Bitcoin Forum

I already asked some questions in this thread. In order not to flood here, I decided to add three questions in one thread. I apologise if the questions don't meet standard.

Question one- Volatility question:
I understand that bitcoin volatility is caused by demand and supply. Then, there is fixed 21million supply, if the 21million bitcoin is mined, will it make bitcoin price to be stable? Because there will be no more demand, there will be no more supply. The bitcoin in circulation will keep circulating.

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Question two- PoW question:
Bitcoin and Ethereum uses the PoW consensus. Why does ethereum now process transactions faster than bitcoin. This is without consideration of sig wit or beacon chain.

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Question three- blind signature question:

Alice is a vendor that made her address publicly alongside her real name. Bob buys something and pays Alice through bitcoin. Bob will be able to link Alice address to her real identity.

Since blind signature says a resulting blind signature can be publicly verified against the original(unblinded message). Why does bitcoin not make Alice address disguised(blinded) to Bob and yet it can be verified by miners or checked on explorer. By this Alice can be completly anonymous. Is it not compatible or it is not making sense?

Volatility is caused lack of liquidity, or the mismatch between the quantities of supply and demand. Supply and demand apply to markets. As long as there are people willing to sell bitcoins, there will be a supply. As long as there are people willing to buy bitcoins, there will be a demand. It has nothing to do with the 21 million limit.


Throughput is determined by the size and frequency of blocks. Ethereum blocks are generally smaller but are produced much more frequently.


A blind signature hides the contents of a message (i.e. the transaction). The address is part of a Bitcoin transaction and Bitcoin would not work if transactions were not public (though other protocols do hide the details of transactions). Also, if Bob can see the address in a block explorer, then why hide it from him?

Q1, supply will likely drop once the 21 million bitcoin have been mined (eg lost wallets, burnt funds). No one really knows if the price will become more stable or not though.
2. One has faster blocks and is less decentralised. Faster block speeds also gives a higher probability blocks will be orphaned so it may be a good choice in some ways and a bad choice in others.
3. I thought the message had to be unblineded/revealed for this to work, I haven't done much on those types of signatures though so I'd have no idea.. (I'd expect a blind signature to be a signed hash, most things are a signed has in cryptography because it condenses everything much better).

Maybe the address can be seen to certify the protocol rule but there would be kind of decryption to know whose address. Which will be permitted by by Alice ( as the author)
Is there any kind if centralization in ethereum PoW? which I perceived will be the bad choice you meant.

This is not new. There has always been shitcoins like ethereum that produce blocks faster than bitcoin. In case of ethereum it is the main reason why it is hundreds of times harder to run its full node than it is to run a bitcoin full node.
This is also one of the reasons why 1 ethereum confirmation has no security whereas 1 bitcoin confirmation is considered fairly secure (irreversible).
Another issue is as others mentioned the orphan rate which is significantly higher for ethereum even though they have some half solutions for it.

Any change in Bitcoin protocol requires a hard fork and it won't happen unless there is a pretty good reason for it. There is not enough reason to add blind signatures to Bitcoin.

Small groups of people just as people join and leave LN channels?

Any change in Bitcoin protocol requires a hard fork and it won't happen unless there is a pretty good reason for it. There is not enough reason to add blind signatures to Bitcoin.
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Ok. I understand. Maybe as time goes on there might be need for it.