turn off withdrawals and it’s over. Not your keys, not your coins!

It’s been quite a learning experience for me. I think the most frustrating thing to figure out and attempt to solve was channel capacity. For example, with a fresh new wallet setup on Bitcoin Lightning for Andriod (blue bolt logo), you can open a channel to anyone fine, but trying to receive money won’t work. I think for a beginneadoption this is the greatest hurdle to understand/overcome.
You need to spend money so the other side has some collateral to send back. One explanation I read was, opening Lightning channels are like a full glass of water, I need to tip some of my water into your empty glass so my glass has some room to fill it back up, it can’t overflow. Another one is like beads on a string. The number of beads is up to you but if all the beads are on your side, the other party can’t push any beats your way because you have them all. There’s ways to fix this. Either spend into the channel or buy incoming channel capacity. On the spend side, you can use websites like lightningconductor.net which allow you to send money to their Lightning node, from your new channel, and they’ll send the coins to your on-chain Bitcoin wallet. This is a simple way to empty your glass or push those beads to the other side and still retain all your money, minus LN and on-chain fees. For incoming capacity, you can use LNBig and get 400k satoshis of incoming capacity for free or lightningto.me, or you can pay lightningpowerusers.com or bitrefill.com to open larger capacity channels to you for a small fee.

For a beginner or someone new to Bitcoin/Lightning, using a custodial wallet like BlueWallet, Wallet of Satosh or Breez is far easier than trying to setup channels and buy or massage incoming capacity. You can simply install the application and using lightningconductor.net BTC to LN you can send some Bitcoin and they’ll forward it on to your lightning wallet, for a fee. These custodial wallets accept incoming transactions of 1 million satoshis or more. So now you’ve got a working wallet that’s got a few thousand satoshis, keep reading!

How to play: Two things are verifiable on the blockchain, time between blocks and transactions included in that block. First choose which block#, by default it will be the next one coming up. Then choose a public alias, others will be able to see your bets but they won’t know if you’ve paid or not, only you can see that. Next, guess the time it will take to mine the next Bitcoin or the number of transactions in that block. You can make multiple guesses. If you want to place a number of spread bets, I suggest opening a spreadsheet and getting it to generate the times or transactions for you. For example, put in 2300, then 2350, 2375, 2400, then drag down to generate as many in the sequence as you want. You can bet a maximum of 25 per invoice. This will hopefully ensure the small transaction amount will be successful. Once you’ve generated an invoice, pay it from the QR code or the lightning bolt11 string.
Now you’re ready to go. Wait till the next block goes active or the block you’ve bet on and you’ll see your bets and everyone else’s. Most importantly, what the final jackpot is. Unpaid invoices are discarded. If the block rolls over while you’re making up your mind the page will refresh and you could lose your input. Please plan your bets in notepad or a spreadsheet. I know this is annoying but I never claimed to be a UX codedesigner! It was a struggle getting all the css, ajax and javascript working, ahhhrrrrggg!! Next is the interesting part as this game can become competitive.

Game theory: As others make bets, you can encapsulate theirs. For example, they guess 2750 transactions, you can bet 2749 and 2751. While at first this seems unfair, what it doesn't show is what bets have been paid for and what have not. Only you can see your own bets that are paid and unpaid. To everyone else they look like paid bets. Only when the next block/jackpot starts can you see what's been paid for as unpaid bets are discarded. By placing dummy bets, unpaid, you can sucker someone in and greatly increase the jackpot payout at no cost to yourself. You can also use the same alias, for example, open up two different browsers, one for real bets and one for fake bets. This is why there’s a 25 bet limit, I don’t want people going too crazy with this. You can check your bets in the footer bar under ‘previous bets’. Also, IMPORTANT, please keep track of your account number at the top. If your session or browser has a problem, you can lose access to your bets and jackpot winnings. If this happens and you receive a new account number, simple use the claim jackpot in the footer to claim your winning jackpot. If you don’t have this, I can’t help you if something goes wrong. Rather than having a login/password system you have a unique account id. Don’t lose it! Now back to the blockchain.

What a minute… I though it took 10 minutes to confirm a block? Not always, actually it does this very rarely. If you average out every block over time, it averages around ten minutes. A block is confirmed when a miner takes transactions from the memory pool, up to ~1.2mb worth. Next, now this is the hard part, they need to generate a hash for that block, but it needs to start with X number of leading zeros. To achieve this, they use a random number called a nonce to seed/salt the hash and hopefully, it contains X number of zeros at the start of the block hash. If not, discard and keep trying. The winning block contains the miners local time, which can sometimes be wrong. This is why sometimes you get negative block times. See block #180966 then the next block, #180967's time stamp is before the first one! Who cares, as long as the later block references the previous block to keep the chain intact. You can’t guess negative numbers but you can guess 0 seconds. Which I guess is like betting on the green zero in roulette.

Ready to play?
Each bet is worth 5,000 satoshis. I wanted it to be expensive enough to prevent spam and also the jackpots be large enough that it would be worth playing. I hope you have fun.
Website is https://blockwisdom.com
My Twitter handle is @nixdice
If you have any questions or issues, please contact me here or on Twitter I’ll try my best to sort it out quickly.
submitted by nixdice to Bitcoin [link] [comments]

An extensive guide for cashing out bitcoin and cryptocurrencies into private banks

Hey guys.
Merry Xmas !
I am coming back to you with a follow up post, as I have helped many people cash out this year and I have streamlined the process. After my original post, I received many requests to be more specific and provide more details. I thought that after the amazing rally we have been attending over the last few months, and the volatility of the last few days, it would be interesting to revisit more extensively.
The attitude of banks around crypto is changing slowly, but it is still a tough stance. For the first partial cash out I operated around a year ago for a client, it took me months to find a bank. They wouldn’t want to even consider the case and we had to knock at each and every door. Despite all my contacts it was very difficult back in the days. This has changed now, and banks have started to open their doors, but there is a process, a set of best practices and codes one has to follow.
I often get requests from crypto guys who are very privacy-oriented, and it takes me months to have them understand that I am bound by Swiss law on banking secrecy, and I am their ally in this onboarding process. It’s funny how I have to convince people that banks are legit, while on the other side, banks ask me to show that crypto millionaires are legit. I have a solid background in both banking and in crypto so I manage to make the bridge, but yeah sometimes it is tough to reconcile the two worlds. I am a crypto enthusiast myself and I can say that after years of work in the banking industry I have grown disillusioned towards banks as well, like many of you. Still an account in a Private bank is convenient and powerful. So let’s get started.
There are two different aspects to your onboarding in a Swiss Private bank, compliance-wise.
*The origin of your crypto wealth
*Your background (residence, citizenship and probity)
These two aspects must be documented in-depth.
How to document your crypto wealth. Each new crypto millionaire has a different story. I may detail a few fun stories later in this post, but at the end of the day, most of crypto rich I have met can be categorized within the following profiles: the miner, the early adopter, the trader, the corporate entity, the black market, the libertarian/OTC buyer. The real question is how you prove your wealth is legit.
1. Context around the original amount/investment Generally speaking, your first crypto purchase may not be documented. But the context around this acquisition can be. I have had many cases where the original amount was bought through Mtgox, and no proof of purchase could be provided, nor could be documented any Mtgox claim. That’s perfectly fine. At some point Mtgox amounted 70% of the bitcoin transactions globally, and people who bought there and managed to withdraw and keep hold of their bitcoins do not have any Mtgox claim. This is absolutely fine. However, if you can show me the record of a wire from your bank to Tisbane (Mtgox's parent company) it's a great way to start.
Otherwise, what I am trying to document here is the following: I need context. If you made your first purchase by saving from summer jobs, show me a payroll. Even if it was USD 2k. If you acquired your first bitcoins from mining, show me the bills of your mining equipment from 2012 or if it was through a pool mine, give me your slushpool account ref for instance. If you were given bitcoin against a service you charged, show me an invoice.
2. Tracking your wealth until today and making sense of it. What I have been doing over the last few months was basically educating compliance officers. Thanks God, the blockchain is a global digital ledger! I have been telling my auditors and compliance officers they have the best tool at their disposal to lead a proper investigation. Whether you like it or not, your wealth can be tracked, from address to address. You may have thought all along this was a bad feature, but I am telling you, if you want to cash out, in the context of Private Banking onboarding, tracking your wealth through the block explorer is a boon. We can see the inflows, outflows. We can see the age behind an address. An early adopter who bought 1000 BTC in 2010, and let his bitcoin behind one address and held thus far is legit, whether or not he has a proof of purchase to show. That’s just common sense. My job is to explain that to the banks in a language they understand.
Let’s have a look at a few examples and how to document the few profiles I mentioned earlier.
The trader. I love traders. These are easy cases. I have a ton of respect for them. Being a trader myself in investment banks for a decade earlier in my career has taught me that controlling one’s emotions and having the discipline to impose oneself some proper risk management system is really really hard. Further, being able to avoid the exchange bankruptcy and hacks throughout crypto history is outstanding. It shows real survival instinct, or just plain blissed ignorance. In any cases traders at exchange are easy cases to corroborate since their whole track record is potentially available. Some traders I have met have automated their trading and have shown me more than 500k trades done over the span of 4 years. Obviously in this kind of scenario I don’t show everything to the bank to avoid information overload, and prefer to do some snacking here and there. My strategy is to show the early trades, the most profitable ones, explain the trading strategy and (partially expose) the situation as of now with id pages of the exchanges and current balance. Many traders have become insensitive to the risk of parking their crypto at exchange as they want to be able to trade or to grasp an occasion any minute, so they generally do not secure a substantial portion on the blockchain which tends to make me very nervous.
The early adopter. Provided that he has not mixed his coin, the early adopter or “hodler” is not a difficult case either. Who cares how you bought your first 10k btc if you bought them below 3$ ? Even if you do not have a purchase proof, I would generally manage to find ways. We just have to corroborate the original 30’000 USD investment in this case. I mainly focus on three things here:
*proof of early adoption I have managed to educate some banks on a few evidences specifically related to crypto markets. For instance with me, an old bitcointalk account can serve as a proof of early adoption. Even an old reddit post from a few years ago where you say how much you despise this Ripple premined scam can prove to be a treasure readily available to show you were early.
*story telling Compliance officers like to know when, why and how. They are human being looking for simple answers to simple questions and they don’t want like to be played fool. Telling the truth, even without a proof can do wonders, and even though bluffing might still work because banks don’t fully understand bitcoin yet, it is a risky strategy that is less and less likely to pay off as they are getting more sophisticated by the day.
*micro transaction from an old address you control This is the killer feature. Send a $20 worth transaction from an old address to my company wallet and to one of my partner bank’s wallet and you are all set ! This is gold and considered a very solid piece of evidence. You can also do a microtransaction to your own wallet, but banks generally prefer transfer to their own wallet. Patience with them please. they are still learning.
*signature message Why do a micro transaction when you can sign a message and avoid potentially tainting your coins ?
*ICO millionaire Some clients made their wealth participating in ETH crowdsale or IOTA ICO. They were very easy to deal with obviously and the account opening was very smooth since we could evidence the GENESIS TxHash flow.
The miner Not so easy to proof the wealth is legit in that case. Most early miners never took screenshot of the blocks on bitcoin core, nor did they note down the block number of each block they mined. Until the the Slashdot article from August 2010 anyone could mine on his laptop, let his computer run overnight and wake up to a freshly minted block containing 50 bitcoins back in the days. Not many people were structured enough to store and secure these coins, avoid malwares while syncing the blockchain continuously, let alone document the mined blocks in the process. What was 50 BTC worth really for the early miners ? dust of dollars, games and magic cards… Even miners post 2010 are generally difficult to deal with in terms of compliance onboarding. Many pool mining are long dead. Deepbit is down for instance and the founders are MIA. So my strategy to proof mining activity is as follow:
*Focusing on IT background whenever possible. An IT background does help a lot to bring some substance to the fact you had the technical ability to operate a mining rig.
*Showing mining equipment receipts. If you mined on your own you must have bought the hardware to do so. For instance mining equipment receipts from butterfly lab from 2012-2013 could help document your case. Similarly, high electricity bill from your household on a consistent basis back in the day could help. I have already unlocked a tricky case in the past with such documents when the bank was doubtful.
*Wallet.dat files with block mining transactions from 2011 thereafter This obviously is a fantastic piece of evidence for both you and me if you have an old wallet and if you control an address that received original mined blocks, (even if the wallet is now empty). I will make sure compliance officers understand what it means, and as for the early adopter, you can prove your control over these wallet through a microtransaction. With these kind of addresses, I can show on the block explorer the mined block rewards hitting at regular time interval, and I can even spot when difficulty level increased or when halvening process happened.
*Poolmining account. Here again I have educated my partner bank to understand that a slush account opened in 2013 or an OnionTip presence was enough to corroborate mining activity. The block explorer then helps me to do the bridge with your current wallet.
*Describing your set up and putting it in context In the history of mining we had CPU, GPU, FPG and ASICs mining. I will describe your technical set up and explain why and how your set up was competitive at that time.
The corporate entity Remember 2012 when we were all convinced bitcoin would take over the world, and soon everyone would pay his coffee in bitcoin? How naïve we were to think transaction fees would remain low forever. I don’t blame bitcoin cash supporters; I once shared this dream as well. Remember when we thought global adoption was right around the corner and some brick and mortar would soon accept bitcoin transaction as a common mean of payment? Well, some shop actually did accept payment and held. I had a few cases as such of shops holders, who made it to the multi million mark holding and had invoices or receipts to proof the transactions. If you are organized enough to keep a record for these trades and are willing to cooperate for the documentation, you are making your life easy. The digital advertising business is also a big market for the bitcoin industry, and affiliates partner compensated in btc are common. It is good to show an invoice, it is better to show a contract. If you do not have a contract (which is common since all advertising deals are about ticking a check box on the website to accept terms and conditions), there are ways around that. If you are in that case, pm me.
The black market Sorry guys, I can’t do much for you officially. Not that I am judging you. I am a libertarian myself. It’s just already very difficult to onboard legit btc adopters, so the black market is a market I cannot afford to consider. My company is regulated so KYC and compliance are key for me if I want to stay in business. Behind each case I push forward I am risking the credibility and reputation I have built over the years. So I am sorry guys I am not risking it to make an extra buck. Your best hope is that crypto will eventually take over the world and you won’t need to cash out anyway. Or go find a Lithuanian bank that is light on compliance and cooperative.
The OTC buyer and the libertarian. Generally a very difficult case. If you bought your stack during your journey in Japan 5 years ago to a guy you never met again; or if you accumulated on https://localbitcoins.com/ and kept no record or lost your account, it is going to be difficult. Not impossible but difficult. We will try to build a case with everything else we have, and I may be able to onboard you. However I am risking a lot here so I need to be 100% confident you are legit, before I defend you. Come & see me in Geneva, and we will talk. I will run forensic services like elliptic, chainalysis, or scorechain on an extract of your wallet. If this scan does not raise too many red flags, then maybe we can work together ! If you mixed your coins all along your crypto history, and shredded your seeds because you were paranoid, or if you made your wealth mining professionally monero over the last 3 years but never opened an account at an exchange. ¯_(ツ)_/¯ I am not a magician and don’t get me wrong, I love monero, it’s not the point.
Cashing out ICOs Private companies or foundations who have ran an ICO generally have a very hard time opening a bank account. The few banks that accept such projects would generally look at 4 criteria:
*Seriousness of the project Extensive study of the whitepaper to limit the reputation risk
*AML of the onboarding process ICOs 1.0 have no chance basically if a background check of the investors has not been conducted
*Structure of the moral entity List of signatories, certificate of incumbency, work contract, premises...
*Fiscal conformity Did the company informed the authorities and seek a fiscal ruling.
For the record, I am not into the tax avoidance business, so people come to me with a set up and I see if I can make it work within the legal framework imposed to me.
First, stop thinking Switzerland is a “offshore heaven” Swiss banks have made deals with many governments for the exchange of fiscal information. If you are a French citizen, resident in France and want to open an account in a Private Bank in Switzerland to cash out your bitcoins, you will get slaughtered (>60%). There are ways around that, and I could refer you to good tax specialists for fiscal optimization, but I cannot organize it myself. It would be illegal for me. Swiss private banks makes it easy for you to keep a good your relation with your retail bank and continue paying your bills without headaches. They are integrated to SEPA, provide ebanking and credit cards.
For information, these are the kind of set up some of my clients came up with. It’s all legal; obviously I do not onboard clients that are not tax compliant. Further disclaimer: I did not contribute myself to these set up. Do not ask me to organize it for you. I won’t.
EU tricks
Swiss lump sum taxation Foreign nationals resident in Switzerland can be taxed on a lump-sum basis if they are not gainfully employed in our country. Under the lump-sum tax regime, foreign nationals taking residence in Switzerland may choose to pay an expense-based tax instead of ordinary income and wealth tax. Attractive cantons for the lump sum taxation are Zug, Vaud, Valais, Grisons, Lucerne and Berne. To make it short, you will be paying somewhere between 200 and 400k a year and all expenses will be deductible.
Switzerland has adopted a very friendly attitude towards crypto currency in general. There is a whole crypto valley in Zug now. 30% of ICOs are operated in Switzerland. The reason is that Switzerland has thrived for centuries on banking secrecy, and today with FATCA and exchange of fiscal info with EU, banking secrecy is dead. Regulators in Switzerland have understood that digital ledger technologies were a way to roll over this competitive advantage for the generations to come. Switzerland does not tax capital gains on crypto profits. The Finma has a very pragmatic approach. They have issued guidance- updated guidelines here. They let the business get organized and operate their analysis on a case per case basis. Only after getting a deep understanding of the market will they issue a global fintech license in 2019. This approach is much more realistic than legislations which try to regulate everything beforehand.
Italy new tax exemption. It’s a brand new fiscal exemption. Go to Aoste, get residency and you could be taxed a 100k/year for 10years. Yes, really.
Portugal What’s crazy in Europe is the lack of fiscal harmonization. Even if no one in Brussels dares admit it, every other country is doing fiscal dumping. Portugal is such a country and has proved very friendly fiscally speaking. I personally have a hard time trusting Europe. I have witnessed what happened in Greece over the last few years. Some of our ultra high net worth clients got stuck with capital controls. I mean no way you got out of crypto to have your funds confiscated at the next financial crisis! Anyway. FYI
Malta Generally speaking, if you get a residence somewhere you have to live there for a certain period of time. Being stuck in Italy is no big deal with Schengen Agreement, but in Malta it is a different story. In Malta, the ordinary residence scheme is more attractive than the HNWI residence scheme. Being an individual, you can hold a residence permit under this scheme and pay zero income tax in Malta in a completely legal way.
Monaco Not suitable for French citizens, but for other Ultra High Net worth individual, Monaco is worth considering. You need an account at a local bank as a proof of fortune, and this account generally has to be seeded with at least EUR500k. You also need a proof of residence. I do mean UHNI because if you don’t cash out minimum 30m it’s not interesting. Everything is expensive in Monaco. Real Estate is EUR 50k per square meter. A breakfast at Monte Carlo Bay hotel is 70 EUR. Monaco is sunny but sometimes it feels like a golden jail. Do you really want that for your kids?
Dubaï
  1. Set up a company in Dubaï, get your resident card.
  2. Spend one day every 6 month there
  3. ???
  4. Be tax free
US tricks Some Private banks in Geneva do have the license to manage the assets of US persons and U.S citizens. However, do not think it is a way to avoid paying taxes in the US. Opening an account at an authorized Swiss Private banks is literally the same tax-wise as opening an account at Fidelity or at Bank of America in the US. The only difference is that you will avoid all the horror stories. Horror stories are all real by the way. In Switzerland, if you build a decent case and answer all the questions and corroborate your case in depth, you will manage to convince compliance officers beforehand. When the money eventually hits your account, it is actually available and not frozen.
The IRS and FATCA require to file FBAR if an offshore account is open. However FBAR is a reporting requirement and does not have taxes related to holding an account outside the US. The taxes would be the same if the account was in the US. However penalties for non compliance with FBAR are very large. The tax liability management is actually performed through the management of the assets ( for exemple by maximizing long term capital gains and minimizing short term gains).
The case for Porto Rico. Full disclaimer here. I am not encouraging this. Have not collaborated on such tax avoidance schemes. if you are interested I strongly encourage you to seek a tax advisor and get a legal opinion. I am not responsible for anything written below. I am not going to say much because I am so afraid of uncle Sam that I prefer to humbly pass the hot potato to pwc From here all it takes is a good advisor and some creativity to be tax free on your crypto wealth if you are a US person apparently. Please, please please don’t ask me more. And read the disclaimer again.
Trust tricks Generally speaking I do not accept fringe fiscal situation because it puts me in a difficult situation to the banks I work with, and it is already difficult enough to defend a legit crypto case. Trust might be a way to optimize your fiscal situation. Belize. Bahamas. Seychelles. Panama, You name it. At the end of the day, what matters for Swiss Banks are the beneficial owner and the settlor. Get a legal opinion, get it done, and when you eventually knock at a private bank’s door, don’t say it was for fiscal avoidance you stupid ! You will get the door smashed upon you. Be smarter. It will work. My advice is just to have it done by a great tax specialist lawyer, even if it costs you some money, as the entity itself needs to be structured in a professional way. Remember that with trust you are dispossessing yourself off your wealth. Not something to be taken lightly.
“Anonymous” cash out. Right. I think I am not going into this topic, neither expose the ways to get it done. Pm me for details. I already feel a bit uncomfortable with all the info I have provided. I am just going to mention many people fear that crypto exchange might become reporting entities soon, and rightly so. This might happen anyday. You have been warned. FYI, this only works for non-US and large cash out.
The difference between traders an investors. Danmark, Holland and Germany all make a huge difference if you are a passive investor or if you are a trader. ICO is considered investing for instance and is not taxed, while trading might be considered as income and charged aggressively. I would try my best to protect you and put a focus on your investor profile whenever possible, so you don't have to pay 52% tax if you do not have to :D
Full cash out or partial cash out? People who have been sitting on crypto for long have grown an emotional and irrational link with their coins. They come to me and say, look, I have 50m in crypto but I would like to cash out 500k only. So first let me tell you that as a wealth manager my advice to you is to take some off the table. Doing a partial cash out is absolutely fine. The market is bullish. We are witnessing a redistribution of wealth at a global scale. Bitcoin is the real #occupywallstreet, and every one will discuss crypto at Xmas eve which will make the market even more supportive beginning 2018, especially with all hedge funds entering the scene. If you want to stay exposed to bitcoin and altcoins, and believe these techs will change the world, it’s just natural you want to keep some coins. In the meantime, if you have lived off pizzas over the last years, and have the means to now buy yourself an nice house and have an account at a private bank, then f***ing do it mate ! Buy physical gold with this account, buy real estate, have some cash at hands. Even though US dollar is worthless to your eyes, it’s good and convenient to have some. Also remember your wife deserves it ! And if you have no wife yet and you are socially awkward like the rest of us, then maybe cashing out partially will help your situation ;)
What the Private Banks expect. Joke aside, it is important you understand something. If you come around in Zurich to open a bank account and partially cash out, just don’t expect Private Banks will make an exception for you if you are small. You can’t ask them to facilitate your cash out, buy a 1m apartment with the proceeds of the sale, and not leave anything on your current account. It won’t work. Sadly, under 5m you are considered small in private banking. The bank is ok to let you open an account, provided that your kyc and compliance file are validated, but they will also want you to become a client and leave some money there to invest. This might me despicable, but I am just explaining you their rules. If you want to cash out, you should sell enough to be comfortable and have some left. Also expect the account opening to last at least 3-4 week if everything goes well. You can't just open an account overnight.
The cash out logistics. Cashing out 1m USD a day in bitcoin or more is not so hard.
Let me just tell you this: Even if you get a Tier 4 account with Kraken and ask Alejandro there to raise your limit over $100k per day, Even if you have a bitfinex account and you are willing to expose your wealth there, Even if you have managed to pass all the crazy due diligence at Bitstamp,
The amount should be fractioned to avoid risking your full wealth on exchange and getting slaughtered on the price by trading big quantities. Cashing out involves significant risks at all time. There is a security risk of compromising your keys, a counterparty risk, a fat finger risk. Let it be done by professionals. It is worth every single penny.
Most importantly, there is a major difference between trading on an exchange and trading OTC. Even though it’s not publicly disclosed some exchange like Kraken do have OTC desks. Trading on an exchange for a large amount will weight on the prices. Bitcoin is a thin market. In my opinion over 30% of the coins are lost in translation forever. Selling $10m on an exchange in a day can weight on the prices more than you’d think. And if you trade on a exchange, everything is shown on record, and you might wipe out the prices because on exchanges like bitstamp or kraken ultimately your counterparties are retail investors and the market depth is not huge. It is a bit better on Bitfinex. It is way better to trade OTC. Accessing the institutional OTC market is not easy, and that is also the reason why you should ask a regulated financial intermediary if we are talking about huge amounts.
Last point, always chose EUR as opposed to USD. EU correspondent banks won’t generally block institutional amounts. However we had the cases of USD funds frozen or delayed by weeks.
Most well-known OTC desks are Cumberlandmining (ask for Lucas), Genesis (ask for Martin), Bitcoin Suisse AG (ask for Niklas), circletrade, B2C2, or Altcoinomy (ask for Olivier)
Very very large whales can also set up escrow accounts for massive block trades. This world, where blocks over 30k BTC are exchanged between 2 parties would deserve a reddit thread of its own. Crazyness all around.
Your options: DIY or going through a regulated financial intermediary.
Execution trading is a job in itself. You have to be patient, be careful not to wipe out the order book and place limit orders, monitor the market intraday for spikes or opportunities. At big levels, for a large cash out that may take weeks, these kind of details will save you hundred thousands of dollars. I understand crypto holders are suspicious and may prefer to do it by themselves, but there are regulated entities who now offer the services. Besides, being a crypto millionaire is not a guarantee you will get institutional daily withdrawal limits at exchange. You might, but it will take you another round of KYC with them, and surprisingly this round might be even more aggressive that the ones at Private banks since exchange have gone under intense scrutiny by regulators lately.
The fees for cashing out through a regulated financial intermediary to help you with your cash out should be around 1-2% flat on the nominal, not more. And for this price you should get the full package: execution/monitoring of the trades AND onboarding in a private bank. If you are asked more, you are being abused.
Of course, you also have the option to do it yourself. It is a way more tedious and risky process. Compliance with the exchange, compliance with the private bank, trading BTC/fiat, monitoring the transfers…You will save some money but it will take you some time and stress. Further, if you approach a private bank directly, it will trigger a series of red flag to the banks. As I said in my previous post, they call a direct approach a “walk-in”. They will be more suspicious than if you were introduced by someone and won’t hesitate to show you high fees and load your portfolio with in-house products that earn more money to the banks than to you. Remember also most banks still do not understand crypto so you will have a lot of explanations to provide and you will have to start form scratch with them!
The paradox of crypto millionaires Most of my clients who made their wealth through crypto all took massive amount of risks to end up where they are. However, most of them want their bank account to be managed with a low volatility fixed income capital preservation risk profile. This is a paradox I have a hard time to explain and I think it is mainly due to the fact that most are distrustful towards banks and financial markets in general. Many clients who have sold their crypto also have a cash-out blues in the first few months. This is a classic situation. The emotions involved in hodling for so long, the relief that everything has eventually gone well, the life-changing dynamics, the difficulties to find a new motivation in life…All these elements may trigger a post cash-out depression. It is another paradox of the crypto rich who has every card in his hand to be happy, but often feel a bit sad and lonely. Sometimes, even though it’s not my job, I had to do some psychological support. A lot of clients have also become my friends, because we have the same age and went through the same “ordeal”. First world problem I know… Remember, cashing out is not the end. It’s actually the beginning. Don’t look back, don’t regret. Cash out partially, because it does not make sense to cash out in full, regret it and want back in. relax.
The race to cash out crypto billionaire and the concept of late exiter. The Winklevoss brothers are obviously the first of a series. There will be crypto billionaires. Many of them. At a certain level you can have a whole family office working for you to manage your assets and take care of your needs . However, let me tell you it’s is not because you made it so big that you should think you are a genius and know everything better than anyone. You should hire professionals to help you. Managing assets require some education around the investment vehicles and risk management strategies. Sorry guys but with all the respect I have for wallstreebet, AMD and YOLO stock picking, some discipline is necessary. The investors who have made money through crypto are generally early adopters. However I have started to see another profile popping up. They are not early adopters. They are late exiters. It is another way but just as efficient. Last week I met the first crypto millionaire I know who first bough bitcoin over 1000$. 55k invested at the beginning of this year. Late adopter & late exiter is a route that can lead to the million.
Last remarks. I know banks, bankers, and FIAT currencies are so last century. I know some of you despise them and would like to have them burn to the ground. With compliance officers taking over the business, I would like to start the fire myself sometimes. I hope this extensive guide has helped some of you. I am around if you need more details. I love my job despite all my frustration towards the banking industry because it makes me meet interesting people on a daily basis. I am a crypto enthusiast myself, and I do think this tech is here to stay and will change the world. Banks will have to adapt big time. Things have started to change already; they understand the threat is real. I can feel the generational gap in Geneva, with all these old bankers who don’t get what’s going on. They glaze at the bitcoin chart on CNBC in disbelief and they start to get it. This bitcoin thing is not a joke. Deep inside, as an early adopter who also intends to be a late exiter, as a libertarian myself, it makes me smile with satisfaction.
Cheers. @swisspb on telegram
submitted by Swissprivatebanker to Bitcoin [link] [comments]

Butters lose their minds when trying to defend Bitcoin's energy use

It would be hilarious if it wasn't so sad.
Here are some examples.
Currently Bitcoin mining consumes around 40,000,000 MW, which is roughly 0.2% of the world’s energy production. In the future it may consume around 10–20% of the world’s energy production, at least a 100x multiple from here, at the same time as supporting the world’s $80tn global economy, which is also a order of magnitude of 100 from where we are today.
Nope, I don't see any problem here!
Here's another genius:
In the hunt for cheap energy sources, we will unlock greater economic abundance in the real world. Bitcoin, through the harnessing of these new or disparate energy sources, not only moves us forward to a Kardeshev Type I economy but may bring us closer to a Kardeshev Type I energy civilization (We’re ~0.72 on the Kardashev Scale). With Bitcoin mining as an incentive, it may shrink the time we get to T1 from 200 years to less than a few decades. After reaching Type I status, there is less of a need to restrict the growth of energy consumption, which increases the standard of living for everyone.
Or, the glass is half empty, that white powder in your nose will lose its effect soon after writing this article, and we actually accelerate global warming to win a prize in a zero-sum game created by a speculative bubble that hasn't fallen apart yet because it's very easy to use for scams. Anyway, I'm an optimist so I'm planning on going out tomorrow and rolling coal with my SUV, to incentivize cleaner fuels. I predict that by rolling coal, I will help bring about the singularity. WHAT YOU GONNA DO ABOUT IT HUH, LIBCUCK STATIST SCUM?
Oh wait, how stupid of me. Bitcoin doesn't use enough electricity to bring us forward as a species. The banking industry uses far more electricity than bitcoin and actually accomplishes more than 3 transactions per second with it! This can mean only one thing: The banks are bringing us closer to a Kardeshev Type I energy civilization!
According to the article that trigger this discussion, Bitcoin annual Twh consumption is 28.67 , so currently more than 3 times more efficient than a very conservative calculation of the cost of the global banking system. Of course you will argue that the banking systems does more than handling a currency which is true but the difference is large enough that I do not think is that relevant. Even if only 30% of banks electricity consumption was the comparable part to Bitcoin, that will still make Bitcoin more efficient.
If we're comparing the entire banking industry to Bitcoin, are you including the tulip bulb container err hardware wallet I need to "be my own bank"? Are you including the full nodes we need to run 24/7 to serve as hubs on the lightning network? Are you including the servers of the big trading exchanges? Are you including the hundreds of people who work as customer support for the average big exchange? Are you including the Bitcoin ATM's where people can launder their cash? Are you including the data centers that run behind online wallets?
Calculating branch consumption is more tricky since there are lots of things to take into account like size of the branch or number of employees as well as several things consuming electricity like lights, cooling, computers, monitors, etc. And they are not open 24 x 365 so after looking at a couple of articles, I have decided to settle for a conservative number 10 kwh per branch assuming an average branch has 10 light bulbs, two air conditioning units that are only use 20% of the time and 12 desktop computers running an average of 12 hours a day, 20 days a month through the year.
Customer service peasants (subhuman plebs who can't code) work in the dark at 2AM in India without air conditioning to check your passport, this is how Bitcoin saves money compared to the banking industry.
Another expert suggests that perhaps people just like to stare at a blockchain, as if it were a work of art!
My point is that understanding the nature of proof-of-work and the incentives of mining valid blocks, as well as the security properties and thus the value of proof-of-work, might help to shift the perspective from “energy wasted” to “energy used for creating something valuable”. Most people value beautiful marble statues. A rising number of people value a chain of valid blocks.
I'm personally guessing people like staring at a blockchain because they imagine they're sitting on a pile of money without contributing to society, but what do I know.
Bitcoin Uses a Lot of Energy, But Gold Mining Uses More
One speculative bubble fueled by the greed of antisocial libertarians consumes more energy than another bubble fueled by the greed of antisocial libertarians. Perhaps we should consider investing money in projects that actually accomplish something, rather than buying tokens to hoard. I heard the exotic uncontacted tribe of almost anyone who's not an antisocial libertarian invests in this manner. I also heard you have more money today if you bought 1000 dollar worth of an index fund fifty years ago than 1000 dollar worth of gold, but perhaps society will collapse soon because of bitcoin mining induced global warming and your pile of gold/bitcoin will make you the village chief of a post-apocalyptic nightmare when everyone else's stock portfolio goes to zero.
submitted by yourasiansidekick to Buttcoin [link] [comments]

Reasoned speculation on what's going on (no hack, exit scam garbage)

UPDATE (2 hours after OP): NiceHash just confirmed that they have indeed been hacked. This post is now obsolete.
Full response from NiceHash: https://www.reddit.com/NiceHash/comments/7i0s6o/official_press_release_statement_by_nicehash/
For future readers: Contrary to what I thought would have been a proper announcement from NiceHash in case of a suspected security breach, something along the lines of "we are currently investigating a potential security breach", they advertised it as routine maintenance on their social media accounts.
I still stand by the opinion that based on what little evidence we had, an internal screwup was the most logical conclusion. However, it does make you wonder... if this is how a business reacts to a major security breach, not alerting their users in the slightest for 12+ hours, how likely is it that they will be trustworthy in the future?
With this, I'll leave you to read the original post, as can be found below.
I (like many others) have been closely watching this subreddit and NH's social media over the past couple hours to try and figure out what the hell is going on.
Most of it is just wild speculation and doesn't really get anyone anywhere, so I thought I'd share what we know for sure so far and what it may or may not mean. So yes, there will be a bit speculation, but not wild.
  1. There will be an update soon: https://i.redditmedia.com/2GoR3J2tnSOB0ckhTmJxyMFpS7JaeATM4cnypWnaxmY.png?w=661&s=d3d7c7b6256f418b81bce60da9b1aa18 Originally posted by vrvana here: https://www.reddit.com/NiceHash/comments/7hzpy9/so_did_nicehash_get_hacked_or_is_it_just_down/dquzwlu/
  2. NH's main wallet emptied: https://bitinfocharts.com/bitcoin/address/33dH7xpzrQG8ydZvtjZ387VzkRVVXRZNgF Posted by xanhugh (and probably others) here: https://www.reddit.com/NiceHash/comments/7hxxp3/hicehash_hacked/dquq0y0/
So all we really know is their main wallet has sent funds to another one with an unknown owner, and they will update us on the situation soon™.
What we DON'T know is who the funds were transferred to, and why the funds were transferred.
Hacked?
The prevalent theory seems to be that a hacker (or multiple) stole the money and transferred them to their account.
However, based on NH's response, I doubt this is true. If I operated a business of comparable scale and had my operation hacked and completely drained of all resources, I wouldn't pretend to know what's going on by putting it into maintenance mode.
Because then this is what happens. Reddit goes nuts and people get ready with their pitchforks. Because if there's one thing in the entire world that gets people more upset than losing money, it's being 90% sure you've lost money, but still having that small hope it may still be there. Because then, whenever you actually find out you DID, in fact, lose money, the actual upset is much bigger than if you had known it from the start.
Also, if they really did get hacked and lost all their money, they've been working with BTC long enough to know that there's nothing they can do. There would be absolutely no way in hell they could recover the funds, so there would be no need to try everything, since there's nothing to try.
In conclusion: Getting hacked would give them zero incentive to play it cool. It would give them all the incentive to just admit it. Whether or not they immediately own up to getting hacked has no influence on their career as a business: it's over regardless.
Exit Scam?
Instead of discussing this myself, I'll quote the post of kinsmore who explained it much more beautifully than I ever could. The full post is here: https://www.reddit.com/NiceHash/comments/7hykcu/any_info_on_the_owners_of_nicehash_where_do_they/dquszm8/
Nicehash has been in this market since 2014, and are making an insane amount of money right now. That would be like a bank teller deciding to steal all the cash on hand 3 years into their job where they were recommended to be branch manager soon. It doesn't make any sense, exit scams happen, but generally not to successful, well paying, well setup businesses (which nicehash is)
The other possibility
To me personally, the only thing that would explain everything, the mysterious maintenance, the transferred funds, and the lack of updates from NH is this: They colossally messed up.
Something must've gone terribly wrong during those earlier maintenances where the site itself was up, but certain functions were disabled or not working properly. I have two theories on what exactly could've happened:
  1. They were implementing something new and screwed up.
  2. The company/technology behind their servers/services messed something up.
What exactly, I don't know. But what I've experienced during their earlier maintenances makes this seem all the more plausible.
I don't know about you, but I for one was able to place orders & change prices sometimes, even though I felt like I shouldn't have been able to, during their earlier maintenances. It's possible that while the price change may have gone through, it was logged incorrectly and someone got billed/paid more/less than they should have.
Why transfer all the funds to a different wallet? You may ask. Couple of possible reasons:
  1. They've requested help from outside because they can't handle the situation themselves, but obviously don't want them to be able to snatch a boatload of bitcoins while fixing an issue. This would also explain the lack of updates, since NH wouldn't even know what's happening in this scenario.
  2. They're completely wiping the server and need the funds to be safe.
  3. Something's actually wrong with the service's logic, and they want to prevent it from accidentally sending out funds it isn't meant to send out.
In conclusion: A colossal fuckup is the only thing, from my perspective, that explains the mysterious maintenance, the lack of updates, and the transfer of funds. While it's easy to say they've exit scammed or been hacked, it really just doesn't make a lot of sense if you take everything into account. Pretending to do maintenance doesn't help your dying business if you've been hacked, and exit scamming right now would be the dumbest thing since solar roadways considering all the current (and future) profits they'd miss out on.
TL;DR: Exit scam & hack don't make sense, my bet is on a screwup on their end.
submitted by xNaXDy to NiceHash [link] [comments]

[ELI5] How to send coins using Coinb.in

How to send coins from ANY wallet using https://coinb.in/#settings

Why?

Because cold wallets, such as those stored offline in a text file as I keep recommending in my standard advice below:
All you need is a text file to put your wallets in, like this example from https://walletgenerator.net/?currency=Dogecoin
1,"D7WBUpdgLRtG6WyPsqjhaKiJR65X8ZGnkZ","6KieLMW1poAzNVnmLuQZqA262gxEQ51eLGdDK8e2GL2B4LHCKKb" 2,"DM8LT16d49zHr8ByXbUwZb9UBXDGMaZRdc","6Ktgxdv6vN9v2bDHwcJBBb3oMRAgXJumESzBnxaXUSGFZoq6pWQ" 3,"D5UCa51AfxjtVHQ46oYXe2YfkctTeLXPhx","6L2WSPWadRYCwt2L1CxH6zC7PoTYY3KyjxdiUoCqi5eyq6hQKvj"
Use https://coinb.in/#settings to move coins. Download both sites and run them offline. Use https://bitinfocharts.com/dogecoin/ to check balances and transactions. See http://www.mocacinno.com/blog/create-sign-broadcast-transactions-using-coinb/ for coinb.in tutorial. And read the ELI5s (and my history) for more info.
Are without doubt THE SAFEST way to store your coins. Plus, they consume no resources. No bandwidth, no network stress for every node we have, no storage of 20Gb+ blockchains, no weeks of waiting for things to sync, no tearing your hair out and posting desperate pleas for help, and most importantly, no coins irretrievably lost because you or your client screwed up.

What?

Wallets, ALL WALLETS are nothing but numbers. Very large numbers, but fundamentally no different from “7”, “42”, “911” or a phone number. They cannot be created nor destroyed, and you either know them or you don’t. Anyone who knows a key can use it to spend any coins it controls. Anyone who doesn’t know it, can’t. Don’t be the guy who doesn’t know his own keys. Keep them safe. Make copies. Keep those safe. Don’t let your friends, kid brother or random burglar find them, but don’t lose them either.
The only other thing you need for a fully functional wallet is a way to spend coins. Coinb.in is such a way. There are others, such as DogeCoinMultiSig.org which tomcarbon built.
Oh, and you can and should download it and run it locally.

Where?

The default entry point for coinb.in is https://coinb.in/#settings because this settings page is very well hidden. Its in the tiny gear wheel on the Broadcast page.
Looking across the top of the page, you can see
  • + New
  • Verify
  • Sign
  • Broadcast
  • Wallet
  • About
We’re only going to use three of these. New, Sign, Broadcast.
Now, keep in mind that coinb.in is an old Bitcoin tool which tomcarbon added Dogecoin to. Sometimes it thinks its dealing with Bitcoin still, so if you see anything odd, go and make sure you’ve selected Dogecoin in the Settings page.

When?

This tool should be the only place you spend coins. Sure, some clients may look more convenient, but they all suffer from a very big coin-losing flaw. Whenever you split a UTXO, they create a new wallet to send the change to. And they DON’T TELL YOU! This means unless you back up after every transaction, you run a high risk of finding all your coins have ‘disappeared’ from your wallet, and you don’t recognise where they went.
So if you use a client for the convenience as well as a text list of your wallets, you won’t know to add a new wallet to your masterfile. Its best to ditch the clients entirely.

How?

Now we come to the nitty-gritty. Lets use those three wallets above and assume that #1 is the source, #2 the destination and #3 the change wallet. Note that these won’t actually work, as none of them have ever been used, but they will do as examples.
New Transaction
Located at the bottom of the New menu, this will give you a page to enter your wallets and amounts.
In the top field, you enter your source address or Key. If you use the key, it will calculate the address when you click the Load button, which should match what you expected. Note that Load only brings in the first 100 UTXOs. This is so that you can retrieve coins from high-volume wallets which would kill any client. Coinb.in is in fact the ONLY WAY to do this, as even QT falls over around 600 UTXOs.
You will see the total balance that was loaded in the Transaction Fee field. And also in the Inputs tab, where you can go to adjust which UTXOs to spend.
Now you need to add the wallet(s) and amounts to send to them. Lets suppose the source contained a single UTXO for 1,000 Doge. You want to send 500 of them. So you would enter the #2 address in the Address field, and 500 in the Amount field. The Fee now changes to 500, which is not what you want.
So you click the + button to bring up a new line, enter the change address and the other 500, making the fee zero.
And you’re done. Check that the Fee is indeed zero. Check that the amounts shown in the Outputs and Inputs tabs match exactly.

THIS IS CRITICAL!

There is a bug which will send all the coins to the miners if the Outputs exceed the Inputs. I would have expected the Fee to show as negative in such a situation, but it doesn’t. BE WARNED!
Once everything looks right, hit the Submit button.
This will give you a block of hex code. Copy it.
Sign
Go to the Sign tab and paste it. Add your private key for the source wallet and click Submit. Note this can be done offline for safety.
This will give you another block of hex, the SIGNED transaction.
Broadcast
Copy this and paste it in the Broadcast tab and click Submit.
That’s it. Your coins are on their way. Make a cuppa and settle in while they arrive in a minute or three.
Note: All fields retain their values unless you refresh the page! This can be a boon when doing multiple transactions, such as when emptying a huge wallet. But it can also be a trap for the unsuspecting. Refresh or close the window when you’re done.

Who?

Who should use this?
Absolutely EVERYONE!
Even if you’re wedded to your client in some satanic blood-contract, you should still know how this works, because sooner or later you’re going to have a problem you can’t fix without it.
Definitely download the site and store it on every device you have. On every USB backup of your wallets. On your phone (well, except iOS which doesn’t do local HTML), etc, etc, etc.
Oh, and if you’re a programmer SmartyShibe, do consider improving the code over on GitHub.
EDIT: https://github.com/OutCast3k/coinbin added courtesy of AtomHearth
submitted by Fulvio55 to dogecoin [link] [comments]

14 Things We Learned Creating a Million Dollar Hyperdeflationary Currency (DRAFT)

14 Things We Learned Creating a Million Dollar Hyperdeflationary Currency (DRAFT)
Four months ago we made a reddit post announcing a social experiment to create a “self-destructing currency” called BOMB. The reactions were polarizing, to say the least:
Some comments were positive
A currency that no one wants to spend but everyone wants to have would result in an ever growing value. However, it might only be on paper because no one wants to spend it. I wonder what will happen. I really hope this gains popularity, very interesting.
Many comments were negative
Aaand this is why crypto is viewed with such cynicism. People can literally create their own private currencies in their basements.
Multiple comments were entertaining
LOL, I wonder how many FBI safeguards this will trigger.
The success and legitimacy of the project were still to be determined, but one thing was for sure: people were curious.

The Big Bang


On January 15th, we launched one million BOMB into the digital abyss known as the blockchain. The rules of the currency were simple:
  • Only 1,000,000 BOMB would be created.
  • Each time the BOMB is transferred, 1% is destroyed
  • There would never be a newly created BOMB.
Over the following months, more than 750,000 tokens were distributed for free, over 3,000 individuals participated, and over 20,000 BOMB were burned through transfers and trading (2% of total supply). The social communities grew into the multiple thousands, and many respected projects began getting involved.
The intention was not to be used as a transactional currency, but rather a consistently deflating and decentralized store of value.
The problem we were attempting to solve (or at least experiment with) is the token velocity problem that plagues many of the tokens in the market today.
The goal was to become the deflationary currency of the decentralized world. Many currencies focus on speed, cost, and privacy. We focus on deflation.

https://preview.redd.it/da1yr3z2qf031.png?width=600&format=png&auto=webp&s=1cea93246a0ce9bb96dd63708371ba66512e8420

The Journey


The reaction of the events over the next months took us down a winding road of adventure and a fair share of heart attacks. One day we would get an endorphin rush after the co-creator of the #OccupyWallStreet movement wrote an article; the next day we would find a major vulnerability in the code that would literally cause us to re-issue tokens.
Through it all, the journey has been a rewarding one, and we learned a lot along the way. Here are the top 14 things we learned while creating a million dollar hyper deflationary currency.

1) A Deflationary Asset Can Survive... So Far At Least.


One of the biggest things we wanted to learn when starting the social experiment was to ask:
“Can a deflationary asset survive?”

Good question in theory, but how do you measure that? Do you measure it by price? Do you measure it by how many people hold it? Do you measure by usage?
Within the community, one of our members recently public a “The Bomb Report”, a case study breakdown of some really interesting statistics and analysis of the currency and the success/failures it has had so far.

Total Bombs Burned per Day


Total Bombs Burned Over Time


Price vs. Total Percentage Bomb Burned

2) If You Build it, They Won’t Come


The blockchain industry consists of some of the most talented technical and visionary minds in the world. However, despite this, most average consumers haven’t experienced a blockchain application or used the currencies built on top of it.
While there is still plenty of time for true mass adoption to occur, it has become clear that the amount of technical value being developed is not equating to the amount of activity or users.
We believe this is not for lack of building, but for lack of storytelling and communication. Average consumers don’t resonate with technological features, they resonate with the stories and the advantages within a solution.
Bitcoin, the most successful cryptocurrency to date, has one of the best stories behind it. An anonymous and mystical figure behind the name of Satoshi Nakamoto took his passion and pain from the financial crisis of 2008 to create a better solution.
The building behind BOMB wasn’t intensive or complex at all, just a few dozen lines of code in solidity. But that wasn’t our story. Our story was our journey and social experimentation of a deflationary currency. That is why people joined, and this is what keeps people intrigued still to this day.

3) Hodling is Still Alive & Kicking


Despite the average airdrop value sitting over $200 per participant, 84.5% of people have not touched or moved their BOMB. Out of 3073 current addresses, 2604 people would rather hold than sell their BOMB.

4) The Cryptocurrency Industry is Skeptical by Default


Despite giving away all our tokens for free and answering questions as transparently as possible, the default response was skepticism; and rightfully so.
Despite over $13,000,000,000 in public capital allocated to the decentralized world in the first half of 2018 alone, over 1000 projects are now dead. Many of the people who joined the industry joined during this time and still feel the resentment to this day.
While it will probably take many years to overcome this skepticism, and may never go away, we learned it is important to take every comment and negative remark in stride. Some are valid concerns, but a majority aren’t actually mad or disgruntled with you, but at the industry as a whole.

5) Going from 0 to 1 is 10x harder than 1 to 10


Like most projects, when we started, our followers and community count started at zero.
During the first few weeks of sharing the story of BOMB with a few friends, the growth was extremely slow (relative to what it is today) at maybe 1–5 people per day.
Nobody wants to be the first to the party. When you’re walking down the street, everyone assumes the crowded bar is better than the empty bar. The one thing you can do to overcome this early stage is making your early adopters feel like absolute VIPs.
More than the early adopters getting more free tokens than everyone else, myself and the co-creators spent endless hours on telegram talking with each and every single person who joined. There was not a lost soul who wandered into our group that didn’t get an overly ambitious introduction.
This is the core and foundation that will set everything in motion. While I no longer introduce myself to every new person to the group, our community does, and its an amazing feeling.

6) Clear & Concise Communication is Everything


When I first started telling my friends about BOMB, the natural response was “What else does it do?”
We as humans have a natural instinct to think more is better. Many founders start with a very clear mission to create something like a comfortable chair but they end up explaining their product as an “Anti-Gravitational Sitting Apparatus to Disrupt the Entire Furniture Industry with Built-in LED Lights and Omni-Rocking Functionality”
The problem is when we try to communicate this vision to the world, our vision becomes convoluted and messy. The most successful projects to date consist of the ones doing one thing better than anyone else.
When people explain what BOMB is, they explain it very clearly and concisely: A deflationary currency. When people explain how BOMB works, they easily recall and reference the three rules of the currency as stated above.

7) Transparently Bad News is Better than No News


The biggest “OH SNAP” moment for BOMB occurred in February, just a few weeks after airdropping our creation to the world. A community member following the project found an error on the code that could open up the currency to exploitation in the future.
Rather than attempting to hide the situation, we made a medium post to explain the situation and news to the community.
Just a few weeks ago, many of our community members began to get anxious about a potential exchange listing that was taking longer than expected. While frustrating to take criticism for items we couldn’t control, we wrote a 19 thread tweet storm titled “Transparency Update”. Despite the negative news, the community loved it and felt closer to the project than ever.
People many times don’t mind what happened, as long as they understand why you did it, and the reasoning behind it. Yes, there will always be that 10% that won’t accept your answer. But the people who truly care about your vision and value will stick with you. Those are the people who matter.

8) You Don’t Need to Spend $25,000 on an Exchange


Getting on an exchange after raising zero capital was definitely hard. We made a commitment early on that we would never ask our community for money, so everything we did had to be extremely scrappy and resourceful.
To help get us off the ground, a few of our early members kept talking about a community/technology called ParJar. In short, this was a telegram bot we could implement that allowed our community to openly trade BOMB instantly and feeless whenever they wanted.
There are a lot of items that helped us build our community, but we believe ParJar gave us more native engagement than any other campaign we have done. This organic incentivization ecosystem for individuals to exchange assets was and continues to be the backbone and foundation for our growth.

9) Not All Exchanges Are Created Equal


Even at the peak of the bear market, exchanges attempted to charge anywhere between $20,000 and $250,000; and those were the low-level ones. We definitely couldn’t afford this.
After doing more research, we narrowed down our goals with exchanges and what we were trying to accomplish. While many projects immediately want to get on the “bigger volume” markets, research showed there were only a handful of exchanges that had real volume. The rest were doing a lot of wash trading.
Instead of going after the top level exchanges, we focused on connecting with other respected and up-and-coming exchanges that would be willing to work with us on integration. The deflationary features inside our contract make us incompatible with many exchanges. This was a full-time job in itself.
After many months of searching, we were able to really connect with the team at DDEX (an exchange that is venture backed by reddit’s co-founder) that saw the potential in BOMB and took a chance on us.

10) Liquidity Premium is a Real Thing


While I have heard the term ‘Liquidity Premium’ before, I didn’t quite know how this would impact a deflationary currency. In short, a liquidity premium occurs when something costs more/less because it has high/low liquidity.
The best way for me to think of this is a house. Although houses are valuable, they many times take months to be sold or liquidated for cash. Because of this, prices can be up to 20–30% lower than it would be if it were liquid.
In relation to BOMB, our goal from the beginning was to decrease token velocity as much as possible. The side effect of this was low liquidity.
As soon as we reached Mercatox (a centralized exchange that didn’t burn the tokens) BOMB value increased by nearly 25–50% overnight.
Of course, we can probably attribute some of this to new eyeballs and demand, but it has been interesting to watch the arbitrage between a DEX (burns BOMB) and a CEX (doesn’t burn BOMB).

Price After Mercatox Listing


11) The Market Decides Value, Not the Founders


One of the biggest questions we got in the early days was:
How much are BOMB worth?
When we explained that the tokens were being given away for free, many equated this to no value.
In traditional coins or tokens, the value is determined (or at least decided) by the founders at the price they are willing to sell them at. If XYZ project decides to launch an ICO and sell them at $1, that is the given “value” of the token.
The problem with this premise is that this initial value is completely arbitrary and theoretical until it can be actively traded. I can attempt to sell my car for $250,000, but if the market will only pay me $250, that’s what its worth.
If we learned one thing from the 2018 bear market, its that the founder’s of projects are very bad at knowing the intrinsic value of their own tokens; many times 90–99% off.
Rather than giving our token an arbitrary number, we gave every single token away for free and let the world decide its value.

12) Capital is a Luxury, Not a Necessity


In the startup world, people many times reference the Lean Startup approach. The premise is pretty simple, get your idea into the world for as little amount of money as possible, and see if the world is willing to give it value. In the cryptocurrency world, everything seems to be backward.
Cryptocurrencies spend months planning an ICO, then another few years developing a project, only to find out if their idea is worth building. Millions of dollars are spent on the building before confirming the demand.
IF you truly believe you have an idea that people want or need, and IF you are willing/able to build an MVP first, and IF you want to build a community fueled project; give a portion away for free and let the market decide your fate.
Then, if the market gives it a thumbs up, you have some liquid capital to build your grand vision; all while raising zero capital.

13) Code is Replicable, Community is Not


One mission of BOMB from the beginning was to hopefully provide a financial case study for other people to learn from and implement into their own tokenomic structure.
We anticipated and expected others to do this. But, what we did not expect is the number of exact copy cats that would arise of the first weeks. At this time on Etherscan, there are more than five other replicas of BOMB that people created.
While we were originally discouraged at others attempting to directly imitate our project, we quickly learned that what made BOMB special was no the code, but the community of people around what we were creating.
You can copy code, but you can’t copy a community.

14) People Who Truly Believe in Something Will Go Above and Beyond


To this day, we haven’t paid anything beyond a few #BombUp rewards to our community. And yet, they do some of the most creative, amazing, and impressive creations we could have ever asked for.

Report: An in-depth financial and data-driven report on BOMB explosions, price, and analytics trends.
Art: Everything from designs to stickers for the community to use and play with.
Bomb Up: A community member-run group that gives away BOMB every day for playing telegram games.
Articles: Some of the most passionate people writing in-depth articles about the project.
Languages: Alternative languages that wanted to discuss BOMB in Russian and German.

Conclusion


There is no doubt that to some, BOMB will be nothing more than a meme coin, and we are okay with that.
One of the most fascinating parts of this experiment has been watching our original meaning, goal, and vision of BOMB change and evolve for other people over time. Instead of attempting to control the dialogue, we let the community interpret the project in whatever way they want.
This individual empowerment has truly given the currency a life of its own and the amount of fun, insight, and overall awesome people we have been able to connect within our short lifespan has been nothing short of amazing.
At the current rate of deflation, if the current pace stays constant the last BOMB is expected o be destroyed by 2031.

BombLytics Bot

_______________________________________________

If you would prefer reading or sharing this story through a medium format, here is the link.
submitted by Kowallo to u/Kowallo [link] [comments]

I just Chased him through a bitcoin tumbler, and when he Came out with 96,000 BTC, I was Waiting for Him...

I've been a very busy boy. All day, we've been chasing the scoundrel with our stolen bitcoins through the blockchain. Around lunchtime (UK), I was chasing him across the roof of a moving train, (metaphorically). I was less than 20 minutes, or 2 blockchain confirmations, behind "Tomas".
He was desperately creating new wallet addresses and moving his 49 retirement wallets through them, but having to wait for 3 or 4 confirmations each time before moving them again. Each time I caught up, I "666"ed him - sent 0.00666 bitcoins to mess up his lovely round numbers like 4,000. Then,all of a sudden, decimal places started appearing, and fractions of bitcoins were jumping from wallet to wallet like grasshoppers on a hotplate without stopping for confirmations.
Shit!
He was tumbling our stolen bitcoins a second time, and a tumbler is unbeatable....
Unless you guess which one it is, nearly all the coins belong to the person you're tracking, jump in with him, and get jumbled up through the same wallets using the same algorithm. I was hopping from foot to foot shouting "come on!" at my laptop, waiting an age for 6 blockchain confirmations to get 0.5 btc into "bitcoin fog". My half a bitcoin got sliced and diced through loads of wallets and I followed the biggest chunk with blockchain.info - along with 96,000 stolen ones!
I chose the shortest tumbling time - 6 hours - and my half a coin plinked back onto my android phone in dribs and drabs, sparkly and new.
I think he's asleep now in the czech republic. When he awakes, he will see my "666" next to his 96,000 stolen, freshly-laundered bitcoins. Along with lots of insults attached to fragments of bitcoins that I hope you are about to send here:-
https://blockchain.info/address/1CbR8da9YPZqXJJKm9ze1GYf67eKAUfXwP
Now I've GOT to sleep. I've just chased a thief through a washing machine for you
****EDIT 04/12/2013 the cash has moved continually for days,and I've been chasing it, pulling my trousers down,and depositing 0.000666 into each cash pile above about a million dollars i've found, any empty accounts that I think were important hubs,and a couple of 10 bitcoin "spending money" wallets he uses.
Here is the wallet that I've been chasing him with. Note the balance. He still hasn't given me my bitcoin! He's some kind of sucker for punishment. its cost him millions and uncovered the albion marketplace booty. The most expensive bitcoin in history.
https://blockchain.info/address/1AhYNAoMxDPD7bnNvxuSY9FB1CDviEuqzZ
Click the filter to select payments,then you only see my red arrows. Follow the ones that end in 666. You will find yourself standing in a cavernous wallet next to millions of dollars,with doors leading to others. ****17:20GMT,weds 4th Dec. He's siphoning it all through here:- https://blockchain.info/address/174psvzt77NgEC373xSZWm9gYXqz4sTJjn?filter=1
Its the input trough of a tumbler. If you follow the largest chunk,you catch up to "ZERO CONFIRMATIONS" eventually, but its not him.its a mincer / washing machine. If you do it at night, there is a recombined cash pot at the end of the rainbow. Or you can follow a chunk until it starts to get smaller quickly.Then do "taint analysis" and select "reverse taint". You are halfway through the tumbler, and "reverse taint" can see the output pots where the money has stopped moving.
(When you or I tumble a few bitcoin, it does a better job because it takes somebody else's 2 bitcoins from last week and sends them through as ours. But sheep has too many to do that). Listen to blockchain classics while you follow the money. https://www.youtube.com/watch?v=B9n3XUUqFFk
https://www.youtube.com/watch?v=KFcL6nOjVo0
https://www.youtube.com/watch?v=KiLw45oAuD0
https://www.youtube.com/watch?v=E-AW_l_Wmbg
submitted by sheeproadreloaded2 to SheepMarketplace [link] [comments]

[ELI5] Extracting Privkeys from QT/Core

We have a constant stream of people coming back after abandoning Dogecoin and the sub in 2014 when the price fell. These people all have old versions of QT and are now basically trying to recover their coins, presumably to cash out and abandon us again. This is causing strain for the network, as far more people are trying to leech blocks than seed them.
The thing is, none of this is necessary. Especially if you're just going to dump coins. With resources such as https://coinb.in/#settings all you need are your private keys, and you can create, sign and broadcast transactions yourself. No client required, let alone one as resource-hungry as QT.

"So, how do I get my keys?"

First of all, lets talk about data management. The overwhelming majority of coins are not lost through theft, especially direct theft of wallets (as distinct from wholesale thefts/scams/implosions like Moolah, GAW, MtGox, Cryptsy, and even our own beloved Dogetipbot). Most coins are lost because people forget about their wallets and do silly things like reformat hard drives, lose passwords and so on.
So, everyone should have a wallet list. Here is a sample bit of HTML that gives you a page with two columns of wallets, one for local wallets you would withdraw coins to, the other the third-party wallets you would deposit coins to third parties through (do note that many services use temporary addresses generated for deposits which expire after 24h or so). A page like this is how I manage my 100+ wallets, and I have copies on my network and hidden online. Such a page makes it easy to at least keep track of all your wallets, for a trivial amount of work to set up.
 
 Sample - Twitter Fr DFXXz9gq3WkgJaHn9tXRChMhFQcwm4Y251 To DByYgzd4ec5Ku9vPag8XqoBfyRpsoj8Xs3 @TipDoge Sample - Backslash Fr DSDyv83VC1QtEnmJ4ATKFn5Sw3iC12VLmX To D9MsxSyJe5Mq7fWFRpC7zQQt1gexHccN4w Backslash To DJ3GL68kw8vh99RvxnEmQKE8A3cWRoEEqo Backslash Faucet Sample - Block.io To DE5QamzWVnxK2HmCS61cUsrn9iwgTArunU Block.io 

"OK, great, so now I have a list of my wallets. Now what?"

Now you're going to need the private keys for each of those wallets. Obviously you're not going to store these in a public place though. So you will need a separate file, which can just be plain text. Copy each of those addresses into it.
Now go ahead and fire up QT. If you haven't synced it in 3 years, its going to take forever, but that doesn't matter. You don't actually need the blockchain for this, so you don't have to wait for it to catch up.
Open up the console which is in the Help menu. Then give the command dumpprivkey with the wallet address you want the key to. Then use the up-arrow key to bring that command back, replace the address with the next one, and keep going until you have them all.
It will look something like this:
 13:05:18 Welcome to the Dogecoin RPC console. Use up and down arrows to navigate history, and Ctrl-L to clear screen. Type help for an overview of available commands. 13:11:06 dumpprivkey D9xDcRthB6XP4vRGqiyKdDfVJ7CWhYuBBi 13:11:06 6KEcssuq1wWUrFVmMF8yDxHuAdQMiRezz53zDxADLmyoXnix7iM 13:12:00 dumpprivkey DUDARNrGHVTFcCgriwRWgDQJPKDuDQr9jg 13:12:00 6JNk6NNFZcr49fbsD2jcTfTxFLjJKq9DHQ5JU8CYeZ2Cz6JdKMY 13:12:25 dumpprivkey DG6xnwCT6BXePaySqU85XocobZmhbJczQH 13:12:25 6JNXFv95Mp9SzehHw9jojjdxHRNPeh77qCsRbaNwJZMp9MKCAu3 
Yes, those are real wallets. But don't bother trying to steal my coins, I just generated them on https://walletgenerator.net/ and they're empty.
That's basically it. All you need to do is add some descriptions of what the wallets are, pretty up the format to your liking, and save copies in multiple, secure places, including printed out.

Remember, if you lose your keys, OR someone else sees them, you lose your coins!

If those were my real wallets above, you could use the keys and spend my coins. So obviously, don't let anyone else, especially annoying little brothers, get their grubby hands on them. But also make sure they can be discovered if anything happens to you. That's why the printed copies... nobody is going to go trolling through your porn or warez collection on the offchance there's something valuable in there. But they will look in your safe or wherever you store other important documents. Just be sure to leave a note as to what they are and how to use them. Remember the woman who came here a couple years ago who had found a USB stick with 110 BTC in a locked wallet.dat on it from her dead husband? I sometimes wonder if she ever got the money. Don't be her. Or him.

"OK, great. Now I have my keys. What now?"

Well, you can spend coins using https://coinb.in/#settings from any wallet you have the keys to. First step is to choose the network. Dogecoin (mainnet) obviously. Then go to Transaction in the +New menu. Enter your address and hit the Load button. It will pull in the first 100 transactions. Now enter the address to pay, and the amount.
Note the Transaction Fee box!
You want this amount to be zero. Depending on whether you're moving coins to another of your wallets to consolidate them (a very good idea.. go read the UTXO ELI5, which you will find a couple pages into https://www.reddit.com/dogecoin/comments/4yts6h/start_here_for_much_wallet_wow/ - Yes, I'm going to make you work for it, cos there's tons of useful stuff there you need to know), or paying someone else, you may want to select which inputs to use.
Once you're happy with the transaction, go ahead and submit it. You will now get a block of text, which is the raw, unsigned transaction. Copy this. Go to the Sign tab. Paste it. Add your private key and Submit to sign it.
After a little bit, you will get a signed transaction. Copy it. Go to the Broadcast tab, paste it and hit Submit.
That's it. It should go into the next block in a minute or two. Yes, even without paying a mining fee. Our network is so lightly loaded that there are no contention issues like the Bitcoin people have to put up with.

"That's it? So why do I need QT?"

You don't. The process above is all that's involved in spending coins. Everything else is window dressing. So there is no need to run QT, or any other client. Oh, and since you can download the site and run it locally (mostly offline), there is no security issue beyond the usual keyloggers/spyware that can compromise anything. And by knowing how to do this, you are much better protected from accidental loss than someone who blindly trusts black boxes they don't understand.
Oh, one final thing... if you really want to help the network by seeding rather than leeching, go ahead and run a full node. Instructions are in that link above. AND you may want to help seed the bootstrap file torrent from a couple of days ago. Just because YOU don't need it, doesn't mean others don't, right?
submitted by Fulvio55 to dogecoin [link] [comments]

HOW TO sweep BCH from Mycelium (BTC address) to Bitcoin.com app

This is a tutorial that answers my own question: [ https://www.reddit.com/btc/comments/7lzr9a/help_sweep_bch_in_mycelium_btc_address_to/ ]
If you had any BTC in your Mycelium wallet app before August 1, then you also have BCH at the same BTC wallet address.
Mycelium doesn't support BCH. So this will teach you how to sweep the BCH to the Bitcoin.com wallet app, without paying fees.
You will need your 12 word backup seed that you got when you setup your wallet in Mycelium.
And you will need to install the Bitcoin.com wallet app (android). Yellow icon. https://www.bitcoin.com/choose-your-wallet/bitcoin-com-wallet

Part 1 – get your Mycelium backup key:

(skip to Part 2 if you already know your 12 words)
  1. Open Mycelium app.
  2. Click the 3-dot-icon at the TOP right.
  3. Choose backup.
  4. Enter your PIN (if you set one and it asks).
  5. Wait 60 seconds for a countdown.
  6. Click ok.
  7. Keep tapping to show your 12 words. Write them down somewhere safe.
  8. It asks you to type them back in, to confirm. You can skip by pressing the back key on your phone.

Part 2 – Setup Bitcoin.com wallet:

  1. Open the Bitcoin.com app. (skip to step 11 if you used the Bitcoin app before, and already finished welcome mode)
  2. If you never used it before, it will ask you to: create a new one, or Restore from backup. Don't click Restore (it didn't work for me). Just create a new BCH wallet. (You won't need it for now, but you need the welcome mode to turn off).
  3. Next screens: Read about the Bitcoin.com app features, or click skip. It creates a wallet.
  4. A green screen loads saying “wallet created.” Scroll down (tablet users). It asks for your email to send payment notifications (when you receive BCH). Enter your email. (I would not use gmail, hotmail, or any government/spy email. Use an encrypted email for BCH transfers so that your record is private and not audit-able. E.g. www.tutanota.com .)
  5. Enable or disable get news. Then click continue, then confirm email.
  6. Backup this new wallet. (You don't need this wallet to sweep your BCH. But backup this new wallet just in case you forgot that you were not going to use it.)
  7. Click Got it, and I understand, to proceed.
  8. Next screen, write down your 12 words exactly. Then click “I've written it down.”
  9. Next screen. At the bottom: click your 1st word, then 2nd, etc, until you have the 12 words in order. Then click confirm, then got it.
  10. Next screen. Click I understand, and agree to terms. Continue.
  11. After you setup a wallet, go to the main screen. Click the PLUS icon where it says “Bitcoin CASH wallets.”
  12. Choose New personal wallet.
  13. Very important: Type in a wallet name. For this example I use “BCH Aug.”
  14. Select coin: BCH
  15. Click show advanced.
  16. Click where it says “wallet key … Random.”
  17. A popup menu displays. Click “Specify Recovery Phrase.”
  18. Click where it says “Enter the recovery phrase.
  19. Paste in or type your 12 words from your Mycelium backup, not the new bitcoin.com wallet you just made.
  20. Keep Derivation path at: m/44'/0'/0'
  21. At the bottom click “Create new wallet.”
  22. The wallet should be created.
  23. Critical steps. Go to the home screen. Click settings icon at the bottom right.
  24. Next screen. Scroll down to the list of Bitcoin Cash wallets. Find “BCH Aug” or whatever you named the wallet you just made.
  25. Next screen. Scroll down and click more options.
  26. Click wallet addresses.
  27. Click “scan addresses for funds.” If it works, a new green-screen should pop up and show some BCH coins, which is the number of BTC coins you expected to have. (The same 12 seed wallet had both BTC and BCH coins. But now you imported the seed, and calibrated the wallet to be on the BCH chain.) If the scan worked, click the back button, then set a PIN for the Bitcoin app. (Go to Settings > Lock App > set PIN. Write it down somewhere, and email it to yourself using your encrypted email – so no one can hack or subpoena your inbox.) You can use your wallet safely now. You can skip the remaining steps.
  28. If the scan showed zero, then do these next steps. Look where it says “Unused Addresses.” Tap the Plus icon 6 times. Then click scan again. If this doesn't show your coins, then tap the Plus icon 6 more times again, then scan. (Mine worked by just tapping it 6 times. But if not, tap up to 20 times, until you get an "Empty addresses limit reached" message; then click scan.)
  29. Your coins should show in the balance after this. If not, then post below for someone else to answer what to do, since it exceeds the scope of this tutorial. Thank you.
I spent 3 hours searching, experimenting, then writing this. I didn't find an exact answer for BCH and Mycelium > Bitcoin.com app. So I tried things until it worked for me. If it was helpful then let me know :)
Thanks to bitcoin.com for making a BCH wallet with a PIN lock.
I request that they add the APK file somewhere to download, in case you don't have GooglePlay, or you want a backup of the Install file.
submitted by trader94 to btc [link] [comments]

Mycelium Bitcoin Wallet 2.0 (HD) is out!!!

Mycelium 2.0 HD - Welcome to the future
Address reuse is not for me So I am waiting for HD For even greater satisfaction I want to label my transaction And then there is a third temptation Cold spend with zero confirmation That's why I beg you, please: Release! -- Jan Dreske (Mycelium Developer anxious to get this thing out to the public, who's birthday is today) 
Over the summer the Mycelium dev team has been working hard to make Mycelium 2.0 a reality. Our 200+ beta testers have given us great feedback and today, our biggest and most significant wallet update has finally been released for everyone.
Direct download: https://mycelium.com/bitcoinwallet On Google Play we use staged rollout, where it is released gradually over the next few days: https://play.google.com/store/apps/details?id=com.mycelium.wallet
New Features:
What does HD mean?
HD is short for Hierarchical Deterministic. Typically, bitcoin wallets generate each new bitcoin address from a unique random number, requiring a separate backup of each new address. To avoid losses from lack of backups, such wallets use a single bitcoin address for all your transactions. HD wallets instead use a “master seed” (a single large random number), to derive all future bitcoin addresses sequentially from that single seed. This means that you only need to make a backup once, and all the keys generated by an HD wallet can be restored at any time in the future just from that single master seed. HD wallets greatly improve your privacy by being able to keep generating new addresses. If you use the same address continuously all your transactions will be associated with a single address, and because all bitcoin transactions are public anyone can see what addresses you are sending funds to, and calculate your total balance. With an HD account new addresses are created whenever you send and receive funds, making your transaction activity and total balance very hard to track.
But I liked it the way it was! Will I have to change the way I use it?
All your keys, addresses and address book entries will be retained when you upgrade your app. The tab previously named “Keys” has been renamed to “Accounts.” Your old bitcoin addresses will become single address accounts, and you can continue to use them as before. We do advise that you switch to new HD accounts, though. You will also see your first empty HD account, which you can start using right away.
What about previous backups? Do my old ones still work?
Yes. You can still import keys and addresses you backed up with the previous version of Mycelium Wallet. However, we have removed the ability to create backups of single keys, or create new single addresses accounts. Instead, we advise you to backup your master seed and move your funds to the new HD wallet. As long as you keep your old backups, though, you will be able to recover your legacy accounts using Mycelium. To import a private key, switch to the “Accounts” tab, tap the icon with a key and plus symbol in the upper right corner, and select “Advanced”. Then scan your encrypted private key and enter the password.
Will I be able to continue to use my current Local Trader identity?
Yes. Your Local Trader identity will get carried over to the new version when upgrading along with your private keys.
How do I make a backup?
To create a backup, either tap the “Secure My Funds” button on the main page, or choose “backup” from the menu. You will be shown a list of words, one after the other. Write those words down with pen & paper. You then have to type in the words again, to make sure you got everything right. Store this word list in a safe place! Anybody who obtains this list can access current and future funds in your wallet! Note: The backup procedure only backs up your HD accounts. Your classic single address accounts are not part of this backup procedure.
How do I restore a backup?
If your phone is lost or damaged you can make a fresh install of the mycelium wallet on a different device. Upon startup, choose “Restore Backup”. Choose 12 as the length of your word list, and let the “password” checkbox unchecked, and proceed to enter your word list. This recreates your master seed and automatically creates and synchronizes your first HD account. It might take some time until your first account is synchronized and the balance updates. If you had more than one account, navigate to the “Accounts” tab, tap the button with a key icon and plus on the upper right corner, and choose “Add HD Account” to re-create your second account, etc. Note: This procedure only restores your HD accounts. To restore your classic accounts you have to manually import each key/address by going to the Accounts tab, click the + button, select Advanced, and then Import. If your previous Mycelium installation had a Local Trader account you can recreate your trader account and data by clicking “Buy/Sell Bitcoins”, select the “My Info” tab, click “Create” and select the account that your local trader identity was associated with.
Can I restore a BIP44 wallet created with other software?
Yes. When you start a fresh install of the app you get the option to restore a backup. You can choose between word lists lengths of 12, 18, or 24 words, and also supply an optional password in accordance with BIP39. This way you can restore all HD accounts generated by other wallets compatible with BIP44 and BIP39. For instance, this allows you to import your TREZOR word list in case your device was lost or damaged so you can quickly move your funds to safety.
submitted by Rassah to Bitcoin [link] [comments]

Why the Lightning Network will not work (and how to abuse it)

The following is a list of problems we must overcome before the The Lightning Network has a chance to succeed:

1. The penalty risk you take for broadcasting old contracts decreases as your channel balance approaches zero.

When you have no balance left in the channel you take no risk for trying to broadcast old contacts. You can’t lose more then what you have in the channel.

2. Too many invalid contracts for anyone to handle

Each new transaction will reveal the two keys to invalidate the previous contract/state. The amount of invalid contracts (contracts able to fraud someone) will increase with the number of transactions. Sending money from A to B with 10 hops will create 10 * 2 new invalid contracts. Remember this technology was designed to handle microtransactions and to solve the blockchain scaling issue. So what happens when this network scales to 56000 transactions per second (same as VISA max capacity). If we set the average number of hops to 10 - The network will generate 56000 * 10 * 2 (a million!) invalid contracts per second.
I know for Lightning Network to be successful users should not have to rely on themselves always being online to check the blockchain for fraud attempts.
Instead users will send all invalid contracts to a public registry attached with a bounty reward to the one catching the thief.
This public registry of invalid contracts will grow with a million entries per second! And at this rate we are not even better than VISA.
And how do we decentralize the list of old contracts? Remember this is about trust, having to trust a centralized server to do this job will be to vulnerable. Hacking this server will give you a perfect time to broadcast old beneficial states to the blockchain.
How about sending old bounty rewarded contracts to the P2P network? A million invalid contracts per second??? We’re now back at where we started. If nodes could handle this amount of data we should just remove the block size limit entirely.

3. The risk of getting caught VS how much is a succeeded fraud attempt worth?

Simply put, people will not be honest in this network. Fraud attempts will occur all the time when they statistically favours someone.
Let’s say we have a solution for the bounty reward registry (read problem #2).
There is nothing stopping you from using the public registry to see if your counterpart have published your contracts. If you can’t find them, they are either published in a private registry or not published at all (trusting themself to always be online).
From this information you first calculate the risk of getting caught based on if you can find the contract in the public registry or not.
Let’s say you cannot find your contract in any public registry - knowing this will give you a 1% chance to get away with the fraud (real numbers will be used once they are official).
Let’s say your current channel balance is: You: 0.001 BTC Him: 1.999 BTC
Going back to the initial state where both started at 1 BTC will give you 0.999 BTC if the froud would succeed. And this is while only risking 0.001 BTC if you get caught (which we calculated to be 99% of the time). What would you do? I’m definitely going for the fraud.
It’s not about cheating, every contract signed is real. Getting away with broadcasting old contracts is not like stealing. You have signed a contract giving him the right to do so! And he will succeed if someone is not paying attention! If this happens you have only yourself to blame.
What people don’t seem to understand is that you have to monitor your entire transaction history in the Lightning Network, even tiny microtransactions only routing thro you. If your plan is to use the channel for 1 year you will have a lot of transactions to monitor! Missing to monitor just one microtransaction can rollback your entire channel balance to the time when that microtransaction was handled.

4. High transaction fees.

Being involved in the routing is taking a risk, each transaction your involved in invalidates yet another contract someone constantly have to monitor. This is not a risk someone will take for free. The fee will NOT be a percentage of the transferred money. Hubs are taking the same risk regardless of money transferred. Even the smallest micropayment will generate an invalid contract capable of rollbacking the entire channel if not stored and monitored correctly!

5. Transactions on LN will not be private.

For the bounty reward registry to work (read problem #2) every transaction has to be public. Even if you don't publish your contracts - your channel counterpart might.

6. All open channels will at some point get stuck, when this happens your money is essentially gone.

This is also known as the fixed fee problem. When you open a channel you have to decide beforehand on what the blockchain fee should be when you at some point in the future wants to close the channel (by broadcasting the signed contract to the blockchain). We all know that the fees needed to get a transaction into the blockchain constantly rising.
This is a big problem. What it basically means is that there are always some point in the future where your fee is to low and your channel will get stuck. You can no longer close the channel.
You can try to, but it will never be included in the blockchain. The funny thing is that you can’t even rise the fee to help it through. Your only hope will be to ask your channel counterpart to sign a new contract with higher closing fee. Let’s say you have 1 BTC in the channel and your counterpart has 0 BTC. Do you expect him to help you for free? If I ended up in a situation like that I would help him close the channel for about 0.5 BTC. No less.

7. False security

The Lightning Network will at launch seem to work perfectly, this is an illusion building on false security. Why it works is because it will take some time until people learn how to fraud. It should be dead simple to broadcast old contracts. Every user must know how to do it. You should click on a channel, scroll to any previous transaction and click on the “Start Fraud Attempt” button. Until the fraud is this easy the security lies on people not knowing how to do it yet.
This is important, so if I have any developer reading this, planning to build a Lightening Wallet. Please include the “Start Fraud Attempt” button. If the Lightening Network is secure it should be secure even with that button right in front of every user!

8. The Lightning Network is already running on the bitcoin main net. Do you want their money? This is how you do.

You start two nodes. Send all your cash from one node to the other. Making yourself broke on one channel. This way you take 0 risk broadcasting the empty channels initial state to the blockchain :)
But watch your back! Your receiving node can as easy lose the money again if your not paying attension to the blockchain!
You might get the feeling after reading all this that I don’t want Lightning Network to succeed. That's not true. I want it to succeed. I want crypto to be the future. That's why I’m trying my best to break it.
submitted by drvnoo to Bitcoin [link] [comments]

BTC lost??? - Freewallet.org / Changelly.com

Dear community,
the transaction which was made by me on 11/9 to change Bitcoins to Monero failed.
TxID: 0908d7d3df1e552fe06e8250b95ec2d61f5a9439c6a73aa5f5ee6d51bf5aa5e4
My payment was successfull sent to the Freewallet changing address. It’s not my address, this address owns Freewallet to change the amount. But... the changing process to Monero never started. Means, Freewallet/Changelly has all my Bitcoins in value of over 1Mio Euro!!
I have read both companys are suffering of much user requests, but I am very worried about the quality of the support from Freewallet. Nobody from Freewallet can say me when the refunding will be proceeded. It's annoying to check every day the amount of my wallet to realize zero balance since one month!!!
I also know Freewallet is cooperating with Changelly and outsourced their shaping activities to them. Both companys are involved in this dilemma.
To the community: I need your support! Please follow with me the TxID to see the progress of my lost Bitcoins! If the Coins will be refunded to one of the following addresses below, Freewallet/Changelly ARE NOT SCAM just busy at the moment. If the Coins will be sended somewhere else, it is scam!!! And I'm fu*. Let's work together to make the transparence advantage of blockchain trustfull and mighty!!!
Refund to Freewallet: 3HX86eFWKj8XcmNepb35MaxxzvQJ4NrE97 ...or... Refund to Exodus: 1CvRv183LThWY9nJ5iaPWMJYKPSehfE4eG
Chat with the Freewallet Support below: https://drive.google.com/drive/folders/19YzqpmMVLxCFL1_AiLVDZfgxaKnli5cz?usp=sharing
If somebody has contact to the core developer: If its possible please blacklist the bitcoins! Until I get the confirmation from Freewallet! Just want to get sure the coins won't be splitted to many small amounts and wallets to make them disappear through mixer.
To Freewallet-Support / Changelly-Team: First of all i would like to know exactly the issue, status of my case and definition why its for you not possible to refund my Bitcoins? Please contact me here via reddit, when the refund will start.
best regards Wladislav ;)
EDIT 16.12.2017: My Bitcoins are not refunded yet. The Wallet, I have send my BTC,is now empty. All my BTC are now somewhere, but not at my Wallets.
EDIT 18.12.2017: My Bitcoins was refunded to my Freewallet 3HX...rE97 at 2017-12-18 10:31:55, but they was sended away to an unknown Wallet 1Cn...R9n at 2017-12-18 13:48:25. See comment below.
IMPORTANT UPDATE: Freewallet has send all my BTC to my Exodus Wallet! Thank you very much Freewallet! :-)))))
submitted by Wladul to Bitcoin [link] [comments]

A guide to sign a super bitcoin (SBTC) transaction offline with patched Electrum for paranoid. Supports any wallets supported by Electrum (including segwit-p2sh and bech32 and all BIP39 seeds). Later BCD will be added.

This is quite advanced. This guide assumes you have some basic experience with the command line, can run Linux and you understand the basics of keys/signing/broadcasting transactions. And that you can compile and run Bitcoin Core and run Electrum. Also, some JSON experience is also nice.
Move you bitcoins to safe addresses first. It is best to use a new seed. Although the procedure in this guide is safe even for hot addresses (containing bitcoins), there is always a risk of a critical mistake. So play it safe.
Why such a guide? I followed these steps because I did not want to expose the keys to any online machine at all. Even if the keys do not have any bitcoins, you can some day have bitcoins sent to these addresses or you have a fork that you have not claimed. All can be stolen if you exposed your key.
This procedure should work with everything that Electrum supports (except maybe F2A that may be not supported on the SBTC chain), so Electrum seed legacy or segwit, LedgeTrezor with legacy or segiwt-p2sh (m/'49) derivation. Similarly, any BIP39 seeds or a single key. are also fine.
  1. Download Electrum. git clone https://github.com/spesmilo/electrum
  2. Apply my patch patch -P0 also this article. The guide assumes that you use patched Electrum from now on.
  3. Run the patched Electrum and catch up with your wallets you want to claim (the wallets can and rather should be watch only, or on ledgetrezor, otherwise your keys are exposed). Now go offline or set localhost as your server that Electrum connects to so no connection is performed. It's required so Electrum will not update the wallet after you edit it.
  4. You can manually create a transaction from the command line but you can use Electrum GUI. You need to locate the wallet file and remove all the transactions from the wallet file except for the one that funds the address you want to claim (the wallet obviously must not be encrypted but for watch-only this is OK). This is tricky. You need to make sure, you gave a proper JSON file, so all the final commas must be dropped. So "addr_history":, "transactions": , "tx_fees":, "txi", "txo", and "verified_tx3": should only contain the funding transaction(s), i.e. the one that you want to spend from.
  5. Run Electrum and check if the wallet is OK. Electrum will show an error if not. You will probably make a few errors so go back to editing the wallet.
  6. Download SBTC bitcoin core clone. git clone https://github.com/superbitcoin/SuperBitcoin
  7. Compile it and let it sync the blockchain (it will take a long time). Run it it with as large -dbcache= as you can. If you have a Bitcoin blockchain you can copy the blocks up to the fork date and issue sbtcd with -reindex. It will just reindex them and it will be faster.
  8. Generate a sbtc address with sbtc-cli getnewaddress. You can skip this step and send directly to an exchange but this intermediate step is safer.
  9. Create a transaction in Electrum to this address. Select all the bitcoins and use as small fee as possible (SBTC blocks are empty so any fee above 1 SBTCsat/byte should be OK).
  10. Save the transaction to a pendrive
  11. Download and install Kubuntu 16.04 (Kubuntu has all the QT libraries for Electrum) on a pen drive.
  12. Copy patched Electrum and the save the transaction to a pen drive (separate from Kubuntu will be more convenient).
  13. Run Kubuntu from the USB without any network access. Run Electrum from the pendrive. Create a wallet from the seed or private keys. The wallets are stored in RAM so after you reboot the computer, they will be gone. Load the transaction, sign it and save it to the pen drive.
  14. Go back to the SBTC Core on the online machine. Display the raw transaction (starts with the hex=). Check in the SBTC Core if it is correct sbtc-cli decoderawtransaction hex
  15. If it looks fine (and your blockchain got synced), broadcast it sbtc-cli sendrawtransaction hex
If there is no error, congratulations, you sent the transaction to the specified address. If it is to your SBTC Core wallet, wait until it confirms and send it further with sbtc-cli setfee feeperkb sbtc-cli sendtoaddress "addr" value "" "" true true
I'm going to update this guide when I figure out the BCD transactions intrinsics. You can download and run the BitcoinDiamond Core clone in the meantime.
SBTC tips: 1KjuY8CTrwMhdLt3uF3hCcSgfkHMyo1ELf
submitted by PVmining to BitcoinAirdrops [link] [comments]

Blockchain Wallet: How To Use A Bitcoin Wallet Hack Blockchain wallet Hack Coinbase wallet Bitcoin Generator May 5 2020 How to Hack Bitcoin Wallet (Hack Coinbase wallet) Bitcoin Generator July 14 2020 Bitcoin Faucet: Extrabtc - 4 satoshis every 0 minutes (Faucetpay) How To Find Private Key Of Bitcoin Daimond Wallet  Bitcoin Key

A major issue many have faced in using bitcoind to build applications is the lack of RPC support for tracking transactions and balances without having to know and keep associated private keys in the wallet. Oftentimes one might want to watch other people's transactions or to keep signing nodes behind tighter security while using separate relay nodes to service all nonsigning, non-key Q&A for Bitcoin crypto-currency enthusiasts. Stack Exchange network consists of 177 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers.. Visit Stack Exchange My Ethereum Wallet Not Showing Balance: How I Restored Lost Funds. As I mentioned in my January 2018 income report, I discovered that my Eethereum wallet not showing balance it was supposed to show. In the other words, all my ethers were gone from my Jaxx wallet and I was left with zero ethers. The chance of somebody creating an offline public address and private key that matches the same you make is 7 with 110 zeros after it. Do put wallet in to a safe deposit box and a fire proof safe at home. Only use the wallet ONCE when sending coin from it to someone or your online wallet. So empty it completely. Just visited my Coimbase account and found that all my bitcoins have gone - 0.00. I have not performed any transactions. Nothing in Records. I had all amount just when they transformed users to Pro. WTH??? No any transactions - nothing. Just zeros. Created a ticket #00077137. Will inform how it is going.

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Blockchain Wallet: How To Use A Bitcoin Wallet

If you saw my videos on another channel, then they will sell you some kind of virus or an empty file. The original program is only on my channel. Copying videos is strictly prohibited !!! If you saw my videos on another channel, then they will sell you some kind of virus or an empty file. The original program is only on my channel. Copying videos is strictly prohibited !!! Bitcoin Diamond Core developers enabled a feature inside the bitcoin client that lets you “encrypt” your wallet by protecting it with a passphrase. By using a passphrase, you “lock” your ... Bitcoin has been a subject of scrutiny amid concerns that it can be used for illegal activities. In October 2013 the US FBI shut down the Silk Road online black market and seized 144,000 bitcoins ... If you saw my videos on another channel, then they will sell you some kind of virus or an empty file. The original program is only on my channel. ... How to Hack Bitcoin Wallet ( Hack Coinbase ...

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