Will the ACTIVE supply of Bitcoin eventually fall and is there a way to stop it?

miningdude

sr. member

Activity: 416

Merit: 250

Have a mining rig

Quote from: beerlover on February 02, 2017, 04:28:06 PM

Quote from: severaldetails on January 30, 2017, 03:10:24 PM

Even with 50% of all coins lost, there is still plenty left.
I don't think that bitcoin will ever play a big role in the world as a currency, so a loss of 50% will not be harmful in that perspective.
I think it's more something for enthusiasts and technic interested people. And collectors, one day.
A decrease of available coins will only increase the peoples interest for bitcoins.

I agree with on saying that the bitcoin won’t play a big role in the currency world, and the more bitcoin decreases in quantity the more people will get interested in it because if it gets lower the price gets higher and that is good for us, and in my opinion in the future there maybe a new technology that will allow us to have more bitcoin.

lol bitcoins won't fall this year all those troll are sucks.

beerlover

legendary

Activity: 2842

Merit: 1152

Quote from: severaldetails on January 30, 2017, 03:10:24 PM

Even with 50% of all coins lost, there is still plenty left.
I don't think that bitcoin will ever play a big role in the world as a currency, so a loss of 50% will not be harmful in that perspective.
I think it's more something for enthusiasts and technic interested people. And collectors, one day.
A decrease of available coins will only increase the peoples interest for bitcoins.

I agree with on saying that the bitcoin won’t play a big role in the currency world, and the more bitcoin decreases in quantity the more people will get interested in it because if it gets lower the price gets higher and that is good for us, and in my opinion in the future there maybe a new technology that will allow us to have more bitcoin.

Electra01

full member

Activity: 324

Merit: 101

Latest wallet: v2.1.1/v2.1.3

Quote from: DannyHamilton on January 31, 2017, 04:59:35 PM

Quote from: Electra01 on January 31, 2017, 03:47:53 PM

I think that Bitcoins that can never again be in circulation should not be used in the calculation market cap. It would be like measuring today’s Plutonium market cap and also including the amount that has been lost to radioactive decay. I guess though, that inactive Bitcoins (and other cryptocurrencies) would be more of a problem for ranking sites like coinmarketcap than the actual holders.

Market Capitalization is a term that really doesn't apply to commodities such as bitcoin (or gold, or plutonium, or corn). When was the last time that you saw a serious financial report on gold that referred to gold's "Market Cap" or the "Market Cap" of corn? People that don't understand the term like to use it to compare bitcoin to a stock, but it isn't a realistic comparison and doesn't have any useful meaning behind it.

Regrettably, I had checked the definition of market capitalization before posting the previous post and then, forgetting to change it, posted it anyway. Yes, it is wrong to apply it to commodities like plutonium. So to rephrase my previous post:

I think that Bitcoins that can never again be in circulation should not be used in the calculation of its total value. It would be like measuring Plutonium’s current total value and also including the amount that has been lost to radioactive decay. I guess though, that inactive Bitcoins (and other cryptocurrencies) would be more of a problem for ranking sites like coinmarketcap than the actual holders.

DannyHamilton

legendary

Activity: 3388

Merit: 4615

Quote from: Electra01 on January 31, 2017, 03:47:53 PM

I think that Bitcoins that can never again be in circulation should not be used in the calculation market cap. It would be like measuring today’s Plutonium market cap and also including the amount that has been lost to radioactive decay. I guess though, that inactive Bitcoins (and other cryptocurrencies) would be more of a problem for ranking sites like coinmarketcap than the actual holders.

Market Capitalization is a term that really doesn't apply to commodities such as bitcoin (or gold, or plutonium, or corn). When was the last time that you saw a serious financial report on gold that referred to gold's "Market Cap" or the "Market Cap" of corn? People that don't understand the term like to use it to compare bitcoin to a stock, but it isn't a realistic comparison and doesn't have any useful meaning behind it.

xJuturna

sr. member

Activity: 252

Merit: 250

Quote from: greentea on January 31, 2017, 03:52:38 PM

Although bitcoin continues to be mined, in the grand scheme of things it is a deflationary coin.

With a 21 million hard cap, every time coins get burned or lost or locked out, it decreases the overall supply.

IT's more useful as a store of value like gold, than for day-to-day and micro transactions.

exactly you hit the nail on the head.

To add to this as the overall supply decreases then, in theory, the value should increase especially as more 3rd parties accept bitcoin.

I'd like to think there will be people writing in their bitcoin wallet and key information in their wills to pass down to their children and I'm sure that can and will happen. The amount of coins will decrease to some extent because not everyone is willing to do this, but with a 21 million coin cap? There will always be a fair amount of them left.

greentea

legendary

Activity: 1418

Merit: 1002

Although bitcoin continues to be mined, in the grand scheme of things it is a deflationary coin.

With a 21 million hard cap, every time coins get burned or lost or locked out, it decreases the overall supply.

IT's more useful as a store of value like gold, than for day-to-day and micro transactions.

Electra01

full member

Activity: 324

Merit: 101

Latest wallet: v2.1.1/v2.1.3

Quote from: DannyHamilton on January 30, 2017, 12:59:58 PM

Quote from: Electra01 on January 30, 2017, 12:18:50 PM

I suspect that when our generation of Bitcoin holders dies, a lot of us will not have left information for our heirs to access our wallets.

Why not? It's not like you can take it with you.

You may not share your wallet information with your heir if:

-You die in an unexpected accident such as a car crash and did not share your wallet information or write a will because you thought you were going to live longer and that there would be time for it later.
-You hold a low amount of BTC and believe that bothering to share your wallet information would be a waste of time for such an insignificant amount.
-You don’t care what happens after you die.
-You don’t have anyone you want to leave your belongings to.

Quote from: DannyHamilton on January 30, 2017, 12:59:58 PM

Quote from: Electra01 on January 30, 2017, 12:18:50 PM

and is there a way to stop it?

Not without a hard fork and agreement from the vast majority of all participants (miners, nodes, merchants, users, exchanges, speculators, etc). Getting that sort of agreement on changing the very nature of bitcoin, a nature that most of them desire in the first place, is effectively impossible. It isn't going to happen. Why would you want to stop it anyhow? This is one of the great features of bitcoin.

Quote from: Electra01 on January 30, 2017, 12:18:50 PM

In the long run, if 50% of Bitcoin’s total supply becomes inactive will people still want to use it?

Absolutely! Why wouldn't you? You get to have the exact same number of satoshis, but they are worth twice as much money. Isn't this a good thing?

It is a good thing if you look at it in terms of price. If you hold Bitcoins then it is fantastic because what you hold gains value. However, looking at it from another angle, the market cap becomes misleading as more inactive coins exist. I think that Bitcoins that can never again be in circulation should not be used in the calculation market cap. It would be like measuring today’s Plutonium market cap and also including the amount that has been lost to radioactive decay. I guess though, that inactive Bitcoins (and other cryptocurrencies) would be more of a problem for ranking sites like coinmarketcap than the actual holders. I personally can’t think of any direct negative effect inactive coins would have on the actual holders.

boybugs18

full member

Activity: 205

Merit: 100

I dont think the supply will fall as many people now are discovering Bitcoin because of its features and it may be stupid thing to just store all your bitcoin for how many years and not writing any details about it so that your family members can recover or use it when you need it the most . It will just drop if those billionaires will use their money to buy bitcoin and will just store it.

jeraldskie11

sr. member

Activity: 1246

Merit: 356

We know that it has a small percentage that the bitcoins will fall or stop. Bitcoin is high on demand, many people using bitcoin now and because of that, their project is more profitable so there is no reason to stop their project. They have a financial for maintaining and updating bitcoin to still functioning. And if one of the developers died, it is easy to replace it cause we are in the new generation.

susila_bai

hero member

Activity: 1260

Merit: 524

What OP wants is what all common bitcoin users are wanting, first is security if you are using bitcoin in a wallet keep details written some where where you think it is very secure because when you die your other family members should be able to access or you can give the knowledge about bitcoin and its uses and then share the wallet details with them so that tommorrow it shoud not be problem.

about the dead accounts or non active wallet address which are holding bitcoins that can be done nothing.

Senor.Bla

sr. member

Activity: 280

Merit: 253

I have the tendency to agree with you on the smaller active supply with time, but i do not care to much about it. Mostly because i will be long dead and also because there will be 1000 other obstacles to take to even get there. Mankind has always replaced money, so why not replace Bitcoin if necessary.

xvids

sr. member

Activity: 1176

Merit: 301

I don't really know but I think even if other bitcoin would be stock and wouldn't circulate,
we should not worry about it I think it would only make the bitcoin price more higher.

Scorpion

hero member

Activity: 887

Merit: 516

Bitcoin OG

It simply doesn't matter in this scenario. Even .00000001 BTC will hold value, maybe more because it is more scarce.

severaldetails

hero member

Activity: 959

Merit: 500

Even with 50% of all coins lost, there is still plenty left.
I don't think that bitcoin will ever play a big role in the world as a currency, so a loss of 50% will not be harmful in that perspective.
I think it's more something for enthusiasts and technic interested people. And collectors, one day.
A decrease of available coins will only increase the peoples interest for bitcoins.

jacaf01

hero member

Activity: 742

Merit: 500

The revolutionary trading ecosystem

What I think will happened with time, is that there will be a calculation on annual loss rate of Bitcoin in circulation and this figure would be included in the Bitcoin code and would be allowed to be mined annually, just like the way new fiat currencies are printed to replace the lost or damaged ones.

artows21

sr. member

Activity: 322

Merit: 250

When the current generation will die, that will be in a long time, considering we are mainly quite young. At that time, those people will have told to their family that they have bitcoins. Also, even if that does not happen, that is beneficial to us, because we will have a greater price per bitcoin !

Cryptonite310

full member

Activity: 227

Merit: 100

This is an interesting thought. Since mining will stop in about 200 years or so, this seems possible that if we start to lose bitcoins that the supply would actually go down. If the supply goes too much down, even by half, yeah what's the point of using a currency with 27 million coins (or how ever many will be created) when only about half is even possible to be in circulation.
Half of the final number won't be able to sustain an economy, and if so it'd be pretty stupid to run it on a coin where half the coins are missing...

By that time, I don't think people will even be using BitCoin. I think people would be using some other crypto that better works as a currency and less as a mining commodity.

European Central Bank

legendary

Activity: 1288

Merit: 1087

Quote from: BrewMaster on January 30, 2017, 02:05:21 PM

i don't know what turnover means in this context but the total amount of bitcoin that is changing hands so to speak is about 2 million bitcoins on average every day. and that is 12% of total supply.

surely that's one coin passing through multiple hands? buyer to bitpay, bitpay to otc buyer or exchange, then the eventual buyer withdrawing to elsewhere or spending it again.

BrewMaster

legendary

Activity: 2114

Merit: 1292

There is trouble abrewing

Quote from: European Central Bank on January 30, 2017, 01:53:23 PM

how many of the total supply right now is dormant and has been for a long time? way, way over 50% i'd guess. average daily turnover of total supply changing hands is a fraction of that. there'd have to be a truly massive loss of coins for it to have a noticeable effect.

i don't know what turnover means in this context but the total amount of bitcoin that is changing hands so to speak is about 2 million bitcoins on average every day. and that is 12% of total supply.

i say this from here: https://blockchain.info/charts/output-volume

Quote

The total value of all transaction outputs per day (includes coins returned to the sender as change).

it is not 100% accurate because it includes change but it is still pretty high.

European Central Bank

legendary

Activity: 1288

Merit: 1087

how many of the total supply right now is dormant and has been for a long time? way, way over 50% i'd guess. average daily turnover of total supply changing hands is a fraction of that. there'd have to be a truly massive loss of coins for it to have a noticeable effect.

Topic: Will the ACTIVE supply of Bitcoin eventually fall and is there a way to stop it? (Read 1197 times)