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A cryptocurrency is a digital or virtual currency that uses cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.

27 votes

How do you best explain cryptocurrency to an 8 year old

I think the best way to explain it would be step by step, building from concepts that can be explained in more practical terms that she might understand. You may feel the below is overly harsh, but at …
Grade 'Eh' Bacon's user avatar
5 votes

When Can Cryptocurrency Cease to Exist?

When mining costs exceed the immediate revenue to the miner, mining will decrease (it may still continue for a short while if a mining cohort owns enough of the crytpo that they want keep afloat and o …
Grade 'Eh' Bacon's user avatar
166 votes

How is Bitcoin useful as a currency if so few services accept it?

Apologies for the brevity and avoidance of in-depth discussion in this answer, for simplicity's sake. To understand Bitcoin and its failures, we must understand what a 'currency' is, and why it is im …
Grade 'Eh' Bacon's user avatar
19 votes

Is Bitcoin investing wise?

Bitcoin or any other crypto currency is an incredibly volatile place to put your money. Its value fluctuates significantly, increasing its risk, and its value proposition is entirely unclear. In my o …
Grade 'Eh' Bacon's user avatar
7 votes
Accepted

How to start with cryptocurrency?

Counterpoint to your plan to 'invest' in cryptocurrency: Don't. …
Grade 'Eh' Bacon's user avatar
48 votes
Accepted

I was approached to invest in short-term Blockchain node transactions. Is this scam?

All crypto is (subjectively) a scam, given that there is no external valuation metric, leaving the value purely based on 'future sales' ie: how long the hype train will last. More to the point - anyon …
Grade 'Eh' Bacon's user avatar
33 votes
Accepted

What is crypto deleveraging?

'Leverage' in a financial context is debt. If you borrow money to buy an investment, that is called a 'leveraged' investment. When you invest with borrowed money, your personal risk increases. This is …
Grade 'Eh' Bacon's user avatar
16 votes
Accepted

When the market cap goes down, does that mean people are taking money out?

At face value, 'Market Capitalization' is a simple calculation: Number of units in the market * market price = Market Capitalization So the market capitalization of Apple is equal to the number of s …
Grade 'Eh' Bacon's user avatar
0 votes

On balance volume indicator showing different signal on different time frames

Roll 2 6-sided dice twenty times, and put the results in a spreadsheet. Let's say the results were: 7 6 2 9 11 5 2 9 5 5 4 4 3 3 4 7 10 10 12 12 Now do a 'trend analysis' on the last 4 rolls. "Ave …
Grade 'Eh' Bacon's user avatar
4 votes

Is it safe to share my id and a picture of my id with this website?

Unfortunately, this is going to require that you break one of the oft-touted 'benefits' of cryptocurrency: You are going to need to find a way to determine whether you can 'trust' this institution. …
Grade 'Eh' Bacon's user avatar
12 votes

Crypto Transfers of Large Sums Overseas for Beginners

What 'exorbitant fees' are you actually expecting? Have you asked your bank how much this would cost? Would you really put everything on the line to risk what is likely a ~$30 one-time wire fee charge …
Grade 'Eh' Bacon's user avatar
6 votes

Can one earn only converting assets with different spread?

You are describing the theoretical financial concept of 'Arbitrage', which represents a situation where you can buy something in one market and instantly sell at another market for a premium, with no …
Grade 'Eh' Bacon's user avatar
20 votes

Can a contractor convert a cryptocurrency payment into money?

Yes, there are ways to convert cryptocurrency to various real [believe me, I very specifically chose that word] currencies. … This is true whether it is demanding a specific type of Western Union payment, or some random cryptocurrency. …
Grade 'Eh' Bacon's user avatar
1 vote
Accepted

How to account for digital currencies in a double ledger book

You have a few misconceptions about accounting, I think. For one, I'm not sure why you are attempting to credit Equity in Scenario 1. Equity is the combination of your initial investment + all your ac …
Grade 'Eh' Bacon's user avatar
6 votes

Thoughts on the new announcement about reporting crypto transfers?

As a comparative, performing cash transactions under 10k, with the intent to move larger balances without reporting them, is called 'structuring', and is generally viewed more seriously than just wiri …
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