Topic: A simple proof that Bitcoin has zero value (Read 1425 times)

what you dont understand is this

1. if the database was secured using a signature, (PoS) then the costs to secure it is zero. but bitcoin actually has a real hard cost to secure the database (PoW) which is commonly called mining.
in 2009. mining could be done by one persons PC and he would broadcast the database out to other and the costs were negligable.

2. over time the security increased, it became difficult to secure it with single machines. people started to calculate that the electric required to secure it was as such
if electric was 5cents an hour. and 6 blocks were created in that hour. and a block contained 50coins in 2009
then a cost per coin was $0.000016666666666667
then it started requiring more power. and thus when 10 people were using their electric only one got to secure it meaning for every 10th block a person got rewarded. thus the cost rose 0.00016666666666667
then it started requiring more power. and thus when 100 people were using their electric only one got to secure it meaning for every 100th block a person got rewarded. thus the cost rose 0.0016666666666667
then people started using GPU's and the costs rose. they started pooling their workload together and sharing the reward and the costs increased.

by 2011 the amount of electric and time put into securing bitcoin got to $1.
by 2012 the amount of electric and time and equipment needed made it cost $6

the the reward halved so that doubled the costs because there was then half the reward. so 2012 had a $12 cost
more people started to join pools and the security difficulty increased. so costs to secure it went up

by 2013 ASICS became a thing and vastly increased the security and difficulty. to a tune of $100
by 2016 the cost went up to $300
by 2017 the costs went upto $900
by 2018 costs went up above $5000

yea the costs dont match the price.. but thats speculation. thats random drama above the underlying value.
it like housing.
it cost $80k to build a house but the builders sell it for a bit more to profit so houses price in at over $100k. and then speculators add on more.

housing has real costs and so housing is not free. and yes when the PRICE hyper inflates above VALUE/COST
that excess is a bubble because the price is "inflated" like a bubble inflates.
the housing market had a 'housing bubble' not because housing is fake but the price was inflated way above value

so yes with bitcoin although we did see a $1200btc in 2013 although the value was ~$100. did not mean btc was worth zero.. its VALUE was $100 and its PRICE was an inflated bubble of $1200

so yes although we did see a $20k btc PRICE in 2017 although the value was ~$2k. did not mean btc was worth zero.. its value was $2k and its price was an inflated bubble of $20k

and now in 2018. by looking at the cost of mining. there is not much of a inflated layer(speculative layer) above value. bitcoins VALUE is actually around the $6k costs and so compared to the very thin % of speculation. is deemed good value as the price and value are close to each other.

bitcoins have a cost
housing has a cost
tulips has a cost
but the price fluctuates above cost.
you can still buy tulips even now.. astonishing right? you would think tulips are fake or not worth anything. but they are worth something.
you can still buy houses even now.. astonishing right? would think houses are not worth anything. but they are.
you can still buy bitcoins even now.. astonishing right? you would think bitcoins are fake/worthless but they they are worth something.

Bitcoin is not just an abstract number it means something. The same way a math problem is not just an abstract number. It has information attached to it. In this since it can be a utility also.

If you buy or earn BTC and sell it for fiat you are suppose to pay tax on the profit even though the majority of people do not. If you earn BTC and pay for stuff in BTC how can this ever be taxed when it is not converted to fiat? BTC is only taxable when turned back into fiat. On top of that if you use a privacy coin like xmr, dash, ect. like you mentioned these are completely invisible on both ends of the transaction and there is almost nothing that can be done. Even if people used a non privacy based coin and everyone did it there is really nothing anyone can do to stop it. The manpower simply does not exist to handle a situation like this. It is like trying to stop the internet itself. A police officer can not stand on every corner in the world.

From any country in the world you can open a bitcoin wallet located on a computer in any other country in the world using a tor browser and send that bitcoin to a wallet on a computer in any other country in the world. It can not be stopped or regulated. It is the people that have the power not the governments. This is also exactly why bitcoin was created in the first place, to be an alternative way of doing things and give the financial power back to the people not banks, big business and governments.

This is true, and I think BTC probably can only achieve a high dollar value if everyone starts using it. The more people that find use for it the higher the dollar value will be.

I think some things might change moving forward in the future for this to happen. If people realize that they do not have to pay income taxes if they get paid in BTC this might be a strong incentive for more people to want to get paid in BTC. The easier it becomes to pay for things with BTC the more people might use it. The most convent way I have seen people actually use BTC to pay for things is by loading BTC onto a prepaid credit card and use it just like any other card to fill their gas tanks or buy groceries ect.. but I think online shopping is where it will really thrive in the future. I think this will be a gradual change in the future as more people use it the volatility will gradually change also.