Crypto Currency Thread
Discussion
dimots said:
p1stonhead said:
Where can you spend bitcoin like a replacement for traditional money?
I can spend it with anyone I like. I accept bitcoin and so can you.Can you buy stuff with it? Other than incidental stuff like pizzas?
Can you bank with it, pay bills, but petrol, pay your mortgage, a pcp deal or rent?
No.
Until you no longer have to convert it back to normal money to spend properly, it’s a pointless thing people are just hoarding in the hope of getting rich.
Even if you could, it’s WAY too volatile to be of any use right now. You could buy something and it be worth half by the time you walk out the door of the shop. What real business is going to take on that risk and not price in a ridiculous risk factor?
Thesprucegoose said:
He was down on his investment as soon as he cashes out, he has lost, i was advising him to keep it in, as he had invested in ALT coins, this was the whole context of it.
Lol but but if he cashes out half in to dollars he still has a better hedge against bitcoin than if he puts half in ethereum. What the hell are you talking about?Thesprucegoose said:
That's your advice, i offered mine, not everyone has to agree with what you say.
Where do you think Ethereum is going? Let's drop the name calling and have some fundamental analysis to back up your suggestion. If you can form a coherent argument to support speculation on Ethereum today, I'm all ears. It's my view that crypto assets are slowly but surely heading to a Pareto (ie power law) distribution. That means ~80% of value going to #1, ~80% of the remainder going to #2. Etc. What helps you identify #2 let alone #3 or #4 in that colossal long tail? I don't see anything usurping bitcoin @ #1 and am happy to discuss that intelligently.
Behemoth said:
Where do you think Ethereum is going? Let's drop the name calling and have some fundamental analysis to back up your suggestion. If you can form a coherent argument to support speculation on Ethereum today, I'm all ears.
Name calling, lol idiot isnt name calling, it is if you 100% think BTC is going always goig up. ETH as a hedge is pretty reasonable, it has its own infrastructure, it has enough tokens to keep price going, and there is development in Plasma and POS. But you missed the whole point i wasn't advocating invested in it specifically, choose any of the other mainstream ones.
The problem is people see their price entwined with BTC, but things can change quickly. You don't need graphs and such like, it is pointless the whole market is heavily manipulated anyway.
The bloke posted as ALT coins where down, I just offered an opinion that is most likely wrong but its better than just saying buy BTC only.
Edited by Thesprucegoose on Tuesday 6th August 11:29
Thesprucegoose said:
ETH as a hedge is pretty reasonable, it has its own infrastructure, it has enough token to keep price going, and there is development in plasma and POS. But you missed the whole point i wasn't advocating invested in it specifically choose any of the other mainstream.
The tokens lying on top of Eth are, as you've already agreed, almost all utterly worthless. Nobody can run a full node, there's so much trash in its chain. The idea of moving to proof of stake is a pipe dream. Any attempted major upgrade will kick the whole shambles to pieces like a game of Buckaroo. Complexity in computing is the direct opposite of security & Eth revels in its complexity.Choose any of the other mainstream? Is that the full extent of your advice? Choose what? why? for what time frame? Or do you just roll your dice when you decide these things?
Behemoth said:
The tokens lying on top of Eth are, as you've already agreed, almost all utterly worthless. Nobody can run a full node, there's so much trash in its chain. The idea of moving to proof of stake is a pipe dream. Any attempted major upgrade will kick the whole shambles to pieces like a game of Buckaroo. Complexity in computing is the direct opposite of security & Eth revels in its complexity.
Choose any of the other mainstream? Is that the full extent of your advice? Choose what? why? for what time frame? Or do you just roll your dice when you decide these things?
ETH token fuel gas EGO ETH, something BTC doesnt have. It has enough distinguishers to mark it apart from BTC. Look at other coins and each has enough to distuiguish from BTC. XRP has an ecosystem seperate with lower fees, more scalablity (without adding on the 'fantastic' LDN) and works pretty well. The list goes on.Choose any of the other mainstream? Is that the full extent of your advice? Choose what? why? for what time frame? Or do you just roll your dice when you decide these things?
The biggest issue with BTC is that to start getting return of x2, x3 etc you are looking as massive price doubling. You need to create shareholder value, which I think BTC is pretty s
t at, it uses things like Tether to drive prices up over actual usage, Up to 85% of Bitcoin’s supply is only owned by 1% of wallet addresses.Edited by Thesprucegoose on Tuesday 6th August 12:13
Thesprucegoose said:
ETH token fuel gas EGO ETH, something BTC doesnt have. It has enough distinguishers to mark it apart from BTC. Look at other coins and each has enough to distuiguish from BTC. XRP has an ecosystem seperate with lower fees, more scalablity (without adding on the 'fantastic' LDN) and works pretty well. The list goes on.
The biggest issue with BTC is that to start getting return of x2, x3 etc you are looking as massive price doubling. You need to create shareholder value, which I think BTC is pretty st at, it uses things like Tether to drive prices up over actual usage, Up to 85% of Bitcoin’s supply is only owned by 1% of wallet addresses.
Most of that 1% is exchange cold storage. It's completely expected.The biggest issue with BTC is that to start getting return of x2, x3 etc you are looking as massive price doubling. You need to create shareholder value, which I think BTC is pretty s
t at, it uses things like Tether to drive prices up over actual usage, Up to 85% of Bitcoin’s supply is only owned by 1% of wallet addresses.Edited by Thesprucegoose on Tuesday 6th August 12:13
Tether is a vehicle to on & off ramp fiat. Bitcoin doesn't use it to drive prices up. That's nonsensical.
Shareholder value? There are no shares in crypto. ICOs deliver no share of a company. These tokens are almost without exception a scam.
"ETH token fuel gas EGO ETH" makes absolutely no sense to me. Is your autocomplete playing up?
XRP is laughable. It's a centralised banking solution looking for a problem. It is deeply problematic on so many levels.
Yes, there are plenty of distinguishing features in alt coins. The question is whether they do anything useful or are they all bandwagon jumpers looking to hoodwink poorly educated speculators and make a quick profit as "the new, better bitcoin".
Unless you can intelligently and coherently show that's not the case, then the idea of hedging against bitcoin with alts is a very poor one.
Behemoth said:
Tether is a vehicle to on & off ramp fiat. Bitcoin doesn't use it to drive prices up. That's nonsensical.
Tether has been shown to be less than 100% backed by cash.The worry is that Bitfinex has been issuing Tethers backed by other cryptos, and these Tethers are themselves used to purchase crypto.
It injects leverage into the system rather like a fractional reserve bank and the effect is similar to that of fractional reserve mortgage lending on house prices.
NickCQ said:
Tether has been shown to be less than 100% backed by cash.
The worry is that Bitfinex has been issuing Tethers backed by other cryptos, and these Tethers are themselves used to purchase crypto.
It injects leverage into the system rather like a fractional reserve bank and the effect is similar to that of fractional reserve mortgage lending on house prices.
I see your point. It's inevitable that some layered services over Bitcoin will have a fractional reserve effect, particularly when viewed from another currency's perspective (which could include bitcoin derivatives of various flavours). The worry is that Bitfinex has been issuing Tethers backed by other cryptos, and these Tethers are themselves used to purchase crypto.
It injects leverage into the system rather like a fractional reserve bank and the effect is similar to that of fractional reserve mortgage lending on house prices.
But at the base layer, 1 bitcoin will always be 1 bitcoin and the scarcity of the 21 million Bitcoin limit is absolute. This will never be breached & it's important that the base layer remains transparent as irrefutable evidence of this. That's what sets Bitcoin apart from other monies that are subject to fractional reserve.
For sure, Tether is a huge potential point of failure. The shenanigans it goes through to circumvent banking regs could backfire & blow up, but it won't be a death knell for Bitcoin. The bitcoin protocol is not impacted by Tether in any way and the bitcoin protocol has nothing whatsoever to do with its issuance.
Supersam83 said:
When will Bitcoin reach it's limit of 21m coins?
Wasn't it going to be 2020 or will something change that will allow a higher limit of bitcoins to be mined?
Total supply limit will be much further into the future.Wasn't it going to be 2020 or will something change that will allow a higher limit of bitcoins to be mined?
What you are referring to is the Bitcoin Halving, which occurs every 4 years - and the next one is set to take place in the first/second quarter of 2020. This effectively cuts the reward for mining a block by 50%, hence bitcoin becomes more scarce:
https://www.bitcoinblockhalf.com/
JaredVannett said:
Total supply limit will be much further into the future.
What you are referring to is the Bitcoin Halving, which occurs every 4 years - and the next one is set to take place in the first/second quarter of 2020. This effectively cuts the reward for mining a block by 50%, hence bitcoin becomes more scarce:
https://www.bitcoinblockhalf.com/
Yes so this will drive value and prices of bitcoin up even further.What you are referring to is the Bitcoin Halving, which occurs every 4 years - and the next one is set to take place in the first/second quarter of 2020. This effectively cuts the reward for mining a block by 50%, hence bitcoin becomes more scarce:
https://www.bitcoinblockhalf.com/
JaredVannett said:
Total supply limit will be much further into the future.
What you are referring to is the Bitcoin Halving, which occurs every 4 years - and the next one is set to take place in the first/second quarter of 2020. This effectively cuts the reward for mining a block by 50%, hence bitcoin becomes more scarce:
https://www.bitcoinblockhalf.com/
Bitcoin doesn’t become more scarce rather the rate of increase in supply reduces but there are still more each day.What you are referring to is the Bitcoin Halving, which occurs every 4 years - and the next one is set to take place in the first/second quarter of 2020. This effectively cuts the reward for mining a block by 50%, hence bitcoin becomes more scarce:
https://www.bitcoinblockhalf.com/
Supersam83 said:
JaredVannett said:
Total supply limit will be much further into the future.
What you are referring to is the Bitcoin Halving, which occurs every 4 years - and the next one is set to take place in the first/second quarter of 2020. This effectively cuts the reward for mining a block by 50%, hence bitcoin becomes more scarce:
https://www.bitcoinblockhalf.com/
Yes so this will drive value and prices of bitcoin up even further.What you are referring to is the Bitcoin Halving, which occurs every 4 years - and the next one is set to take place in the first/second quarter of 2020. This effectively cuts the reward for mining a block by 50%, hence bitcoin becomes more scarce:
https://www.bitcoinblockhalf.com/
Hang on a sec, so if mining bitcoin becomes twice as hard literally overnight, what's the incentive for miners to carry on mining? Are they hoping the value of BTC will double to compensate?
Surely if this happens every so often, the cost of mining becomes unprofitable at some point and people just stop doing it. What happens then?
Surely if this happens every so often, the cost of mining becomes unprofitable at some point and people just stop doing it. What happens then?
Guvernator said:
Hang on a sec, so if mining bitcoin becomes twice as hard literally overnight, what's the incentive for miners to carry on mining? Are they hoping the value of BTC will double to compensate?
Surely if this happens every so often, the cost of mining becomes unprofitable at some point and people just stop doing it. What happens then?
No, the system balances itself. The halvings have happened a number of times already. It's generally priced in, except for those unawares.Surely if this happens every so often, the cost of mining becomes unprofitable at some point and people just stop doing it. What happens then?
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