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Old 01-17-2022, 11:31 AM   #141
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A local newspaper has a "troubleshooter" column that readers can turn to if they can't get satisfaction from a business or government agency. In last week's column the reporter was asked to help someone whose Coinbase account apparently was getting unauthorized use. The reader was getting no help from Coinbase. The columnist tried to intercede but also got stonewalled by Coinbase. https://madison.com/wsj/news/local/a...me-top-story-1
When I click on the link, a pop up asks me to subscribe, and if I clear that popup, it sends me to the home page where I don't see the article.
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Old 01-17-2022, 12:26 PM   #142
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Sorry. The article appears in the Wisconsin State Journal of Madison. I will quote an excerpt:

Quote:
Cryptic crypto
Ole Christensen, 81, of Madison, emailed SOS on Nov. 23 because he’d been locked out of his Coinbase crypto currency trading account and wasn’t getting any answers from the San Francisco-based company about what appeared to be unauthorized activity on the account.

Christensen said he signed up with Coinbase in May and that after about two months of trading, had about $2,500 in his account.

Then came messages from Coinbase saying his password had been reset and the company was trying to recover his account, that Coinbase deposited $11.07 into his checking account, and that the company had received a request from his account to buy currency, although he hadn’t made such a request, he said.

He’d since spent more than three months trying to either get access to his account or have it deleted and his money refunded, but multiple electronic messages and two certified letters to the company hadn’t accomplished either, he said.

“Coinbase praises itself of giving a superior customer service,” Christensen wrote to company CEO Brian Armstrong on Oct. 27. “I have difficulties in accepting that statement because of the way you are handling my case.”

SOS similarly got nowhere. There was no response to an email sent to the company on Dec. 2 and tagging Coinbase on Twitter on Dec. 22 resulted in a few bits of advice from people not employed by the company.

Coinbase has an F rating from the 110-year-old Better Business Bureau, which says the company has a “pattern of complaints from consumers who state they are locked out of their accounts, even after providing required information or updates. Consumers also state they have difficulty reaching the company.
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Old 01-17-2022, 01:07 PM   #143
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Another variation of the fear and greed index. This time mapped onto the Bitcoin price

https://www.lookintobitcoin.com/char...d-greed-index/
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Old 01-17-2022, 02:57 PM   #144
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Sorry. The article appears in the Wisconsin State Journal of Madison. I will quote an excerpt:
The victims of this should report this poor behavior to the proper banking or investment authorities.
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Old 01-17-2022, 03:01 PM   #145
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Could you buy it person to person and avoid a third party like Coinbase? Seems like that would avoid some risk.
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Old 01-17-2022, 03:11 PM   #146
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You can buy bitcoin/crypto from anyone. Individual or broker. Who ever you trust more. Do you trust your self to look after your own wallet and passwords?

These are just some of the obstacles to overcome. For many people even buying stocks have a barrier for entry that is too complex for them to deal with.
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Old 01-17-2022, 03:12 PM   #147
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You can buy bitcoin/crypto from anyone. Individual or broker. Who ever you trust more. Do you trust your self to look after your own wallet and passwords?

These are just some of the obstacles to overcome. For many people even buying stocks have a barrier for entry that is too complex for them to deal with.
But how would you mechanically do that. I transfer money to you and how would the coin change title?
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Old 01-17-2022, 03:35 PM   #148
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I've heard some sentiment that crypto -- broadly speaking, not so much a specific coin -- has had an effect on gold. This theory is offered up in partial explanation for why gold's price has not behaved as might be expected in these times of inflation.

So, 1st, I'd be interested in any expansion on why that is -- or isn't -- the case.

2nd, for those NOT planning on investing in crypto, are there impacts in broader markets that should be considered going forward? Are there metrics that might carry over?
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Old 01-17-2022, 03:46 PM   #149
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But how would you mechanically do that. I transfer money to you and how would the coin change title?
When you have a wallet, there is an application that runs on your computer that has a screen with "send" and "receive" buttons. When you press the "receive" button, it displays a long string of characters which is one of the public keys associated with the private key inside the wallet.

When you withdraw from Coinbase, you have to put this public key into the withdrawal screen. If you are transacting with a private individual, you send them the public key.

If you press the "send" button on the wallet application, it displays a screen where you enter (copy/paste) the public key of the wallet of the person that you are sending to.

The sending wallet application will construct a transaction and have it cryptographically "signed" using the private key of the sender. The transaction is then sent to one of the bitcoin network nodes that forwards it into the system. Eventually the transaction is recorded in a block chain block and confirmed by many other nodes. This effectively transfers that amount of bitcoin to the new owner.
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Old 01-17-2022, 03:53 PM   #150
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When you have a wallet, there is an application that runs on your computer that has a screen with "send" and "receive" buttons. When you press the "receive" button, it displays a long string of characters which is one of the public keys associated with the private key inside the wallet.

When you withdraw from Coinbase, you have to put this public key into the withdrawal screen. If you are transacting with a private individual, you send them the public key.

If you press the "send" button on the wallet application, it displays a screen where you enter (copy/paste) the public key of the wallet of the person that you are sending to.

The sending wallet application will construct a transaction and have it cryptographically "signed" using the private key of the sender. The transaction is then sent to one of the bitcoin network nodes that forwards it into the system. Eventually the transaction is recorded in a block chain block and confirmed by many other nodes. This effectively transfers that amount of bitcoin to the new owner.
So signing a previous transaction and placing it on the chain with the new owner info transfers the title. You still have the double risk of buyer not delivering cash or seller not signing over the title. Trust is needed by all parties. Seems very risky for a broken transaction.
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Old 01-17-2022, 03:53 PM   #151
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I've heard some sentiment that crypto -- broadly speaking, not so much a specific coin -- has had an effect on gold. This theory is offered up in partial explanation for why gold's price has not behaved as might be expected in these times of inflation.

So, 1st, I'd be interested in any expansion on why that is -- or isn't -- the case.

2nd, for those NOT planning on investing in crypto, are there impacts in broader markets that should be considered going forward? Are there metrics that might carry over?
There is a narrative floating around that younger people are buying crypto as an inflation hedge rather than buying gold. I have not attempted to verify the volume of gold transactions to see if it has changed lately. This narrative posits that the boomer generation who has bought gold as an inflation hedge is dying off and their heirs are dumping the inherited gold and buying crypto instead.

Another narrative I have heard recently, which is probably older, is that the price of gold is being suppressed by activity in the futures market where "paper gold" can be sold much in excess to the actual supply.

A couple things I have been wondering about is whether a drop in the stock market will trigger a flight to the safety of bitcoin as some pundits predict and also if a blow off top in crypto might trigger some diversification into stocks among the young crypto buyers.

I saw another article saying that in 2020 and 2021 there was quite an increase in the number of younger people opening brokerage accounts. I wonder if this group will be more receptive to crypto and perhaps swing trade between stocks and crypto.
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Old 01-17-2022, 04:03 PM   #152
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So signing a previous transaction and placing it on the chain with the new owner info transfers the title. You still have the double risk of buyer not delivering cash or seller not signing over the title. Trust is needed by all parties. Seems very risky for a broken transaction.
That is how it works more or less. The internals of the transaction are more like taking dollars and cents out of your purse and assembling them on the counter. Say you had bought 1 bitcoin and now wanted to send someone 0.25 bitcoin. The transaction would have the digital address of the 1 bitcoin, an instruction to create a new item of 0.25 bitcoin to the receiving address and a new item of 0.75 bitcoin back to you as change. (I guess my programming bitcoin book has provided some value ).

I don't understand the details, but projects like Ethereum and Solana have "smart contracts" that would have conditions to be satisfied before the actual transfer happens. That would probably help down the road when things are more figured out or maybe now if I understood better.

However, you are right about the need for trust. The same as meeting in an ally with a suitcase of $100 bills to trade for krugerrands or diamonds.
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Old 01-17-2022, 04:56 PM   #153
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Since the blockchain is public what stops someone from attaching bad info, bad data, illegal data (like obscenity), credit cards, SS numbers to it and poison it?
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Old 01-17-2022, 05:25 PM   #154
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As I understand it, there must be some sort of format rules for the transaction requests and for the blocks themselves. The miner computers assemble the next block and compete by trying to solve a comp!ex cryptographical problem. The one that finishes first adds the block to the chain.

Once a block is added, it is easy to validate the block and all of the nodes validate the new block.

So if a user wanted to inject bad stuff, the transaction would probably be rejected. If a miner wanted to create a bad block, it would probably not be validated. The first transaction in a block pays a reward to the miner, currently 6 bitcoin. So if a miner were lucky enough to solve the puzzle first, it would cost him $240,000 to inject the bad stuff.

That being said, I seem to remember something about Satoshi putting some sort of libertarian rant in the first block. So there may be some sort of comment section in the block format.

But as far as crashing the system it seems not to have been possible so far.
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Old 01-17-2022, 05:37 PM   #155
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But how would you mechanically do that. I transfer money to you and how would the coin change title?


It used to and maybe still happens locally. Meet up hand over cash. Seller sends the bit coin to you wallet. The change of ownership is defined by the wallet that contains the Bitcoin
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Old 01-17-2022, 05:56 PM   #156
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I listened to a discussion with a guy from Holland who said that a lot of rich Europeans have issues with the American banks and having to explain where their millions of dollars came from or worried about their account being frozen for some stupid reason. He said that a lot of the really expensive real estate transactions now days are being settled with bitcoin transfers.
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Old 01-17-2022, 05:58 PM   #157
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I listened to a discussion with a guy from Holland who said that a lot of rich Europeans have issues with the American banks and having to explain where their millions of dollars came from or worried about their account being frozen for some stupid reason. He said that a lot of the really expensive real estate transactions now days are being settled with bitcoin transfers.
Governments will freak out about getting around AML laws.
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Old 01-17-2022, 07:23 PM   #158
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https://arstechnica.com/information-...pto-last-year/

So if crypto theft is frequent how many people are being burned?

Would it reduce demand if enough people who were victimized decide to stop trading crypto?

A very interesting timeline of Crypto/NFT scams, hacks, and fails is kept by Molly White here-

https://web3isgoinggreat.com/

Something sketchy is happening pretty much every day. On the plus side, the NFT space is so terrible that it makes plain old crypto look FDIC insured in comparison.
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Old 01-17-2022, 07:53 PM   #159
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A very interesting timeline of Crypto/NFT scams, hacks, and fails is kept by Molly White here-

https://web3isgoinggreat.com/

Something sketchy is happening pretty much every day. On the plus side, the NFT space is so terrible that it makes plain old crypto look FDIC insured in comparison.
That stuff is hilarious. Imagine buying a hard copy of a book at an auction for $2+ million and thinking you have the copyright rights to it! What fools.
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Old 01-17-2022, 09:19 PM   #160
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You definitely want to get to cold storage as quickly as possible if you are playing in this game. crypto.com (Matt Damon) has just frozen all transactions due to customers reporting thefts in their accounts.
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