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Bitcoin price crash forces miners off network

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Re: Bitcoin price crash forces miners off network

#21

Post by noodle_face_ »

Barrin92 wrote: post #15
exabrial wrote: post #12

Thank goodness. This waste of electricity and natural resources needs to go away.

it was always funny that people with a prepper mentality touted bitcoin as some sort of rock stable currency in times of crisis when government money was going to be worthless despite the fact that it basically takes an electricity source the size of the country to keep the whole thing running. What are you going to do in the post apocalypse, get a team of people with an abacus to calculate hash functions?

How much, oil, electricity, and blood does it take to prop up the US dollar???

Re: Bitcoin price crash forces miners off network

#22

Post by Nursie »

aeturnum wrote: post #14

Curious about the network's capacity to respond to a downward trend in hash power (which doesn't seem inevitable, but possible). Does the difficulty factor of new blocks get dropped in response to losing hash power? Is the fee / mining reward balance predictable? Does the network become non-functional for xfers below a certain value at some point?

Yes, the difficulty rebalances periodically (every two weeks, roughly?), it would take a catastrophic decrease in hashing power to affect that by too much.

The mining reward stays the same, though it drops by half every few years (one such drop is approaching in May).

The network actually becomes non-functional for low transfers the other way - when there's too much interest, and too many transactions, the fees to get a transaction through start to rocket. At the peak of the 2017 hype the y hit around $50-70, IIRC.

Re: Bitcoin price crash forces miners off network

#23

Post by Nursie »

noodle_face_ wrote: post #21
Barrin92 wrote: post #15

Earlier quoted context omitted.

it was always funny that people with a prepper mentality touted bitcoin as some sort of rock stable currency in times of crisis when government money was going to be worthless despite the fact that it basically takes an electricity source the size of the country to keep the whole thing running. What are you going to do in the post apocalypse, get a team of people with an abacus to calculate hash functions?

How much, oil, electricity, and blood does it take to prop up the US dollar???

How much more does the dollar and all it's infrastructure do than bitcoin?

Many, many, many times more. Bitcoin could barely cope with the transaction rate of a mid sized town.

Re: Bitcoin price crash forces miners off network

#24

Post by throwaway_Bees »

noodle_face_ wrote: post #21
Barrin92 wrote: post #15

Earlier quoted context omitted.

it was always funny that people with a prepper mentality touted bitcoin as some sort of rock stable currency in times of crisis when government money was going to be worthless despite the fact that it basically takes an electricity source the size of the country to keep the whole thing running. What are you going to do in the post apocalypse, get a team of people with an abacus to calculate hash functions?

How much, oil, electricity, and blood does it take to prop up the US dollar???

A lot, that is why it is backed by the Country with the largest economy in the World...mean while Bitcoin isn't backed by anything except false marketing, it certainly isn't a P2P electronic system of cash.

Re: Bitcoin price crash forces miners off network

#26

Post by agumonkey »

Barrin92 wrote: post #15
exabrial wrote: post #12

Thank goodness. This waste of electricity and natural resources needs to go away.

it was always funny that people with a prepper mentality touted bitcoin as some sort of rock stable currency in times of crisis when government money was going to be worthless despite the fact that it basically takes an electricity source the size of the country to keep the whole thing running. What are you going to do in the post apocalypse, get a team of people with an abacus to calculate hash functions?

tesla solar cryptoshingles

Re: Bitcoin price crash forces miners off network

#27

Post by tromp »

raiyu wrote: post #17
iamaelephant wrote: post #9

Earlier quoted context omitted.

Bitcoin is fundamentally not a cash alternative. Which means definitionally the alternative to holding onto $100 BTC is NOT holding onto $100 cash. In fact cash is intentionally inflationary and BTC is intentionally deflationary (over long enough time scales) so yeah, you'd win your silly bet if there's no major crash. Doesn't mean you'll come out ahead of other strategies.

The problem with bitcoin is specifically that it is deflationary. In over simplified macro economic terms when you have deflation it is in the consumers interest to not spend money, because the cost of a service or good will be lower in the future. So the longer you wait the more you save. You have the same issue with Bitcoin, because it is deflationary it is in the holder's interest to not spend it, because it's fut…

Bitcoin's supply is disinflationary, with the yearly supply inflation rate going toward 0 (and reaching it in 2140).

But so is a constant emission, the major difference being that the latter goes toward 0 a lot slower, e.g. taking 50 instead of 12 years to get below 2%. More importantly, it accrues wealth to late adopters as much as to early backers, combining a fairer distribution with reduced spending aversion.

Re: Bitcoin price crash forces miners off network

#28

Post by toohotatopic »

raiyu wrote: post #17
iamaelephant wrote: post #9

Earlier quoted context omitted.

Bitcoin is fundamentally not a cash alternative. Which means definitionally the alternative to holding onto $100 BTC is NOT holding onto $100 cash. In fact cash is intentionally inflationary and BTC is intentionally deflationary (over long enough time scales) so yeah, you'd win your silly bet if there's no major crash. Doesn't mean you'll come out ahead of other strategies.

The problem with bitcoin is specifically that it is deflationary. In over simplified macro economic terms when you have deflation it is in the consumers interest to not spend money, because the cost of a service or good will be lower in the future. So the longer you wait the more you save. You have the same issue with Bitcoin, because it is deflationary it is in the holder's interest to not spend it, because it's fut…

There is hidden inflation that comes from other crypto currencies.

Once Bitcoin inflation is too strong and people are not willing to sell, it becomes profitable to start another currency. That currency will absorb liquidity and the deflation of BC stops. Like information in the internet, value flows around obstacles.

Re: Bitcoin price crash forces miners off network

#29

Post by lawn »

Melting_Harps wrote: post #5

If this is true, which I welcome because Chinese miner centralization has been a massive worry for us since about 2012, that still has yielded they highest hash rate (the computing power dedicated to mining Bitcoin) in the History of BTC: https://bitinfocharts.com/comparison/bitcoin-hashrate.html Its easy to skew this if you don't understand the underlying tech, but Bitcoin continues to work despite a supposed exodus…

> BCash

If anyone wonders what this is, it's a demeaning name for the Bitcoin Cash fork, used to discredit it.

https://medium.com/@jonaldfyookball/why-some-people-call-bit...

Re: Bitcoin price crash forces miners off network

#30

Post by Nursie »

Melting_Harps wrote: post #13
iamaelephant wrote: post #9

Earlier quoted context omitted.

Bitcoin is fundamentally not a cash alternative. Which means definitionally the alternative to holding onto $100 BTC is NOT holding onto $100 cash. In fact cash is intentionally inflationary and BTC is intentionally deflationary (over long enough time scales) so yeah, you'd win your silly bet if there's no major crash. Doesn't mean you'll come out ahead of other strategies.

> Bitcoin is fundamentally not a cash alternative Funny, I built a fintech startup on helping the cannabis Industry from their supposed 'cash' problem(s): predominately having too much of it and not having banking, or having thier cash taken indefinitely by the bank/paypal upon closure of their account(s). While also doing B2B transactions where banks/CC companies failed to lend them services, despite having Local/St…

I tend to measure bitcoin by how its proponents sell it. It has failed at all of these things -

  Being a fast/cheap payments network
  Being a decentralised cash equivalent
  Being a store of value
The shift hasn't already happened - large businesses that have accepted bitcoin in the past have almost all stepped back from it citing a variety of problems, but mainly boiling down to it not being worth the effort, and nobody using it.

And why would they? It's inflationary in theory and speculative in actuality, anyone that actually thinks BTC is the way of the future would be a fool to part with it.

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