It is high time that the Bitcoin user interfaces and experience discussion be moved to nodes.
This opinion editorial is by Ram, a twenty-year-old student, soldier, and storyteller.
This is how it looks:
Your little girl is playing with her laptop and yelling "Wow!" and even "Oh!" Is this a cartoon? Is it anime or a cartoon? Is it anime?
Around 15,000 active Bitcoin nodes are running around the globe, according to a report by a twenty-year-old from Singapore. These nodes are responsible for storing the entire Bitcoin database.
It's almost impossible for one person to change the record because 15,000 computers are storing the same database around the globe. They also transmit new transactions to each other every day.
Elon Musk made this statement when he spoke about Bitcoin's future, a decentralized currency.
"The truth is, the average person will not run a Bitcoin node." Elon Musk, B World Conference 2020
Elon is right. But let me clarify.
Elon was referring specifically to a validating nude. It is very easy to set up.
- Both mining nodes and validation nosdes have different functions. (TLDR) Mining nodes use electricity to create "blocks of data", validating nodes verify that the information in those blocks are correct. Mining nodes are now called miners. Validating nodes are just called nodes. Both contribute to decentralization.
- A validation node is not going to cause your house to burn down because of high electricity consumption.
- It is very simple and does not require any technical knowledge.
- It actually costs only 10 cents per daily for electricity.
- You need less than 7GB storage space right now to set up a pruned node. This is where you only hold a small amount of the Bitcoin transaction data but still contribute to decentralization.
The average person doesn't know the above.
Bitcoin is still the most decentralized cryptocurrency in the world. It is amazing that 15,000 nodes are used in the context of cryptocurrency. This was proven during the blockize wars.
Let's change the context. Today, the internet is available to over 5,000,000,000 people. It's amazing how small 15,000 nodes seem. More than 15,000 people probably have 7GB spare on their computers. Many people may have an older laptop in their garage.
Decentralization is a key ingredient for Bitcoin's wider adoption. Encourage regular people to run Bitcoin validating nosdes.
This is a topic we are not talking enough about today.
This is possible with UX and Node UI improvements
UI and UX are often overlooked in payment apps and exchanges. The UI/UX conversation is virtually non-existent when it comes to nodes.
Keep in mind that the largest company today is the one that has been relentlessly focusing its efforts on UX and UI. The market capital of this company is six times greater than Bitcoin's.
Image taken from Apple 1998; Sourced by CNET
Although Bitcoin is not a company, the same principle applies. This boils down into making things easier to understand.
Make it easier when setting up a validating network node. It gets simpler. It gets even simpler. Installing Bitcoin Core should be as easy as installing a Chrome extension. Or an app from Google Play. Then suddenly people will realize that this node thingy really is super easy!
I will clarify. Setting up a validating network node is easy. However, simplicity and perceived simplicity are two different things. Perceived simplicity today requires effortlessness.
Let's now talk about the emotions that should be experienced when running a validating network.
Take block explorer websites.
Image from blockchain.com
Technically, all of this information can be found on any validating node. This information is more difficult to understand and requires technical knowledge. This knowledge is not available to the average Joe.
Hence, you should improve the UI/UX. The block explorer websites' interface can be superimposed on top of node program. You can take it one step further. Allow users to see the number of nodes they are transmitting data from, how many blocks have they helped validate, and any temporary chain splits. Simpler. Interactive. It's also easy. There will be many ideas for creating a fun UI or UX based upon the blockchain.
UX and UI are not only important for decentralization. They can alter the way people access Bitcoin.
Here's an illustration of how I envision the typical path for someone who enters Bitcoin.
Hears of cryptocurrencies as a means to make fiat. Gets into altcoins. Gets into Bitcoin. Goes down the rabbit hole. Believes in Bitcoin. Sets up a validating Node.
This is only one example of many. Here's the thing: Most of the time, setting up nodes happens late.
This is what an intuitive and more intuitive node UI or UX could do to change this pathway:
Hears of cryptocurrencies as a means to make fiat. Decides to install a Bitcoin validating Node to experience the value proposition. Interacts with the blockchain to learn more – possibly even has fun. Interested in Bitcoin. Spreads word. Loops.
A validating node means that Bitcoin is open to all new users. This implies that there are zero risks. It will be promoted as such by UX and UI improvements. They will promote learning by interacting with Bitcoin. The blockchain will provide education. Videos and articles can only do so much.
Here are some additional UI and UX benefits.
- It is attractive to non-technical people. Bitcoin is the most decentralized cryptocurrency. However, the people running validating nodes are a small group largely drawn from finance and tech communities. Let's also bring people from other communities. One immediate thought is that NFT designers could transition to Bitcoin's UI/UX.
- These websites reduce the inherent risk of centralized block-explorer websites.
- This would make Bitcoin, the payment system, more widely known. Bitcoin, the currency, can be argued over, but Bitcoin, the payments system, is extremely difficult to refute even with mainstream economics.
It is worth noting at this point that increasing decentralization may also bring about some disadvantages. Typical democracy problems. There are pros and cons to decentralization among technocrats. This is a different discussion.
Let's be clear: We need to talk more about this! Many people still have a deep misunderstanding of Bitcoin. It is quite painful to see that the argument "Bitcoin hurts the climate" has gained so much support. Even though we are all at different levels of the rabbit hole, Bitcoiners can still benefit from simpler interactions with the blockchain.
Talk about it in Telegrams, Discords, and, of course, on Twitter. Is it possible? Is it feasible? Does it make sense? Are you actively working on it?
Let's go back to the beginning of the story.
Your little girl is playing with her computer and yells "Wow!" as well as "Oh!" As you walk by, you see a block being added to the chain of blocks that precedes it. One chain becomes two until the chain at the top grows longer and the one below disappears into flames. Your girl claps.
This, my friends, is a vision that's worth pursuing.
Ram contributed this guest post. These opinions are Ram's and don't necessarily reflect the views of BTC Inc.
Frequently Asked Questions
Can I have a gold ETF in a Roth IRA
While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).
Traditional IRAs allow for contributions from both employees and employers. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP provides tax advantages because employees share ownership of company stock and profits the business generates. The money you invest in the ESOP will be taxed at a lower rate than if it were directly held by the employee.
A Individual Retirement Annuity is also possible. An IRA allows for you to make regular income payments during your life. Contributions made to IRAs are not taxable.
Can I buy or sell gold from my self-directed IRA
Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. If you already have a retirement account, funds can be transferred to it.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contracts, which are financial instruments based upon the price of gold, are financial instruments. You can speculate on future prices, but not own the metal. But physical bullion refers to real gold and silver bars you can carry in your hand.
How does a Gold IRA account work?
Gold Ira accounts are tax-free investment vehicles for people who want to invest in precious metals.
You can purchase physical bullion gold coins at any point in time. You don’t have to wait to begin investing in gold.
The beauty of owning gold as an IRA is you can hold on to it forever. Your gold holdings will not be subject to tax when you are gone.
Your gold will be passed on to your heirs, without you having to pay capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. Once you've done so, you'll be given an IRA custodian. This company acts as a middleman between you and the IRS.
Your gold IRA custody will take care of the paperwork and send the forms to IRS. This includes filing annual reports.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. Minimum deposit required is $1,000 If you make more, however, you will get a higher interest rate.
When you withdraw your gold from your IRA, you'll pay taxes on it. You will be liable for income taxes and penalties if you take the entire amount.
You may not be required to pay taxes if you take out only a small amount. There are exceptions. However, there are exceptions. If you take 30% or more of your total IRA asset, you'll owe federal Income Taxes plus a 20% penalty.
You should avoid taking out more than 50% of your total IRA assets yearly. If you do, you could face severe financial consequences.
What is the cost of gold IRA fees
Six dollars per month is the fee for an Individual Retirement Account (IRA). This includes the account maintenance fees and any investment costs associated with your chosen investments.
Diversifying your portfolio may require you to pay additional fees. These fees will vary depending upon the type of IRA chosen. Some companies offer checking accounts for free, while others charge monthly fees for IRA account.
In addition, most providers charge annual management fees. These fees range between 0% and 1 percent. The average rate for a year is.25%. These rates can be waived if the broker is TD Ameritrade.
How much gold can you keep in your portfolio
The amount that you want to invest will dictate how much money it takes. For a small start, $5k to $10k is a good range. As your business grows, you might consider renting out office space or desks. This will allow you to pay rent monthly, and not worry about it all at once. Rent is only paid per month.
It's also important to determine what type business you'll run. In my case, we charge clients between $1000-2000/month, depending on what they order. This is why you should consider what you expect from each client if you're doing this kind of thing.
Freelance work is not likely to pay a monthly salary. The project pays freelancers. Therefore, you might only get paid one time every six months.
You need to determine what kind or income you want before you decide how much of it you will need.
I recommend starting with $1k-$2k of gold and growing from there.
Is gold a good IRA investment?
If you are looking for a way to save money, gold is a great investment. It is also an excellent way to diversify you portfolio. But gold has more to it than meets the eyes.
It's been used as a form of payment throughout history. It is sometimes called the “oldest currency in the world”.
Gold is not created by governments, but it is extracted from the earth. This makes it highly valuable as it is hard and rare to produce.
The supply-demand relationship determines the gold price. The strength of the economy means people spend more, and so, there is less demand for gold. Gold's value rises as a result.
The flip side is that people tend to save money when the economy slows. This results in more gold being produced, which drives down its value.
This is why investing in gold makes sense for individuals and businesses. You'll reap the benefits of investing in gold when the economy grows.
In addition to earning interest on your investments, this will allow you to grow your wealth. Additionally, you won't lose cash if the gold price falls.
Should you open a Precious Metal IRA
Precious metals are not insured. This is the most important fact to know before you open an IRA account. There is no way to recover money that you have invested in precious metals. This includes all investments that are lost to theft, fire, flood, or other causes.
This type of loss can be avoided by investing in physical silver and gold coins. These items have been around for thousands of years and represent real value that cannot be lost. They are likely to fetch more today than the price you paid for them in their original form.
Consider a reputable business that offers low rates and good products when opening an IRA. You should also consider using a third party custodian to protect your assets and give you access at any time.
Remember that you will not see any returns unless you are retired if you open an Account. Remember the future.
Statistics
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options? Types, Spreads, Example and Risk Metrics
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- Are you interested in keeping gold in your IRA at-home? It's not legal – WSJ
cftc.gov
finance.yahoo.com
How To
3 Ways To Invest in Gold For Retirement
It's essential to understand how gold fits into your retirement plan. There are several options to invest in precious metals if your employer has a 401k. You may also want to consider investing in gold outside of your workplace. You could, for example, open a custodial bank account at Fidelity Investments if your IRA (Individual Retirement Account) is open. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.
These are the rules for gold investing:
- Buy Gold with Cash – Avoid using credit cards or borrowing money to fund investments. Instead, put cash into your accounts. This will help protect you against inflation and keep your purchasing power high.
- Physical Gold Coins: You should own physical gold coins, not just a certificate. Physical gold coins are easier to sell than certificates. There are no storage fees for physical gold coins.
- Diversify Your Portfolio. – Do not put all your eggs into one basket. Also, diversify your wealth and invest in different assets. This will reduce your risk and give you more flexibility in times of market volatility.
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By: Ram
Title: How Improving The UI And UX Of Bitcoin Nodes Could Benefit Everyone
Sourced From: bitcoinmagazine.com/technical/improving-bitcoin-nodes-ui-and-ux
Published Date: Thu, 22 Sep 2022 22:45:00 GMT
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