Bitcoin (cryptocurrency)

[Scottyboi]

But if that is the case Bitcoin would be obsolete and its value Nil. Are crypto coins going to survive the death of Bitcoin?

Will happen naturally I think with more people selling up and moving to Ethereum and others, will still get the die hards who will keep buying it till the death.

 

[metalblue]

This is the question that i have never seen answered in any kind of satisfactory way. It takes massive processing power to keep the blockchain going. Without that it all falls down. That processing is paid for by issuing new coins. So the supply has to go up to pay the cost. But at some point that increasing supply will start to dent the value and it could easily get to a point that mining is not sustainable. If the miners bail out on mass then the game is up. Value is nil overnight.

In any normal investment asset class there is some underlying value. Even a bond in a defaulted company might get paid out as it goes through the insolvency process. Bond holders in Lehman Brothers got fully paid out in the end.

In crypto there is nothing to stop a total collapse.

There are new “coins” being issued all the time so new money will flock to that. Personally if I was bitcoin as I reached limit I’d just create a new tangible coin and exchange all BTC into that.

Without that approach they fail to implement inflation in to the system.

Inflation is one of the things crypto supporters tend gloss over but, along with low volatility, it is key to it being accepted as currency. Let’s play this to the end game, crypto has taken over the world, fiat currencies are no more and all coins have been issued. In this new found world on day #1 a loaf of bread costs BTC0.001 and you earn BTC10 per week but guess what. That’ll be the same in 100 years later because you work for a bread maker who can’t put up prices so you can’t get a pay rise. But heck, who cares? it’s all relative I don’t need a pay rise when everything costs the same right?. Governments around the world will shy away from borrowing because today debt erodes with time whereas a debt of 10000BTC will remain 10000BTC and you’re tax take will remain relatively static due to a lack of economic growth. New coins will be issued but doing that is deflationary and will erode the relative value of BTC... but the supply is finite and so either you start getting paid in a different “coin” or you now pay BTC0.0005 for a loaf of bread and get paid 5BTC a week - now governments are fucked because the tax take is halved. You’ll be crossing crypto “coins” all over the place to try and manage your income to debt ratios. In short the world will be fucked and you think austerity was bad? This outcome will be a magnitude worse for huge sections of society. So they absolutely have to create new tangible “coins”

Underpinning crypto is $4.5tn of criminally acquired money. This isn’t to say money laundering is exclusively a crypto problem by any means but it allows more avenues to place and integrate - and “mining” is one of them, they won’t care if it costs twice as much to “mine” than they get in returns, a 50% haircut for cleaning money is probably standard.

 

[Wafty Cranker]

There are new “coins” being issued all the time so new money will flock to that. Personally if I was bitcoin as I reached limit I’d just create a new tangible coin and exchange all BTC into that.

Without that approach they fail to implement inflation in to the system.

Inflation is one of the things crypto supporters tend gloss over but, along with low volatility, it is key to it being accepted as currency. Let’s play this to the end game, crypto has taken over the world, fiat currencies are no more and all coins have been issued. In this new found world on day #1 a loaf of bread costs BTC0.001 and you earn BTC10 per week but guess what. That’ll be the same in 100 years later because you work for a bread maker who can’t put up prices so you can’t get a pay rise. But heck, who cares? it’s all relative I don’t need a pay rise when everything costs the same right?. Governments around the world will shy away from borrowing because today debt erodes with time whereas a debt of 10000BTC will remain 10000BTC and you’re tax take will remain relatively static due to a lack of economic growth. New coins will be issued but doing that is deflationary and will erode the relative value of BTC... but the supply is finite and so either you start getting paid in a different “coin” or you now pay BTC0.0005 for a loaf of bread and get paid 5BTC a week - now governments are fucked because the tax take is halved. You’ll be crossing crypto “coins” all over the place to try and manage your income to debt ratios. In short the world will be fucked and you think austerity was bad? This outcome will be a magnitude worse for huge sections of society. So they absolutely have to create new tangible “coins”

Underpinning crypto is $4.5tn of criminally acquired money. This isn’t to say money laundering is exclusively a crypto problem by any means but it allows more avenues to place and integrate - and “mining” is one of them, they won’t care if it costs twice as much to “mine” than they get in returns, a 50% haircut for cleaning money is probably standard.

I’m not so sure on these figures. The market cap of the whole crypto market is about $2.3tn. How can it be underpinned with $4.5tn or criminally acquired funds? I’m pretty sure in most circumstances you don’t pay 50% to launder money.

Also the inflation argument is a great argument FOR Bitcoin.

 

[BusterPhillips]

But if that is the case Bitcoin would be obsolete and its value Nil. Are crypto coins going to survive the death of Bitcoin?

Proof of work mining is very energy intensive but proof of stake / validation is not. So the overheads will decrease for mining which will be good for the environment and will reduce transaction cost on the block chains.

 

[Lee1983]

The sheer amount of KYC and AML requirements on exchanges these days means it must be almost impossible to bother trying to launder money through crypto, getting it out and into cash has to be explained to your exchange and bank.

 

[markbmcfc]

Every time i think about selling my doge, it shoots up. Glad i've held my nerve so far but i've absolutely no idea when to sell.

 

[Scottyboi]

There are new “coins” being issued all the time so new money will flock to that. Personally if I was bitcoin as I reached limit I’d just create a new tangible coin and exchange all BTC into that.

Without that approach they fail to implement inflation in to the system.

Inflation is one of the things crypto supporters tend gloss over but, along with low volatility, it is key to it being accepted as currency. Let’s play this to the end game, crypto has taken over the world, fiat currencies are no more and all coins have been issued. In this new found world on day #1 a loaf of bread costs BTC0.001 and you earn BTC10 per week but guess what. That’ll be the same in 100 years later because you work for a bread maker who can’t put up prices so you can’t get a pay rise. But heck, who cares? it’s all relative I don’t need a pay rise when everything costs the same right?. Governments around the world will shy away from borrowing because today debt erodes with time whereas a debt of 10000BTC will remain 10000BTC and you’re tax take will remain relatively static due to a lack of economic growth. New coins will be issued but doing that is deflationary and will erode the relative value of BTC... but the supply is finite and so either you start getting paid in a different “coin” or you now pay BTC0.0005 for a loaf of bread and get paid 5BTC a week - now governments are fucked because the tax take is halved. You’ll be crossing crypto “coins” all over the place to try and manage your income to debt ratios. In short the world will be fucked and you think austerity was bad? This outcome will be a magnitude worse for huge sections of society. So they absolutely have to create new tangible “coins”

Underpinning crypto is $4.5tn of criminally acquired money. This isn’t to say money laundering is exclusively a crypto problem by any means but it allows more avenues to place and integrate - and “mining” is one of them, they won’t care if it costs twice as much to “mine” than they get in returns, a 50% haircut for cleaning money is probably standard.

Btc has built in mechanics to stop inflation called halving look into it.

 

[Odd socks]

Invested in ZIL myself, reckon by the end of this alt season it will be a significantly higher price than it is now, aswell as VET, ADA, ONE, COTI, XRP, BTT, DOGE, MANA, HOT, CAKE, CHZ, LTC, MFT...

93 pages in and I don't have a clue, who decided bitcoin looks a great idea so I'll start one myself like the 14 you mention above.
Some lads in work were going on about it last week and all were investing in these coin bases and how much so and so was up last week etc.
Out of curiosity I asked them to explain and not one had a scooby doo other than they were going to be rich beyond their wildest dreams.
I took the piss and told them they will all end up skint, but will they ? or am I just a dodery old fool.

 

[oman0115]

93 pages in and I don't have a clue, who decided bitcoin looks a great idea so I'll start one myself like the 14 you mention above.
Some lads in work were going on about it last week and all were investing in these coin bases and how much so and so was up last week etc.
Out of curiosity I asked them to explain and not one had a scooby doo other than they were going to be rich beyond their wildest dreams.
I took the piss and told them they will all end up skint, but will they ? or am I just a dodery old fool.

You are not going to go skint if you set your own limit, put some in then if it falls towards your acceptable loss or breakeven withdraw your investment

 

[Craig]

Every time i think about selling my doge, it shoots up. Glad i've held my nerve so far but i've absolutely no idea when to sell.

Yeah tricky one as it’s basically a joke coin but no sign of it slowing down. Happy days for you because it looks set to reach a dollar so just keep holding for a good while yet.