My Opinion Edition Three

It has been a while since I wrote one of these, so I will enlighten you today with edition three of “My Opinion”. There will be 4 topics I will discuss today, they are as follows:

MtGOX Closure and supposed “Bankruptcy” The massive amount of Alternate coins coming out every day Open source VS Closed Source/Commercial Alt coin price drops and where to go from here

MtGOX Closure and Supposed “Bankruptcy”

Well. Where to start on this? As you definitely all know, MtGOX, the BIGGEST Bitcoin exchange, recently closed down, sue to going Bankrupt. Now, call me crazy, but how the hell does the worlds number 1 Bitcoin exchange, with outrageously high trading fees and millions of dollars every day traded, go bankrupt? Please, does that make any sense to any of you?

I believe that MtGOX was involved in some scandalous activities, including but not limited to, money laundering (as i’ve heard there in an investigation into now) stolen funds from users accounts, and a disregard for spending for employees. MtGOX may have been the biggest Bitcoin exchange in the world, but god dammit they didn’t need an overspill of useless employees, if that was even the case. Just think about it…Their trading fees were what, 0.6% for most and 0.55 for others who traded massive amounts of Bitcoin? How the hell can you go bankrupt off that alone? Not to mention their advertising, and whatever other income they had coming in.

You want to know “my opinion” on this? Honestly, I believe deeply that MtGOX and its associates were planning this for a long time. How does an account and thriving business go from multi millions one day to bankrupt the next? It was planned. The same problem exists with all centralized exchanges. You are always at risk when using these. MtGOX, (luckily) only had about 200$ worth of my money. But what about the others? People had thousands of dollars in their accounts, and I guess all of that magically disappeared too? Makes me sick even thinking about it, because the fact is, no matter how much was invested in users accounts, the japanese government will not pay out the “lost” bitcoin to it’s users across the sea. Bankruptcy means you do not have to pay off your debts (or at least not all of them anyway).

I feel it deep down. MtGOXs CEO/Project operator, had a plan that transferred enough Bitcoin out of accounts into a tumbled (no wy of tracing) and completely laundered bitcoin address where he then declared bankruptcy and secretly had this stash hidden away. How the hell else would Mt Frigging GOX go bankrupt? I laughed so hard when i heard this. Even though i lost a bit of money, those idiots seriously thought people would believe this?

The way I see it, it will go down one of two ways. 1. MtGOX will start paying out lost/stolen Bitcoins to it’s users as per court order. Or 2. MtGOX will be “doxed” and shown their personal info of all of the head of offices, then they will be hunted down by assassins for hire (they do exist and people with enough money will use them) or charges will be filed against them all by the people who can afford to go after them, and they will get destroyed any way. So I am hoping that one of those 2 will happen, because the people need vengeance and/or justice for this heinous crime towards the bitcoin community and in the trading community in general.

Could you imagine if MtGOX took up their “Litecoin” platform after? What else would have been stolen from us, a bunch of Litecoins as well as Bitcoins.

I think there is a lesson to be learned here. If you are dealing with an overseas company like MtGOX or BTC-e, you really should always only deposit what you need to sell, and then withdrawal it all once you have complete your trades. There is too much risk of keeping coins in overseas accounts nowadays and it really is not worth the risk. Places like Cryptsy and other USA/Canadian owned exchanges, you don’t have to worry about sudden closures like this as much, because of the simple fact that, if you were to get scammed or in a position of fraud like MtGOX (a Japanese owned company) was, you will be able to retaliate much easier, and is less likely to happen at all. I have faith in BigVern and his exchange, and use it for most if not all of my crypto coin trading.

So people, please, please, stay safe, vigilant and alert when it comes to trading and storing your coins, because you do not know what could happen when you wake up in the morning tomorrow..

The Massive Amount Of AltCoins Coming Out Everyday

Well, this one has me on edge. I am on the edge about whether it is good or bad. In one sense it is bad and in another it is good.

The good: The fact that so many Bitcoin/Litecoin clones are coming out everyday, lets the users know and be able to determine which ones are scams/not legitimate/not honest and which ones are properly promoted/legitimate/for a good cause.

You get coins come out that the wallet is done crappy, the icons are the same as the forked/cloned coin it was based on, and just complete un-professionally in general about the coin. Some releases the english is bad, grammar is bad, absurd amount of coins per block and some, the name is abysmal or a joke completely. Well, my take is this. Plain and simple. If you even have an IQ of 30, you will be able to tell the coins/currencies that were developed for a legitimate reason. Look at the block rewards, the logos and artwork, the wallet design and version it is based on, the block time, etc. You can always tell the quality of something by almost the first look. Not always, but most of the time.

Personally I admire coins that have a great logo that took effort, a sensible block reward with a sensible block time. Features like the KGW (Kimoto Gravity Well) Or DigiShield (Dogecoin, Digibyte) add a very attractive feel to the coin. Things like multi-algorithm hashing “Quark, Securecoin, etc) took a much longer time to code than a plain script coin. I am not saying that Scrypt is superior or inferior to Multi-algorithm coins, I am just saying that for some, it is better used and accepted that a half assed coin with just script or just SHA256d.

Another thing you really need to look at with all of this massive influx of coins, is the promotional quality of the coin.. A coin named something attractive like “Litecoin” is going to go over better than a coin named “Catcoin”. It is just common sense. People have a tendency to go after software/currencies that have an attractive name to it. Cryptogenicbullion is one example. Primecoin, another example. Coins that have dedicated developers behind them and knowing that you won't spend your time and money on mining garbage that will never raise in price or will never hit an exchange anyway.

The best thing you can do when it comes to these coins, is use your head. You can tell what coin is going to blow up by its qualities. A coin named popcorn will not outperform a coin called Goldcoin. It just won’t happen.

So stay sharp, watch out for greedy developers, and keep your head in the game.

Open Source VS Closed Source/Commercial

Ever since I was old enough to know what the difference between Open source and Closed source was, I would always look at things that were closed source and use google to look for “Open Source Alternatives”.

I have always been a fan of developers who will create something extravagant and then, release it to the public for not only free, but the source along with it for you to decipher and add to or break down and learn about it. Open sourced programs usually come with the developers website, in which they accept donations for their work (most of them anyway) and you would be surprised at how many of them receive a hefty donation shot from people who use their program. Especially those who accept Bitcoin and other crypto currencies for their work.

Closed source programs are those that are developed, then compiled and distributed with no source code and usually for a price. Now, sometimes you will get a freeware program that will come bundled with adware (sometimes) or other bloatware for the cost of being free. Most of the time you have the option to not install this software, but sometimes you do not.

I cannot stress enough how important it is to not install these little programs. Some contain “FUD” aka Fully Undetected Spyware, key loggers or otherwise. If you can get an open source alternative, use it instead. The best way to find an open source alternative for anything is to search the keyword while adding “open source” to it. sample: Instead of searching “Free music player for windows” Search “Open source music player for windows”. It really is that simple, and you will almost 100% of the time find a solution for you that is open source. I have never come across a piece of open source software yet that had bundled with it any bloatware or adware that would harm your pc. The sole intention of Open sourced software is to be free and publicly available!

So, when you are searching for software, anything at all, see if there is an open source alternative to it first. For example, a lot of people use Microsoft word/office. Well, an open sourced alternative for it, is OpenOffice by Apache. I use it faithfully and it works great.

Keep this in mind!

Coin Price Drops Recently

If you are into the crypto coin scene, you will have realized that the coin prices have dropped on almost every coin drastically and does not seem to be reciprocating back yet. I know that I am the bag holder of a lot of different coins that I purchased while the prices were a lot higher than they are now, and some while the price was a tiny bit higher than it is now. I bet a lot of you can relate to that, especially with Devcoin (DVC). Devcoin wa at 100 satoshis about a month ago, or 1 and a half months ago, and now it is down to 25~ satoshis. But, Devcoin is not the only one, it is across almost all coins. We are seeing a great fall in Bitcoins price, and when this happens, history tells us that all alts will fall with it.

But the good news is, we have learned from the past that if the price of Bitcoin is falling, then eventually, when BTC levels off then all of the other coins will shoot up immensely. It has always happened in the past and once BTC relaxes, it will happen again to compensate for the downfall of Bitcoin.

In short, Hang on to your coins. They may seem worthless now, but once Bitcoin chills out, they will have to go way up to compensate for the drop. So hang on to them if you want to make a profit, and if you happen to have bitcoin now, then buy in to a coin(s) now while the price is still higher on BTC and lower on the alts, you will not be disappointed. I usually buy into DGC or HBN. They have never failed me in the past.


People, these “my opinions” are strictly just that. They are my opinion. I have been around this type of stuff for so long, and this is just my take on things. Please take what i say with discretion, and you ultimately have to be the judge of what I say and what you do about it.

Opinions | Education

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