What's your view on using blockchains for other things than cryptocurrencies? Can they be used to host discussion forums, like steemit supposedly(?) does?
The technical stuff is beyond me, but I've seen interesting speculations about Bitcoin's origins possibly being in the NSA. And the theory you're proposing used to float around on the Bitcointalk forums back in the day. It's an intriguing idea.
You do realize that most miners review the code they are running, in fact the way bitcoin gets updated is via code consensus. Meaning the majority of nodes decided to run a particular version of code, which would infer that they have looked at the code and decided that it is pretty good.
It's kind of silly to think that the same people capable operating in a vast network of giant super computers, aren't able to do a code audit.
Bitcoin is opensource, you can go look at all the code yourself.
I've always kinda thought of bitcoin as interesting..as long as all the power doesn't go out. That would be my major worry in this rather tense global atmosphere. Digital currency does seem worth much if you can't access it for however many reasons or situations that could occur.
I'm not sure there are any legitimate sources for the global yearly transactions of bitcoin except to go to the blockchain.
Around 300,000BTC are being transacted daily - it fluctuates from 200K - 500K depending on the day (not including returned change) - so about $300 million worth of daily transactions. As to what % these are for goods, services, investments, etc... is unknown. That's just the average for how much circulates daily. Trying to figure out what % of that is going into exchanges is impossible.
Industry worth is measured in years not days. So we're looking at a $110 billion / yr industry.
Investments are essentially a time based discount on goods and services, so it makes little sense differentiating market value from transaction value when it comes to a currency.
It's the only valid source - literally anything else is just based on the blockchain. This data is straight from the blockchain. If you don't understand that, then you don't grasp the very basic idea of how this all works.
So we're talking about less that half a percent of daily transactions are newly generated coins. Insignificant.
The volume of all exchanges is freely available - but the majority of that is BTC that is not in circulation. The volume is pushed by daytraders and short term trades - so it's all kept in house, and not on the blockchain. Only when they transact to and from the exchanges is that data captured, but not while they trasact within the exchange. So exchange volume is not part of the daily bitcoin transaction.
I think you should really read up more on bitcoin before you start spreading your false conclusions.
r/BitcoinBeginners and r/Bitcoin are good places to start!
Take it as a learning opportunity. You have some good information about bitcoin, but you are missing some crucial things which is causing you to draw incorrect conclusions.
Bitcoin is weird... Technically, if it can be traded for real money, holding bitcoin for 10 years will likely result in a huge huge huge return due to the fact there is not an infinite number of bitcoins... Imagine if you had 1 dollar 100 years ago and they didn't print more money, or printed money only based on population increase. Your 1 dollar would be the same as 1 million or so. Bitcoin is flawed as a concept due to this fact. By having superior technical abilities (mining effectively) you essentially are the owner of the market. Is it right that only IT minded people would own an expensive currency? Of course its not, thats why bitcoin will forever be just a niche not a mainstay. At some stage people will stop touching it because the price will be ludacris, and then it will crash to be worth nothing.
I don't see how a currency would be successful by holding on to it. Shouldn't people be encouraged to spend and use the currency? Isn't that the purpose of it?
You just described the stock market. The brokers always make money, the investors have to be smart. You would be amazed at how much money you can make by buying 10 shares of stock for 40$ and then selling when it reaches 80$. That is the same as buying bitcoin at 400$ and selling at 800$.Of course there are few stocks that volatile but evidently bitcoin is. I know one day I bought some Tsla for 199$ and sold it the next for 217$. As always the secret to any market is buy low and sell high.
As the only non fiat currency available besides gold and silver, I guess we will have to agree to disagree. The fed, the imf and the people that own them have a stranglehold on the oppressed masses and bitcoin is part of the solution. Just buy right(now may not be the time to buy) and when it is the right time to sell you will not need to.
I guess I don't know enough to respond. it is just hard for me to believe that some miners are not set up to mine indefinitely at controlled or little cost for profit. If you are right billions are in peril. One thing I know for sure you are wrong about is that the market is indeed as volatile as bitcoin. I will let history and the market speak for itself.
Even the Dow jones average has in the past had such fluctuations, but everyday there are massive devaluations and increases in value on lots of stocks. Watch trading places with dan akroyd and Eddie Murphy. Bit coin isn't really comparable to the whole market, it is of course in the currency market and it is not the most volatile currency as anyone in Venezuela can tell you. Comparing it to individual stocks it may be one of the more volatile stocks, but not the most volatile.
A majority of bitcoins were purchased by regular banks some time ago, bitcoin is garbage, it literally doesn't work without a bank converting bitcoins into regular money. It's mainly for buying child porn and drugs, you know, libertarian things.
26 comments
3 lordrothschild 2016-12-29
Interesting. Thanks for the writeup.
What's your view on using blockchains for other things than cryptocurrencies? Can they be used to host discussion forums, like steemit supposedly(?) does?
6 [deleted] 2016-12-29
[deleted]
2 lordrothschild 2016-12-29
Yes!
The technical stuff is beyond me, but I've seen interesting speculations about Bitcoin's origins possibly being in the NSA. And the theory you're proposing used to float around on the Bitcointalk forums back in the day. It's an intriguing idea.
3 [deleted] 2016-12-29
[deleted]
2 lordrothschild 2016-12-29
Haha! I like your thinking.
1 trinsic-paridiom 2016-12-29
Thats exactly what happened during bitcoins infancy and probably continues to happen under the radar.
1 Psybawr 2016-12-29
You do realize that most miners review the code they are running, in fact the way bitcoin gets updated is via code consensus. Meaning the majority of nodes decided to run a particular version of code, which would infer that they have looked at the code and decided that it is pretty good.
It's kind of silly to think that the same people capable operating in a vast network of giant super computers, aren't able to do a code audit.
Bitcoin is opensource, you can go look at all the code yourself.
2 tamrix 2016-12-29
They made the hardware, minded it to shit and when the difficulty went up, they sold it as new. Rinse repeat.
It was clear to some after each new miner had big delays releasing the hardware and some reported their 'new' miners had already been used in forum's.
Bitcoin has shown crypto currency's can replace the dollar in the future but it's definitely not bitcoin itself that will be the replacement.
2 Manaspider 2016-12-29
I've always kinda thought of bitcoin as interesting..as long as all the power doesn't go out. That would be my major worry in this rather tense global atmosphere. Digital currency does seem worth much if you can't access it for however many reasons or situations that could occur.
1 agentf90 2016-12-29
It was pretty common knowledge at that time that mining was a losing venture unless you replaced all your hardware every 6 months.
2 [deleted] 2016-12-29
[deleted]
1 agentf90 2016-12-29
it is only an experiment.
1 [deleted] 2016-12-29
[deleted]
2 evanthepineapple 2016-12-29
Thanks for playing but this shows your out of the loop.
1 011101112011 2016-12-29
multi-billion dollar industry.
2 [deleted] 2016-12-29
[deleted]
1 011101112011 2016-12-29
I'm not sure there are any legitimate sources for the global yearly transactions of bitcoin except to go to the blockchain.
Around 300,000BTC are being transacted daily - it fluctuates from 200K - 500K depending on the day (not including returned change) - so about $300 million worth of daily transactions. As to what % these are for goods, services, investments, etc... is unknown. That's just the average for how much circulates daily. Trying to figure out what % of that is going into exchanges is impossible.
Industry worth is measured in years not days. So we're looking at a $110 billion / yr industry.
Investments are essentially a time based discount on goods and services, so it makes little sense differentiating market value from transaction value when it comes to a currency.
2 [deleted] 2016-12-29
[deleted]
1 011101112011 2016-12-29
It's the only valid source - literally anything else is just based on the blockchain. This data is straight from the blockchain. If you don't understand that, then you don't grasp the very basic idea of how this all works.
Daily tx - 300,000BTC. Daily mining generation: ~1700BTC.
So we're talking about less that half a percent of daily transactions are newly generated coins. Insignificant.
The volume of all exchanges is freely available - but the majority of that is BTC that is not in circulation. The volume is pushed by daytraders and short term trades - so it's all kept in house, and not on the blockchain. Only when they transact to and from the exchanges is that data captured, but not while they trasact within the exchange. So exchange volume is not part of the daily bitcoin transaction.
I think you should really read up more on bitcoin before you start spreading your false conclusions.
r/BitcoinBeginners and r/Bitcoin are good places to start!
1 [deleted] 2016-12-29
[deleted]
1 011101112011 2016-12-29
I'm just pointing out gaps in your understanding.
Take it as a learning opportunity. You have some good information about bitcoin, but you are missing some crucial things which is causing you to draw incorrect conclusions.
Use this knowledge to do more research.
1 Passthetzatziki 2016-12-29
Bitcoin is weird... Technically, if it can be traded for real money, holding bitcoin for 10 years will likely result in a huge huge huge return due to the fact there is not an infinite number of bitcoins... Imagine if you had 1 dollar 100 years ago and they didn't print more money, or printed money only based on population increase. Your 1 dollar would be the same as 1 million or so. Bitcoin is flawed as a concept due to this fact. By having superior technical abilities (mining effectively) you essentially are the owner of the market. Is it right that only IT minded people would own an expensive currency? Of course its not, thats why bitcoin will forever be just a niche not a mainstay. At some stage people will stop touching it because the price will be ludacris, and then it will crash to be worth nothing.
1 tamrix 2016-12-29
I don't see how a currency would be successful by holding on to it. Shouldn't people be encouraged to spend and use the currency? Isn't that the purpose of it?
0 [deleted] 2016-12-29
[deleted]
2 HittingRichard 2016-12-29
Huh? Bitcoin is capped at 21 million coins.
1 sciototrails 2016-12-29
You just described the stock market. The brokers always make money, the investors have to be smart. You would be amazed at how much money you can make by buying 10 shares of stock for 40$ and then selling when it reaches 80$. That is the same as buying bitcoin at 400$ and selling at 800$.Of course there are few stocks that volatile but evidently bitcoin is. I know one day I bought some Tsla for 199$ and sold it the next for 217$. As always the secret to any market is buy low and sell high.
1 [deleted] 2016-12-29
[deleted]
1 sciototrails 2016-12-29
As the only non fiat currency available besides gold and silver, I guess we will have to agree to disagree. The fed, the imf and the people that own them have a stranglehold on the oppressed masses and bitcoin is part of the solution. Just buy right(now may not be the time to buy) and when it is the right time to sell you will not need to.
1 [deleted] 2016-12-29
[deleted]
1 sciototrails 2016-12-29
I guess I don't know enough to respond. it is just hard for me to believe that some miners are not set up to mine indefinitely at controlled or little cost for profit. If you are right billions are in peril. One thing I know for sure you are wrong about is that the market is indeed as volatile as bitcoin. I will let history and the market speak for itself.
1 [deleted] 2016-12-29
[deleted]
1 sciototrails 2016-12-29
Even the Dow jones average has in the past had such fluctuations, but everyday there are massive devaluations and increases in value on lots of stocks. Watch trading places with dan akroyd and Eddie Murphy. Bit coin isn't really comparable to the whole market, it is of course in the currency market and it is not the most volatile currency as anyone in Venezuela can tell you. Comparing it to individual stocks it may be one of the more volatile stocks, but not the most volatile.
1 sciototrails 2016-12-29
I have a probably dumb question, what is an asci. if you knew enough could you create your own. Sorry to reveal my ignorance of how bitcoin works.
1 epiphyte1001 2016-12-29
ASIC = application specific integrated circuit. i.e. a computer chip built for a specifc purpose.
1 sciototrails 2016-12-29
Thanks, I looked it up after I posted my dumb question. Things about op's claims are fishy.
1 trinsic-paridiom 2016-12-29
Did you post this at /r/bitcoin?
0 dfawoehuio 2016-12-29
A majority of bitcoins were purchased by regular banks some time ago, bitcoin is garbage, it literally doesn't work without a bank converting bitcoins into regular money. It's mainly for buying child porn and drugs, you know, libertarian things.