Bitcoin

Dr Winston O'Boogie Senior Member
3,345 posts 26 reps Joined Oct 2010
Sun, May 2, 2021 2:16 PM
posted by justincredible

Depending on how technical you are, and how technical you want to get, Mastering Bitcoin is a good overview from a tech perspective. It's less of the why and more of the how.

Sounds good. I may proceed there next. 

justincredible Honorable Admin
37,969 posts 207 reps Joined Nov 2009
Sun, May 2, 2021 3:28 PM

Grokking Bitcoin is another good one that I'm working my way through now. 

Dr Winston O'Boogie Senior Member
3,345 posts 26 reps Joined Oct 2010
Sun, May 2, 2021 5:53 PM
posted by justincredible

Grokking Bitcoin is another good one that I'm working my way through now. 

What is it's focus?

justincredible Honorable Admin
37,969 posts 207 reps Joined Nov 2009
Sun, May 2, 2021 5:58 PM
posted by Dr Winston O'Boogie

What is it's focus?

It teaches the concepts of Bitcoin through an example of building out an imaginary payment system for cookies at a cafeteria. Sounds silly, but it’s well done.


Dr Winston O'Boogie Senior Member
3,345 posts 26 reps Joined Oct 2010
Sun, May 2, 2021 6:17 PM
posted by justincredible

It teaches the concepts of Bitcoin through an example of building out an imaginary payment system for cookies at a cafeteria. Sounds silly, but it’s well done.


Sounds good. I like examples like that. bitcoin ( and money in general), is a very theoretical subject to me. Any examples are very helpful for my  understanding. 

justincredible Honorable Admin
37,969 posts 207 reps Joined Nov 2009
Sun, May 2, 2021 8:29 PM

This is a great podcast episode if you're interested in farming and bitcoin, and how bitcoin can fix our food supply.

justincredible Honorable Admin
37,969 posts 207 reps Joined Nov 2009
Sun, May 2, 2021 10:34 PM

Fantastic trolling.

geeblock Member
1,123 posts 0 reps Joined May 2018
Tue, May 4, 2021 10:13 AM

The dodgecoin elite are back at it today on FB...

justincredible Honorable Admin
37,969 posts 207 reps Joined Nov 2009
Tue, May 4, 2021 10:18 AM

Let the alts go wild and bitcoin stay horizontal around $55k for as long as possible. Need to keep accumulating.

brutus161 The Navy Guy
1,688 posts 16 reps Joined Nov 2009
Tue, May 4, 2021 10:45 AM
posted by justincredible

Let the alts go wild and bitcoin stay horizontal around $55k for as long as possible. Need to keep accumulating.

I've been using doge to my advantage for quick gains, and using those gains to buy bitcoin

justincredible Honorable Admin
37,969 posts 207 reps Joined Nov 2009
Tue, May 4, 2021 10:47 AM

The strategy for bitcoin: Buy and hold for at least 4 years. You will be rewarded for your low time preference.

The strategy for alts: Hope you get rich quick timing the market, more than likely get rekt.

At this point I don't even think about bitcoin in terms of USD. I am fully onto the "sat standard" as they call it. My goal is to accumulate sats, not to make USD. When you have this mindset, and the price drops 10-20%, you understand that you haven't actually lost anything. You still have the same number of sats as you did before the dip. There are two very different mindset between bitcoiners and those that play in the altcoin casino in an effort cash out in USD.

I also see doge has dropped over 7 cents in the last half hour.

justincredible Honorable Admin
37,969 posts 207 reps Joined Nov 2009
Tue, May 4, 2021 10:48 AM
posted by brutus161

I've been using doge to my advantage for quick gains, and using those gains to buy bitcoin

This is a strategy I can support, just be careful. It's not for me, but good for those that do it successfully. 

brutus161 The Navy Guy
1,688 posts 16 reps Joined Nov 2009
Tue, May 4, 2021 10:50 AM
posted by justincredible

The strategy for bitcoin: Buy and hold for at least 4 years. You will be rewarded for your low time preference.

The strategy for alts: Hope you get rich quick timing the market, more than likely get rekt.

At this point I don't even think about bitcoin in terms of USD. I am fully onto the "sat standard" as they call it. My goal is to accumulate sats, not to make USD. When you have this mindset, and the price drops 10-20%, you understand that you haven't actually lost anything. You still have the same number of sats as you did before the dip. There are two very different mindset between bitcoiners and those that play in the altcoin casino in an effort cash out in USD.

I also see doge has dropped over 7 cents in the last half hour.

I agree. That's why my alt investments are small enough to write off, but the gains are large enough to continue to throw into bitcoin for the long haul. It keeps adding up. 

justincredible Honorable Admin
37,969 posts 207 reps Joined Nov 2009
Tue, May 4, 2021 2:07 PM

From an email I just got:



Liftoff: Show me the incentives and I'll show you the outcome.

Charlie Munger famously said, “show me the incentives and I’ll show you the outcome.”

In other words, incentives are a powerful force that drive nearly all human behavior. 

Incentives are why capitalism works and why socialism can’t work.

Let’s examine the incentives underlying Bitcoin and its path to adoption. 

For Bitcoin to reach global dominance, it must inspire a vibrant ecosystem of allies. 

Bitcoin needs allies, the stronger the better. Fortunately, Bitcoin is attracting new users at an unprecedented rate. People adopt Bitcoin for many reasons, including to:

  • Get wealthy
  • Stay wealthy
  • Preserve freedom
  • Make easy global payments 
  • Help repair a broken monetary system
  • Increase prosperity in the world

Once someone adopts Bitcoin they are incentivized to defend, improve and grow the network. And everyone who joins the network contributes to the network as a whole. 

In other words, Bitcoin is as strong as its strongest link.

How are Bitcoin’s incentives playing out in the real world?

Many investors buy Bitcoin to generate wealth. No surprise there: it’s the best performing asset of the last decade, up 500% in the last year, and currently ~60,000 people are buying Bitcoin for the first time every day. 

In this macroeconomic environment, governments are forced to devalue their currency and many corporations cannot keep up. Savvy corporations realize this and are buying Bitcoin to protect their melting balance sheets. 

In fact, corporations like Tesla, Square, and Microstrategy have already acquired billions in Bitcoin. Currently, 6% of the Bitcoin supply is owned by corporations, and the FAANG companies haven’t started buying yet…

People and corporations are incentivized to go where they’re treated best. 

  • Government officials realize this and are using Bitcoin as a tool to attract talent and pools of capital. 
  • Kentucky offers tax breaks to attract Bitcoin miners. 
  • Wyoming offers a new banking license that lures Bitcoin banks and businesses. 
  • Miami has rebranded as a “Bitcoin and tech hub,” offering favorable laws, low taxes, and exploring ways to pay their employees in Bitcoin. 

It starts with local jurisdictions but eventually nation states will be incentivized to do the same. And when governments compete the individual benefits.

Pensions and insurance companies need Bitcoin to generate a positive yield.

With mounting unfunded liabilities, $17T in negative-yielding bonds, and few options for positive yield, money managers will be forced to buy Bitcoin. It’s their only hope. 

Bitcoiners adopt Bitcoin because it’s the right thing to do.

The current system is not working for the vast majority of people. Bitcoin shifts power from the rent-seeking incumbents to the individual. 

Bitcoin levels the playing field. Anyone with an internet connection can benefit from its price appreciation, whether you're a billionaire or you sell coconuts in Costa Rica. 

Bitcoiners realize the positive impact of Bitcoin which inspires them to ensure its success

Corporations and the major banks used to dismiss Bitcoin. 

However, in the last year, we’ve seen almost all of them becoming Bitcoin bulls. Why? 

Because they realized it’s in their best interest to adopt Bitcoin to generate revenue and protect market share. Makes sense.

Bitcoin aligns incentives unlike anything before.

Bitcoin is attracting everyone from billionaires and corporations to middle-class wage earners and the unbanked. After storing some wealth in Bitcoin, they have an incentive to support the Bitcoin network. 

It’s a virtuous cycle with each new user making the network stronger and more valuable. Bitcoin aligns incentives unlike anything in human history.

Show me the incentives and I’ll show you the outcome.

ernest_t_bass 12th Son of the Lama
26,698 posts 199 reps Joined Nov 2009
Tue, May 4, 2021 2:34 PM

Justin, how many satoshis do you typically buy at a time?

justincredible Honorable Admin
37,969 posts 207 reps Joined Nov 2009
Tue, May 4, 2021 2:55 PM
posted by ernest_t_bass

Justin, how many satoshis do you typically buy at a time?

I buy X amount every day, automated through an exchange. This is called dollar cost averaging, or DCA. It just means you're buying at set intervals regardless of the price. You'll be buying the dips and peaks, which is a much easier strategy than trying to time and just buy the dips. It's basically a set it and forget it situation. Every couple weeks I check my balance to see how many sats I have (nunya).

I'll also instant buy in chunks when I've got additional money to spend that isn't budgeted for bitcoin already.

Depending on the service, I think you can buy as little as $1 at a time (1800 sats right now). I believe the CashApp allows that. The service I use (Swan) only lets you instant buy $100 or more at a time. You can DCA far less than that, though.

justincredible Honorable Admin
37,969 posts 207 reps Joined Nov 2009
Tue, May 4, 2021 4:10 PM

If you want to earn sats without actually paying for them directly:

https://lolli.com/share/zeSwjk9AUo

I've earned 50k sats over the last few months just buying food and medication for our dogs on chewy.com. This is basically like Rakuten cash back, but for sats instead of dollars.

Automatik Senior Member
15,737 posts 94 reps Joined Nov 2009
Tue, May 4, 2021 4:58 PM

$20 worth every 2 weeks here. I was soooo close to fully cashing out during the last dip. Always said once it hits X I'll bounce and buy back in. Glad I didn't. 

justincredible Honorable Admin
37,969 posts 207 reps Joined Nov 2009
Tue, May 4, 2021 5:08 PM
posted by Automatik

$20 worth every 2 weeks here. I was soooo close to fully cashing out during the last dip. Always said once it hits X I'll bounce and buy back in. Glad I didn't. 

Ironman92 Administrator
56,729 posts 143 reps Joined Nov 2009
Tue, May 4, 2021 11:02 PM

Dumb it down for me justincredible...

Say I put $500 or a $1000 in for Bitcoin....just let it sit. What do you envision it looking like in 1 year? 5 years?


What would recommend a noob middle class Joe like me doing if I wanted to invest/dabble?


If you answer with more than 2 words/terms I don’t understand I will def neg you...thanks

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