Bitcoin discussion and news

[King Biscuit Time]

How will the transactions be processed when all 21 million coins have been produced? (or mining is no longer profitable)

So all the BTC could be released tomorrow? Obviously they wouldn't, but you're saying they have either all been created (or don't need much more computer processing power to be created), and are being dished out piecemeal in reward for carrying out the work required to do in order to exchange BTC?

 

[Crispy]

being dished out piecemeal in reward for carrying out the work required to do in order to exchange BTC?

That's how they're currently being generated - at a fixed rate regardless of the total computing power of the swarm. And it's something I don't know the answer to either. What is the reward for processing payments, once there are no more coins to mine?

 

[Fez909]

That's how they're currently being generated - at a fixed rate regardless of the total computing power of the swarm. And it's something I don't know the answer to either. What is the reward for processing payments, once there are no more coins to mine?

I don't think this is true. The processing power applied to it is directly linked to the number of coins mined. The coins are the result of a hashing algorithm and the miners are looking for specific hashes. They try millions per second each and when they find one, that's a new coin. More hashes per second = more coins.

Once all coins are mined, the reward for processing payments will still be bitcoins, but it would be in the form of transaction payments rather than new coins. If you want to send some money, you have to pay a transaction fee, and this is distributed to the people verifying the transactions.

 

[Crispy]

I don't think this is true. The processing power applied to it is directly linked to the number of coins mined. The coins are the result of a hashing algorithm and the miners are looking for specific hashes. They try millions per second each and when they find one, that's a new coin. More hashes per second = mre coins.

Once all coins are mined, the record for processing payments will still be bitcoins, but it would be in the form of transaction payments rather than new coins. If you want to send some money, you have to pay a transaction fee, and this is distributed to the people verifying the transactions.

That's perfectly clear, cheers

 

[Idaho]

As Fez says, the reward will switch to transactions. The limitation to how many btc are produced is based on the difficulty ratings. This is some automatic process based on the speed of Block processing I think. Not too sure.

 

[Fez909]

As Fez says, the reward will switch to transactions. The limitation to how many btc are produced is based on the difficulty ratings. This is some automatic process based on the speed of Block processing I think. Not too sure.

It's an automatic process based on how many coins exist. Every 2016 blocks, the difficult goes up.

 

[King Biscuit Time]

Right - thanks.

So something like BTC could be made (mined) by a much easier process, and would function in the same way as current BTC do - but the problem with that would be the lack of difficulty would mean that early adopters would get all the coins and interest would collapse as the system would be seen as being centralised (The initial developers and early adopters would control all the money).

So what BTC is, is a stack of tokens. Very handy tokens with a number of useful features that makes them very useful to a lot of people. The mining is just a way of building interest and maintaining it, and also a fairly arbitrary way of dishing out the tokens so people can get using them. Is that right?

 

[ExtraRefined]

It's an automatic process based on how many coins exist. Every 2016 blocks, the difficult goes up.

Difficulty changes, doesn't have to go up. It's gone down at various points.

 

[not-bono-ever]

http://www.zerohedge.com/news/2013-...ing-plans-issue-gold-backed-physical-bitcoins

Im sure youse bitcoin speculators will get all excited about this

 

[joustmaster]

http://coinmarketcap.com

 

[not-bono-ever]

http://coinmarketcap.com

like wow- are those all real ?

 

[Crispy]

http://www.zerohedge.com/news/2013-...ing-plans-issue-gold-backed-physical-bitcoins

that doesn't even make any sense, does it?!

 

[Dr Jon]

http://coinmarketcap.com

... and today's winner:

 

[Idaho]

like wow- are those all real ?

I bet each one has a loyal knot of fans who truly believe that they will be flying to Mars in their own personal space ship on the back of the money they will make from x coin.

 

[Idaho]

http://www.zerohedge.com/news/2013-...ing-plans-issue-gold-backed-physical-bitcoins

Im sure youse bitcoin speculators will get all excited about this

I'd buy one if they put "thanks Obama" on the back.

 

[teqniq]

There's a £60m Bitcoin heist going down right now, and you can watch in real-time

 

[Crispy]

Fascinating

 

[Idaho]

Ripping off a lot of drug dealers with technical know how. Something tells me that the trail will go quiet at some stage, and probably not because he's gotten away.

 

[Fez909]

Why can't the FBI use the same techniques to follow BTC for the major drugs sellers on these sites?

Also, what do you speculators think about this?

 

[joustmaster]

Why can't the FBI use the same techniques to follow BTC for the major drugs sellers on these sites?

Also, what do you speculators think about this?

normally tumbling coins works..

And I think the same of that graph, as i did when this was posted last year..

 

[King Biscuit Time]

The main sticking point for me is that now many more people are holding BTC than have any use for them. There are billions of dollars worth waiting to be dumped. Actual use of BTC as a currency needs to explode (which I'm not sure it will), or the value of these coins is only heading in one direction.

 

[fredfelt]

An asset doesn't have to be useful to be valuable, mealy of limited supply. See also One Direction.

 

[King Biscuit Time]

An asset doesn't have to be useful to be valuable, mealy of limited supply. See also One Direction.

There is literally no limit to the number of copies of "Midnight Memories" that can be digitally created. The reason that those particular 1s and 0s are of value is because (inexplicable) people derive pleasure from listening to them. I see the point in BTC for transactions, but they're too volatile to save with, not widely accepted for anything useful (odd pubs in Hackney notwithstanding), and in order to pay my taxes, mortgage etc I'm always going to have to swap them back to sterling. Of all the billions now in BTC, how many are to be used to send money across the internet, and how many are people hoarding to make a quick buck? Why aren't people just buying them 5 seconds before they need them and selling them 5 seconds after they receive them?


Caveat: As is probably clear from the above post, I know the square root of fuck all about economics, but do find all this interesting as a thought exercise and a way of better understanding currencies. Feel free to correct and castigate.

 

[camouflage]

http://www.zerohedge.com/news/2013-...ing-plans-issue-gold-backed-physical-bitcoins

Im sure youse bitcoin speculators will get all excited about this

Interesting article related to the above here...

http://vincesamios.com/bitcoins/the-compounding-risk-of-alt-coins-and-the-impending-alt-coin-crash

I agree with the link above, besides you only need to invent the wheel once.

 

[camouflage]

There is literally no limit to the number of copies of "Midnight Memories" that can be digitally created. The reason that those particular 1s and 0s are of value is because (inexplicable) people derive pleasure from listening to them. I see the point in BTC for transactions, but they're too volatile to save with, not widely accepted for anything useful (odd pubs in Hackney notwithstanding), and in order to pay my taxes, mortgage etc I'm always going to have to swap them back to sterling. Of all the billions now in BTC, how many are to be used to send money across the internet, and how many are people hoarding to make a quick buck? Why aren't people just buying them 5 seconds before they need them and selling them 5 seconds after they receive them?


Caveat: As is probably clear from the above post, I know the square root of fuck all about economics, but do find all this interesting as a thought exercise and a way of better understanding currencies. Feel free to correct and castigate.

Can't you just read the thread from scatch? If you already have and still don't get it... forget about it. Decide its just crazy bollocks and move on. You wont catch me in a thread about some stupid boy band.

 

[Idaho]

Bitcoins are more useful the more valuable they are. Trying to use them to move $35m across the world would be impossible @$10 per btc, tiresome and inefficient @ $100 per btc, possible @$1000 and simple @$20,000 per btc.

 

[camouflage]

Bitcoins are more useful the more valuable they are. Trying to use them to move $35m across the world would be impossible @$10 per btc, tiresome and inefficient @ $100 per btc, possible @$1000 and simple @$20,000 per btc.

Bitcoinity has started showing conversion in microbitcoins (mBtc) because the big numbers for 'a bitcoin' these days was scary and confusing.

 

[camouflage]

China: "Bitcoin is like gold and not money, you can buy and sell it except if you're a financial organization, and don't price in it" <- my own summation.

the jitter-crowd panic and flee, the wolves close in and the hawks begin their swoop, eyes a'glint for the second time in two months, like catching candy dropped by a startled toddler. Whoodathunkit.

 

[bi0boy]

Does anyone offer bitcoin futures?

 

[panpete]

China: "Bitcoin is like gold and not money, buy and sell it except if you're a financial organization, and don't price in it" <- my own summation.

the jitter-crowd panic and flee, the wolves close in and the hawks begin their swoop, eyes a'glint for the second time in two months, like catching candy dropped by a startled toddler. Whoodathunkit.

Latest news on why bitcoin is coming down.
Camouflage, did you already know why?
http://dailysilverupdate.com/blog/2...arns-about-bitcoin-crashes-market-below-1000/