...The effective downside of bitcoin is therefore the cost of production, currently around $320-350, and rising for the last 5 years...
Just imagine if it cost a dollar to print a dollar
Topic: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion - page 24416. (Read 26713915 times)
November 21, 2014, 04:06:32 PM
Just imagine if it cost a dollar to print a dollar
November 21, 2014, 04:04:10 PM
We should send the bears to NK: https://www.youtube.com/watch?v=XLSB4-ZdNIE
November 21, 2014, 04:01:12 PM
November 21, 2014, 03:59:19 PM
Quote
In the case of Bitcoin, what is being enabled here is not merely a new market, but a market of markets; a platform for all kinds of new markets to emerge. In it, lies the promise of a transformation, as strange as it sounds, greater than the Internet. Denying such a potential is equal to denying the reality of globalization.
http://fortune.com/2014/11/20/why-banks-fear-bitcoin/?utm_content=buffer9e71b&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer
November 21, 2014, 03:59:01 PM
BTW, difficulty trends suggest we are close to or at the average cost of production for bitcoin. The price has found (is finding) it's floor.
Once that process is complete, the herd will again begin to attach the monetary premium to the bitcoin good, safe with the base knowledge that it has a non-zero lower bound on price, i.e. utility and cost of production value.
Once that process is complete, the herd will again begin to attach the monetary premium to the bitcoin good, safe with the base knowledge that it has a non-zero lower bound on price, i.e. utility and cost of production value.
However, there is no feedback from the cost of production (or whatever the network is doing) to the price. The dependency goes only the other way: difficulty gets adjusted until the total cost of the network (say, per day) is a little below the block reward (per day) times the market price.
If the price goes up, or down, the hashrate will eventually follow, with a delay. If accidents were to destroy half of the hashpower, the price would hardly be affeected.
Yes, but you are still wrong. There is no direct feedback but because the time constants for the two interacting systems are so different then there is an effective floor.
If accidents were to destroy half the hashpower the price would be immediately unaffected but if it were to drop down slowly over time it would not go much below the new cost of production. Because at that point it is cheaper for miners to buy on the market, e.g. to fulfill forward sales contracts, than to keep expending resources. The effective downside of bitcoin is therefore the cost of production, currently around $320-350, and rising for the last 5 years.
The monetary premium above the cost of production placed on the bitcoin good has as much upside as people will have confidence to place value in any useful monetary system. Currently that global total is somewhere above $50 trillion.
November 21, 2014, 03:56:26 PM
It's nice to know moderators are useless on this forum.
Luckily ignore functions as it should.
Why do you feel like the mods are useless?
November 21, 2014, 03:55:10 PM
It's nice to know moderators are useless on this forum.
Luckily ignore functions as it should.
Why do you feel like the mods are useless?
November 21, 2014, 03:55:03 PM
had to log in just to get the troll ignored. hmmph.
November 21, 2014, 03:49:37 PM
Un-fucking readable
Are you upset because your buddies posted some idiotic pics, or because Bitcoin price is tanking?
Be honest now.
This whole cascade has started from a post where I have attempted to educate a Bitcoiner regarding the true cost of BTC transactions. I'll repost it here for your consideration.
However , true story :
Let me explain what the difference is:
Money is sent via Western Union when cash is needed immediately. This money is not sent for stuff like online purchases, otherwise the sender could simply make the purchase and have it shipped to a different address.
Sending Bitcoin is currently extremely cheap, because the miners are subsidised by 10% yearly inflation, AKA "block rewards" (not TX fees). As block rewards diminish to zero over time, the miners will be forced to rely on TX fees.
Today, Bitcoin is paying 10% of its market cap to maintain the network--that's how many coins are mined in a year. Once the block rewards approach zero, the transaction fees would have to represent ~10% of Bitcoin's market cap to maintain today's network security. Because, as Satoshi has pointed out, the cost of mining should approach the price of coins mined.
Imagine that? Burning 10% of world's wealth YEARLY being paid in TX fees?
But that's a tangent. The problem is, after receiving your bitcoin, it still must be converted to cash you can actually spend locally
November 21, 2014, 03:49:25 PM
It's nice to know moderators are useless on this forum.
Luckily ignore functions as it should.
Nope
November 21, 2014, 03:47:58 PM
It's nice to know moderators are useless on this forum.
Luckily ignore functions as it should.
November 21, 2014, 03:47:26 PM
Un-fucking readable
November 21, 2014, 03:46:50 PM
It's nice to know moderators are useless on this forum.
Luckily ignore functions as it should.
November 21, 2014, 03:46:19 PM
It's nice to know moderators are useless on this forum.
November 21, 2014, 03:43:36 PM
Name-calling just adds a new layer of faggotry to your faggotry.
Pot, meet kettle.
Grampa, tell me you practice safe sex at your octogenarian sex orgies! I'd double-bag that chemical prosthesis of yours--or you'll catch Bitcoin!
November 21, 2014, 03:43:12 PM
BTW, difficulty trends suggest we are close to or at the average cost of production for bitcoin. The price has found (is finding) it's floor.
Once that process is complete, the herd will again begin to attach the monetary premium to the bitcoin good, safe with the base knowledge that it has a non-zero lower bound on price, i.e. utility and cost of production value.
Once that process is complete, the herd will again begin to attach the monetary premium to the bitcoin good, safe with the base knowledge that it has a non-zero lower bound on price, i.e. utility and cost of production value.
However, there is no feedback from the cost of production (or whatever the network is doing) to the price. The dependency goes only the other way: difficulty gets adjusted until the total cost of the network (say, per day) is a little below the block reward (per day) times the market price.
If the price goes up, or down, the hashrate will eventually follow, with a delay. If accidents were to destroy half of the hashpower, the price would hardly be affeected.
November 21, 2014, 03:40:33 PM
November 21, 2014, 03:39:46 PM
Are there fully working Bitcoin wallets for Android, iOS and Windows Phone (true trustless wallet with sending capabilities)?
Maybe this is what you want.
https://play.google.com/store/apps/details?id=de.schildbach.wallet
And Breadwallet on iOS.
November 21, 2014, 03:32:22 PM
Name-calling just adds a new layer of faggotry to your faggotry.
Pot, meet kettle.
November 21, 2014, 03:31:13 PM
@fonsie: I bet you're not even the dumbest Bitcoiner.
Correct, that's were you come in.
I speculate in Bitcoin, not a Bitcoiner. Name-calling just adds a new layer of faggotry to your faggotry.
*But at least you admit that you're close to the bottom of this intellectual cesspool...
Just adjusting to your level of intellect, that's all.
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