Topic: OK I bought 1,000,000 Bitcoins... now what? (Read 6211 times)
Protect yourself from home invasion.
I guess it makes better sense to differentiate bitcoins from any other currency. I mean, no other currency world-wide uses more than 2 or 3 decimal places. (3 may be used internally by certain institutions, but eventually it gets out as 2 decimal places.)
Another 3 decimal places and we're on par with a normal USD.
But now isn't when Bitcoin needs a familiar monetary unit. That was needed more back when a bitcoin was worth less than a penny, or maybe five cents, or fifty cents even.
If the BTC/USD back then was 1 BTC equals 0.005 USD, then maybe it might not have been acceptable just as Bitcoin started to get publicity in tech circles.
At least when it did, it was simple numbers for people to understand. 1 BTC = $1-ish. (Feb 2011) The months that followed saw bitcoin awareness grow very fast.
But in your client change units from BTC to mBTC, and you are right back to wbere one unit (of mBTC) reflects about a U.S. penny.
So, we start getting used to the term milibits.
It's unlikely to happen with the main blockchain and clients. But the idea is essentially the same, it's just a matter of interpreting the 64 bit number that is used for bitcoin values. The "Satoshi" or 1 unit would be redefined, but we still have the same limit of 21 quadrillion units. Of course, miners would be generating 50,000,000 per block then. But people would assign value the same way they assign value now.
Instead of having 21,000,000.00000001 you could move the decimal place 3 digits so we have a limit of 21,000,000,000.00001. (21 billion instead of 21 million.) More people could relate to that, and it would be a healthy economy. Another 3 decimal places and we're on par with a normal USD.
That is immensely unlikely to happen. It also wouldn't make for a "healthy economy".
Instead of having 21,000,000.00000001 you could move the decimal place 3 digits so we have a limit of 21,000,000,000.00001. (21 billion instead of 21 million.) More people could relate to that, and it would be a healthy economy. Another 3 decimal places and we're on par with a normal USD.
The current moving Bitcoin economy could probably survive using a single Bitcoin.
That depends if you count the investments and savings floating around. I'd say the actual 'hot' coins that are being actively sent around could probably scrape by on one coin.
i'm making a bitcoin fork
infinite divisibility
supply will start with 1 coin which i will sell of at the exchange
mining will only get reward with fees
Actually, I'm pretty curious how you would go about making it infinitely divisible. Obviously, you could get pretty far, but infinite is a lot.
No, I wasn't kidding, I'm curious as a programmer.
look up varint
(I would try to create a transaction worth 0.000000031415926535897932384626... and just calculate pi as the tx is generated
) The current moving Bitcoin economy could probably survive using a single Bitcoin.
That depends if you count the investments and savings floating around. I'd say the actual 'hot' coins that are being actively sent around could probably scrape by on one coin.
i'm making a bitcoin fork
infinite divisibility
supply will start with 1 coin which i will sell of at the exchange
mining will only get reward with fees
Actually, I'm pretty curious how you would go about making it infinitely divisible. Obviously, you could get pretty far, but infinite is a lot.
No, I wasn't kidding, I'm curious as a programmer.
look up varint
The current moving Bitcoin economy could probably survive using a single Bitcoin.
That depends if you count the investments and savings floating around. I'd say the actual 'hot' coins that are being actively sent around could probably scrape by on one coin.
i'm making a bitcoin fork
infinite divisibility
supply will start with 1 coin which i will sell of at the exchange
mining will only get reward with fees
Actually, I'm pretty curious how you would go about making it infinitely divisible. Obviously, you could get pretty far, but infinite is a lot.
No, I wasn't kidding, I'm curious as a programmer.
ok divisible up to 64 decimals... a long unsigned int should do it.
0.000000000000000000000000000000000000000000000000000000000000001BTC
their must be a way to get it pretty much infinite... might get complicated
The current moving Bitcoin economy could probably survive using a single Bitcoin.
That depends if you count the investments and savings floating around. I'd say the actual 'hot' coins that are being actively sent around could probably scrape by on one coin.
i'm making a bitcoin fork
infinite divisibility
supply will start with 1 coin which i will sell of at the exchange
mining will only get reward with fees
Actually, I'm pretty curious how you would go about making it infinitely divisible. Obviously, you could get pretty far, but infinite is a lot.
No, I wasn't kidding, I'm curious as a programmer.
The current moving Bitcoin economy could probably survive using a single Bitcoin.
That depends if you count the investments and savings floating around. I'd say the actual 'hot' coins that are being actively sent around could probably scrape by on one coin.
i'm making a bitcoin fork
infinite divisibility
supply will start with 1 coin which i will sell of at the exchange
mining will only get reward with fees
The current moving Bitcoin economy could probably survive using a single Bitcoin.
That depends if you count the investments and savings floating around. I'd say the actual 'hot' coins that are being actively sent around could probably scrape by on one coin.
The current moving Bitcoin economy could probably survive using a single Bitcoin.
Put it all on Mtgox and write a bot that creates massive bid walls when price moves up and sell walls when moving down. Selling and buying accordingly if market takes the bait.
Economies crash when the currency stops moving.
WHAT?! No...that's not right. Economies crash due to malinvestment, which almost always is the result of government meddling.
OK I bought 1,000,000 Bitcoins... now what?
I do recommend investing this way
Invest in Pirate!!
You bought 1 million BTC?
Send them my way
Send them my way
Spend to support development,developers of projects & services and
employees to work on improving the bitcoin code
say the millionaires buy up all the bitcoins they wanted.
and then stop buying and simply hold!
would this sudden lack of demand crash the price?
or
would the lack of supply cause the price to rise?
and then stop buying and simply hold!
would this sudden lack of demand crash the price?
or
would the lack of supply cause the price to rise?
Someone wishing to acquire 1M btc would be better off investing in ASIC mining equipment as being a much more cost effective way to get them imo.
True story.
say the millionaires buy up all the bitcoins they wanted.
and then stop buying and simply hold!
would this sudden lack of demand crash the price?
or
would the lack of supply cause the price to rise?
and then stop buying and simply hold!
would this sudden lack of demand crash the price?
or
would the lack of supply cause the price to rise?
Someone wishing to acquire 1M btc would be better off investing in ASIC mining equipment as being a much more cost effective way to get them imo.
Spend another 75 million on employees to work on improving the bitcoin code, making things more user friendly, along with international advertisments about bitcoin. Then in due time your 1 million bitcoins will be at least worth 1 billion USD
If I had million btc I'd probably try open another bitcoin exchange (putting client's money into cold wallet and trading with my own funds, so with hacker attack I'd lose my money, but not trust, in worst case...) and try to print some bitcoins on paper and try to sell them to people in my local city for fun. 
Am I doing it wrong? Wouldn't I earn way more this or another way (in long term)?
Am I doing it wrong? Wouldn't I earn way more this or another way (in long term)?
Given how huge the volatility is already, it might not change all that much.
Answering the "now what?" is more intersting.
If I had a million BTC, I'd do something about the liquidity problem. It's not that bad to sell some at a profit to help make Bitcoin look less ridiculous, is it? And if there's a crash afterward, it's pure profit. In the same vein, I'd spend a small fraction to support development of projects like Armory and BitcoinSpinner to improve security, stability and usability. To someone who holds 10% of the market, that investment should pay off.
Answering the "now what?" is more intersting.
If I had a million BTC, I'd do something about the liquidity problem. It's not that bad to sell some at a profit to help make Bitcoin look less ridiculous, is it? And if there's a crash afterward, it's pure profit. In the same vein, I'd spend a small fraction to support development of projects like Armory and BitcoinSpinner to improve security, stability and usability. To someone who holds 10% of the market, that investment should pay off.
OK I bought 1,000,000 Bitcoins... now what?
Invest in Pirate!!
holy shit your right, 7% a week!
that's like 70,000BTC a week
I could lower my standard of living just a tad and live off that
Invest in Smoothie , God of Speculation, fuck it im paying for his presidential campain, lets make a bitcoin address for him, and he can become less sour and hateful as a person
Donations for Smoothie 16ncwH81ecMyMMod2fT4evyrk3QvWHCZbh
We need to raise enough to make up for his loss to Pirate , what do pirates do? too obvious.
Hes so dumb , you should take his opinions like a grain of salt , just like we do the President... HEs perfect.
say the millionaires buy up all the bitcoins they wanted.
Maybe that cost $50 million to do, depending on how quickly these one million BTC were bought. Which puts the BTC/USD exchange rate near $75, let's say.
and then stop buying and simply hold!
So in the next 24 hours, 7,200 BTC of new supply arrives. That is worth $540,000. Presumably, miners absolutely thrilled with their newfound wealth will take out every bid that they can find. And the price will start to drop. Which will cause others to realize it isn't going up any more, and they sell. And with no buyers ... the snowball back down turns into an avalanche.
would this sudden lack of demand crash the price?
Yup.
would the lack of supply cause the price to rise?
When the millionaires were buying. Yup.
So then what do these millionaires do? Well, what was the reason for buying the BTCs ... just to have them as a reserve in case bitcoins future goes well? They sit on them then. If instead they bought them as an investment, then they do what Intel does for its chips (invests in startups that do lots of computing requiring lots of CPUs), or does what Google does for its ads (invests in startups that generate new search and ad revenues), or what the financial industry does (pays K Street lobbyists to make it accepted as a parallel currency). [They'ld probably have a lot more than $50M on the line though to even consider doing that.]
Agreed 100%
hopefully these millionaires investing now realize that its in their best interest to invest in the right start-ups and maybe spend some of their bitcoins to simulate the economy
somehow i feel that just a little can go a long way in the bitcoin world.
say the millionaires buy up all the bitcoins they wanted.
Maybe that cost $50 million to do, depending on how quickly these one million BTC were bought. Which puts the BTC/USD exchange rate near $75, let's say.
and then stop buying and simply hold!
So in the next 24 hours, 7,200 BTC of new supply arrives. That is worth $540,000. Presumably, miners absolutely thrilled with their newfound wealth will take out every bid that they can find. And the price will start to drop. Which will cause others to realize it isn't going up any more, and they sell. And with no buyers ... the snowball back down turns into an avalanche.
would this sudden lack of demand crash the price?
Yup.
would the lack of supply cause the price to rise?
When the millionaires were buying. Yup.
So then what do these millionaires do? Well, what was the reason for buying the BTCs ... just to have them as a reserve in case bitcoins future goes well? They sit on them then. If instead they bought them as an investment, then they do what Intel does for its chips (invests in startups that do lots of computing requiring lots of CPUs), or does what Google does for its ads (invests in startups that generate new search and ad revenues), or what the financial industry does (pays K Street lobbyists to make it accepted as a parallel currency). [They'ld probably have a lot more than $50M on the line though to even consider doing that.]
Jesus fuck, more of you people with your damn recession. Admit it already, its called a depression.
OK I bought 1,000,000 Bitcoins... now what?
Invest in Pirate!!
holy shit your right, 7% a week!
that's like 70,000BTC a week
I could lower my standard of living just a tad and live off that
no,no,no
Let it ride baby.. Imagine after a year of compund 7% interest..
You'd have!! 30+ Million Bitcoins, amazing!!!
At 100k USD each.. Your looking at 3 Trillion bucks! You could pay back 20% of the National Debt!
OK I bought 1,000,000 Bitcoins... now what?
Invest in Pirate!!
holy shit your right, 7% a week!
that's like 70,000BTC a week
I could lower my standard of living just a tad and live off that
Economies crash when the currency stops moving.. That's why we are in a recession now. Money stopped moving freely as more people and companies tightened up.
Kind of off topic. Sorry.
While being a layman opinion I see money velocity as being a technical attribute.
When I think about trying to find a root cause or fundamental cause for this recession I have a few facts in mind.
These facts are present for both the Great Depression and this recession.
- Huge increase of debt-based spending (think of the 'roaring '20's')
- Stagnant middle class wages for decades.
- And the final straw, fundamentally unsound asset appreciation supported by debt-based spending (housing).
Of course, the recovery measures implemented for GD and this recession are vastly different.
OK I bought 1,000,000 Bitcoins... now what?
Invest in Pirate!!
Economies crash when the currency stops moving.. That's why we are in a recession now. Money stopped moving freely as more people and companies tightened up.
Kind of a catch 22 isn't it?
Economies crash when the currency stops moving.. That's why we are in a recession now. Money stopped moving freely as more people and companies tightened up.
Only one way to find out.
As soon as MT.Gox accepts my monopoly money we will konw.
As soon as MT.Gox accepts my monopoly money we will konw.
say the millionaires buy up all the bitcoins they wanted.
and then stop buying and simply hold!
would this sudden lack of demand crash the price?
or
would the lack of supply cause the price to rise?
and then stop buying and simply hold!
would this sudden lack of demand crash the price?
or
would the lack of supply cause the price to rise?
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