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bitcoins

Entoptic said:
Triple I hope you didn't get out and are still in. BTC is above 7200 and rising. Been making a pretty good profit on the ups and downs right now.

I hope you're still in it my man.
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I’m still in. Just gonna leave it there as long as I can. I bought high so I’m a bit under but I’m sure it will rise over time.
 
They are essentially running the cryptographic software that verifies all the worldwide transactions. Once your rig or the pool you belong too, solves a block of the chain, you get paid tokens for your work.
 
Well if we are talking bitcoin, the nodes(miners) are verifying all the transactions that occur. Meaning if I buy a sandwich for lunch in the form of bitcoin, that action is submitted to the network and it bounces around the world to the nodes to verify that the bitcoin is legitimate. The nodes process this info and form a new block in the chain. Forming a chain of events that is verifiable, transparent, secure, and immune to hacking. Each block is currently worth 12.5 bitcoins. The payout is halved every 4 years. This is a very simplified explanation. There is way more to it.
 
It has been happening with bitcoin and the community is split on how to solve the scaling debate. Other coins are better suited for transaction speed and cost. Some believe that bitcoin will be a store of value and another coin will be used for transactions. We are in the infancy of digital currency and there are things that need to be worked out.
 
Here is the thing I don't understand. Why is it store of value? It has no intrinsic value. It's usefulness comes in as an alternative currency, if transactions costs are too high, what's the point then?
 
What's the difference between intrinsic value and perceived value?

An iphone isn't $1,200 because of the sum of its parts. A 1968 Shelby Mustang isn't worth more today because the cost of it's pieces are that much more.

It being secure is valuable. Fraud is so expensive that by limiting or removing it you are building value. But I don't get how decentralizing it necessarily makes it more secure when you have a scale issue.

If the solution to scale is every home needs to have a mining rig just to support the system then it is unreliable. But if they can commoditize the rigs then it becomes an easier problem. Google already did that, AWS does it, and if you think of systems like SETI then it becomes ok.

I like the idea that was mentioned above that you can watch this program if we can use your resources while you watch. Or games that run on a fraction of compute so while you are engaged the other portion of the resource gets used for mining.

Of course get permission first. :laughing
 
SteelerFanatic said:
What's the difference between intrinsic value and perceived value?

An iphone isn't $1,200 because of the sum of its parts. A 1968 Shelby Mustang isn't worth more today because the cost of it's pieces are that much more.

It being secure is valuable. Fraud is so expensive that by limiting or removing it you are building value. But I don't get how decentralizing it necessarily makes it more secure when you have a scale issue.

If the solution to scale is every home needs to have a mining rig just to support the system then it is unreliable. But if they can commoditize the rigs then it becomes an easier problem. Google already did that, AWS does it, and if you think of systems like SETI then it becomes ok.

I like the idea that was mentioned above that you can watch this program if we can use your resources while you watch. Or games that run on a fraction of compute so while you are engaged the other portion of the resource gets used for mining.

Of course get permission first. :laughing
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today, mining rigs have to be beastly and low energy to generate a profit. If you scaled the transactional to every idle computer in the world the impact to the individual would be miniscule. The majority of people wouldn't even notice a difference in their electric bill.

Think about online banking. If the banks decentralized their processing and put the transactional processing requirement on the customers that are using their web access, it would be a large cost savings for them. That cost savings would be the intrinsic value. The "interest" you earn would be in the form of transactional payment processing. So those that had more money in their account would likely require more transactions (because they likely spend more/receive more) and thus have a higher interest rate.
 
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But at the end of the day it provides something to the user. With iPhone it's snappy processing and ability to view car videos. Shelby is a nitch market of collectibles and car enthusiasts. So not sure it's a good example.
With bit coin. If you can't spend it because transaction cost is too high, then what's the point?
 
your getting stuck on "fee's". there are ways to avoid fees. I buy lunch every day with bitcoin and incur no fees. Also at point of sale we could transfer btc to and from hardware wallets with no fees.
 
panthera said:
your getting stuck on "fee's". there are ways to avoid fees. I buy lunch every day with bitcoin and incur no fees. Also at point of sale we could transfer btc to and from hardware wallets with no fees.
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How do you avoid fees? Isn't every transaction needs to be validated?
 
I use GDAX to buy btc. I think I had one fee for $2.99 on a purchase. If you are day trading thats where the fees happen most. I buy btc on gdax, send the btc to Coinbase, then I use my debit card to buy stuff. The retailer pays the fee to visa as they normally do for debit and credit card deals. Also if you have a hardware device you and I can transact between our hardware wallets for free. When you use an exchange you incur fees. You can spend btc at the microsoft website, Overstocked.com, and expedia.com just to name a few and you dont pay any fees.
 
Yakoo752 said:
today, mining rigs have to be beastly and low energy to generate a profit. If you scaled the transactional to every idle computer in the world the impact to the individual would be miniscule. The majority of people wouldn't even notice a difference in their electric bill.
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Interestingly...

215 kilowatt-hours (KWh) of juice is used by miners for each Bitcoin transaction (there are currently about 300,000 transactions per day). Since the average American household consumes 901 KWh per month, each Bitcoin transfer represents enough energy to run a comfortable house, and everything in it, for nearly a week.

https://motherboard.vice.com/en_us/...ty-consumption-ethereum-energy-climate-change
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more-you-know.jpg
 
if each transaction costs 215kwh to process and there are 300,000 transactions every day then they go through 64,500,000 kwh a day

If there are 125,820,000 homes in the US and if every home shared in on the processing, it would add .5kwh to a persons bill per day.

if the average home uses 901kwh a month, they will see an increase of 15.38 kwh a month or a 1.6% increase

this is just in the US and miners operate all over the world...

back of envelope math so I may be wrong
 
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