Author Topic: Bitcoin currency (merged topics)  (Read 200178 times)

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #600 on: June 25, 2018, 08:34:57 AM »
There are all kinds of dangers, known and unknown, but mining difficulty adjusts as needed to average ten minutes between each new block on the chain, thus predictably producing 6 blocks of transactions every hour.  This process lowers the amount of electricity consumed by the hashing rigs used by the remaining miners as others stop competing for the rewards of finding new blocks. So if $5000 is unprofitable this week, it doesn’t mean it won’t be profitable to mine at $3000 next month as the difficulty decreases.

Offline CharlesH

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Re: Bitcoin currency (merged topics)
« Reply #601 on: June 25, 2018, 10:31:29 AM »
Very cool information.  Thanks!

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #602 on: June 28, 2018, 07:17:33 PM »
3 Tips to relieve anxiety during the BTC bear market:  https://youtu.be/EPmgwfLiroE


In my opinion, Jimmy Song is a close second, after Andreas Antonopoulos, as a trusted voice in this space.  Both have the technical skills to understand the underlying code and explain to a layperson, but most importantly, they're honest about the risks involved.

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #603 on: July 05, 2018, 02:21:56 AM »
6 Million Bitcoin is Lost or Stolen, Should the Real Value of BTC Higher?

So, instead of 17 million bitcoin, there's only 11 million available for trade now, and the maximum limit of 21 million bitcoin by the year 2140 will really be only 15 million. 

Such is the harsh reality of a truly decentralized ledger of account, there's no central authority who can refund coins.  It's not like ethereum, where Vitalik could hardfork it to get investors' stolen money back.

Offline fratermus

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Re: Bitcoin currency (merged topics)
« Reply #604 on: July 06, 2018, 06:17:23 AM »
So, instead of 17 million bitcoin, there's only 11 million available for trade now, and the maximum limit of 21 million bitcoin by the year 2140 will really be only 15 million. 

They are theoretically recoverable, so IMO the total will still be 21M.


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Such is the harsh reality of a truly decentralized ledger of account, there's no central authority who can refund coins.

That's a bug, not a feature.  ::)

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #605 on: July 12, 2018, 04:18:54 PM »
Andreas Antonopoulos on the security of private keys cryptology and the overblown threat posed by quantum computing:  https://youtu.be/xxfUpIV9wRI


Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #606 on: July 13, 2018, 06:06:13 PM »
Russians Indicted for US Election Hacks Used Bitcoin to Fund Operations

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"In an effort to pay for their efforts around the world ... the defendants paid for it with cryptocurrency," deputy U.S. Attorney General Rod Rosenstein said during a press briefing.

While the defendants allegedly used other currencies, including the U.S. dollar, "they principally used bitcoin when purchasing servers, registering domains, and otherwise making payments in furtherance of hacking activity."

Payments are said to have been made to companies in the U.S., with some of those funds being traced to a bitcoin mining operation.

The indictment explains:

"In addition to mining bitcoin, the Conspirators acquired bitcoin through a variety of means designed to obscure the origin of the funds. This included purchasing bitcoin through exchanges, moving funds through other digital currencies, and using pre-paid cards. They also enlisted the assistance of one or more third-party exchanges who facilitated layered transactions through digital currency exchange platforms providing heightened anonymity."


If these Russian cyberwarriors can't hide bitcoin transactions from a motivated adversary, nobody can.

Better pay your capital gains taxes!

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #607 on: July 24, 2018, 08:08:57 PM »
As bitcoin is heading back up again, it might be a good time to read this article linked on Bruce Schneier's blog today about cryptocurrency risk.

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Cryptocurrencies, although a seemingly interesting idea, are simply not fit for purpose. They do not work as currencies, they are grossly inefficient, and they are not meaningfully distributed in terms of trust. Risks involving cryptocurrencies occur in four major areas: technical risks to participants, economic risks to participants, systemic risks to the cryptocurrency ecosystem, and societal risks. Fortunately, for all but the last case, there is little risk to anyone not directly participating.

I certainly agree about the technical risks to participants, that's what keeps me up at night.

I didn't know Schneier was a cryptocurrency skeptic, but I guess it's not too surprising.

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #608 on: July 31, 2018, 02:10:04 AM »
Most cryptocurrency wallets these days utilize a backup method consisting of a random 24-word mnemonic seed phrase that is generated at the time the wallet is initialized.  Entering this phrase into another compatible wallet regenerates all the keys generated with that seed allowing funds to be spent in the event the original wallet is lost or broken.  Hardware wallets come with a small card with 24 blank spaces for copying down the seed words from the device at initialization with the admonition to store the card somewhere safe and never digitally where it could be hacked online.  Some wallets periodically remind you to verify that you still have possession of the card by prompting entry of a certain number of words for verification.

This new technology now makes safeguarding the seed phrase more important that the actual wallet, with many not willing to trust those words to a piece of paper that could be destroyed from fire or flood.  One of the solutions has been to record the words onto corrosion resistant metals with a high melting temp.  Here's an article from a prominent crypto security guy with the results of a torture test he dished out on several of the more popular market solutions.


Metal Bitcoin Seed Storage Stress Test





Offline Carl

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Re: Bitcoin currency (merged topics)
« Reply #609 on: July 31, 2018, 06:23:42 AM »
  It will still all be waste with EMP

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #610 on: July 31, 2018, 04:24:01 PM »
Maybe...

https://en.bitcoin.it/wiki/Nuclear_war_and_Bitcoin

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Many nuclear scenarios could damage cables and backbone routers, segmenting parts of the Internet. In this case, it would be necessary for people wishing to transact to find some way of communicating with the single segment containing the most mining power, such as by using satellite communication, dial-up connections, or even by writing transactions down on paper and moving them physically. This would make Bitcoin more cumbersome to use -- perhaps too cumbersome to be realistic during or immediately after a nuclear war --, but still usable.

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A likely scenario is that Bitcoin would become frozen and practically unusable - but not destroyed - until the Internet was restored to roughly its former capabilities.

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Even if the entire world was affected, Bitcoin would be frozen with its pre-EMP ledger, not destroyed.

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The Bitcoin block chain is so widely distributed that someone will undoubtedly have a safe copy of it somewhere.

Offline Carl

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Re: Bitcoin currency (merged topics)
« Reply #611 on: July 31, 2018, 06:05:13 PM »
  If records of BTC are kept OFF the internet and not dependent of the 'life' of the internet.  I do understand that MOST all economy is now digital anyway...BUT...will Block Chain SURVIVE a non living internet??

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #612 on: July 31, 2018, 06:51:12 PM »
The ability to actively process transactions requires a sufficient number of mining computers linked via low latency connections, but as long as there's enough in operation somewhere on the planet, the blockchain will stay alive until the damaged internet infrastructure can be repaired and rejoin the network.  Even if everything went dark across the globe, there's a complete history of every prior transaction and balance status of each bitcoin address that is permanently recorded and synchronized on the copy of the blockchain of every participating active node at the time of the catastrophe.  With this record intact, even after a period of dormancy to rebuild, the network could restart where it left off.

There must be a fair number of EMP-hardened nodes spread around the world that would preserve the blockchain until it could be brought back online, if there's sufficient will and resources available after such an extinction level event.  Most EMP events, short of the ELE variety, will not result in a global blackout, so having the ability to regenerate one's keys after the infrastructure comes back will prevent a total loss of funds.  The ability to relay transactions wirelessly has been demonstrated, via amateur radio, as well as mesh networks like the Gotenna.  I'm not sure how the pen and paper transactions work, but might be good thing to learn.

Offline Carl

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Re: Bitcoin currency (merged topics)
« Reply #613 on: July 31, 2018, 08:02:46 PM »
The ability to actively process transactions requires a sufficient number of mining computers linked via low latency connections, but as long as there's enough in operation somewhere on the planet, the blockchain will stay alive until the damaged internet infrastructure can be repaired and rejoin the network.  Even if everything went dark across the globe, there's a complete history of every prior transaction and balance status of each bitcoin address that is permanently recorded and synchronized on the copy of the blockchain of every participating active node at the time of the catastrophe.  With this record intact, even after a period of dormancy to rebuild, the network could restart where it left off.

There must be a fair number of EMP-hardened nodes spread around the world that would preserve the blockchain until it could be brought back online, if there's sufficient will and resources available after such an extinction level event.  Most EMP events, short of the ELE variety, will not result in a global blackout, so having the ability to regenerate one's keys after the infrastructure comes back will prevent a total loss of funds.  The ability to relay transactions wirelessly has been demonstrated, via amateur radio, as well as mesh networks like the Gotenna.  I'm not sure how the pen and paper transactions work, but might be good thing to learn.

THANKS...I had long thought that the net had to remain active (alive) for the survival of BTC and retention of transactions...

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #614 on: July 31, 2018, 09:42:55 PM »
Starting Bitcoin Core as a full node on your own machine requires a couple of weeks to download the entire blockchain, which is approaching 170 gigabytes in size right now, up 30 gigabytes from the beginning of the year.  It's a big chunk of data, but storage is cheap enough that pretty much anyone with an old laptop and a cable modem can have their own synchronized copy of every single bitcoin transaction since Satoshi flipped the switch back on January 10, 2009.


Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #615 on: August 02, 2018, 04:18:13 PM »
Short big-picture vids from Jimmy Song, who tends to lean anarcho-capitalist, discussing decentralized governance and how that feature (not a bug) positions bitcoin as the sound money (ie. digital gold) of cryptocurrencies. 




What is Bitcoin Governance?




Why diversification in cryptoassets isn't as effective

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #616 on: August 15, 2018, 12:32:35 AM »
Xapo exec says extinction level event for 90% of cryptoassets

Half of the top 15 cryptocurrencies are down more than 90% from all time highs.




A few days ago, bitcoin went above 50% market share for the first time in 2018.


Offline Mr. Bill

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Re: Bitcoin currency (merged topics)
« Reply #617 on: August 15, 2018, 12:30:07 PM »
Chainstate, 8/15/18: AT&T Sued for $224 Million Over Cryptocurrency Theft

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...[Michael] Terpin, the founder and CEO of Transform Group which has launched a number of high-profile ICOs including Ethereum, Golem and Gnosis, filed a complaint with the US District Court over the theft of three million coins in January 2018. At the time of the theft, the coins were worth over $24 million, and Terpin is looking to sue for an additional $200 million in punitive damages. ...

SIM fraud typically occurs when an attacker pretends to a customer, and contacts a carrier’s support service to have a phone number assigned to their own SIM. ... Hackers have begun to target known crypto holders....

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #618 on: August 15, 2018, 08:29:03 PM »
Chainstate, 8/15/18: AT&T Sued for $224 Million Over Cryptocurrency Theft

Maybe it's the guy's like him that will shell out $10k per year for Casa's Key Storage System.

.......if he's not up for rolling his own 3-of-5 multisig wallet with sufficient physical key separation.


Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #619 on: August 16, 2018, 03:22:34 PM »

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #620 on: August 24, 2018, 09:00:50 PM »
WSJ:  It Was Meant to Be the Better Bitcoin. It’s Down Nearly 90%

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The bear market in cryptocurrencies has punished investors who bought bitcoin at the height of cryptomania last year. But losses have been even more brutal for those who invested in once-promising rivals of bitcoin.

Consider Bitcoin Cash, an offshoot of bitcoin that launched on August 1, 2017, which moves independently of bitcoin itself. While bitcoin has fallen 67% from its record intraday high of $20,089 in December, Bitcoin Cash is down a crushing 88% from its peak of $4,355.62, according to CoinMarketCap.com. Friday evening, it traded at around $533.


Interesting video of Jimmy Song explaining the rumors of BitMain propping up BCH, to protect their million coin stake, by selling BTC and mining at a loss:  What's going on with Bitcoin Cash and Bitmain

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #621 on: September 04, 2018, 04:18:12 PM »
The anonymous Shapeshift.io site will be moving toward required accounts for exchanging, which involves the collection of personal information.  Seems like KYC/AML catches up with everyone in this space, even though they're in Switzerland.

My guess is their Prague based competitor, Changelly, will find they need to do the same, at some point.

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #622 on: September 23, 2018, 08:28:04 PM »
While only tangentially related to bitcoin, here's an interesting talk by Jameson Lopp (he mutilated the metal hardware wallets earlier in this thread):  Extreme OPSEC for the Modern Cypherpunk

As someone who wrote of his family's SWATting in the last year, initiated by someone opposed to his public position on the Bitcoin vs. Bitcoin Cash debate, he's actually researching and implementing these procedures in his own life. 

Bottom line, everything must be siloed behind separate proxies.  Car, home, snail mail, pet licenses, pseudonyms, phones, internet, everything.  All of which is very difficult and expensive ($20k just in legal fees thus far), and yet still will not adequately withstand a motivated nation-state.

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #623 on: October 03, 2018, 10:35:25 PM »
NY-based Gemini announced they have obtained insurance coverage for cryptocurrencies held in custodial accounts on their exchange:  https://www.businesswire.com/news/home/20181003005283/en/

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Gemini was approved for coverage after successfully demonstrating to underwriters that the company is a leading, best-in-class exchange and custodian. The digital asset insurance coverage further bolsters confidence and protection for consumers transacting on the Gemini platform.

“Consumers are looking for the same levels of insured protection they’re used to being afforded by traditional financial institutions,” said Yusuf Hussain, Gemini’s Head of Risk. “Educating our insurers not only allows us to provide such protections to our customers, but it also sets the expectation for consumer protection across the crypto industry.”

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #624 on: October 05, 2018, 09:29:33 PM »
While only tangentially related to bitcoin, here's an interesting talk by Jameson Lopp (he mutilated the metal hardware wallets earlier in this thread):  Extreme OPSEC for the Modern Cypherpunk

As someone who wrote of his family's SWATting in the last year, initiated by someone opposed to his public position on the Bitcoin vs. Bitcoin Cash debate, he's actually researching and implementing these procedures in his own life. 

Bottom line, everything must be siloed behind separate proxies.  Car, home, snail mail, pet licenses, pseudonyms, phones, internet, everything.  All of which is very difficult and expensive ($20k just in legal fees thus far), and yet still will not adequately withstand a motivated nation-state.

Here's Jameson's long write up of the above talk:  https://medium.com/s/story/a-modest-privacy-protection-proposal-5b47631d7f4c

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #625 on: October 08, 2018, 03:33:07 PM »
In this animated cartoon, Jimmy Song argues that Bitcoin represents a form of decentralized Austrian hard money, while Bitcoin Cash is Keynesian fiat controlled by a central elite.


Bitcoin Cash is Fiat Money

His in-depth article in preparation for a debate with Roger Ver, one of the BCash founding elites:  https://medium.com/@jimmysong/bitcoin-cash-is-a-fiat-money-39626c002f77

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #626 on: October 12, 2018, 08:45:57 PM »
Decentralized digital currency meets decentralized wireless communications network......and a cypherpunk lovechild is born.

The Samourai Wallet developers have a new app that allows a signed bitcoin transaction to be transmitted over a goTenna Mesh network:  TxTenna: Transact By Other Means



A simple signed transaction contains this information

Quote
Version: 02000000
Flag: 0001 (indicates segwit)
Input Count: 01
Input 1 Previous Output Hash: 1333183ddf384da83ed49296136c70d206ad2b19331bf25d390e69b222165e37
Input 1 Previous Output Index: 00000000
Input 1 script length: 0x17 (23 bytes)
Input 1 scriptSig: 160014b93f973eb2bf0b614bddc0f47286788c98c535b4
Input 1 sequence: feffffff
Output Count: 02
Output 1 Value: 00e1f50500000000 (100M satoshis / 1 BTC)
Output 1 public key script length: 0x17 (23 bytes)
Output 1 public key script: a914a860f76561c85551594c18eecceffaee8c4822d787
Output 2 Value: F0C1A43500000000 (899990000 sats / 8.9999 BTC)
Output 2 public key script length: 0x17 (23 bytes)
Output 2 public key script: a914d8b6fcc85a383261df05423ddf068a8987bf028787
Witness Count: 02
Witness 1 length: 0x47 (71 bytes)
Witness 1: 30440220434caf5bb442cb6a251e8bce0ec493f9a1a9c4423bcfc029e542b0e8a89d1b3f022011090d4e98f79c62b188245a4aa4eb77e912bfd57e0a9b9a1c5e65f2b39f3ab401
Witness 2 length: 0x21 (33 bytes)
Witness 2: 0223bec70d670d29a30d9bcee197910e37cf2a10f0dc3c5ac44d865aec0d7052fb
Locktime: 8c000000 (block 140)


And is broadcast to the network as this blob of hex

Quote
0200000000010111b6e0460bb810b05744f8d38262f95fbab02b168b070598a6f31fad4
38fced4000000001716001427c106013c0042da165c082b3870c31fb3ab4683feffffff020
0ca9a3b0000000017a914d8b6fcc85a383261df05423ddf068a8987bf0287873067a3fa0
100000017a914d5df0b9ca6c0e1ba60a9ff29359d2600d9c6659d870247304402203b85
cb05b43cc68df72e2e54c6cb508aa324a5de0c53f1bbfe997cbd7509774d022041e1b182
3bdaddcd6581d7cde6e6a4c4dbef483e42e59e04dbacbaf537c3e3e8012103fbbdb3b3fc
3abbbd983b20a557445fb041d6f21cc5977d2121971cb1ce5298978c000000

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #627 on: October 15, 2018, 10:56:10 PM »
Fidelity Says It Will Trade Bitcoin for Hedge Funds

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Fidelity Investments said it will store and trade bitcoin for hedge funds and other professional investors, becoming one of the first Wall Street giants to step into this volatile corner of the financial world.

Most large financial-services firms have resisted the idea of trading digital currencies because of concerns about risk, regulations and stability.


Cue up the Institutional FOMO.....

Offline FreeLancer

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Re: Bitcoin currency (merged topics)
« Reply #628 on: October 16, 2018, 08:25:42 PM »
$194 Million was Moved Using Bitcoin With $0.1 Fee, True Potential of Crypto

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On October 16, a Bitcoin user moved 29,999 BTC worth $194 million with a $0.1 fee, a transaction which with banks would cost tens of thousands of dollars.

An often pushed narrative against cryptocurrencies like Bitcoin and Ethereum is that it is expensive to clear transactions due to fees sent to miners. However, the $194 million payment on the Bitcoin blockchain demonstrates the potential of consensus currencies to optimize cross-border payments significantly.

Transferwise is a UK-based multi-billion dollar firm that eliminates hidden fees in bank transfers. On the platform, users can send small to large payments through bank accounts with substantially lower fees.

However, even on a platform like Transferwise, to send over $1 million, it costs over $7,500 in transaction fees. That means, through wire transfers and conventional banking methods, tens of thousands of dollars are required to clear a transaction that is larger than $1 million.

Percentage-wise, $7,500 is less than 1 percent of $1 million, and in that sense, a $7,500 fee is cheap. But, on the Bitcoin network, which is supposedly highly inefficient in processing payments, it costs less than $0.1 to clear a $194 million transaction.

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Re: Bitcoin currency (merged topics)
« Reply #629 on: October 17, 2018, 08:25:15 AM »
Can crypto predict the broader stock market? Maybe...

https://cointelegraph.com/news/so-is-there-a-correlation-between-bitcoin-and-stock-market-yes-but-no

I actually had a friend alert me to this. Bitcoin has a negative relationship to both the VIX and VXX. In layman's terms it means that as volatility in the broader stock market rises Bitcoin sees a price decline. Does this really matter? Maybe. Traders are obsessed with patterns so we'll toil over any little data blip.