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Bitcoin Price Continues Slide. Haha I forgot about these posts blast from the past for sure any ignorant people I argued with 2 years ago are now bitcoin themselves for not will in btc. Views Read View source View history. Unlike traditional million such as dollars, bitcoins are issued and managed without will central authority whatsoever: If mining and nodes reach when certain point of centralization then I'd consider that a bitcoin of collapse when the network's defining reach will million been sacrificed. I'm optimistic about Bitcoin's future, reach nobody really knows how it will pan out because so much can happen in that time. Political infighting is a threatening that progress.
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This decreasing-supply algorithm was chosen because it approximates the rate at which commodities like gold are mined. You will see the difference when banks will begin crashing because the fractional reserve bubble will explode. I thought this question had already been asked, but I can't find it. Having said all that, there are some psychological advantages to having a low limit like 21 million. The Efficient Market Hypothesis is real.
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The only real money is GOLD. Reach of today, I own bitcoins. The tech is the same or will as it was four years ago, but we're hitting when tx capacity wall which is causing a poor user experience for some, whether due to tx fees which will inevitably increase million delayed confirmations. Views Read View source View history. A bitcoin medium of exchange, should grow with its usage and the production…that is a value every nation has simply pocketed through debasement policies historically.
When Will We Reach The 21 Millions Bitcoin Cap - Million
The number of bitcoins are presented in a floating point format. However, these values are based on the number of satoshi per block originally in integer format to prevent compounding error. Therefore, all calculations from this block onwards must now, to be accurate, include this underpay in total Bitcoins in existence. The bitcoin inflation rate steadily trends downwards.
The block reward given to miners is made up of newly-created bitcoins plus transaction fees. As inflation goes to zero miners will obtain an income only from transaction fees which will provide an incentive to keep mining to make transactions irreversible.
Due to deep technical reasons, block space is a scarce commodity , getting a transaction mined can be seen as purchasing a portion of it. By analogy, on average every 10 minutes a fixed amount of land is created and no more, people wanting to make transactions bid for parcels of this land.
The sale of this land is what supports the miners even in a zero-inflation regime. The price of this land is set by demand for transactions because the supply is fixed and known and the mining difficulty readjusts around this to keep the average interval at 10 minutes.
The theoretical total number of bitcoins, 21 million, should not be confused with the total spendable supply. The total spendable supply is always lower than the theoretical total supply, and is subject to accidental loss, willful destruction, and technical peculiarities. One way to see a part of the destruction of coin is by collecting a sum of all unspent transaction outputs, using a Bitcoin RPC command gettxoutsetinfo.
Note however that this does not take into account outputs that are exceedingly unlikely to be spent as is the case in loss and destruction via constructed addresses, for example. The algorithm which decides whether a block is valid only checks to verify whether the total amount of the reward exceeds the reward plus available fees.
Therefore it is possible for a miner to deliberately choose to underpay himself by any value: This is a form of underpay which the reference implementation recognises as impossible to spend.
Some of the other types below are not recognised as officially destroying Bitcoins; it is possible for example to spend the 1BitcoinEaterAddressDontSendf59kuE if a corresponding private key is used although this would imply that Bitcoin has been broken.
Bitcoins may be lost if the conditions required to spend them are no longer known. For example, if you made a transaction to an address that requires a private key in order to spend those bitcoins further, had written that private key down on a piece of paper, but that piece of paper was lost. In this case, that bitcoin may also be considered lost, as the odds of randomly finding a matching private key are such that it is generally considered impossible. Bitcoins may also be willfully 'destroyed' - for example by attaching conditions that make it impossible to spend them.
A common method is to send bitcoin to an address that was constructed and only made to pass validity checks, but for which no private key is actually known. An example of such an address is "1BitcoinEaterAddressDontSendf59kuE", where the last "f59kuE" is text to make the preceding constructed text pass validation. Finding a matching private key is, again, generally considered impossible. For an example of how difficult this would be, see Vanitygen.
Another common method is to send bitcoin in a transaction where the conditions for spending are not just unfathomably unlikely, but literally impossible to meet. A lesser known method is to send bitcoin to an address based on private key that is outside the range of valid ECDSA private keys. The first BTC 50, included in the genesis block , cannot be spent as its transaction is not in the global database. In older versions of the bitcoin reference code, a miner could make their coinbase transaction block reward have the exact same ID as used in a previous block [3].
This effectively caused the previous block reward to become unspendable. Two known such cases [4] [5] are left as special cases in the code [6] as part of BIP changes that fixed this issue. These transactions were BTC 50 each. While the number of bitcoins in existence will never exceed 21 million, the money supply of bitcoins can exceed 21 million due to Fractional-reserve banking.
Because the monetary base of bitcoins cannot be expanded, the currency would be subject to severe deflation if it becomes widely used. Keynesian economists argue that deflation is bad for an economy because it incentivises individuals and businesses to save money rather than invest in businesses and create jobs. Btw, I am being paid in BTC right now. This will filter slowly into the sheepeoples as well, and then puff: I hope you are trolling.
Quite the opposite, if anything. The fact that you assert something so nonsense like in your post shows that you have an extremely limited understanding of what is happening. Also, there are good reasons to believe Bitcoin will shoot to the moon not in years, but in maximally Also, there is possible that some other alt coin will become more valuable than bitcoin. If Bitcoin will have a value, it will keep spreading. Actually, it IS already at that status, and if nobody will find a way to stop it, it will keep spreading.
The appropriate thing to do when writing a piece of journalism, would be to include the valuation methodology! Because a 1 million dollar valuation would equate to roughly 12 trillion US dollars being replaced by Bitcoin… So if we took 12 trillion dollars out of the global economy, Bitcoin valuation would be at 1 million dollars with its currently issued supply….
It is… How likely is it that will happen? Correction — the Bitcoin valuation would only be at 1m in my scenario above if every one of those dollars were replaced by Bitcoin as the currency…. Total currency in circulation In , total currency in circulation in the world passed 1 trillion USD.
After 12 years, in this figure was 2 trillion USD, and in it had increased to 4 trillion USD, broken down by country as follows: Well put and you are absolutely right. In addition to 12 trillion, how much of that is excess of supply. As it takes 3 business days for FIAT to reach the recipient over central banking system. For that reason buffer of supply is needed. However bitcoin can be reused in less then 10 minutes.
In this logic the FIAT would lose transaction power to bitcoin which would further decline in circulated volume. If you look at the areas Bitcoin can disrupt…. This header greatly underestimates the potential of Bitcoin. A good medium of exchange, should grow with its usage and the production…that is a value every nation has simply pocketed through debasement policies historically. They stole the positive gains from every holder of the dollar. Being able to forget about bank accounts and bankers… this already has won me over….
There are tons of use cases like micro-transactions and such that will add value and we are only now considering what online gambling can do to the price…. Good comment and one I have also considered, imagine candy crush with a hefty discount for btc transactions when most people know btc exists and getting them is as easy as buying a coke at a corner shop.. Just buy reading the title you know this article is BS! Coming from someone who has traded stocks for over 12 years im A prediction like the title suggests is purely click bait.
The whole point on my comment is for people to think twice before making irrational investment decisions with hard earned money, possible based off of reading redic articles like this. The Efficient Market Hypothesis is real. And lets be honesty. Who knows the technological advancements that will be made in the next couple. What is the system gets totally hacked??
And all BT go worthless? Bitcoin was created in less then 3, lines of code. And it revolutionized the industry. Tell this to anyone before Bitcoin was created and you would think it would never happen. I wouldnt rule out some kind of hack or break in the future. The power it needs to crack a wallet might not be feasible. If you try to use quantum computing to crack moero like system, quantum computing be at loss. Is this fact supposed to leave the impression that you are some sort of financial prodigy?
Because the only impression that this fact leaves the reader is that you were a rich brat. Maybe read the whole thread next time. I could envisage a world a world where governments and banks have a core of value held in gold, perhaps even part of your own savings are gold, but the daily transactions are in Bitcoin.
This way you have a solid mix of physical hard asset as well as highly flexible and easily transferable currency, neither of them opening your hard earned savings up to central bank manipulation or counter party risk. You see this with the tracking of large cash transactions, the way cash is being treated as suspiscious by police and being civally forfeited and now banks charging you to handle lathe cash transactions. The question is whether BTC will become a big enough threat to the system that it becomes a conscious target of regulators and law makers, or whether it will just slowly grow to fill the spaces left by a retreating USD as things deteriorate.
Good points, but the question I still have is who is going to be able to maintain the size of the blockchain ledger if bitcoin becomes the primary currency of global transaction? Just handling as many daily transactions as VISA handles would probably increase the bockchain size by 1 to 2 Terabytes per day. It is a technical question because the blockchain file stores every transaction ever done, so the file size can only grow.
What common every-day end user can keep up with adding a 2TB drive to their computer every day for a file size like that? I think we need a new solution for global e-commerce that fixes this issue or makes it surmountable. You are talking about nodes which can handle that. The ledger can be downloaded for last 2 weeks only to validate your bitcoins. Ans you are rising the subject in wrong group.
He does make a good point though, how many nodes are actually out there and are they secure against malicious wallets that can act as virus spreaders that find the nodes and cough all over them? There are lots of cloud storage systems that let you rent out part of your hard drive room encrypted and stitched together with redundancy to provide a single file. Users are rewarded for participation. Either using this system directly to store a multi tb block Chem ledger or using the system directly integrated to the btc block chain say 5gb per person involved with competative compensation on computers that would be on anyway would be a simple way to integrate a proven and well understood technology to tackle this problem effects even as the ledger grows to many, even dozens or hundreds of TB.
If BTC becomes this popular then compensation and involvement will likely offset costs, particularly as low energy SS memory gets bigger, faster and cheaper wuth some exciting generational jumps on the horizon. Every time a discussion like this comes up everyone talks about usd and forgets the rest of the world; America makes up 4.
The only thing raising the price is demand and the expensive cost to mine and maintain the network. Over time, transaction costs will increase, and the tax man will come after the gains, which will make it less appealing.
The most powerful computer network on the planet. By a very long way. You know, how a free market works? They will still remain faster and cheaper than the existing systems. Run for cover, bitcoiners, the taxman might come after you! A bedtime story to tell your children.
Capitol gains are only due if and when the gain is realized and only on the profit of that gain. Loss can also be claimed. Money is not backed by anything except a promise that what you hold will drop in value and you what you can buy now will not buy you the same in 10 years unless you get pedantic and claim that some investments rose at the same rate as inflation.
The only real money is GOLD. As these people who REALLY ovn money main idea is not to own money but people, then, as long having global Bitcoing will not interfair with main plan then green light will be given. Please STFU and get off the drugs. Even google translate would make more sense that what you wrote. The advent of Quantum computing has the potential to radically affect bitcoin mining capabilities and ultimately price. All those comments about having that ONE bitcoin. As of today, I own bitcoins.
I can tell you, being a millionaire at 28 years old feels pretty good. Whats peoples view on bitcoin to gdp we are also going to slide as fast as the americans. Brexit is going to damage our economy regardless of wether they manage to go through with it or not and we are in a similar scenario in terms of goverment debt and cost of living inflation which will be even more so now as doubtless we will piss off our european neighbours and they will increase the cost of delivering and receiving goods on top of less beneficial renegotiated terms just for the products the pound will be worth less surely.
The only real question is: