One thing that most people don't seem to understand is that after 21 million Bitcoins have been produced, the TOTAL number of Bitcoins in circulation will decrease in a LINEAR fashion each year.
This is very unlikely. Here's why: with the number of Bitcoins DECLINING (after 21 million) and the demand RISING, classical economics tells us that the price will SURGE.
This means, to hold the same value of bitcoins, individuals will be holding less and less actual bitcoins. Therefore, when they lose their private key, less bitcoins will be lost. As such, the TOTAL number of Bitcoins in circulation will decrease in an ever shrinking fashion each year. You are correct. As the price of bitcoin increases, people will take more case of their keys and security of their wallet. Someone with $0.25 worth of bitcoin may not even have a password attached to his wallet, but if that same .0004 BTC is worth $1,000 then he would likely use double encryption, 2FA, multiple backups, ect) |
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It is probably not a good idea to advertise the fact that you have a million dollars (worth of bitcoin or in cash/in the bank).
Doing so would make yourself a target for hackers.
To answer the OPs original question, yes I have an acquaintance who is a bitcoin millionaire, he still lives a very modest lifestyle.
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Don't use a service if you don't like its fees. People are always going to want their cut but it's about how much they take. If companies start getting greedy what would the point of using them? People can still send bitcoins amongst themselves freely anyway and that will never change.
Often times people are forced to use a certain service as it is the only one available to their situation. One reason that payday lenders can charge so much interest (besides the high risk level involved in payday loans) is the fact that mainstream lenders will not lend money to these types of people. |
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This would be very similar to an exchange.
In order for it to be a bank it would need to have to comply with massive amounts of regulations and be in compliant with a number of rules including AML/KYC (or similar) even if it is "offshore"
I would find it unlikely that any bank would every accept bitcoin like this.
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I've got some money in a pension fund that I can't take out of it but I can select what fund it's invested in.
What choices does this leave me with if I want it to be in bitcoins, if any?
This is not available yet, but there will likely be a BTC ETF in the relatively near future. |
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I would say this is very unlikely, at least in the current ax environment. Taxes will be much too complicated if someone is paid in bitcoin as the number of transactions you would need to keep track of would be huge.
If bitcoin were to be taxed as a currency then possibly.
In theory someone could have their check direct deposited to their bank and setup a recurring buy on coinbase to automatically buy bitcoin on payday.
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There are a lot of scams out there so buyer beware.
The more ways you can spend your bitcoin the most people will wish to (and actually) use bitcoin.
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Most libertarians would likely not wish to do business with an entity like this, however the DOJ may give this hypothetical exchange some level of legitimacy.
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Wow, very detailed charted overview. I'm surprised that BTC-E performed so poorly in a lot of areas - this is my exchange of choice. So far they have proved to be excellent (for me), I just hope that it doesn't turn into another Gox.
Thanks for sharing!
I can't say I'm surprised personally. While BTC-E has been around a long time and had few problems the fact of the matter is that it's an exchange that's shrouded in mystery. They definitely don't want governments knowing too much about them and I can't really say that I blame them. But they're never going to be considered a top tier exchange when it comes to safety unless they open up and before much more transparent. BTC-e does allow you to have additional privacy that other exchanges do not, however it also creates a greater possibility that something similar to what happened at GOX would happen there as there are just so many unknowns. |
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I can see a good financial services market in bit coin but we don't have to use to imitate all of the bad ideas in fiat currency. If you want to hold a position in bit coin buy some bit coin.
There are many legitimate uses for option contracts. Some examples include selling calls against stock in your portfolio to receive additional income, buying insurance against a decline in the value of your investment, buying a certain asset at a discount |
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Millionaire means nothing anymore. I have several million... pesos.  I millionaire is generally referred to someone who has one million US dollars. The US dollar is used because it is the most widely accepted and used currency in the world. |
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As people get more tech savvy more people will use Bitcoin. In it's current state Bitcoin is simply to complicated for the average customer.
The smartphone apps are actually pretty easy to use. It's still to complicated to get Bitcoins though. You can't simply buy them with your credit card.
I think the opposite needs to happen for bitcoin to go "mainstream" People in society are too lazy today to want to learn about new things. They want instant gratification. When wallets and apps are more user friendly (they have already come a very long way and the level of technical knowledge necessary is very small) the many more people will start to use bitcoin. |
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If I were to make an educated guess I would say either Vancouver or San Francisco.
Vancouver had the first bitcoin ATM that allowed it's population learn about, buy and start using bitcoin.
San Francisco's large amount of tech companies have many employees that are interested/use bitcoin.
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I did-int even have to read the article to derive he is a supporter of Bitcoin I know that he has invested a significant amount of his personal funds in BTC. |
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Myth. Double-spending requires having more than half of the network hashrate.
As long as the attacker can use their hashpower to confirm a block that contains the double spend then the attack will be successful. The success rate of executing this attack increases as your hashrate increases until being 100% success when you control more then 1/2 the network. Myth. The important factor is the amount of time spent waiting for confirmations, rather than the number of blocks. (Still a myth if instead of actual time you look at #blocks * average time per block). This could be true if the seller was willing to accept a 0/unconfirmed transaction. A seller would want to wait some time for the transaction to propagate throughout the network prior to releasing gods as an attacker could potentially release a TX to a very well connected node then one second later release a transaction to a poorly connected node that the "attackee" is suppose to believe will go through. For some period of time both transactions will appear to be valid on some parts of the network but after some time the TX will likely fall out of the pending pool on nodes. |
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Have fun with a "digital currency bank" controlling your Bitcoins.
This is a bad concept for most bitcoin users, but for someone just learning about bitcoin this concept can be a good one. |
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What would prevent you from using a mixer to send a small output to several addresses then using those addresses to vote for your outcome?
Bitcoin voting would make it very difficult to allow only one vote for one person.
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I certainly do not agree that Bitcoin should be controlled by central banks. However there will need to be somewhat of centralization once any serious amount of lending/borrowing starts taking place. I am not talking about the small payday loan type loans found in the lending section, but loans that people with good credit/income would take out. |
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Catchy slogan. It's good, since no other currency can currently say it. But of course, if Bitcoin is mass adopted, war and violence will start to occur. Nice slogan, though.
How? War is incredibly expensive. If governments cannot inflate currency to fund wars their ability to launch them is limited. Thre is no way to finance a major war in a bit coin universe. Countries use debt to finance wars. This is not the same as inflating their currency (using lower then market interest rates, QE, and the like). There is little to no reason why a country couldn't issue debt denominated in bitcoin, much like other countries issue debt issued in US dollars. |
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i 100% agree with you, but centralizing merchant adoption around bitpay and coinbase (any others?) is not a solution to the problem, it is just building a problem on top of a problem. Real merchant adoption of bitcoin can't happen until the price is more stable, which will probably be when people stop using Bitcoin as a store of value( i am guilty of this) and actually as a method of transacting online.
and guys we have to realize that there will be not much transactions this year at bitcoin accepting cafes or restaurants, maybe few people a months, so we are talking 100.00 maybe 200.00 euro, if there is bitcoin conferance in the city maybe more. So there is not so much risk for this small bussines to accepted and take a small risk or maybe big reward. coinbase and bitpay are concentrating on the big fishes, they are not much interested in small merchants, they just made a website for them and they charge 1% transaction fee for useing it, i think they should be free solution to this Well, with 1% fee it's still cheaper than the card networks. However I understand that some businesses (like cafés) are get paid mainly in cash, where they don't have to pay any transaction fees - so it might seem like they're losing money. But when you look at the problem, you'll notice accepting Bitcoin, even with a 1% fee, will drive customers to your business (maybe not many yet, but definitely some) which it would never had otherwise had - so that 1% is basically nothing compared to not having had those sales to start with. You're being overly simplistic if you say cash does not apply fees. Indeed if you accept cash there's no company who will charge fees on the cash, however, if you deposit the cash at the bank you will need to pay a high price (banks are not happy with cash transactions), and the cash needs to be transported securily (not cheap either), and on top of that cash is a hassle (you need to have plenty of change) and a risk (the more cash you have in your store, to more likely it is you will get robbed). So with all those disadvantages of cash, I doubt they will see a 1% fee as a disadvantage. There would not be any companies that will charge a fee to accept bitcoin. For companies it would be the opposite as they no longer have the costs associated with VISA/MC or the costs associated with transferring cash to the bank (this does cost companies money). Where a percentage fee would come into play in when you are exchanging fiat for bitcoin (at an ATM, or an exchange). |
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