Cambridge University estimates two thirds of bitcoin was mined in China until they shut it down the other day. Do you think Bitcoin has a future?
https://www.abc.net.au/news/2021-06-22/how-china-has-pushed-…
Is The Reign of Bitcoin over?
BluebirdV on 23/06/2021 - 05:53
Comments
Every time Bitcoin falls in price, gloom and doom voices appear. Human cognitive biases at its best.
Is this good for Bitcoin?
Less supply of anything = Higher price.
If less Bitcoin is mined in the future, then the fundamental laws of economics dictate that the price will go up and not go down.
only if demand > supply, otherwise you have a crash incoming
bitcoins mining "difficulty" self adjusts every 2 weeks. As result new supply is always fixed at the same rate.
So the amount of new BTC generated is always the same… the cost to generate though varies
Less supply of anything = Higher price.
Isn't the selling point of bitcoin there is only ever going to be 11m coins. Same supply. Just depends on demand.
If less Bitcoin is mined in the future, then the fundamental laws of economics dictate that the price will go up and not go down.
Don't misunderstand economics. If there is a demand for it and a utility. It is like DoDo poop. There is only a limited supply since the animal is now dead but laws of economics don't apply.
There will only ever be 21 million bitcoins of which 18.7 million have been mined.
But when you can split it in half you get 42m pieces of digits you can buy :)
And if you can split it into 10000 pieces you get literally billions.
Money printing prints more, bitcoins does the same, in the form if splitting. Pretty much no one forks out
60k50k40k30k for btc at a time@cloudy: Bitcoin isn't subdivisable without changing the algorithm. For algorithm to change to work, all miners need to agree to use mining software that follows the new algorithm.
If Bitcoin miners don't agree and some keep using the old algorithm and others start using the new algorithm you end up with a fork and two different blockchains. This happened in 2017 - the blockchain produced by the new algorithm is known as Bitcoin Cash. It's much less popular than Bitcoin because most miners keep using the old bitcoin software.
Bitcoin isn't subdivisable
You don’t know anyone that owns $5000 of BTC? Or less…lol, people are buying bits of BTC everyday mate
One block is mined every 10 minutes no matter what happens in China. It's maths.
Nice to know if the world ends then one block is mined every 10 minutes.
Or it will ship to the U.S. office rather than the Chinese one.
"China logistics firm in Guangzhou confirms to CNBC that its airlifting 3,000kg (6,600lbs) of bitcoin mining machines to Maryland, USA."
https://beforeitsnews.com/economy/2021/06/china-logistics-fi…
Also noticed a triple-bottom on the BTC daily chart with a strong rejection spike so 'hopefully' it will start to move again from here. Also with El-Salvador and other SA countries accepting BTC as legal tender recently (and using geo-thermal energy to power things) I don;t see it going away just yet. Maybe the guvnuts will ramp up the terror once their CBDC's are ready to roll out but wont know more (or how) until they do.
bitcoin mining machines
I might be out of the loop but aren't these known as computers?
El-Salvador and other SA countries
I'm not sure El-Salvador is a huge trend setting country in terms of financial mechanisms.
And what other countries ?The computers are called ASICs and can only mine bitcoin, the minesweeper function has been taken out.
Mexico is heading in that direction.
https://cryptoslate.com/mexico-bitcoin-el-salvador/
"Federal government of Mexico representative, Eduardo Murat Hinojosa announced on Twitter he is taking action to push forward Bitcoin and crypto adoption in the country.
“I will be promoting and proposing a legal framework for crypto coins in Mexico’s lower house,” said Hinojosa, explicitly mentioning Bitcoin in a tweet. "
And a few others leaning in the right direction.
https://www.euronews.com/next/2021/06/12/bitcoin-is-el-salva…
"Following the vote in the Salvadoran assembly, politicians in Argentina, Paraguay, Brazil and Panama took to social media to endorse the decision.
Of these countries, it looks increasingly likely Paraguay will soon follow El Salvador’s example or at the very least, introduce favourable laws towards cryptocurrencies."
You can ship stuff everywhere. Problem is availability of power and price of that power.
Bitcoin does have a future. In the years to come it will become a case study in irrational behavior, just like the tulip mania crash of the 1600's
Let's not mistake cause and effect. Bitcoin is reaction to irrational behaviour of central banks, that printed trillion of dollars since GFC, that's it.
If we have had a sound financial system, there would be absolutely no place for Bitcoin, but unfortunately, we don't.
Sound financial system or not - how are drug dealers, hackers and the like going to get their money surreptitiously
Not quite. Bitcoin is actually incredibly transparent, and easier to track illicit activities than, cash, for example:
https://markets.businessinsider.com/currencies/news/how-an-e…
Bitcoin is reaction to irrational behaviour of central banks
If another pandemic comes I'd like to see Bitcoin do JobKeeper and JobSeeker. World got off gold standard for a reason. There might be a lot of irresponsibility but I'd say the alternative is worse.
If you bought Bitcoin to make money in dollars, you're in it for the wrong reasons and don't understand Bitcoin. If your goal was to buy Bitcoin and sell it for a higher "fiat" price later, you missed the point. It's never going to happen so you may as well sell now.
But if you bought Bitcoin because you understand it and know it will be the currency of the 21st century (honest, sound, intrinsic value), you should ride it all the way down to $0 and below and not pay attention to what the price is in (worthless, corrupt, totalitarian) "dollars."
Dunno about that. I bought Bitcoin at a low price, sold it off for a high price and put that profit towards part of buying property. Property that's now up 20% in value with no work done.
I'd call that a win.
Property that's now up 20% in value with no work done.
Same 20% up for the rest of the suburb. You are relatively of same wealth. Only the government gets something for nothing, it is called stamp duty.
@netjock: So let's say I paid $400,000 for a house unconditionally and I sell it for $480,000 that's not a win? Because $480,000 is less than $400,000 somehow?
@Clear: $480k if you walk away totally, if you wanted to repurchase the house next door exactly the same as yours? You also need to pay stamp duty again on the higher price.
@netjock: Yes $480k if I walk away. The house I live in I already own and the house for "$400,000" is an investment property.
@Clear: Doesn't matter if you live or own it. Prices have gone up, it isn't like everything is frozen waiting for you to make an extra $80k.
@Clear: You're both correct. Banks, RE agents and the government are the true beneficiary of a property boom. As Netjock says, you are keeping even (which is better than going backwards if you hadn't purchased at all). But if you move, stamp duty, application fees, real-estate agent fees and bank interest are payable. If it's an investment, then CGT is payable. Bought our house for $470k, but the resale breakeven is closer to $520k. So anything less than a 10% gain is a loss. A 20 - 30% gain should see you in profit. Well done making a profit with BTC. I started in alts in May .. poor choice.
@tunzafun001: Stamp duty really wasn't that bad considering at the time (and even now) you get 50% off on stamp duty in my state under several conditions that most first home buyers fall under.
Regrettably my bitcoin from 2012 is looooong gone. I remember seeing physical bitcoins for sale on eBay for $15 and thought "wow that's so expensive". Even now I'd be laughing to the bank.
I never actually thought bitcoin had a future. Although to be fair, it is useful for black market type trades so maybe I'm wrong.
Weird that China is leading a crash in bitcoin atm, but am happy - hopefully other governments do the same to block it so graphics card being pointlessly high priced and the stupid waste of energy it is can stop.
this is a fail concept it was and will always fail.
1. the idea of mining. what? free money ?
2. mining creating wasting of power/electricity
3. mining makes GPU prices go crazy
3. too secure criminals like them
4. single tweeet by a moron can hike the prices without any proven data to back it upi guess we will find out in 5 years
We live in a post scarcity world when a billionaire can post a picture of a dog and "moon" to create billions of dollars in value in an instant.
Now, if only Elon could use his powers for something good, like lifting a billion plus people out of poverty.
Is The Reign of Bitcoin over?
https://www.exodus.com/blog/bitcoin-crash-history/
What makes you think this crash is the end and all the previous crashes were not the end?
Won't be the end.
Bitcoiners will be like the Amish. They will still hold onto their beliefs.
i bought wqhen it was 1k
I'm a newbie to cryptos, i have one question…
if the premise that mining is the process of validating and processing of transactions. what happens when mining stops?
if the likes of china and russia cracks down and stops people from mining which means the transnational process stops. what happens to the bitcoins. can you even sell or off load them? because there is no-one processing or validating the transaction.
if i were to think of of a scenario like if the computers and miners were all offline at the same time for say a month… what would happen?
The miners will continue to mine as long as they have access to electricity and the internet.
The world would be at the doorstep of Armageddon if the electricity around the world was shut down for a month. It would be the 1700s all over again.
so say if ( at not impossible scenario) alot of countries outlaw the mining of bitcoin or at least reduce the number and size of them.
does that mean the time it takes to process and validate a transaction will take longer because the mining operators are a lot smaller or at reduced numbers.?
theoretically if currently there are 1 million miners and that number goes down by half. would that affect the the rate and speed of the transaction?
how long does a typical transaction take?
outlawing things doesnt curb it if you can still make money off it. worst thing that could happen is people switch to other currencies
There's an algorithm to balance out the block time with the total hashrate (number of computers submitting a correct hash calculation). As long as there is 1 computer somewhere in the world making submissions, the blockchain will keep on running (well, and a node and whatever else is required to keep it going)
As long as there is 1 computer somewhere in the world making submissions, the blockchain will keep on running (well, and a node and whatever else is required to keep it going)
51% attack risk,
From todays AFR -
"Cryptocurrency trading, losses and gains are also a focus, with the ATO writing to 100,000 taxpayers and sending pop-up messages reminding them gains are taxable even if they have not been cashed into Australian dollars"The long arms of the ATO. I bet they won't want to know about losses (to offset taxes) they just assume a lot of people have gains.
I bet you they don't tell you losses are claimable. I was actually disgusted when i was doing my international taxes at how much information was written in a misleading way to try and trick people into declaring foreign income as aus income and pay double tax. ATO info should be written neutrally as it is guidance
Losses can only offset against gains in the same or future tax years. You can't offset your losses against your salary for example.
Cap gains or losses. Not rentals / interest charges as negative gearing applies.
Once you know how it all ends, the only use of time is…how do I buy more bitcoin? But take all your money and buy bitcoin. Then take all your time, figure out how to borrow more money to buy more bitcoin. Then take all your time and figure out what you can sell to buy bitcoin. And if you absolutely love the thing, that you don’t want to sell it, go mortgage your house and buy bitcoin with it. And if you’ve got a business that you love because your family works for the business and it’s in your family for 37 years, and you can’t bear to sell it, mortgage it, finance it, and convert the proceeds into the hardest money on earth, which is bitcoin.
This is probably good for Bitcoin. Too much mining by too few raises risk.
If someone hacks it, then that would be a game changer. Would make it no different to any other non inflationary coin. I think that is the true gamble.
How about the future of Bitcoin regarding it's negative impact on the environment? Tesla has stopped accepting payment by Bitcoin for this reason. Won't the cryptocurrency of the future need to be environmentally friendly?
A lot of bitcoin mining farms will need to innovate and ultimately the cost of mining will increase.
I watched a Bloomberg short about Ecocide a few days ago. In my opinion it is only time until Ecocide laws become part of the legal system in many countries.
Volcano, hydroelectric, wind and solar power are all sustainable, green and cheap energy sources.
Tesla stopped accepting Bitcoin because Larry Fink called Elon Musk telling him that he wanted to load his bags with cheap BTC. Fink missed the boat at 20k and didn't want to pay 64k.
The Q2 reporting is coming up soon. We can see who jumped on the boat when it's published.
"It has been yet another week of volatility for Bitcoin, as the largest digital asset hit a new five-month low of $28.4k Tuesday. The drop in price was due in part to China’s intensifying clampdown on crypto as it ordered banks and financial institutions to stop facilitating crypto transactions, and forced miners to shut down. Despite price volatility, the cryptoasset market continues to attract more private equity interest as venture capital firm Andreessen Horowitz announced it has raised $2.2 billion for their third crypto fund. This is the world’s largest blockchain-focused VC fund to date, illustrating that investors remain bullish on the sector, despite the volatility currently on display.
On the national front, El Salvador finally announced that BTC will officially become legal tender effective 7 September. Furthermore, each citizen is entitled to receive $30 worth of Bitcoin — airdropped straight into their wallet when they sign up. With a population of around 6.4 million citizens, President Bukele is undertaking to pay out up to $192 million in Bitcoin. Relatedly, Congressman Carlitos Rejala introduced the Paraguayan Bitcoin bill to follow in El Salvador’s footsteps and legislate bitcoin as a legal tender. In positive news for the sustainability credentials of Bitcoin, the country intends to use their excess hydroelectric energy to carry the Bitcoin mining burden."
There are 25000 shorts contracts on Bitfinex. Anyone that wants to make quick money can catch the scam wick and sell on the bounce.
13000 shorts have been closed in the past 24hr after the spot price bounced at $30200. The whales played it exaaaactly as predicted.
https://files.ozbargain.com.au/upload/393946/89827/screensho…
"Exit China, enter Brazil."
BREAKING 💥 Mayor of Rio de Janeiro, Brazil pledges to invest 1% treasury in #Bitcoin and cryptocurrency💥 https://t.co/juRYgz92Zi
It's always the mayors of broke and bankrupt cities that decide to get into crypto, lol. I suppose when you can't produce anything valuable, the natural path is to look at building an industry based on speculation alone… Sounds like most crypto "investors" now that I think about it - they're not the smartest crayons in the block either.
The countries/people that have an unstable, devalued and the least amount of fiat money has the most to gain by converting fiat money to hardest asset.
Exchange rate imbalance between the Brazilian real and the dollar will persist in 2021, say analysts
On Wednesday, the last trading day of 2020, the real is heading for a 29% devaluation against the dollar. See what IIF, Bank of America, UBS, Deutsche Bank, and others say about the future of the Brazilian currency.
REUTERS 30.DEC.2020 13:44 BRT UPDATED 31.DEC.2020 14:35 BRT
https://labsnews.com/en/articles/economy/exchange-rate-imbal…The privileged white countries with stable fiat money have the most to lose while the adoption continues.
https://99bitcoins.com/bitcoin-obituaries/