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Bitcoin

Created by the pseudonymous Satoshi Nakamoto in 2009, Bitcoin is a peer-to-peer electronic cash system.

Finance and payments

🔑 81%

Reviews for Bitcoin

🔑 81 positive | 💩 19 negative

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I don't have a view on what the ultimate value of a Bitcoin will be nor do I care. I am interested in Bitcoin plain and simply because I believe it can be and possibly will be the financial and transactional protocol for the global Internet.

2013-11-24 | Full Review

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Until the Bitcoin community ditches the cranks and adopts a sensible monetary policy that properly recognises both the need for savings to be intermediated into productive investment and the need for money to flow, Bitcoin cannot possibly operate as the anchor of the cryptocurrency ecosystem.

2018-04-11 | Full Review

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Why has Bitcoin failed? It has failed because the community has failed. What was meant to be a new, decentralised form of money that lacked “systemically important institutions” and “too big to fail” has become something even worse: a system completely controlled by just a handful of people. Worse still, the network is on the brink of technical collapse.

2016-01-14 | Full Review

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Bitcoin has unfortunately innovated more lowly than Yahoo in the last 10 years. It may end up the reserve e-gold, but the conservatism that has prevented evolution of the tech may ultimately even threaten that status.

Sean Parker, Philanthropist, Entrepreneur, Founder of Napster

2018-04-29 | Full Review

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In the crypto world, Bitcoin is perceived as slow to change, clunky technologically, and as having bad governance. While all these things may be true, Bitcoin has strong network effects that will maintain its status as the primary value store in the short to medium term.

2017-12-11 | Full Review

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I would be long Bitcoin, and neutral to skeptical of just about everything else at this point with a few possible exceptions. There will be one online equivalent to gold, and the one you'd bet on would be the biggest.

2018-03-15 | Full Review

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Why will Bitcoin accrue value in a way that Ethereum won’t?

Because in addition to being a protocol, it is a product.

2018-08-13 | Full Review

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Bitcoin has an interesting property in that it was ethically issued and has ongoing ethics in its distribution: everyone knows the rules and takes risks based on how the code works. Incentives are aligned

Most other projects don’t even attempt to duplicate this level of fairness

2018-09-26 | Full Review

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BTC is the Birkin Bag of crypto-assets. Expensive and rare with high transaction costs but huge brand value.

2018-01-08 | Full Review

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What is needed is actually secure independence of money from politics, which the Bitcoin protocol does much better than any other prior monetary system.

Nick Szabo, Blockchain, cryptocurrency, and smart contracts pioneer

2018-11-11 | Full Review

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Ten years in and Bitcoin could hardly be more successful — indeed since its genesis it has clearly been the most successful form of money ever invented. It has thrown entire bodies of economic theory out of the window, the old practitioners gripping tenuously from the balcony. Bitcoin grew 10,000-fold without the anointment of any king, nor the blessing of any banker.

2018-10-31 | Full Review

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There is nothing about Bitcoin that makes it a good store of value. That line of narrative is incredibly dangerous. It has been used to sell Bitcoin to the masses who don’t understand where that value is going to come from.

2018-06-12 | Full Review

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Bitcoin’s strongest moat is that it’s the only leaderless cryptonetwork. . . Satoshi could leave right at the beginning because Bitcoin was already “good enough”. It was based on 30 years worth of work in cryptography and computational game theory. But all other cryptos aren’t “good enough” to overcome Bitcoin’s network effect and switching cost.

2018-05-22 | Full Review

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Bitcoin continues to be misunderstood by many people in the cryptocurrency space who want it to be more than it has to be for it to succeed. . . . Yes, Bitcoin has all sorts of drawbacks as a blockchain, but it is the one cryptocurrency with a widely understood use case: censorship resistant store of wealth. Fiat currencies, precious metals and real estate (including land) all have more government control and/or are more difficult to move around and transact in than Bitcoin. With everything crazy that’s going on in the world politically, the demand for censorship resistant wealth storage is high and growing.

2017-10-30 | Full Review

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We don’t theorize about what exists today. We can observe.

We can extrapolate though. Bitcoin has thus far replaced zero currencies per decade. I agree it’s fair to expect that trend to continue

2018-11-10 | Full Review

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Transaction demand is to some extent a function of the number of people simply holding the currency. Even if my main use case is holding, I’m still going to have to enter and leave the network.

This wouldn’t matter much if Bitcoin had loads of on-chain capacity, but the current capacity limits (likely to hold for a while) will turn even modest global adoption — just by people who do the minimum transacting possible — into a capacity problem.

2018-10-14 | Full Review

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The power of miners is very limited. Try to stop your central bank from diluting your currency by doubling the money supply in the next 30 years. Impossible. Now try doing it in bitcoin. Easy: just run a full node. We'll run them together. It'll work. That's how we got here.

2018-11-19 | Full Review

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When humans change the way we think about the world we are able to invent more powerful types of organizations. Bitcoin is a breakthrough in self organization - now the rest of the world just needs to update its mental models to take advantage of it.

2018-11-25 | Full Review

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Bitcoin isn't "cool" or "awesome" new tech. It's an ugly contraption optimized to be neutral apolitical money, not for your user experience. It's not the toy you want, it's the medicine you need.

Like it or not, it's your best chance for living in a free market with sound money.

2018-12-05 | Full Review

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The beauty is that Bitcoin isn't a reliable store of value yet, but it will be if it gets adopted. Adoption = more liquidity & lower volatility. So late adoption and SoVness are one and the same. By definition no one can be left out.

Nic Carter, Partner at Castle Island Ventures and Co-creator of Coinmetrics

2018-12-02 | Full Review

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Full nodes on the Bitcoin blockchain store every transaction made going back to the zero block; full nodes on the Ethereum blockchain additionally store the static code (if any) associated with a given account and that code’s current state in storage.

2016-01-06 | Full Review

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I received $1,000 this week from a friend. PayPal shows $955 as withdrawable amount.

$45 fee for a $1,000 payment, while Bitcoin processes $194 million with $0.1

2018-12-01 | Full Review

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Bitcoin exists not only on the technological layer but even more importantly, on the social layer. It is open-source software. If there is truly a technological breakthrough, it can simply be added to bitcoin.

2018-12-25 | Full Review

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Bitcoin is still working today, exactly the same as it worked last year and the year before that and the year before that. By all the noise and all of the stuff and all of the crashes and this and that and the other thing, it just continues to work. It just is. It’s becoming like air or water. It just is, like it or hate it. It just is.

2018-01-01 | Full Review

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Bitcoin is one of the most important inventions of all time and has launched a global movement. It's awesome to see an entire ecosystem spring up around it, but Bitcoin is my first love.

Bitcoin remains the most popular asset on Coinbase among new customers and longtime hodlers alike. It's great to see steady progress continue, including lightning network adoption and more.

I believe we’re still at the beginning. The white paper signaled the start of a movement and the full promise of Bitcoin is still yet to be realized.

2019-01-03 | Full Review

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Adam Smith called capital "stored labor". Bitcoin is literally stored computational labor (stored Hashcash).

2015-07-02 | Full Review

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[B]itcoin as a payment system is just one of the potential applications of the network. To cap Bitcoin’s value here would be like saying that the Internet, in the early days, was only as valuable as its ability to send email in a more efficient way than fax or snail mail. Bitcoin is valuable as a currency because of the economic efficiencies the Bitcoin network is already creating as transactions flow over it. As with the Internet, more applications will flourish which will make the Bitcoin network, and thus Bitcoin as a currency, valuable.

Fred Ehrsam, Board of Directors at Coinbase, Previous Co-Founder of Coinbase

2014-01-02 | Full Review

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The Internet enables decentralized distribution of data. Bitcoin enables decentralized proof and transfer of ownership.

Fred Ehrsam, Board of Directors at Coinbase, Previous Co-Founder of Coinbase

2014-01-02 | Full Review

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Bitcoin is aiming to be a store of value. Architectural stability, network security, network effects, decentralization, wide acceptance all matter. It’s currently the best of an imperfect bunch on those characteristics.

2018-01-29 | Full Review

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1) Bitcoin alone now routinely moves hundreds of millions of dollars per day
2) Yet some say there are “no use cases” for crypto

Key point: not all of that volume is trading. At least some is for paying remote workers, international remittances, etc.

2018-12-03 | Full Review

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The more new chains launch with massive issues (including some with huge budgets) the more impressive it is that bitcoin has never had any similar catastrophes, over a much longer period.

2018-06-16 | Full Review

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Bitcoin was an important part of getting this technology recognised, largely through the socially-sensitive MVP of a currency. However it didn’t really capture the imagination of developers in general.

2015-11-18 | Full Review

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The pace of innovation in Ethereum > the pace of innovation in Bitcoin.

2019-01-21 | Full Review

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BTC/LN [analogy to] TCP/IP

Bitcoin is becoming a platform—a protocol stack with many features:
- store of value
- low trust wealth transfer
- confidential transactions
- tokenized securities
- high volume payment network
- microtransactions
- smart contracts / programmable money

2019-01-21 | Full Review

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BTC a year ago 300k txs, now 170k
LTC a year ago 2k txs, now 40k
ETH a year ago 50k txs, now 750k
ETC a year ago 20k txs, now 100k
BCH a year ago 0 txs, now 20k

BTC dominance a year ago 90%, now 45%...

A substitute good is one good that can be used instead of another....

Roger Ver, Angel Investor and Bitcoin Investor

2018-03-31 | Full Review

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[Bitcoin is] going to be what it has always been—open source money. Utilization will grow by push and pull. We’ll push Bitcoin to users by building truly delightful user experiences and applications—I see those being built, albeit slowly. And on the pull side, there will be groups of people who seek out Bitcoin, who are willing to overlook the current limitations and the learning curve because it’s a matter of life and death for them. Choice is an incredibly powerful and sometimes destabilizing force.

2018-10-31 | Full Review

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[Bitcoin is] a brilliant collectible that’s probably more like art than baseball cards, stamps, or coins, because there’s a finite amount that are going to be made. There’s 21.9 million Bitcoins that are going to be made.

And if enough people hold and don't sell, and enough people borrow to buy, just like we saw in the stock market, [the value will rise]. As much as a shared stock is ownership in a company, that's the all time lie. . . . [T]here's scarcity, and scarcity sells—and there's no greater defined scarcity than Bitcoin.

2017-12-12 | Full Review

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Bitcoin currently chooses liveness [over safety], which is the worse choice of the two. After a network partition heals you’ll likely end up with two forks and two groups that disagree about which chain should be called Bitcoin, or, it will shed a large fraction of people who finally “get it”.

2018-04-08 | Full Review

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While I am super constructive BTC long term, it is an asset that has not yet proven its worth as anything but a speculative vehicle. Cannot be considered a store of value -- it is NOT a currency unit

2018-08-13 | Full Review

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Bitcoin is something that is natural, decentralized, uncontrolled and digital. This is something that didn’t exist before Satoshi invented it in 2008 and I would argue, doesn’t exist with any other cryptocurrency. This is the key to Bitcoin’s usefulness as money. Scarcity is the first thing that’s required without which its proposition as money crumbles.

2019-01-15 | Full Review

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[W]hat *are* people buying with Bitcoin that dwarfs its use in traditional e-commerce and on the dark web? Remarkably, the answer is something that DIDN’T EVEN EXIST when the Bitcoin paper was published and ONLY EXISTS NOW *because* it was published.

The answer is that, so far, the primary “commerce” use case emerging for Bitcoin is to buy *other digital assets*.

In just the last couple years, billions of dollars in purchases of digital assets have been made with Bitcoin (and Ethereum). . . . Bitcoin and the broader cryptocurrency ecosystem has giving rise to an emergent “commerce” use case that no one, including Satoshi, could have predicted.

2018-03-22 | Full Review

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Bitcoin is behaving like the reserve currency of the cryptoasset ecosystem. Its share of the ecosystem increases during panic attacks and flights to safety.

2018-06-23 | Full Review

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Countless people must migrate to support family. The cost to remit? An entire month's pay.

Bitcoin—as a global, free, instantaneous payment rail—will help many expatriate families retain hard-earned income.

Essentially free and instantaneous to Skype anywhere on Earth—but sending $300 internationally takes days and costs a meaningful chunk.

2015-03-04 | Full Review

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In general, I think cash and payments are one of the last areas blockchain will affect. . . . While Bitcoin may win digital gold, I don’t think it’ll succeed as money: it’s too volatile, isn’t designed to be money, and has no dynamic monetary policy (which is part of why gold was abandoned as a form of payment in society).

Joey Krug, Co-Chief Investment Officer at Pantera Capital

2019-01-08 | Full Review

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Before 2009, no one knew how to create decentralized digital tokens with scarcity. Bitcoin showed the how it can be done, and this innovation made digital monetary commodities possible.

Note the smooth curve that asymptotically approaches 21,000,000 coins. This curve will never change – it’s in the DNA of bitcoin. Even if miners centralize and change this 21M limit, the community would fork the code and restore “bitcoin classic” with the original supply. Interestingly, the message embedded in bitcoin’s genesis block reads “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”, showing Bitcoin’s intent of making monetary policy algorithmic.

Many people see immense value in money that cannot be inflated or debased.

2017-04-20 | Full Review

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Nothing about bitcoin needs to change for it to be successful.

Provable digital scarcity is one of the only working use cases for blockchain tech.

Bitcoin improves upon on the features that make gold valuable.

Gold is worth >$7 trillion.

Bitcoin, as is, will be worth more.

2018-07-20 | Full Review

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[T]he one and only litmus test [for whether a blockchain is truly decentralized] is whether you can fully control your money in the presence of many other people trying to control your money. Bitcoin is the only one that passes, by a large margin.

2018-07-21 | Full Review

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The Schelling point is clear. Bitcoin's social consensus is to be the soundest money. In my opinion, on-chain transaction fees are going to more than make up for declining block subsidy. Within 50 years, Bitcoin mining will consume a sizable percentage of global electricity production.

2019-02-04 | Full Review

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In terms of fundamentals for Bitcoin, things have never been better.

Lightning Network is bringing back the low fee peer-to-peer use case while retaining the decentralized base layer, which is what gives a cryptocurrency its intrinsic value as government & censorship-resistant store of value.

Brad Mills, Analyst at Alphabit Digital Currency Fund

2019-01-07 | Full Review

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Bitcoin is resilient. Bitcoin is principled. Bitcoin is native to internet ideals. And it’s a great brand.

2019-02-05 | Full Review

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Bitcoin is bigger than the Bitcoin blockchain.

Bitcoin (BTC) the asset is tracked on the Bitcoin blockchain and transferred over the Bitcoin network (usually). If this was the end of the story, it would be a problem, since the Bitcoin blockchain is first generation technology with limited throughput and features.

But BTC can be used on other protocols and networks. The Lightning Network is a layer 2 protocol that allows for numerous fast and cheap BTC transfers that settle to and are secured by the Bitcoin network. People may also use sidechains, drivechains, and other L2 or L3 solutions.

[This] means that BTC is unlikely to be rendered obsolete by competing protocols that offer incremental improvements. BTC users can access those features or greater bandwidth by using BTC on other protocols like LN.

Ari Paul, Co-founder and CIO of BlockTower Capital

2019-02-08 | Full Review

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As far as I'm concerned, Bitcoin has won the race to be digital gold. . . . [W]hatever money is [currently] in gold is not going to stay in gold. That gets handed down [by the Boomers] to millennials—I'm highly confident a lot of that will go into Bitcoin.

2019-02-13 | Full Review

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The killer app of Bitcoin is to be the universal unit of account. Store of value and medium of exchange is the roadmap.

2019-02-10 | Full Review

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Imagine being able to go anywhere in the world without needing to convert the $ to another currency.

This is the way it should be.

We live in an absurd time of currency barter on the global stage.

Stop the madness. Buy Bitcoin.

2019-02-05 | Full Review

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The environment was fucked long before Bitcoin came around and would continue to be fucked if bitcoin spontaneously combusted.

A permissionless global free market for energy is a net benefit that leverages human greed to reduce waste and boost efficiency on a global scale.

2019-02-07 | Full Review

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Network effects and competitive moats are generally misunderstood. Contrary to popular belief, there are no networks that exhibit n^2 network effects, and in fact many exhibit log(n) network effects, notably fungible asset exchanges. Bitcoin as digital gold will be subject to the perpetually sub-linear log(n) network effect, whereas Bitcoin as digital cash can achieve super-linear network effects as crypto adoption grows from <1% to 50% of the global population. The cryptocurrency that becomes the dominant store-of-value will by definition need to exhibit super-linear network effects as it grows.

Moreover, other types of competitive moats such as brand and broader ecosystem integrations do not exhibit increasing returns to scale, and can be easily overcome by a competitive network with super-linear network effects. We already have ample evidence that this is true.

2018-05-09 | Full Review

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After [serving as COO of] PayPal I never thought I would get interested in payments again. But Bitcoin is fulfilling PayPal's original vision to create "the new world currency." We actually had T-shirts printed in 1999 with that mission statement.

A payment is just a credit to one account and a debit to another. That's a database entry. We believed that, if we could get enough people to participate, money would never need to leave the system. PayPal could become the database of money.

. . . [C]ryptocurrencies like bitcoin are now fulfilling that original vision. They are doing it in a decentralized way (with a decentralized database called the blockchain) whereas PayPal tried to do it in a centralized way.

2017-08-14 | Full Review

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I like Bitcoin transactions in that they are impartial. They can’t really be stopped or reversed, without the explicit, voluntary participation by the people involved. Let’s say Bank of America doesn’t want to process a payment for someone like me. In the old financial system, they’ve got an enormous amount of clout, as do their peers, and can make that happen. If a teenager in Venezuela wants to get paid in a hard currency for a web development gig they did for someone in Paris, something prohibited by local currency controls, cryptocurrencies can make it possible. Bitcoin may not yet really be private money, but it is the first “free” money.

2018-11-20 | Full Review

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Sources of BTC demand in years ahead:
1) Generational shift (teenagers want crypto more than cash and gift cards)
2) Central banks and institutions (demand for non-sovereign digital asset with absolute scarcity)
3) Programmable money (the opportunities of natively digital money = HUGE)

2018-12-17 | Full Review

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Bitcoin: the largest real-life game of werewolf to date. And with central banks instead of villagers.

2014-03-01 | Full Review

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Bitcoin transaction fees are quickly becoming too expensive for micro-transactions to remain feasible.

. . .

Bitcoin (originally) wasn’t designed to work with micro-transactions. However, if Bitcoin is supposed to become the next big thing, it has to adapt to work with this. When the blockchain size can be drastically reduced (which is in dev), 'spammy’ transactions impact on the network can be decreased. If it is to deal with the internet’s exchange and transactions it will have to adapt to work around this.

2013-03-29 | Full Review

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One big difference between BTC and the internet: when the internet was 6 years old, the people that said it was the future used it every day.

2014-11-22 | Full Review

Finance and payments comparison

See how Bitcoin compares with other finance and payments cryptocurrencies.