Today Daniel Peter Barron (DPB, no relation to DPR) made his return to DonkDown radio to discuss Namecoin. He refuses to budge on the 6.1k year old earth debate but he has used namecoins to actually register NMC-domains and the explanation deepened my personal understanding. NoLimiteFantasyFootball (NLFF) Nick comes on the show to help digest the ever-growing CoinMarketCap list of alt-cryptos. The Ripple payment network page was demolished on the show, and I am still waiting to hear from anyone that has actually used Ripple to do anything. The answer is always the same: Just use Bitcoin, these needless layers will evaporate over time (Ripple, Litecoin, CryptogenicBullion) and the useful layers will stay (BitPay, Blockchain.info)
Wow the world when crypto-crazy. More and more humans continue to take notice of the rising value of Bitcoin. My friend group spans a wide range of ethnic and socio-economic groups. All of them smell blood in the water after watching bitcoin’s huge value increase since I started telling them about it in 2011. All them asked me about Litecoin trying to catch the next upswing. Now they are asking me about Ripple. I have long thought I am a victim of a “Truman Show” scenario, which I’ve heard is an actual -ism that I’m sure I could get prescribed those tasty little xanax bars for. Seriously, the characters are sometimes just too fucking good (MethBoobs).
Anyway, while reading Erik Voorhees latest brilliance rebutting some donk that dismissed bitcoin as a Ponzi, it dawned on me the main reason why Litecoin, whatever Ripple is, and all other alt-cryptos are useless: there is simply no need for them.
You do not need Litecoin, Ripple, or any other alt-crypto if you have Bitcoin.
“but it’s cheaper than Bitcoin. No one wants to buy a $1k btc when they can buy a $40 ltc.”
Warren Buffet would slap the shit out of you if he heard that kind of poop come out your poop-mouth. You know why he never split Berkshire Hathaway? Because he wanted you, the dumbass public investor to at least glance at the “market cap” column and understand it doesn’t fucking matter what the stock price is because you multiply it by the number of shares to solve for the valuation of the company. Can you believe I dropped out of Indiana University’s prestigious Kelley School of Business? Why buy 1 full piece of shit that is currently at $40 when you can buy a fractional piece of unicorn tears that is likely to trend higher over time? LTC being cheaper that BTC does not make it more useful than Bitcoin. You can send 0.00004000 bitcoin easily. That’s about $0.04 USD normalized. I left the 0′s to show the 8 decimal places you can divide a bitcoin into. There is no reason not to use fractions of a Bitcoin instead of Litecoin. Blocks every 4 minutes? Doesn’t matter at all. Bitcoin 0-confirmation double spends seem rare, so Bitcoin is basically instant already. 6 confirmations is paranoid IMO. In a 51% attack or some other technical fumble multiple confirmations would be prudent. For everyday bitcoin business today 0-confirmations is fine. Litecoin offers no advantage in transaction speed. While confirmations pile up faster, it is of little to no value.
The world is crypto-crazy. Everyone wants to catch the next bitcoin wave from pennies to $1k. It’s not like a stock, there is not another one coming. Luckily Bitcoin is still young, and the same principles still apply: earn / buy / trade / win / save and I believe the price trends higher over time. No price targets for me. IMO anyone calling short-term bitcoin price targets is going to be wrong most of the time, and occasionally get lucky, but it is quite arrogant to claim to be able to predict short-term world-wide supply-demand for this extremely volatile crypto-currency. Because everyone now is curious about Bitcoin, some try and find “the next crypto-currency” in hopes of another meteoric run-up.
Curious entries have popped up to try and capture some of this alt-exuberance. Ripple, the “The Future of Payments,” is simply not needed at all. Totally, utterly worthless. It’s “Fast, Secure, and Global.” Gee… Let me see if I can think of anything else like that. I have tried so hard to understand Ripple. I have spent hours researching it. I read the Ripple wiki. Take a look for yourself at the Ripple Payment Network page. Seriously if anyone out there can explain this to me please call in DonkDown radio or post on the forums. You need to find a gateway or something, the currency is actually trust or IOUs or something, it’s supposed to work superb with Bitcoin but I see no reason to ever use Ripple over Bitcoin. The answer is always Bitcoin. Certainly tons of layers will be built on top of Bitcoin – but Ripple won’t be one of them. 100M Ripples, or XRPs, is the total currency supply and the 3-letter code it seems every one of these alt-cryptos must claim to be a player in the game. (Currently around $0.05 each representing a $5B market cap – go nuts kids) A Google-backed company called OpenCoin created Ripple and auto-gets 80M of the 100M Ripples in a “pre-mine.” Yes, the company that created Ripple gets most of the Ripples. They are supposed to give ‘em away or something, but I don’t fucking care, and I’m not buying, because it seems totally useless. The big Ripple-win was supposed to be the ability to easily and seamlessly converting btc to any flavor of fiat. I have never seen someone do this or claim to know how to do this. I don’t know which exchange deals in Ripples, but I’m sure I wouldn’t use it. LocalBitcoins, Coinbase, MtGox, and BTCChina all exchange bitcoins for fiat in huge quantities. I have never seen someone post or heard a guy say “I needed some USD for my BTC so I just Rippled $1k and here is now in my hand.” I see no need at all for Ripple. Like Litecoin, it confuses the message of Bitcoin and I feel many would-be Bitcoin backers are going to lose big in alt-land.
A word needs to be said for Namecoin. Namecoin (NMC’s, market cap $69M) is a decentralized DNS system somehow built into a cryptocurrency. I don’t quite get how it works, but I see huge value in anything that takes power from ICANN and hands it to mathematics. Is it’s $69M valuation justified for this implementation of the Distributed DNS idea? Is that entire market cap evaporated if the next version of Bitcoin contains the same functionality? Maybe Jeff Garzik can speculate with me on that point.
CoinMarketCap is now tracking 42 crypto-currencies. That’s up from 37 during last week’s DonkDown radio. That’s just retarded. JunkCoin moves to 38th on the list on Colossuscoin now rounds out the bottom with a $13k market cap. 3B coins and each one is $4.1e-06.
My advice is simple: just stick to Bitcoin. It has the largest cryptographically secured network, best engineers keeping it safe, most nodes connected, most users using it, huge community of supporters behind it, divisible to allow small transactions, basically instant, always imitated, never duplicated, the original, the only crypto-currency you will ever need: Bitcoin.
Everyone seems to be talkin’ hard about Litecoin right now, and I think it’s cramping Bitcoin’s style. This isn’t a “Get off my cryptocurrency’s lawn” type of argument, we get to the heart of Litecoin, and rip that motherfucker out while it’s still beating. YTCracker said I was full walla snackbar against Litecoin. Gank said it may be nice to have a #2. Somewhere in there MethBoobs called and we resolved her outstanding support issue about her account. Even though there was no fantasy advice this week, you should still fire on DraftKings and support DonkDown:
“Micon, what about Litecoin?”
“It does not interest me in the slightest. It’s a simply copy of Bitcoin with a minor change to the mining process”
[repeat ~15x, and you have my Tuesday]
Having rode the crypto-currency waves since 2011, I have watched the progress of the “alt-cryptos” and have always thought they were mere curiosities demanding little attention. I still think they are mere curiosities, but after looking at a list of alt-crypto market captializations on CoinMarketCap.com and fielding over a dozen calls on litecoin yesterday, it was clear I needed to lay out my position.
Because I dropped out of Indiana University without my computer information systems degree and have no formal training in economics, I refer to the other noted Bitcoin experts for their take on the matter. Jeff Garzik, one of the core Bitcoin developers, tells CoinDesk:
“I don’t think it’s likely that the second generation will produce any useful, viable long-term cryptocurrency, but I do think that all this experimentation will absolutely inform the Bitcoin ecosystem, and any features or really novel developments can likely just be incorporated into Bitcoin itself.”
Former SatoshiDice owner Erik Voorhees took to Reddit when faced with many requests for his new venture Coinapult to integrate litecoin functionality:
“There is no advantage in a Bitcoin world moving toward Litecoin. I know Litecoin fans like to say it’s silver to Bitcoin’s gold, and while it’s a cute comparison, it doesn’t really mean anything.”
Well said Erik Voorhees. Litecoin is the best marketed alt-crypto. “Litecoin silver to Bitcoin gold” is brilliant marketing language, but the comparison is absolutely ridiculous. Humans love to classify new things in terms they can understand. It makes a us feel right and good inside when we can equate something new to something we already know. Unfortunately, Bitcoin is not going to fit neatly into a pre-existing category, although I will make a bold statement that is not a metal. It is both a currency and a payment system, something which is usually separate. Owning the bitcoin currency allows you very cheap use of the bitcoin payment system. I know right? not like anything else out there, and certainly not very much like gold. Other than both being popular non-fiat value stores and a favorite of my Libertarian friends, I see very few similarities. If Bitcoin isn’t like gold then I think we can stop before extending this discussion to how Litecoin isn’t like Silver.
Litecoin is based on the Bitcoin open-source code, with a few changes. Blocks are created on average every 4 minutes instead of 10. The Litecoin system uses scrypt mining which as I understand it makes the Litecoin network immune to ASICs. Outside of this it is basically the same code. Same brilliant public-key-private-key cryptography system Satoshi created, the wallets look similar, the addresses look similar, it is essentially a copy. It has been copied again and again and again. There now exists Feathercoin, Peercoin, Devcoin, Primecoin, Terracoin, Anoncoin. If CoinMarketCap is right, there is even a BBQCoin with a $1.6M market cap. I love that humans are currently going crypto-crazy, but having lived through the dotcom bubble of the late 90′s when I see million dollar BBQcoins I’m calling irrational crypto-exuberance.
I personally believe this recent interest in Litecoin and other alt-cryptos is a result of a second wave of Bitcoin speculators. I have had many friends Skype me to say “I have X bitcoin, so I bought X/20 litecoin with them. You know, might as well have 5% exposure to it.” To me that is an interesting way to lose 5% of your BTC position. I sense an “I missed out on the first wave” type of thinking, and my response to that is an ancient Chinese proverb “The best time to plant a tree is 20 yeras ago. The second best time is today.” Instead of looking for the next crypto-currency, stick with Bitcoin. There is still time. As 2013 comes to a close, IMO it is still the beginning of Bitcoin.
The Bitcoin network cannot be copied. The aggregate world-wide output of both brain and computer power that underpin Bitcoin cannot be cheaply duplicated. The Petahash upon Petahash of computational power cryptographically secures Bitcoin network and grows stronger and stronger over time. The alt-cryptos are for the most part bitcoin copies with less computational & brain power behind them. The top crypto-currency experts will always be dealing with Bitcoin. Arguably less-skilled developers and less computing power will maintain Litecoin, and even lesser still will maintain BBQCoin and Mincoin, the 1 minute coin [market cap >$1M USD on 11/27/2013]
In short, stick with Bitcoin. If you need a slogan, how about “Dance with the crypto-date you came with. Don’t cheat on Bitcoin with Litecoin.” Damn, not as catchy.
[Do you bet on sports with Bitcoin? Support DonkDown by firing your bets on BitBook, a #MiconApproved btc sportsbook See, that's also marketing language. Learn to spot that shit]
#DontGetShutOut with the hot FanDuel pix either:
“BITCOIN TO THE MOON!!!” Adam Schoenfeld is a very special guest, as he no longer makes media appearances. SpiteCheck, a possible “Catfish” because she has neither tits nor gtfo’d joins the show an is firing the LAPT because it’s shiny. #IwantToBelieve. Also NLFF Nick drops the secret top QB for Fanduel, so you might as well fire some lineups:
“Don’t Get Shut Out”
Recently I’ve been betting with the bitcoin sportsbook BitBook.Biz, and I’d like to tell you why. As of 11/2013 there are many bitcoin sportsbooks. I have fired coins at Anonibet and btcsportsmatch, and while I somewhat trust both of those sites the customer service aspect seemed lacking. Enter Bitbet.biz Same basic principals as the other trusted books, but these guys have the lowest spread (seems to be a Pinnacle scrape) & relentless support via their bitcointalk presence. That’s what does it for me – a human on the other end that cares about their player. #MiconApproved
Turns out I don’t have a boss, so when I’m casually eating a meal with my family at 7:34 there is no one to tell me “Hey Micon, you forgot to start DonkDown Radio.” To further compound matters, the SealsWithClubs freeroll started 15 minutes before the scheduled start of the show. A fine time was still had by all. Shoot to BigMooky.
All around the world groups of like minded humans are coming together for peaceful protest against all types of injustice in many different countries. I have seen very light mainstream media coverage of this event, but I’ll bet in years to come November 5th will get louder. For now fire off a realtime twitter image search for #MillionMaskMarch. Good luck to the generation including my young daughter that will grow up with mouse and internet search in hand. I sure hope you are right, little girl:
[and big ups to your mother also]
Every now and then you tweet at Samantha Steele Ponder and she tweets back. Daniel P Barron would say that it is all the work of god. I would say it’s because we are all humans doing relatively random things. listen to the debate start there and get deeper*
*DPB believes the earth to be ~6.1k yrs old. I am looking for an anarchist that has had personal experience with radiocarbon dating.
If you intend to Fire on USA-legal real money fantasy on DraftKings for the NFL or whatever, then by all means let me show you the way: