The speed of network's hashing power is increasing faster than you think

stslimited

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Quote from: jhansen858 on June 07, 2013, 02:49:18 AM

Quote from: bitminer2049er on June 06, 2013, 11:18:40 AM

So you said that you love what comes after it? What do you think that will be? If your an economist can you tell me if a currency with a finite amount can survive. I personally believe that a currency that deflates over time (fiat) is better for the economy. There is less reason to hoard and you constantly have to seek more out which means buying and working to earn more thus moving the economy along. Do you see this working differnetly with Bitcoin?

The higher the price goes, the more I try to spend mine. WHen the price drops, I stop spending. So, the more it deflates, the more I want to spend it. I don't see a problem.

same here, I hoard when the price drops.

Contrary to austrian bitcoin economists belief system Roll Eyes

I really just need a way to hedge

jhansen858

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Quote from: bitminer2049er on June 06, 2013, 11:18:40 AM

So you said that you love what comes after it? What do you think that will be? If your an economist can you tell me if a currency with a finite amount can survive. I personally believe that a currency that deflates over time (fiat) is better for the economy. There is less reason to hoard and you constantly have to seek more out which means buying and working to earn more thus moving the economy along. Do you see this working differnetly with Bitcoin?

The higher the price goes, the more I try to spend mine. WHen the price drops, I stop spending. So, the more it deflates, the more I want to spend it. I don't see a problem.

vandinn

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It will be something faster, more secure, more anonymous, more user-friendly, more stable and with lower transaction costs:))) As I said, I am not a computer guy and have no idea how this could be reached. I know ripple solves the speed problem; proof-of-stake technology may help with security (although is less secure as of now). Bitcoin mixers improve anonymity. Some of the new wallets become more user-friendly. Stability will improve as the currency market capitalization grows.
Currency restricted to a fixed monetary base cannot survive. Risk-adjusted returns to investments must stay significantly higher than appreciation of value of the currency for its economy to stay effective. (To avoid speculative shocks on the currency exchange rate and to discourage hoarding.) The bitcoin protocol may be changed, however, if both miners and users agree on common approach. This will have to be done either way when SHA-256 becomes obsolete. Also, don't forget that fraction banking system allows for a different amount of monetary base and money in circulation. This may result in a slow growth of bitcoins in circulation.

bitminer2049er

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So you said that you love what comes after it? What do you think that will be? If your an economist can you tell me if a currency with a finite amount can survive. I personally believe that a currency that deflates over time (fiat) is better for the economy. There is less reason to hoard and you constantly have to seek more out which means buying and working to earn more thus moving the economy along. Do you see this working differnetly with Bitcoin?

vandinn

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800,000 Avalon chips have been sold at 282 MH/s/chip
1500 Avalon Asic Miners have been sold at 60000 MH/s/Miner
The company Asic Miner has pledged its input into the network's hashrate to be around 35% (and with its market capitalization of about 100M USD, it is possible they will stick to it.)
KnCMiner has sold hundreds of pre-orders at 175 or 350 GH/s due late September
BitFury has sold tens of pre-orders at 120 GH/s due August-October
ButterflyLabs is starting to send thousands of devices.

A very conservative estimate would put the network's hashing rate to about 600-900 TH/s in early Sepember probably doubling by late October. Any current purchases deployed in September or later at 60USD/GH/s or more will become unprofitable.
The current technology allows manufacturers to produce GH/s of power for about 9$ or less. I encourage everyone to be extremely careful when deciding to purchuse further mining hardware.

Disclaimer: I bought hashing power due in Sepember for 22USD/GH/s. I am not a computer geek, but an economist. I love the idea of Bitcoin and what comes after it.

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