61–70 of 79 posts
Earlier quoted context omitted.
A coin that vanishes unpredictably would be the worst sort of money. Ironically, under Gresham's Law, such a currency would dominate other forms of money because everyone would be in such a hurry to exchange it for goods before it disappeared.
BTC can be divided into satoshis, which are extremely small units. If someone loses 1 BTC, the value of all the rest simply goes up.
Earlier quoted context omitted.
A coin that vanishes unpredictably would be the worst sort of money. Ironically, under Gresham's Law, such a currency would dominate other forms of money because everyone would be in such a hurry to exchange it for goods before it disappeared.
Gresham's Law technically applies to nonidentical versions of the same legal tender. That's not applicable to Bitcoin, because there is no material difference in the manufacture of individual Bitcoins, and nobody is forced to use or accept it. But to think this through, maybe there would be three components to the dynamics of such a theory. 1) Bitcoin will continue to vanish as holders die, forget about their bitcoin…
The value of BTC is part scarcity and part network effect. In a rational world (what we usually get in the long term) disappearing BTC would have an impact on the network effect. Interestingly, Gresham's Law suggests it would be a positive effect. A likelihood that wealth will be destroyed at death-- I would think that would deter adoption.
Earlier quoted context omitted.
A coin that vanishes unpredictably would be the worst sort of money. Ironically, under Gresham's Law, such a currency would dominate other forms of money because everyone would be in such a hurry to exchange it for goods before it disappeared.
Gresham's Law technically applies to nonidentical versions of the same legal tender. That's not applicable to Bitcoin, because there is no material difference in the manufacture of individual Bitcoins, and nobody is forced to use or accept it. But to think this through, maybe there would be three components to the dynamics of such a theory. 1) Bitcoin will continue to vanish as holders die, forget about their bitcoin…
Banks/(3rd party) Wallets/(3rd party) exchanges is centralisation.
Lightning network hubs for example are not -and could scale much better, with less friction, than any transaction systems that we currently have. But plenty of things are going on, if it's not that it will be something else, it's only a matter of time.
Earlier quoted context omitted.
Gresham's Law technically applies to nonidentical versions of the same legal tender. That's not applicable to Bitcoin, because there is no material difference in the manufacture of individual Bitcoins, and nobody is forced to use or accept it. But to think this through, maybe there would be three components to the dynamics of such a theory. 1) Bitcoin will continue to vanish as holders die, forget about their bitcoin…
I think anyone panicked right now over the loss of their BTC because of a lost key, broken HDD, forgotten pwd, or the BTC just it isn't there anymore for reasons unknown-- those people will never feel secure holding BTC again in any form. The psychology of loss is powerful, and grown-ups just don't put their life savings in insecure stores of value. The value of BTC is part scarcity and part network effect. In a rati…
The psychology of loss is powerful indeed
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You know the famous pizza for bitcoin story? The media always tells the story this way: Joe Person traded eg 10,000 bitcoins for some pizza, in what is believed to be the first commercial transaction. You know what they always miss in the story? Joe Person did that same deal several times, which you can see by reading the forum thread that still exists. Joe Person missed out on a billion dollars in Bitcoin value in e…
> what is believed to be the first commercial transaction. I'm pretty sure Alpaca socks were sold before that famous pizza.
https://priceonomics.com/when-the-great-alpaca-bubble-burst/
(1) The asset not the product is the thing being marketed (i.e. live alpacas, not fiber)
(2) investors have unrealistic expectations (alpaca fiber would replace wool, despite the lack of infrastructure; and besides the fact that people don’t really wear that much wool)
(3) information is controlled through industry sources (most of the information the researchers were able to dig up was put out by breeding associations)
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If you're a billionaire you can just pay the fee to have your transaction in the next block. The network works perfectly for anyone willing to pay fees. Selling a billion on exchanges without excessive slippage would be difficult, but perhaps not impossible considering that the daily volume is above 16 billion right now. Certainly something in the 10-100 million range would be pretty easy.
Daily volume of $16b according to what? The ledger? If coinbase moves 10,000 bitcoins to a different wallet, you see that as a transaction. If I move all my Bitcoin from coinbase to a private wallet then back to coinbase, you would see those as separate transactions on the ledger as well. There is not $16b in daily liquidity in the BTC market right now. Moving money from one pocket to the other over and over all day…
Earlier quoted context omitted.
If you're a billionaire you can just pay the fee to have your transaction in the next block. The network works perfectly for anyone willing to pay fees. Selling a billion on exchanges without excessive slippage would be difficult, but perhaps not impossible considering that the daily volume is above 16 billion right now. Certainly something in the 10-100 million range would be pretty easy.
Easy? Which exchange right now will let you sell millions of dollars at once? My coinbase account is aged, well used and verified. And I think I can't sell more than $10k a week.
Other exchanges with high USD volume include Bitstamp and Gemini. Bitfinex is also an option if you trust them and live outside the US (I don't).
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BTC can be divided into satoshis, which are extremely small units. If someone loses 1 BTC, the value of all the rest simply goes up.
For those wondering, a satoshi is 1/100,000,000 of a bitcoin. At the current bitcoin price of $14591, a satoshi is worth $0.0001459190. The maximimum amount of minable bitcoins is 21 million. Current global gold supply is ~ $7 trillion If bitcoin completely replaces gold, bitcoins will be trading for about $333,333.33, so a satoshi would be worth ~$0.0033.
People use quarters for mostly everything now, so this is again quite reasonable.
Earlier quoted context omitted.
> what is believed to be the first commercial transaction. I'm pretty sure Alpaca socks were sold before that famous pizza.
How foreboding! https://priceonomics.com/when-the-great-alpaca-bubble-burst/ (1) The asset not the product is the thing being marketed (i.e. live alpacas, not fiber) (2) investors have unrealistic expectations (alpaca fiber would replace wool, despite the lack of infrastructure; and besides the fact that people don’t really wear that much wool) (3) information is controlled through industry sources (most of the infor…