Bitcoin Forum

I think this deserves the broader forum

4 Mill BTC made in 2 weeks....?

In the  last week for so we have seen FTC and if the last two days CNC

FTC has achieved 0.005 BTC already and CNC looks to do at least this, and between them there are circa 800,000,000 Coins

Accordingly we can work out the dilutes BTC, in very broad brush strokes

360000000   0.005   1800000   1.8   million   BTC
462000000   0.005   2310000   2.31   million   BTC
822000000   0.01          4110000   4.11              BTC
              
              
              
         100      
         21   25.11  
            0.836320191   83.63201912  <----21M/25.11 M  


Thus effectively dropping BTC value by 17% !!!, which is quite close to the drop in the last 2 days

and because of the vast number of coins each 0.001 rise has a massive effect.

It appears that BTC may be diluted (inflated this way) this way

Not to mention how much BTC has been diluted by all those USD, Euros, GBP, CAD being printed all the time.

Not sure if trolling or purposefully unintelligent  :D

Yes, but this is internal to BTC, as they are only traded against BTC

if it's only traded from and to BTC that means any dilution is only an illusion since eventually it has to come back

right?

It's irrelevant. The value moves from one to the other, as long as the loop remains open. The key factor is retention of BTC, whether against altcoins or fiat makes absolutely no difference.

We know you really REALLY want your altcoins to succeed, but isn't one thread enough?

I don't have any CNC

and only 100 FTC,

so no I am not a large holder of them.

I however am considering buying CNC....

BTC was already 17% down when FTC shows up on BTCe, and the price double.
So no.

Your numbers are also wrong.

counter examples are always good

CHN - 42211 blocks @ 88 CHN per block @ 20LTC/1000CHN (optimistic) = 0.64 BTC/1kCHN
FTC - 29456 blocks @ 200 FTC per block @ 4.93 BTC/1k CHN (very optimistic)

Total - 2377.32 + 29043.62 = 31420.94

So, that's like 31.5 k effective BTC that have been made.

That's off by a lot from your suggested 4 million.

your doing it by blocks, now, I think that the market discounts that as they know totals

I don't think the block reward has changed yet.

The number doesn't make sense, all alt-coins adding together their market cap is less than 17% of btc's:

https://bitcointalk.org/index.php?topic=192977.msg2000777#msg2000777 (https://bitcointalk.org/index.php?topic=192977.msg2000777#msg2000777)

http://i1133.photobucket.com/albums/m586/bitcool5/coincaps_zps1cda36eb.jpg

Sounds like nonsense to me. The alt-coins have no effect on BTC whatsoever, they are no different than trading BTC for fiat, or goods and services. They are each a currency on their own, and that's about it. BTC doesn't cease to exist, or cease be mined a block every 10min, just because some new alt-coin appears.

Um no FTC or CNC in your graph, FTC alone > PPC and TRC

but, it's not 1.8 million BTC.

R U sure? Where did you get your numbers?  I highly doubt it.

Even if FTC+CNC market cap equals all other alter coins' (LTC+NMC+PPC+TRC+DVC+NVC+IXC) , it's still only 6.27% of BTC's market cap.

800,000,000 Coins to be popped out of which 360,000,000 FTC are trading at 0.005....do the maths

except they haven't been popped out yet.

neither have BTC

You can't do anything about it so who cares?

Pokemon cards make my mtg cards worth less....oh well?

I am too lazy to do this, but a much better comparison is to compare the hash rates of all the coins together. (remember to divide by 1000 to compare SHA and Scrypt rates)

Also for a bonus cookie compare the increase in alt coin hash rate the the hash rate of Bitcoin and see if there is evidence of people moving away from Bitcoin.

Hash rates are largely irrelevant because each coin eventually changes it's difficulty to maintain a constant creation rate regardless of the hash rate.

Hash rate represents energy destroyed.

A high hashrate also means you'll get less coins per hash.

Bouyaa!  ;D

Indeed sun, its not this meaningless 'market capitalization' calculation people throw around, its all about the rates of new coin creation and their sale.  So you should compare the actual sale of alts in dollar value to the sale of new BTCs in dollar value.  Hypothetically their is a finite pool of people willing to put their dollars into any crypto-coin and they divide it between the available coin choices.  These people bid up or down the price of the new coins with virtually no regard for the preexisting coins and miners move around their hash power to arbitrage it.  

Now we also need to consider that these new alts are seeing incredibly small volumes of actual liquidation by their miners, just a handful of newly mined coins are determining the valuation of mountains of other coins that just go directly into the miners personal hoard.  BTC suffers from the same problem but to a lesser degree.  So look at coin volumes produced AND determine how many are actually flowing into exchanges then determine how much money is spent to purchase that flow.

Also the BTC decline over the last 2 days has been entirely caused by a DDoS on SilkRoads.

Good analysis

Except that people aren't putting dollars into these alt-coins, they are putting BTC into them.

MTGox is far more detrimental to BTC than FTC.

I think you misunderstand why I am using the network hash rate as a metric.

I'm not talking about hash rates because of the amount of coins, but rather hash rates as a metric for user interest. If Feathercoin is at 10% of Litecoins hashing power, that means Feathercoin is being trusted more and more. Remember crypto-currencies are network effect based value systems with no "metal" or "government trust" to fall back on. So more people using a coin will give that coin more value.

In this regard network hash rate is very important. If Litecoin was at the same hashrate as Bitcoin (after doing the divide by 1000 conversion) then we would expect Litecoins to much more valuable.

So if someone wants to gauge the "network effect" of each coin, start comparing network hash rates.

As a stupid guess I would expect the following:

Litecoin to be 3-10% of Bitcoins total network hash rate.
Feathercoin to be 5 % of Litecoins hash rate.

These are just my guesses, I would like someone to tell me how wrong they are! :P

Yeah, FTC and CNC and even Litecoin are having no effect of Bitcoin's value.

Bitcoin is not being adopted as fast as a lot of speculators hoped for and now SR is being smashed with a DDOS, things are looking a little more bleak in the Bitcoin world.

I really don't think the alternatives are doing anything at all to the Bitcoin price.