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The Bitcoin Thread (price and other bitcoin related topics) - Printable Version

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RE: The Bitcoin Thread (price and other bitcoin related topics) - Nulled - 10-15-2019

To bring the discussion out from the PM.

What are the best / legitimate Bitcoin news and trends sites and forums that you frequent Juan?

And secondly, what are some of the biggest fallacies and fake movements going on in the Crypto sphere in your opinion.


RE: The Bitcoin Thread (price and other bitcoin related topics) - JayJuanGee - 10-15-2019

(10-15-2019, 04:16 AM)Nulled Wrote: To bring the discussion out from the PM.

What are the best / legitimate Bitcoin news and trends sites and forums that you frequent Juan?

And secondly, what are some of the biggest fallacies and fake movements going on in the Crypto sphere in your opinion.

I was presuming that some of the motivations for your questions is that you are inclined to get into bitcoin (as in investing), but you don't want to rely on bad information, or at least, you don't want to get mislead by people who are presenting misinformation.

I think that it takes a while to sort the wheat from the chaff, and so the locations that you go when you are first introducing yourself might differ from after you are involved in BTC for a while.  

I personally largely just go to just three threads, which are the bitcoin thread at RVF, this thread and the WO thread on bitcoin talk.  One of my goals is to make sure that people who are pumping information about shitcoins or denigrating bitcoin are frequently beaten up in the threads, so then we are able to find out good information sources, and these days so much is shared on twitter, and some of the folks that I trust, I have learned about through the years, including hearing them interviewed on various podcasts. 

Some good podcasts that I am currently listening to:

1) Bitcoin & Markets
2) Bitcoin and....
3) Bitcoin Echo Chamber
4) The Bitcoin Knowledge Podcast
5) Citizen Bitcoin
6) The Cryptoconomy Podcast
7) Crypto Voices
8) What bitcoin did podcast (which is one of the podcasts on the let's talk bitcoin network)
9) Noded Bitcoin Podcast
10) Stephan Livera Podcast
11) Tales from the Crypt
12) What Grinds my Gears

I listen to a few more, too, but the above are probably the better ones. I can give you links if you are not able to find them.

 Takes a long time to listen to all the podcasts, but I don't really know about shortcuts in terms of "the best" websites because those change over time.

Here's a pretty good recent resource to some websites and informational materials:

[Image: xx.gif]
5 Resources to teach Average Joe about Bitcoin.


I think that the fallacies and fakes tend to relate to the talking points of bitcoin naysayers, altcoin(shitcoin) pumpers and nocoiners which frequently attempt to rely on supposed technical arguments about bitcoin being broken in some kind of way or their coin improving on some kinds of inefficiencies in bitcoin. Surely some of these dumbass talking points come from ethereum camps and the various scam coins associated with it, but also from the bcash variants such as bcash abc and bcash sv... and even get rich quick pumpenings that happen through the ripple scams. Anyhow, the seven network effects of bitcoin are way the fuck stronger than any other of the snake oil salesmen imitation coins trying to act like they are bitcoin 2.0 or that they are providing some kind of meaningful value to the space besides pumpenings and dumpenings. Sure, you can get rich off of some of those sham coins because it is going to take a while for the sound money aspects of bitcoin to play out.

Furthermore, it can really take some decent amount of time and thinking to really get a grasp of 1) the sound money aspects of bitcoin, 2) the fat protocol thesis 3) an understanding of how the seven network effects are simultaneously playing out in bitcoin to contribute towards likely longer term 4) exponential s-curve adoption even while we remain in very early stages of bitcoin adoption with likely less than 1% world-wide adoption, so far.. even though there are some aspects of bitcoin adoption that are more developed than others, there are a lot of fallacious propositions that attempt to treat bitcoin and to make comparisons of bitcoin and other sectors, as if bitcoin were a mature market, which is far from true, even if there has been a lot of growth and price appreciation during the past 10 years of its life..

By the way, one of the best ways to get into bitcoin is to just start dollar cost averaging and start out small, while you study the space and then as long as you do not overinvest, you can tweak your dollar cost averaging plans as you learn more and become a bit more comfortable. One of the problems of early investors is that they tend to panic and then overinvest, which could work out, but it is far from guaranteed.. so sometimes a bit of front loading investment is o.k., but better to get your financial and psychological matters a bit in order to figure out your own situation before going too BIG into bitcoin.


RE: The Bitcoin Thread (price and other bitcoin related topics) - JayJuanGee - 10-15-2019

In the end of the second paragraph of a most recent Oxford English update (October 2019), they explain that "satoshi" has been added to the dictionary:

>>>>>satoshi is the smallest monetary unit in the Bitcoin cryptocurrency, and is named after Satoshi Nakamoto, the—probably pseudonymous—developer(s) of Bitcoin.<<<<

https://public.oed.com/blog/new-words-notes-for-october-2019/


RE: The Bitcoin Thread (price and other bitcoin related topics) - JayJuanGee - 10-15-2019

Here's an interesting website showing crypto regulations around the world.

https://complyadvantage.com/blog/cryptocurrency-regulations-around-world/

Also a pretty map.... if you like lime green-ish.   Tongue

[Image: Crypto-Regulation-Map-Coin.bmp]


RE: The Bitcoin Thread (price and other bitcoin related topics) - JayJuanGee - 10-15-2019

Here's a link to an article that refers to congressman Warren Davidson trying to suggest that there might be some better direction for Facebook in terms of its attempted entrance into cryptocurrencies, or whatever the fuck we are going to call the Facebook's Libra project.

https://cointelegraph.com/news/us-congressman-facebook-should-add-bitcoin-not-create-libra

Quote

”Facebook already filters content — some people say with bias, some people say it’s great, they’re protecting my safe space [...] So do we want filtered speech or free speech? Do we want filtered transactions or freedom?”


Thoughts on this particular topic seems to be all over the place regarding what would be prudent for a business and the ramifications on the rest of society (financial systems, etc), but it does seem that facebook could profit stupendously if they were to attempt to go down some kind of route that is similar to Square in terms of adding bitcoin to its mix.  

However, who knows?  A lot of people and businesses are quite easily distracted into wanting to print their own coin.... and Zuckerberg and friends have shown themselves to be inclined in that direction.  Of course, there might be some kind of rivalry going on to, in terms of some of the choices that the Winklevoss brothers had chosen, too, so Mark might not want to be considered as a follower.. hahahahaha

Also,  there seem to be some control aspect that many people and businesses seem to have difficulties getting beyond, which might contribute to their desires to both centralize and to print their own money rather than accepting bitcoin as the currency upon which their system is built or pegged.



RE: The Bitcoin Thread (price and other bitcoin related topics) - JayJuanGee - 10-16-2019

I came across another beautiful illustration of Bitcoin's being mostly a currency rather than having any material, industrial use cases as compared with silver and gold from part of a four part series from nearly a couple of years ago.  

https://medium.com/@vijayboyapati/the-bullish-case-for-bitcoin-part-3-of-4-2e2c002593f1
[Image: 1*QI_3sdwcDRPLBwkFM26CHQ.png]


Is anyone really going to argue that silver is more valuable than gold merely because there are more ways that it is actually used in industry?  

In recent times, I have already appreciated a decent number of the arguments that real world usage, such as industrial use, does not really tell us, in any kind of meaningful way, the extent to which some kind of asset will have value relative to other assets, and actually the opposite can be argued that pure monetary value, such as bitcoin, remains a better kind of value in terms of both holding value and not being manipulated by real world use cases.  

Surely, another thing going for bitcoin remains its early stages of adoption that causes some of these kinds of comparisons to mature assets, such as silver and gold, to be way the fuck too premature, since silver and gold have been around for thousands of years as compared to bitcoin's current nascent stages.

By the way, anyone really interested in learning about "the bullish case for bitcoin" should consider reading (and/or glancing through) all 4 parts of the above-linked article from Vijay Boyapati.


RE: The Bitcoin Thread (price and other bitcoin related topics) - JayJuanGee - 10-16-2019

Here's a link to an interesting 14-page PDF article that seems to have been from September:

Quote:Crypto Derivatives What to expect in a fast-changing market
Galen Moore

I glanced through the article, and even though the title is "crypto derivatives,"  the discussion seems to be almost exclusively about bitcoin in terms of what is the underlying referent "crypto" asset.

I am thinking that the name, "crypto derivative" might be a kind of generic future-proofing attempt rather than any meaningful attempt to avoid the word bitcoin or out of fear of bitcoin, perhaps?

Surely, it could be possible that some of the other cryptos (that we affectionately, and not so affectionately, refer to as "shit coins") could be added to some of these kinds of indexes or the various ways of attempting to measure bitcoin value, changes in bitcoin value and changes in perception of bitcoin value. 

This bitcoin-related space moves slowly, but sometimes looking back or comparing to other asset classes, we likely can recognize that the bitcoin-related space moves fast too, and there seem to be a lot of thought and efforts into considering some of these kinds of potential financial offerings that will contribute ongoing and interestingly evolving dynamics to the bitcoin space.


RE: The Bitcoin Thread (price and other bitcoin related topics) - billydingdong - 10-17-2019

Looks like wind-powered Bitcoin mining is coming to my great state of Texas with the backing of some serious investors. The company, Layer1, has raised funding of $50 million on a valuation of $200 million to build mining hardware, mining farms that use renewable energy, and cooling equipment.

From the company's announcement:


Quote:According to industry research, over 60% of Bitcoin’s hashrate and 100% of Bitcoin hardware production are located in China. Less than 5% of Bitcoin’s hashrate and 0% of hardware production are located in the United States.

...

To create the future of Bitcoin mining, Layer1 raised its Series A financing at a $200M valuation with the backing of world class investors, including Peter Thiel, Shasta Ventures, and cryptocurrency industry leaders. We are united in the belief that Bitcoin is the single most transformational technology of the 21st century and have been uncompromising in only partnering with investors who agree. With this funding, we are positioned to own the whole Bitcoin mining stack by designing, producing, and operating our entire mining infrastructure, including proprietary:
  • ASIC chips
  • Liquid-cooled mining containers
  • Power procurement and development


Right now, the majority of Bitcoin's vaunted hashrate (i.e. processing power) is concentrated in China. This is somewhat problematic for its 'censorshp-resistant' proposition because if the CCP wanted to, they could seize the mining farms and fuck up the network.

Any movement toward more decentralized and dispersed Bitcoin mining power is good for not only Bitcoin but everyone in crypto.


RE: The Bitcoin Thread (price and other bitcoin related topics) - JayJuanGee - 10-17-2019

(10-17-2019, 06:27 PM)billydingdong Wrote: Looks like wind-powered Bitcoin mining is coming to my great state of Texas with the backing of some serious investors.

From the article:


Quote:According to industry research, over 60% of Bitcoin’s hashrate and 100% of Bitcoin hardware production are located in China. Less than 5% of Bitcoin’s hashrate and 0% of hardware production are located in the United States.

...

To create the future of Bitcoin mining, Layer1 raised its Series A financing at a $200M valuation with the backing of world class investors, including Peter Thiel, Shasta Ventures, and cryptocurrency industry leaders. We are united in the belief that Bitcoin is the single most transformational technology of the 21st century and have been uncompromising in only partnering with investors who agree. With this funding, we are positioned to own the whole Bitcoin mining stack by designing, producing, and operating our entire mining infrastructure, including proprietary:
  • ASIC chips
  • Liquid-cooled mining containers
  • Power procurement and development


Right now, the majority of Bitcoin's vaunted hashrate (i.e. processing power) is concentrated in China. This is somewhat problematic for its 'censorshp-resistant' proposition because if the CCP wanted to, they could seize the mining farms and fuck up the network.

Any movement toward more decentralized and dispersed Bitcoin mining power is good for not only Bitcoin but everyone in crypto.

Sure.  Incentives in bitcoin mining would be to try to locate mining in place where there is the cheapest available energy, so whoever ends up being most efficient is going to attract the most miners, and compete better.  

Of course, some miners might be less efficient, but they are trying to maintain market share, which might or might not be a profitable long term investment.  Some of the miners could sometimes attempt to drive less efficient miners out of business if they are not able to operate at a profit.  

Furthermore, miners are a bit secretive regarding their location and/or any energy deals that they may be able to obtain, so whether the texas group is profitable or not or competitive in respect to other miners or not would be a product of a lot of factors that they are not necessarily going to share, including whether they are able to acquire their mining equipment cheaply (Are they getting their mining equipment through china or somewhere else?  Article seems to imply that they have their own mining supplier "proprietary").  Governments might start to get into bitcoin mining in the future, too... some already have, apparently.


RE: The Bitcoin Thread (price and other bitcoin related topics) - Swordfish1010 - 10-18-2019

I am excited for my new mk3 cold card wallet to get here. Going to be sweet. Wasabi wallet + full node + cold card = cypherpunk goodness. I am going to give opendimes with $50 worth of BTC to each family member too for christmas.

(10-17-2019, 06:27 PM)billydingdong Wrote: Looks like wind-powered Bitcoin mining is coming to my great state of Texas with the backing of some serious investors. The company, Layer1, has raised funding of $50 million on a valuation of $200 million to build mining hardware, mining farms that use renewable energy, and cooling equipment.

From the company's announcement:


Quote:According to industry research, over 60% of Bitcoin’s hashrate and 100% of Bitcoin hardware production are located in China. Less than 5% of Bitcoin’s hashrate and 0% of hardware production are located in the United States.

...

To create the future of Bitcoin mining, Layer1 raised its Series A financing at a $200M valuation with the backing of world class investors, including Peter Thiel, Shasta Ventures, and cryptocurrency industry leaders. We are united in the belief that Bitcoin is the single most transformational technology of the 21st century and have been uncompromising in only partnering with investors who agree. With this funding, we are positioned to own the whole Bitcoin mining stack by designing, producing, and operating our entire mining infrastructure, including proprietary:
  • ASIC chips
  • Liquid-cooled mining containers
  • Power procurement and development


Right now, the majority of Bitcoin's vaunted hashrate (i.e. processing power) is concentrated in China. This is somewhat problematic for its 'censorshp-resistant' proposition because if the CCP wanted to, they could seize the mining farms and fuck up the network.

Any movement toward more decentralized and dispersed Bitcoin mining power is good for not only Bitcoin but everyone in crypto.

Peter Thiel probably feels some guilt for how paypal turned into the man, when their initial idea was more of a digital cash system. This is great news. Fuck china.


RE: The Bitcoin Thread (price and other bitcoin related topics) - JayJuanGee - 10-18-2019

(10-18-2019, 05:30 AM)Swordfish1010 Wrote: I am excited for my new mk3 cold card wallet to get here. Going to be sweet. Wasabi wallet + full node + cold card = cypherpunk goodness. I am going to give opendimes with $50 worth of BTC to each family member too for christmas.


Have you used open dimes before?  They are about $10 each?  Or maybe if you buy in bulk they might average out lower?
I am asking because I am wondering about the practicality of spending about $10 on something that you only put $50 of value?   
You can add value to them in the future?  Is it that the public address is watchable and available, so you can keep adding to it, but once you break into the private key then the device is pretty much no longer usable?


RE: The Bitcoin Thread (price and other bitcoin related topics) - Swordfish1010 - 10-18-2019

(10-18-2019, 05:56 AM)JayJuanGee Wrote:
(10-18-2019, 05:30 AM)Swordfish1010 Wrote: I am excited for my new mk3 cold card wallet to get here. Going to be sweet. Wasabi wallet + full node + cold card = cypherpunk goodness. I am going to give opendimes with $50 worth of BTC to each family member too for christmas.


Have you used open dimes before?  They are about $10 each?  Or maybe if you buy in bulk they might average out lower?
I am asking because I am wondering about the practicality of spending about $10 on something that you only put $50 of value?   
You can add value to them in the future?  Is it that the public address is watchable and available, so you can keep adding to it, but once you break into the private key then the device is pretty much no longer usable?

Lots of bitcoin twitter who I view highly upon are always shilling them so I decided to buy 6. They are a great way to get people into it. I wouldn't store large amounts on them for obvious reasons as the private key is encrypted until you puncture through it with a pin when ready to  spend/move it. this decrypts the private key and you can move it into a wallet or whatever. It teaches the cypherpunk ethos by default, which is pretty cool. Basically treat it like cash, i.e. if you lose it you are sol.


RE: The Bitcoin Thread (price and other bitcoin related topics) - JayJuanGee - 10-18-2019

(10-18-2019, 06:32 AM)Swordfish1010 Wrote:
(10-18-2019, 05:56 AM)JayJuanGee Wrote:
(10-18-2019, 05:30 AM)Swordfish1010 Wrote: I am excited for my new mk3 cold card wallet to get here. Going to be sweet. Wasabi wallet + full node + cold card = cypherpunk goodness. I am going to give opendimes with $50 worth of BTC to each family member too for christmas.


Have you used open dimes before?  They are about $10 each?  Or maybe if you buy in bulk they might average out lower?
I am asking because I am wondering about the practicality of spending about $10 on something that you only put $50 of value?   
You can add value to them in the future?  Is it that the public address is watchable and available, so you can keep adding to it, but once you break into the private key then the device is pretty much no longer usable?

Lots of bitcoin twitter who I view highly upon are always shilling them so I decided to buy 6. They are a great way to get people into it. I wouldn't store large amounts on them for obvious reasons as the private key is encrypted until you puncture through it with a pin when ready to  spend/move it. this decrypts the private key and you can move it into a wallet or whatever. It teaches the cypherpunk ethos by default, which is pretty cool. Basically treat it like cash, i.e. if you lose it you are sol.

Yeah, but can you keep adding to it?

Let's say you give one to your mom, dad, three siblings and significant other.... hahahahaha.. or some variation.

Then if they want to add value to it once a month, or once in a while or more realistically, you add value every christmas as long as you are still on talking terms, then you can without breaking into the private key?

Again, I understand that there is a lack of a back-up, so that is likely a problem in some circumstances, but still if they cost $10 each, that seems a bit much, too?  I frequently think in terms of percentage (costs versus value), so I could understand if your costs are less than 5% of the value on the device, but i have a bit more practical acceptance if the device is costing 25% of the value contained thereon.

Regarding trezors, I tend to suggest  that someone have at least a couple thousand dollars before it becomes really practical for them to buy a trezor, which is more than $100.  Actually, the Trezor is wonderful for managing the value, but of course, much more costly than an open dime.


RE: The Bitcoin Thread (price and other bitcoin related topics) - JayJuanGee - 10-18-2019

Here's a cute pie chart from a reddit (r/bitcoin) thread image:


[Image: dmqhsucbh5t31.png]

https://www.reddit.com/r/Bitcoin/comments/djb2ik/get_a_slice_of_the_bitcoin_pie/


RE: The Bitcoin Thread (price and other bitcoin related topics) - JayJuanGee - 10-18-2019

I am not much of a seasonality kind of a person, but I still don't mind looking at charts that contain predictive assertions that are based on seasonality, and this one seems to suggest that November has historically been very very good for bitcoin (except 2018).


https://bitcointalk.org/index.php?topic=178336.msg52793454#msg52793454

[Image: ?u=https%3A%2F%2Fi.imgur.com%2FIw1VJUF.j...JSFGIldA5w]


RE: The Bitcoin Thread (price and other bitcoin related topics) - SpecialEd - 10-18-2019

https://u.today/privacy-coin-monero-xmr-surges-10-percent-while-bitcoin-and-top-altcoins-remain-in-the-red


RE: The Bitcoin Thread (price and other bitcoin related topics) - JayJuanGee - 10-18-2019

Here's a nice chart with BTC price in terms of halvening candles, that would thereby have candles that are four years in their length, and so far all of three of them are (substantially) green, but each one is getting shorter, relative to the earlier ones.

https://twitter.com/ChartsBtc/status/1185211446050770951?s=20

[Image: EHK3hxLU8AEKsN0?format=png&name=small]


RE: The Bitcoin Thread (price and other bitcoin related topics) - billydingdong - 10-18-2019

Here is a link to an informative article about the potentially problematic security implications of Bitcoin's 21m hard cap and decreasing distribution.

I've discussed this before in the crypto thread, but it's worth a mention it here since nobody posts anything skeptical about Bitcoin. The central idea is this:

The network is currently secured by miners who process blocks of transactions who, in return, receive
  1. block rewards (new coins)
  2. transaction fees

In the fairly-near future, the Bitcoin block reward will be drastically reduced as fewer coins are minted and eventually it will be eliminated. To incentivize the miners to continue securing the network with their mining:
  • there needs to be substantially more volume WITH higher prices per transaction on a network that has VERY limited throughput (only 7-10 tx/second)
  • the price of Bitcoin needs to go up astronomically in order to maintain current levels of security.

It's far from guaranteed or obvious that either of these will happen... so the current hard cap, which sounds nice in theory, might not prove to be adequate compensation long-term for securing the network.

In the words of the author:

Quote:Remember the single mandate of a crypto monetary policy? To maximally secure the network. The scarcity narrative—only 21m Bitcoin—has worked wonderfully to maximally secure the Bitcoin network so far. Why? Because in its early early years Bitcoin’s network security is highly subsidized by block reward revenue. Block reward revenue increases with demand for BTC. And demand for BTC increases with a scarcity narrative. And the scarcity narrative is perpetuated by a monetary policy that decreases block rewards. A virtuous cycle.

This is Bitcoin’s great strength.

But there’s also a flaw.

With each halving this great strength is used less in the security of the network. Each halving cuts the security budget subsidy making Bitcoin’s security less reliant on the price of BTC and more reliant on demand for Bitcoin blockspace.

Bitcoin eventually becomes almost entirely reliant on blockspace demand—by 2032 BTC-denominated block rewards will be only 6% of today’s rewards. Yes, we can assume BTC will have appreciated between now and then—for example, if price rises to $140k per BTC then 2019 level security budget may be maintained. But is 2019-level security enough for a multi-trillion dollar network?

And what happens when the rest of the block reward subsidy is taken away?

...

https://bankless.substack.com/p/btcs-monetary-policy-is-overrated

Bitcoin has had an amazing run up until now, and I've also argued its bull case but it's good to know the risks of what you're getting into and have a strategy for taking profits if/when there's another run-up.


RE: The Bitcoin Thread (price and other bitcoin related topics) - JayJuanGee - 10-18-2019

(10-18-2019, 08:03 PM)billydingdong Wrote: Here is a link to an informative article about the potentially problematic security implications of Bitcoin's 21m hard cap and decreasing distribution.

I've discussed this before in the crypto thread, but it's worth a mention it here since nobody posts anything skeptical about Bitcoin. The central idea is this:

The network is currently secured by miners who process blocks of transactions who, in return, receive
  1. block rewards (new coins)
  2. transaction fees

In the fairly-near future, the Bitcoin block reward will be drastically reduced as fewer coins are minted and eventually it will be eliminated. To incentivize the miners to continue securing the network with their mining:
  • there needs to be substantially more volume WITH higher prices per transaction on a network that has VERY limited throughput (only 7-10 tx/second)
  • the price of Bitcoin needs to go up astronomically in order to maintain current levels of security.
 
It's far from guaranteed or obvious that either of these will happen... so the current hard cap, which sounds nice in theory, might not prove to be adequate compensation long-term for securing the network.

In the words of the author:

Quote:Remember the single mandate of a crypto monetary policy? To maximally secure the network. The scarcity narrative—only 21m Bitcoin—has worked wonderfully to maximally secure the Bitcoin network so far. Why? Because in its early early years Bitcoin’s network security is highly subsidized by block reward revenue. Block reward revenue increases with demand for BTC. And demand for BTC increases with a scarcity narrative. And the scarcity narrative is perpetuated by a monetary policy that decreases block rewards. A virtuous cycle.

This is Bitcoin’s great strength.

But there’s also a flaw.

With each halving this great strength is used less in the security of the network. Each halving cuts the security budget subsidy making Bitcoin’s security less reliant on the price of BTC and more reliant on demand for Bitcoin blockspace.

Bitcoin eventually becomes almost entirely reliant on blockspace demand—by 2032 BTC-denominated block rewards will be only 6% of today’s rewards. Yes, we can assume BTC will have appreciated between now and then—for example, if price rises to $140k per BTC then 2019 level security budget may be maintained. But is 2019-level security enough for a multi-trillion dollar network?

And what happens when the rest of the block reward subsidy is taken away?

...

https://bankless.substack.com/p/btcs-monetary-policy-is-overrated

Bitcoin has had an amazing run up until now, and I've also argued its bull case but it's good to know the risks of what you're getting into and have a strategy for taking profits if/when there's another run-up.

Those are bullshit talking points in an attempt to turn a positive into a negative and to attempt to get us to worry about something that is far into the future and super speculative in nature that will become a whole hell of a lot more clear about the dynamics of such short money supply with the passage of time and with the variety of network effects, including how various actors are going to respond in the free market over the coming years, rather than fanciful scare tactic theories.

In other words, who gives any shits about it, except for folks trying to negate on bitcoin and/or to pump some other bullshit?  Which coin you pumping in the attempt to suggest that bitcoin is defective in some kind of way and that your coin does this better?  

Yes, bitcoin has a fixed supply, and this is a feature, not a bug.

Accordingly, the world has never experienced anything as scarce as bitcoin.  There is likely going to be a point (probably not too far into the future) in which the number of coins lost every four years is greater than the number of new coins issued through mining, and yes, all of this creates scarcity dynamics beyond which anything that has ever been experienced previously.  

Perhaps we will witness better practices not to lose your coins, but still people die with their private keys and make bitcoin even more scarce than it already is.

Will be interesting to see how the market reacts to such scarcity phenomenon because the issuance rate of bitcoin gets smaller and smaller and smaller and smaller, like billydingdong's post asserts.  

As was shown in the pie chart above, bitcoin's less than 11 years of existence has already caused the issuance of more than 85% (18 million coins0) of its supply with the remaining 15% (3 million coins of the supply) getting issued at a diminishing rate over then next 120 years, and as billydingdong mentioned such issuance is extremely front loaded with the halvenings of the new issuances every 4 years.

Actually, it is likely more realistic to just consider the supply of BTC to be completely fixed rather than considering inflation or anything like that, so the actual issuance of the coins, is just making what is already known to become available when it had not previously been available.

All of this means, ongoing likely upwards price pressures on bitcoin, probably forever and ever and ever, and these are still early days in bitcoin and still means that guys should be considering ways to get their portfolios in BTC rather than speculating about bullshit pie in the sky scenarios that scare them out of action while the train is leaving the station or the rocket is launching off the launch pad.    Tongue


RE: The Bitcoin Thread (price and other bitcoin related topics) - billydingdong - 10-18-2019

(10-18-2019, 08:36 PM)JayJuanGee Wrote: Those are bullshit talking points in an attempt to turn a positive into a negative and to attempt to get us to worry about something that is far into the future and super speculative in nature that will become a whole hell of a lot more clear about the dynamics of such short money supply with the passage of time and with the variety of network effects, including how various actors are going to respond in the free market over the coming years, rather than fanciful scare tactic theories.

...

This isn't a 'fanciful scare tactic theory', this is a real risk — nobody knows what will happen to network security and viability when the current primary means of security compensation via block reward dwindles and goes away. The article I linked to outlined quite clearly the benefits of the hard cap but also the vulnerability that this poses as a security model.

Repeating the standard Bitcoin shill talking points 'Bitcoin scarce, look at chart, Bitcoin moon' and handwaving this potential problem as a-okay doesn't challenge the validity of the criticism.

While you may believe the magical properties of a 21m hard cap will likely inspire a continuous cycle of adoption, price appreciation, and that miners will forever continue hashing to secure the network, the fact is that you don't know one way or another...

Not all of us live in fanciful, pie in the sky, magic-land where we close our eyes to real risks. Smile

So the hard cap is good for the narrative and good for adoption but could also possibly turn out to be a critical weakness.