81–90 of 220 posts
It's ironic that wall street spent so many years saying Bitcoin is worthless, but is buying-in when it's lost its use case to competitors within cryptocurrency, and really is useless (except as a speculative vehicle or "store of value"). I guess BTC can fork infinitely, so there's that.
Actually, Lightning Network will significantly increase Bitcoin's transactions per second and reduce transaction cost.
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If there's no more miners / mining, who verifies the transactions? (iirc that's what miners did, but correct me if I'm wrong and miners only generate currency and don't verify transactions)
As far as I understand, the process of mining is verifying the transactions as well. The miners are generating bitcoin as part of the process of verifying the transactions. After the 21 mil limit is hit, they will be rewarded from the transaction fees. (Someone with more in depth knowledge feel free to correct me if I am wrong).
So what happens when the entire earth's energy production is required to produce the next bitcoin and there is therefore no further bitcoin mining?
Bitcoin is limited at 21 million coins. After that, no more btc, and people will trade in btc divisions such as satoshis. But there are hundrerds of bitcoin alternatives now, some very interesting.
Can’t really wrap my head around the rise of BTC in futures trading, as they are all cash settled. In other words, pure betting and gambling with the futures, as they really do not touch the underlying BTC. I guess, just a regular day in the massively manipulated crypto currency world...
Crypto might even be manipulated, but in this case what’s the issue? I don’t get your logic. Some independent financial entity decides to start trading futures on horse manure. That makes horse manure a heavily manipulated underlying financial product?
Yes. You will find people who use their fields of cows to pass off excrement as horse manure, injecting various gasses into the manure to pass excrement-inspections. You will also find actual owners of horses who discard half their horse manure.
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So why does it take so long to make a transaction these days? Is the difficulty scaling outpacing the actual network?
As I understand it the transaction throughput is limited by the block size. The difficulty adjusts so the rate at which blocks can be mined remains roughly constant, but each block is size limited so it can only contain so many transactions.
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If there's no more miners / mining, who verifies the transactions? (iirc that's what miners did, but correct me if I'm wrong and miners only generate currency and don't verify transactions)
They do verify transactions, and are incentivized to do so by transaction fees
All we need now is someone adding leverage and hilarity shall most certainly ensue
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Futures contract has TIME value, so they are usually higher than the SPOT price, please check this link for detailed explanation . https://www.investopedia.com/terms/f/futurescontract.asp Thought it is not exactly same, but similar case is Where you pay Premium with Stock Options to have the right RIGHT to buy the stock one month from now. Regarding cex & bitstamp they are exchange out side of USA, each of them have…
Is 11% not a huge time value premium for something that expires in a month? Can we compare the time premium with the interest rate? I have traded options, but never futures. With options there several components that increase the premium besides just the time component. According to [0] futures shouldn't have a time premium because both parties are obligated to to fulfill the contract. As you stated in the OP, the 11…
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Bitcoin is limited at 21 million coins. After that, no more btc, and people will trade in btc divisions such as satoshis. But there are hundrerds of bitcoin alternatives now, some very interesting.
Which are the most interesting ones?
Some characteristics to look for:
- ASIC resistance. Some currencies make sure you can't just throw money at GPU and become the king of the hill like with Bitcoin. E.G: Vivo, VTC, XMR.
- CPU friendly. Some currencies can be mined on CPU, not just GPU. It makes it interesting for embedding in web pages or viruses. E.G: Monero, Aeon, etc.
- Privacy focused. Some currencies make it hard to know where does the money comes from and goes to. E.G: Monero, Zcash and co.
- Smart contracts. Some currencies are not just money, but gigantic programmable public databases. Ethereum being to smart contracts what bitcoin is to cryptocurrengies in general.
- Master nodes. Some currencies provide very fast transactions by featuring nodes responsible to pre-validate them. E.G: Vivo, Dash.
- Community. You may want big name supports (Bitcoin, Ripple), great tooling (Ethereum, Monero). You should check if your exchange deal with the currency your target.
Personally I like:
- Vivo. The team is close to home. The master nodes give me great rewards and I help friends and family to setup theirs, for a fee. Best investment to date, appart from BTC. But only cryptopia deals with them which make it hard to trade.
- Monero. Simple to mine, and nobody knows what I do. But a bad rep because of the viruses.
- Ethereum: it's the most stable currency IMO, because of all the ecosystem, it's not gonna die. Also awesome team. Very little downside to this one.
- Ripple: big names trying to do official things. I'm curious of the result. But it's premined.
Sometime I feel like I should stop writing blogs post about Python and be paid as a full time crypto explainer, cause it's like I answer the same questions every day.
Anyway, good luck. And don't believe any people telling you they perfectly understand this market, because it's the most irrational one I ever seen. It's unstable. It's exploding. It's crazy. And so fun. Until you loose everything :)