Stellar Lumens (XLM) is the next Bitcoin

What telegram channels do you follow, OP?

How did you get in here?

If Elmo and Trump are behind it, it already has the stench of failure around it.

You can buy it on Coinbase and Robinhood, among other platforms and exchanges.

R3 hopefully they don’t reduce or cut the food stamps you so desperately depend upon.

JFC -- I must be an idiot, because I just don't "get" this stuff. How do servers chugging away and using up all kinds of energy translate into spendable currency?

I've tried to read how it works at least four times and I am still just as clueless. But I really want to understand. I'm not a financial naif; I actually understand at a very basic level how derivatives work (yeah, whatever -- but it was hard for me). But this shit goes right over my head.

Can anyone point me to a website that explains this at the level of an 8th grader?

TIA

R6 Senior Lez,

Cryptocurrency is a type of digital money that exists only online and doesn’t rely on banks or governments to work. Instead, it uses a technology called blockchain, which is like a big, unchangeable digital spreadsheet shared across thousands of computers worldwide. Every time someone makes a transaction, like sending or receiving cryptocurrency, that transaction gets added to the blockchain for everyone to see. This system ensures that no one can cheat, like spending the same money twice, and makes the system secure without needing a central authority like a bank.

The blockchain works by organizing transactions into blocks, which are like pages of a book. Once a block is filled, it gets locked in place and connected to the previous block, forming a chain of information that can’t be changed. To add new blocks, powerful computers solve difficult math problems to confirm transactions, a process called mining. This keeps the network secure and ensures everyone agrees on the same version of the blockchain. Different cryptocurrencies—like Bitcoin or Ethereum—use this system but often have unique features, like faster transactions or the ability to support apps and smart contracts.

Cryptocurrencies offer several benefits. They let people send money directly to each other anywhere in the world, often faster and with lower fees than traditional banks. They also provide financial access to people in countries where banking services are limited or unreliable. Additionally, since no government or institution controls cryptocurrencies, they offer an alternative to traditional money for those seeking privacy or independence from financial systems. Many people also see cryptocurrencies as a new kind of investment, although they can be risky due to their price swings.

Make more sense? Any questions?

Is this based on proof of work or proof of stake?

If it’s proof of stake, but they plan of transitioning by to proof of work after it’s established… then it is a scam.

Bitcoin is the only CC which is proof of work and the only one worth owning, and it’s still not a suitable investment for everyone, or even most people.

R8 Stellar Lumens (XLM) operates on the Stellar network, which utilizes the Stellar Consensus Protocol (SCP). This protocol is distinct from both Proof of Work (PoW) and Proof of Stake (PoS) mechanisms. Instead, SCP employs a federated Byzantine agreement system, allowing nodes to reach consensus based on trust among selected sets of other nodes, known as quorum slices. 

This design enables the Stellar network to achieve faster transaction processing with lower energy consumption compared to PoW-based systems like Bitcoin. Transactions on Stellar are typically confirmed within about five seconds. 

Regarding any plans to transition Stellar to a Proof of Work system, there is no indication or announcement from the Stellar Development Foundation or the community suggesting such a move. The network continues to operate using SCP, with no plans to adopt PoW.

It’s important to recognize that different consensus mechanisms have their own advantages and are chosen based on the specific goals and requirements of each blockchain network. While Bitcoin’s PoW mechanism has proven effective for its purposes, other networks like Stellar have adopted alternative protocols to better align with their objectives, such as facilitating fast and low-cost cross-border transactions.

PoW is not effective for high volume, high frequency transactions. Bitcoin is becoming antiquated and is basically just a speculative store of value, like gold… for now, that will eventually change when the Bitcoin bubble bursts and the money flows to more efficient cryptocurrencies.

Thanks, R7. but that's the exact same stuff I keep reading and I still have no idea how computers churning out calculations translates into spendable currency no matter what the transactions are or where they're stored. How can you buy things with that? Why is it worth anything at all? Let's say I set a statistical program to run some ridiculous calculation (like, say, a factor analysis with a million variables) that takes a year to solve -- how is that worth anything to anyone? All it does is run run run on my computer and churn out some kind of answer somewhere and apparently I'm the only one who cares about the outcome. I mean, WTF??

I give up.

Today, Stellar Lumens (XLM) is around .52 cents per coin, and some predictions have the price going to $2.50 then to $3-5 dollars.

The same people who piss on this are the same people who probably heard about Bitcoin at $100 or $1000 each and said “that’s a bunch of bullshit! No one will ever use that crypto crap!”-just like the people in the early 1900s who said “no one wants one of those new fangled automobiles, when we got perfectly good buggies and horses!”

R9, so in other words is the same system we have now but not dollar based and just as easily manipulated and pumped and dumped.

No proof of work, it’s easily manipulated. End of story.

R10 Cryptocurrency computations, like those in Bitcoin, have value because they maintain and secure the network that enables decentralized, tamper-proof financial transactions. These computations, known as proof-of-work, solve cryptographic puzzles that validate transactions and create new blocks on the blockchain. While the solutions themselves aren’t inherently valuable, the process of solving them ensures the integrity and trust of the system, which allows it to function without intermediaries like banks. Miners are rewarded with cryptocurrency for their work, and this incentive drives the network’s operation. The scarcity of assets like Bitcoin (only 21 million will ever exist) and their utility as secure, global, and decentralized money create demand, which gives them market value.

In contrast, running a hypothetical calculation that only you care about doesn’t contribute to a system or process others value, so it doesn’t generate demand or monetary worth. Bitcoin’s value comes not from the computations themselves but from what they enable: a trusted, decentralized financial network. People trust and demand Bitcoin as a form of currency or investment, allowing it to be exchanged for traditional money or used for transactions. Essentially, Bitcoin’s value arises from its broader utility, scarcity, and the collective belief in its usefulness, similar to how fiat currency derives value from trust in a government.

R12 I get why Proof of Work (PoW) is often seen as the gold standard—it’s proven and has made Bitcoin incredibly secure. However, it’s not without its flaws, and Stellar’s consensus protocol offers several advantages that address PoW’s limitations. For one, Stellar’s Stellar Consensus Protocol (SCP) is designed to be energy-efficient, eliminating the massive environmental costs of PoW mining. Bitcoin’s energy consumption is comparable to that of some countries, which isn’t sustainable long-term, especially as the world moves toward greener solutions.

Beyond efficiency, Stellar is built for a very different purpose than Bitcoin. Bitcoin functions as a store of value, but Stellar’s system is optimized for fast, low-cost cross-border transactions. With SCP, transactions are confirmed in seconds, not the 10+ minutes it can take on Bitcoin’s blockchain. Moreover, Stellar is highly inclusive, enabling financial institutions and individuals to build on its network seamlessly. The lack of mining reduces centralization risks because power isn’t concentrated in the hands of a few massive mining operations. While PoW has its place, Stellar’s SCP is arguably more innovative for the use cases it serves, offering a practical and sustainable alternative for modern financial systems.

Just note that tonight on September 30th, Stellar Lumens (XLM) is priced at .52 cents per coin.

Will follow up here at a later time.

[quote]the collective belief in its usefulness

Ah-HA! I get it. Like if all of a sudden I was the lord of the Trump family and I decide to sell the hairs on my head for a buck apiece because idiots think they're worth something. All you're saying basically is that the hairs are dyed a certain color that no one else can replicate, and that each hair is unique -- and that, and the fact that people think they're valuable, makes them currency.

Sounds like scam to me.

But I think I get it now. Thanks, R13!

R16 Exactly! You’ve nailed the concept: value is largely based on what people collectively agree is valuable. This applies not just to cryptocurrency but to the U.S. dollar and most modern currencies, which are no longer backed by physical assets like gold. Since 1971, the U.S. dollar has operated as a fiat currency, meaning its value comes from the trust people place in the U.S. government and its economy, not from any inherent backing. People accept dollars because they trust that others will accept them too, creating a cycle of perceived value.

Cryptocurrencies operate similarly, but instead of trust in a government, their value stems from trust in the technology, the scarcity of the asset, and its utility in financial transactions. If enough people believe in the value of your “unique hairs” (or cryptocurrency), they effectively become currency. Whether that seems like a scam depends on perspective—but at its core, money is only as valuable as the collective belief that it has worth.

R16 a great example is the art world, would you pays millions for a Picasso, probably not, but the vast majority have agreed that Picassos are worth 10s and 100s of millions of dollars. Gold and Silver have various tangible uses but they impractical in the modern world to carry around. Also, don’t forget Tulip Mania.

Does the IRS investigate bitcoin transactions?

If someone buys bitcoin with hard cash is the IRS notified?

R19 no