Topic: BTC diluted,possible scenario? (Read 2299 times)
mBTC or BTC doesnt matter.
only thing that matters in terms of dillution is marketcap. and therefore the big marketcap of btc leads to lesser swings.
altcoins are attractive cause they still offer the possibility of very strong profits cause they have so little marketcaps.
problem for bitcoin? maybe. but not at the moment i'd say.
The big factor that you have not brought up is if bitcoin splits into mbtc or something, so that a 1000 dollar bitcoin is now a 1usd mbtc. This would be the smart thing for bitcoin to do in my opinion.
"for Bitcoin to do". Remember Bitcoin can't do anything. The protocol already supports divisions down to 1 sat. When you send "1 BTC" you are actually transfering a value = 100000000. Most clients allow you to show balances in mBTC, uBTC or satoshis.
There will be no formal proclemation. If MtGox tomorrow wanted to change their exchange to show bids, quotes, and balances in mBTC they could and if they don't want to for the next decade nobody can force them.
Exactly. A bitcoin won't "split into mbtc" - it already IS mBTC - exactly 1000 of them. Or exactly 1,000,000 uBTC. They are the same thing. So a 1000 dollar bitcoin already is a 1 dollar mBTC.
The point is branding. no one wants to buy 1 coin for 1000 dollars but buying a coin for 1 dollar seems cheap.
Of course it is the same but most people are dumb and act emotionally.
Yup - and you are 100% correct on that. If current prices were quoted per mBTC, people would hardly bat an eye at the fluctuations because it would look like a penny stock. I just take exception because there are people that talk about BTC making a "split" like it was a stock.
It's definitely about marketing. A bitcoin is still a bitcoin, but the price is $0.90 per mBTC is certainly a lot less intimidating (especially when I have seen people who are still apparently not aware that you can buy a portion of a bitcoin...)
one mbtc is worth $1! problem solved
The big factor that you have not brought up is if bitcoin splits into mbtc or something, so that a 1000 dollar bitcoin is now a 1usd mbtc. This would be the smart thing for bitcoin to do in my opinion.
"for Bitcoin to do". Remember Bitcoin can't do anything. The protocol already supports divisions down to 1 sat. When you send "1 BTC" you are actually transfering a value = 100000000. Most clients allow you to show balances in mBTC, uBTC or satoshis.
There will be no formal proclemation. If MtGox tomorrow wanted to change their exchange to show bids, quotes, and balances in mBTC they could and if they don't want to for the next decade nobody can force them.
Exactly. A bitcoin won't "split into mbtc" - it already IS mBTC - exactly 1000 of them. Or exactly 1,000,000 uBTC. They are the same thing. So a 1000 dollar bitcoin already is a 1 dollar mBTC.
The point is branding. no one wants to buy 1 coin for 1000 dollars but buying a coin for 1 dollar seems cheap.
Of course it is the same but most people are dumb and act emotionally.
The big factor that you have not brought up is if bitcoin splits into mbtc or something, so that a 1000 dollar bitcoin is now a 1usd mbtc. This would be the smart thing for bitcoin to do in my opinion.
"for Bitcoin to do". Remember Bitcoin can't do anything. The protocol already supports divisions down to 1 sat. When you send "1 BTC" you are actually transfering a value = 100000000. Most clients allow you to show balances in mBTC, uBTC or satoshis.
There will be no formal proclemation. If MtGox tomorrow wanted to change their exchange to show bids, quotes, and balances in mBTC they could and if they don't want to for the next decade nobody can force them.
Exactly. A bitcoin won't "split into mbtc" - it already IS mBTC - exactly 1000 of them. Or exactly 1,000,000 uBTC. They are the same thing. So a 1000 dollar bitcoin already is a 1 dollar mBTC.
Isn't it possible that instead of 100000USD worth of BTC, we will remain in current price and we will have dozens of altcoins valued 100-1000USD each?
I think it's possible in the long run. Bitcoin isn't everything to everyone. For instance, bitcoin is currently poorly suited to microtransactions and fast confirmations. It may not be possible to add that to bitcoin. Eventually a micro-transaction fast altcoin may gain significant traction.
No one ever said it will not be possible to profit from altcoins.
Aside from a potential for profit by traders and miners , there is no real reason for any of them to exist so long as the bitcoin network maintains it's integrity.
Aside from a potential for profit by traders and miners , there is no real reason for any of them to exist so long as the bitcoin network maintains it's integrity.
The big factor that you have not brought up is if bitcoin splits into mbtc or something, so that a 1000 dollar bitcoin is now a 1usd mbtc. This would be the smart thing for bitcoin to do in my opinion.
"for Bitcoin to do". Remember Bitcoin can't do anything. The protocol already supports divisions down to 1 sat. When you send "1 BTC" you are actually transfering a value = 100000000. Most clients allow you to show balances in mBTC, uBTC or satoshis.
There will be no formal proclemation. If MtGox tomorrow wanted to change their exchange to show bids, quotes, and balances in mBTC they could and if they don't want to for the next decade nobody can force them.
+1
i would also like to see mBTC.
i would also like to see mBTC.
The big factor that you have not brought up is if bitcoin splits into mbtc or something, so that a 1000 dollar bitcoin is now a 1usd mbtc. This would be the smart thing for bitcoin to do in my opinion.
My thoughts exactly.
Bitcoin was a big leap in monetary technology. The altcoins are just variations or minor improvements on that new technology. Bitcoin will be the most popular for years to come for the same reasons that the majority of the world's Christians are Catholics as opposed to one of those alt-Christian denominations. With societial technologies, it's hard to shift the momentum from the first application (Catholicism or Bitcoin) because people are far more likely to be exposed to it.
I wonder what will happen when BTC will be around 1000USD.
Will the adoption of BTC continue? or will it be halted and people will start buying altcoins because they are basically the same and they are much cheaper.
Isn't it possible that instead of 100000USD worth of BTC, we will remain in current price and we will have dozens of altcoins valued 100-1000USD each?
Will the adoption of BTC continue? or will it be halted and people will start buying altcoins because they are basically the same and they are much cheaper.
Isn't it possible that instead of 100000USD worth of BTC, we will remain in current price and we will have dozens of altcoins valued 100-1000USD each?
This is my take on it.
The adoption of BTC will continue and the adoption of alt-coins will continue and some of them will have greater price increases than bitcoin.
Established alt-coins have been mostly moving with the price of bitcoin. Actually many alt-coins have been increasing in their price ratio against bitcoin. Bitcoin will still be priced the highest.
I think with the higher bit-coin price, more people will get into alt coins. mostly for the simple fact that the price swings will be greater in alt-coins. I think the price of these coins are mostly based on speculation, lets face it nobody needs any of them at this point but they are great to speculate with.
The big factor that you have not brought up is if bitcoin splits into mbtc or something, so that a 1000 dollar bitcoin is now a 1usd mbtc. This would be the smart thing for bitcoin to do in my opinion.
I think this should be the future of virtual currencies. At a technical level it is not difficult to develop a wallet that connects to numerous virtual currencies. Then your wealth will be expressed in terms of the altcoin index. I think the rise of altcoins will (to some extent) dilute the value of bitcoin and solve its deflation problem. I think the next big move in the cryptocurrencies space is that the market will rebalance the value of bitcoin with respect to the altcoins.
So you don't have any altcoins?
No, I find that pointless. I use them to speculate sometimes, but prefer to exit into bitcoins after that. See, if something bad happens to bitcoin, all the altcoins would lose value even quicker. The only altcoin worth holding could be an altcoin which provides some additional functionality, like NMC (should have been), others have traction purely because of the need for old GPUs to mine something since they can't compete with asics anymore.
You question, in other terms, sounds exactly like "Wont' people start buying lead and copper once gold hits $1000/ounce?". I.e., totally silly. Much of the value of bitcoin is not in the algorithm, but in specifically manufactured hashing devices network and reputation and a crowd of followers and businesses and established professional developers team, and the name that is a brand in itself, with all the media coverage, etc. ShitCoins don't have any of that.
So you don't have any altcoins?
You question, in other terms, sounds exactly like "Wont' people start buying lead and copper once gold hits $1000/ounce?". I.e., totally silly. Much of the value of bitcoin is not in the algorithm, but in specifically manufactured hashing devices network and reputation and a crowd of followers and businesses and established professional developers team, and the name that is a brand in itself, with all the media coverage, etc. ShitCoins don't have any of that.
One word.
https://en.wikipedia.org/wiki/Network_effect
Ok I lied it is two words.
That being said I do think either
a) other alternatives will eat into Bitcoins "marketshare"
or
b) Bitcoin will be replaced by something vastly superior.
Most of the lets change a couple variables and call it an alternative will die out though. They will never gain a sufficiently sized network to be anything of real value (>$1B in money supply or >$10B in annual transaction volume).
https://en.wikipedia.org/wiki/Network_effect
Ok I lied it is two words.
That being said I do think either
a) other alternatives will eat into Bitcoins "marketshare"
or
b) Bitcoin will be replaced by something vastly superior.
Most of the lets change a couple variables and call it an alternative will die out though. They will never gain a sufficiently sized network to be anything of real value (>$1B in money supply or >$10B in annual transaction volume).
There are loads of copycat fiat currencies, why can't there be lots of copycat crypto currencies?
I didn't say it can't be. I just want to understand if I should buy also altcoins or should I stick with BTC. just wanted some opinions on this subject.
There are loads of copycat fiat currencies, why can't there be lots of copycat crypto currencies?
Isn't it possible that instead of 100000USD worth of BTC, we will remain in current price and we will have dozens of altcoins valued 100-1000USD each?
Only if people and merchants actually use altcoins, but I doubt altcoins have good future, there are many already and even more will be created as time goes.
well LTC is now 14USD. Doesn't it bother you at all?
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