Topic: Laws of Bitcoin (Read 727 times)

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I like them, those are basic topis for all the bitcoiners, but not basic for all, maybe this are the first things users should learn about bitcoin before they use it. And i would like to add one more basi rule.

* Never trust on unconfirmed transactions because if you take an unconfirmed transaction as valid it can be always be doublespended. So, it's a risk to do it for anyone.

I have decided to comply with this law first of all when it comes to Bitcoin and cryptocurrencies in general:

Don't trust anyone and DYOR!

Knowledge is the greatest enemy of all scammers, imho.

Even though I did not yet read this on reddit. I followed some rules written on that. Just like having a double up to quadruple check in the address where I will send my bitcoins. I am proudly to say that in my 3 years of existence in this industry, I did not yet become a victim of wrong sent address. I always check the address before I going to send. In addition, I do not give my private keys since from the start even to my relatives because I know that if i will give the keys then that wallet is not already mine. Because they have an access already.

These rules should be followed and it should be spread so that newbies will have knowledge on how to avoid loss of funds.

While it is widely known that bitcoin uses incentivizing system instead of punitive one, still, there is always a place for punishment mechanisms. For example, malicious miners trying to include invalid transaction or higher rewards for finding a block, get punished by the bitcoin network, it simply rejects bad blocks. Miners wasted electricity, money, and recieved nothing in return. That situation could be thought of as miners violated the law and paid a fine. As for users of the network, if they break the rules of the system, for example, they use it irresponsibly, they also get punished by losing an access to own funds. You may be wondering why irresponsibility per se is considered a violation. It is because of the fact that there is no third parties in bitcoin network to be responsible for storing your money. You should control your own keys, otherwise, keys aren't yours. If you failed controlling them and lost your funds, you simply got punished by the system.

Whether the laws of bitcoin? I'm not quite sure about that. In my opinion, the crypto industry is somewhat anarchy.

I think this just explains it all, thank you for that. But that also raises a question since no one can actually punish these people when they didn't follow these laws. I mean, some tell the amount of bitcoin they hold, hold their btcs to exchanges and don't care what link are they clicking. If I will be answering my question, I think the punishment would be losing their btcs.

Yes, indeed. I must admit, i am just new in this Bitcoin and blockchain industry. This written laws about Bitcoin really gives me an additional knowledge as I am exploring the world of cryptocurrency. I agree all the rules and believes that its a bit risky to learn all those important factors here, yet, with constant research and personal experiences, and interactions with fellow Bitcoiners, I am 100% sure that I could possibly do well. This thread is a big help for me.

IMO, even if they are your relatives, friends and whatsoever you shouldn't discuss it no matter what because you never know what will happen they can probably just boast it to others something they know. However, if you still want to share it so badly you can perhaps tell them the estimated amount you have. Besides, there are tons of ways to encourage them like show them what things you acquired or received in doing this crypto stuff.

Indeed. Perhaps don't rely on a single medium I think. You can use books, media, or online articles to verify the info you have discovered. Though this will be an additional task coz you need to verify it everytime but this will guarantee you safety.

The law itself is a system of rules, and if you don't follow rules, you will get punished. How can this be applied to bitcoin? Actually, it is an interesting question rather philosophical and it can be the subject of debate. What purpose the law does exist for? Generally speaking, it ensures our safety, it protects us against violence and abuses by anyone including governments. The current monetary policy is far from perfect, currency in such system is subject to inflation, debasing, confiscating, censoring, etc. Bitcoin protects us, gives us an option to opt out from the system in which abuses have become a norm. But in order to achieve financial sovereignty, the laws of bitcoin must be strictly followed, otherwise you will get punished, not by authorities though, but by bitcoin network itself. You will lose your ability to transact in an open, decentralized, neutral, borderless, immutable network. If you want to participate, you must follow the rules.

There are some people who don't take these recommendations seriously and even venture to other ideas or are careless when it comes to handling their bitcoin addresses. It is good to remember them and always put them into practice.

In crypto we do not stop learning, we must continue in constant learning because technology evolves to satisfy our needs.
Double check is my favorite law both at my bitcoin address and on websites.

I believe that the laws must include security (2FA and 3FA) that we must use when accessing an exchange platform.

I don't know but for me shouldn't this be a rule and not a law? Correct me if Im wrong though. Since there are those people that broke these laws and no one knows what that is as they say it, on one above the law. On the other hand a rules is something that couldbe a guide for the people use bitcoin. This is just my opinion though.

I totally agree to these rules, I almost once got scammed but thankfully I've decided to google and here I am

This is sincerely right. All of those that have been stated by on the 8 Laws of Bitcoin is definitely good and this must be known by the other members most specially the new ones so that they could familiarize themselves on the ideas that they must learn about to avoid getting caught up by those hackers and scammers who are taking the advantage on the weaknesses of the new individuals who were just starting to build up their own Bitcoin pathway towards success.

All of the laws stated are indeed the basic ones but still one of the important concepts that must be known and not to be skipped for there are certain people who skip this simple ideas thinking that they can already stand on their own. Admit that you still must learn something for you do not certainly know anything. Be teachable and accept the fact that even simple things can save you up on any situation since the basic things in life are the important concepts that people mostly taken for granted.

I agree. Although all this is still quite unknown to me, everything I have learned is thanks to this forum. Unfortunately, I don't own a lot of Bitcoin, but it's never too early to think about security.

This really makes sense. I think those are really essential laws that must be followed here in Bitcoin so that we can secure our cryptocurrencies and keep ourselves safe in this industry. The laws state are somewhat already basic and common but still those are essential to be known most specially for the newbies out there that are still not familiar so that they not easily get fooled by other crypto users which are commonly known as scammers and hackers that would do everything for the good of their own sake.

Good thanks that the OP have shared such essential information although many of us do already know it, but the other members in the forum will make use of it specially those newbies and Juniors that are still starting and making their own path of journey towards Bitcoin and the whole cryptocurrency as well.

If you are taking about large exchanges such as Coinbase or Binance, then the exchange being hacked should probably be the least of your concerns when storing your coins there.

Far more likely is your individual account being hacked, either through social engineering, through your email being hacked, through SIM jacking, through your phone or laptop being stolen, through being phished, or some other commonly occurring technique. Even accounts with 2FA enabled are hackable.

Or perhaps the exchange decides that you have done something incredibly immoral with your money, such as deposit it to a casino (gasp!). Oh dear, now your account is shutdown and all your coins are confiscated, permanently.

Or perhaps your government decides to revoke that exchange's license to function in your country. Again, your coins are now locked and irretrievable.

Or perhaps there are some shady employees at that exchange, and suddenly the cold wallets have been emptied.

Or perhaps it turns out the exchange was using customers' deposits to lend out and invest elsewhere, as Huobi was caught doing, and they make some bad investments and lose your coins.

Or perhaps they just go bankrupt?

Even then, Coinbase narrowly avoided a significant hack last year after several of their employees fell for fake emails. Binance was hacked for $40 million last year.

Your funds are not safe on exchanges. Not your keys, not your coin.

I understand the need to brag. Need to tell at least someone about something you are very interested in. I have friends bragging in 2015 about making money with altcoins, without realizing that they just made a target on their back. Last years they have just told everyone that they have lost everything in hacks and scams. Funny enough people believed them.


This i controversially kinda disagree with. It's a liberarian dream to be your own bank but with that comes with a huge responsibility. Real banks are going to be way harder to rob and you most likely aren't providing that level of security.

If you are afraid of exchanges being hacked, you might as well be worried about being hacked yourself. Things have evolved since MtGox, Mintpal and Cryptsy, at that time it was clear that every exchange was shady, and those were the big ones. There weren't any KYCs or any kind of regulation anyway.

I mean there will be hacks and exit scams in the future too, but there's a huge difference putting money in some shady place "that haven't exit scammed yet", like Yobit, then with holding your money public places like coinbase.

Also lots of places have set a new standard and these days you can assume that they have insured their holdings.

However, if you are worried that irs or someone is confiscating your money because you haven't been paying taxes and you have been hiding your money from the government, that's a whole another issue and i understand why you need to keep your private key. However i don't understand why you wouldn't just pay taxes.

This is a wonderful crypto laws which should be recommend for crypto newbie and unconscious investors/traders but it an embarrassment that only few of them will put it into practise cause I have seen alot of people on this forum which still consider coinbase and others exchange site as a wallet. While some are still the victim of Roi and I think the number 1 law should learn and understand the risk of crypto investment

I adore all these points!))) Perfect list I would like to admit. But the most I like the last one - 8th. I would replace it to the first place, on the top of this list and all existing lists like this one. And I would add this point - every time be ready to lose because there is always such a risk in every direction where assets and investments are. Lots of people forgot about this golden rule and after they lose something they do not blame themselves for their recklessness, but they blame others, different processes and coins and so on)))