Fisher's formula:
Q.P = M . V
From which: P = M . V / Q, the price level depends on V and on Q. V depends heavily on the hoarding habits of people, and Q depends on the economic activity. If M is a hard number, it will never be stable. Especially if a large part of M is being hoarded, and V is very sensitive to the small amount of non-hoarded coins.
If there's a feedback mechanism from P to M, which is what central banks do, then this can stabilize P. If no such mechanism is known, P will be very dependent on V and Q.
V = value Q = quantity P = price M =  I love theory. It's so cool. Seriously. |
|
|
|
I sent a transaction 5 days ago with the proper fee... It still has 0 confirmations.  Bitcoin is practically useless at this point until one of these scaling proposals are activated. I'm sure you have seen this: https://www.viabtc.com/tools/txaccelerator/ |
|
|
|
I must have been misunderstood. I didn't say "peg to the USD". I did say "regulate to an amount of value" (and I took the amount of value that $1 represents today). A given amount of hash work represents an amount of economic value. This is true. One thing I did not realize when I bought my first S9 was that "difficulty" continues to increase. That simply means, which I did not know when I started, that as more hash power comes online it reduces the percentage I contribute. In January I received 0.018 BTC per day. Now, I receive 0.013 BTC per day. Correction, 0.011 the last 24 hours. My hash percentage has almost been halved and the price of Bitcoin has nearly doubled. If the price were to fall to $700, I would turn off the miners. If one can have a decent estimation of how much economic value an amount of hash work will represent in the future (say, Moore's law and somewhat extra), we can program in advance the amount of hash work that can make a coin at a given moment in time. I do that in my pro-forma. I'm sure the larger and sophisticated companies do the same. Who would regulate it? If it's in the code, well, I'm sure there is a coin that does that: http://www.coinwarz.com/cryptocurrency/coinsIf suddenly, someone dumps 500 billion dollars on the market, the FED will sell assets and buy up dollars to avoid a serious crash of the dollar value. You cannot crash the dollar market by dumping it. You cannot corner the dollar market by buying up all dollars: the FED will print you out of business. When visiting Argentina, México, Guatemala and Morocco - to the best of my recollection - they accepted USD. Is the value of the Méxican peso low because they accept USD? What happens when a lot of USD goes out of the country through black market or people taking $9,999 outside the US? If people bring it back in ... let's say all of the evil corporations bring their money to the US from offshore accounts, how does that impact the value of the USD both in the US and globally? Sure. I also use bitcoin occasionally. Cool. I was starting to wonder But I mean, "the general public". The gains you have by using it don't outweigh the volatility risk. They do for me because of my globetrotting nature, but that's why I am in BTC. I agree that those who hold speculate. There is no doubt about that. Mainstream adoption, for remittances and such, would likely be an "in-and-out" transaction w/ a company holding that risk. Ethereum may be the best place for this, but I think that whole damn thing is funky because of the pre-mine and DAO. If you want to talk about scam and trouble with the SEC, the Ethereum founders use tricky language to avoid regulations and are located in Switzerland - thinking it will help them avoid regulations. Apart from special applications, and apart from some geekiness, honestly, doing a wire order to an exchange, buying coins, withdrawing them, paying on the internet, is more hassle and cost than using my credit card for everything which is "open and legal". And with my credit card, I have some legal protection if I'm scammed. Yup. Good thing you don't live in Greece or Spain. However, there is something private and personal about our spending habits that have been exploited. Even when the banks - they speculate and *shouldn't* - have required a bailout. I have bank accounts as well. Putting aside a reserve of bitcoin for future buying (which I did, because of said hassle) and see that it takes a factor of 5 gains, induces me to keep them aside even if that wasn't the purpose. I was glad to see the price drop a little and I'm hoping it does not go over $2000 before the end of June-ish. So this "money" cannot be stored as neutral value keeper. If you store it, you speculate (heavily). Most people speculate on "up", of course, but they speculate. They end up speculating even if that was not the idea. I agree. I am holding it because of the high tx count and not wanting to pay high fees. I'm also saving to buy another miner. It's just another currency for me, a foreign currency for the country of the Internet. |
|
|
|
If all the miners were experts they could've figured out which is what and who is blocking the development.
I have an advanced degree in my own profession. I ran the pro-formas. I also did a thorough review and, after much consideration, came to the conclusion that it is a debate of Bitcoin as a commodity vs. currency. I believe Bitcoin is a currency to use. I am running a proforma and needing to convert BTC to USD to show the government because I am going to work mostly in Bitcoin, Litecoin because of their security and certainty that they are not fake. I also want to support the system and believe they are a great form of payment! After considering the facts, I made the most informed decision I could in order to support Bitcoin as a currency. I believe we need faster confirmations and low transaction fees (micro-payments) in order for this to work. I think this will help more people adopt it and increase its usefulness. I see larger block sizes as the most logical answer: (a) it addresses an immediate need; (b) provides for additional scale-ability in the future and (c) does not prevent layer II solutions. I, also, believe we need to hit the top of "S-curve" market adoption (if it is one) in order for most of the SegWit options to function optimally. That is how I arrived at my decision to run and support BU. Now, it's up to each person to arrive at their own conclusion. That's how I made my decision: BU is the only way to scale blocksize and it's not perfect. I prefer BIP101 because of the predictability, but it's up to each person to make up their own mind. Name calling brings down the community. |
|
|
|
We can do better.
Do you have a proposal? |
|
|
|
Nothing stops freedom money from having an issuing mechanism that more or less regulates its value to a constant, and hence can become a much better unit of account This reminds me of Panama's currency: the Balboa. Like Venezuela, Argentina, Brazil and other Latin American countries they suffered from high inflation. So, they pegged the Balboa 1:1 with the USD. After a while, they figured why print Balboas if they are pegged to the USD. They now use USD and call it Balboa. Cab: "5 Balboas" Me: Hand them $5 USD and call it a Balboa.
In as much as bitcoin was a great idea ... it has no elasticity.
How does this compare with the elasticity of the USD? They can print more, but aside from gift cards and similar tokens - which are pegged 1:1 with the USD - you don't have much option. I've had a difficult time getting anywhere to accept my Quetzales, except in Guatemala They seem to like them there.
Also, gold "always existed" in a certain way, and the only thing that new gold sources did, was a "gold rush" which was always an economic disaster, from the demise of the native American civilizations to the disasters elsewhere Spain never saw the hyperinflation coming after bringing back gold from their "conquests". Good point.
But nobody actually wants "internet money" - except dark markets. I use it as money. I buy clothes, musical stuff, flowers with it. I also offer a 20% discount if people pay with BTC or LTC because I know PayPal won't take the money out of my account one day because somebody's account was hacked and they would prefer I pay the cost than they do.
People want "digital gold on steroids" to become rich quickly in a greater fool game. Core. I would suggest that is what Core wants and that's why we have the rise of Bitcoin Unlimited. If you're interested watch SegWit v Bitcoin Unlimited with Roger Ver and Johnny from Blockstream on YouTube.
My idea is that this is what kills crypto's soul, and that we're just seeing the crypto version of a huge "complex derivatives" market on which people speculate. It is for that exact reason, after much contemplation, that I finally decided to switch to a BU mining pool and run the full node BU client. Putting some numbers on a hard drive and wanting to get rich by doing nothing is stupid and is why I am diversifying. I want to be able to send money to my son on the other side of the world and for him to be able to use it. I want to see it used for remittances because it is faster and more secure than walking out of a Western Union with pockets full of cash. I understand PoW used for both insuance and consensus... still, i think its kind of pointless to say "PoW not as good as DSA". You can't solve the double spend problem simply with digital signatures. That's why they invented Bitcoin  Agreed. RipplePay and PayPal did exactly that - only nodes. PayPal went the way of tying to bank accounts and RipplePay went nowhere, until copying Bitcoin and creating "Ripple" (still going nowhere, imo). Big Mac of course. How many Big Macs could you buy with 1 BTC in November last year ? And how many big macs can you buy now with 1 BTC ?
How many Big Macs could you buy with $1000, in November ? And right now ?
It depends. I love that their is a BigMac Index. If I buy a bean burrito, in USD, in El Salvador it's priced at 99¢ at Taco Bell. In the USA, it is priced at $1.49. It's the same product pegged to the same currency (USD is EV currency as of 2004, so they could get a highway), but in different locations. Everything is relative. When I lived in the Netherlands, the price of the Euro was so high that it made the same item 1.6x the price as the USA because I was paid in USD to a US bank account. |
|
|
|
My computer was left on when I left to Atlantic City from January 31st-Feb 1st (the hack occurred Feb 1st sometime in the very early morning)
External hack possible. I'd assume they are still monitoring and have access to your computer. .... there's absolutely no trace of this hacker person doing anything on my computer Not an accident. So the Bitstamp hack people on this site think it happened on my desktop computer Yup. Bitstamp is one of the most strictly regulated exchanges. how in the happy fuck did it happen.....
It could have been anything from a targeted attack (somebody overheard you talking about your BTC) or a phishing attack (bad website/program). As others have stated, DO NOT ACCESS ANY BANK ACCOUNT INFO. I'd get onto a different computer and access your accounts to change all of your passwords to P@559hra53sesTh47ar3HARDt0kN0^^ (not my password). I agree with Iranus. You'll need to completely reload your computer. I'd even 0 out the HD. Assume the person is monitoring everything from your computer. If there is any chance of tracking down this SOB, take your computer to as really good computer professional to copy your PC into a virtual box. This way the person will still think they have access to your computer, but won't. You can then have a monitor traffic monitor for this box. If you give it to the right person and take the due care, you may be able to get the person back into your computer. Do not type anything about (emails, posts, etc.) about doing this. It can take a while, but the person will come back. Then, you'll be prepared. I think the person knew you were in Atlantic City. Think about emails, reservations, chats, documents that would have laid out your itinerary. IMO, you have three choices: 1. Try to put it in a virtual machine / reverse hack (get coins back?) 2. Clear your computer completely and reset all passwords (no chance of reverse hack) 3. Do nothing, but know you are likely vulnerable. If you go with option 3, don't access sensitive information from you computer unless you want to take the risk. Season 1, Episode 5 of "The White Rabbit Project" on Netflix goes into detail about how they are able to pull this off. It's not just you. This is happening to banks, as well. |
|
|
|
... some entity are doing their rounds of spam attack
What are you talking about? |
|
|
|
With transaction costs rising above $1 the original promise of cheap remittance using Bitcoin is officially dead. Without utility Bitcoin use is limited to speculation only and even further what is there to speculate about?
I would like to debate this and gauge the community's response to Bitcoin experiment.
I agree. That is why I use the Bitcoin Unlimited node and am diversifying into LTC, DSH and ETC. As soon as the mempool clears, I think we'll drop below the 200 DMA, due to anger *again* over fees/wait times. It's so unnecessary. If we made it 2MB there wouldn't be the mempool. As a miner though, I do get a small windfall from the higher fees, but it's not much and they're eaten up by sending high fee transactions. |
|
|
|
Segwit has already been locked into litecoin.
Yup. I think it's neat, but I'm not all that into 2004 Ripple tethering. I am interested to see what it brings. For now, my Litecoin node holds no $LTC. I'll pull my coins back into my node from Jaxx once the warning goes away within the software. Any idea when they are going to release the software to accommodate the new rules? |
|
|
|
If I understand this correctly miners can filter spams? I don't think so. I think they are just stupid computers that try to guess the answer. If they get it right, they get a prize. I can see BU fans are desperate enough they even beg for a SW+2MB upgrade, Nope. Just slowly showing more and more support for BU and less and less for Segwit: https://coin.dance/blocks It's the high transaction fees. If we have larger blocks, then the fees go down because more transactions are picked up per block. Lower fees = higher quantity demanded = higher price damn receiving double the fees and mining with ASICboost must be tasting good. It helps to offset the constant difficulty increase, but the amount of BTC per hash continues to decrease. I used to get 0.02 BTC per day and it's now down to 0.013 because of the additional hashers - even with high fees. We need to pay bills though and often transact at least a couple times per day, so any gains from the fees are eaten up by paying higher fees. |
|
|
|
If we are talking about the purpose of Bitcoin, we should remember the context of its inception and the message encrypted in the genesis block:
"The Times 03/Jan/2009 Chancellor on brink of second bailout for banks"
This was probably intended to comment on the instability caused by fractional-reserve banking and to provide people with another option: peer-to-peer cash.
This is in fact extremely ironic. The banking crisis of 2007-2008 was NOT caused by any failure of the fiat currency system. It was caused by reckless speculation of financial institutions on "virtual assets" ... not any quirks in the issuing of fiat money, as can be seen by the relative price stability of most fiat currency in that period. Jajajaja ... it's totally ironic. I think it provides people with another option. Andreas Antonopolis told a story in an interview about how he convinced his mother to put all of her money into Bitcoin in 2011. She finally did. Shortly after, the government took 20% from everyone's bank accounts. There is nothing wrong with fiat currencies, except politics, and that's also true with Bitcoin. Now, as a reaction to that, bitcoin's creator invented an asset, bitcoin, that has a severe deflationary spiral built into it, and hence is entirely designed to be a heavily speculative asset (as is observed in reality), exactly of the same kind as the kind of hollow derivatives speculation that caused the crisis. Do you think maybe it was to mimic gold, as some have suggested? Perhaps it was to say "DON'T PRINT MONEY TO BAIL OUT BANKS!" We'll never know [hopefully] and that's the fun part. Probably some of both. That said, bitcoin did pave the way for a "freedom currency", that would allow people to win back their economic freedom, from law, state and tax. So the fact that a freedom currency could exist, is an interesting aspect of bitcoin. However, in my opinion, it contains too many fatal design flaws to become such a large scale currency (if even there's a demand for it) ; but for a smaller community of people, it can have this usage on occasions even though its overall design makes it into a speculative asset. Yes. That is true. I never thought about Silk Road. It will be interesting to see where it goes. It has a lot of benefits by being the first, but other currencies are able to adapt. DASH has seen the Bitcoin scaling debate and built it into their Masternode. They also have 100 DASH limit to vote. ETH is exploring proof of stake, which is a flaw with BTC; people can say all they want without having a dime invested and it takes time to distinguish on these sites. I don't think Bitcoin will go away. I think it's great, but I am diversifying my portfolio (along with many others) and am mostly interested in LiteCoin and DASH. Having said that, I think any cryptocurrency that has a public blockchain can be legitimate and competes with BTC. If it's an internal blockchain, then, it probably has less value. I'm thinking Ripple. |
|
|
|
The only way around is to used a higher transaction fee so that chances of you getting to the next block to process your transaction is high.
I find I can send 20 transactions to another wallet with no fee and, when I need them to go through, I send a small transaction with a high fee and it picks them all up. I don't know why, but as long as it's wallet address A-->B for each transaction it seems to work. |
|
|
|
whats wrong w eth
Probably nothing. It's really cool, but there seem to be secrets with the pre-mining and DAO. Also, it's just not my space. For me it's a bit of a Rube Goldberg Machine. I'm sure there is a lot of money to be made with the major banks jumping into the space. However, they "are switching" to PoS. Putting the pre-mining, DAO, PoS, bank investments and unlimited number of tokens together leads me to a slope of centralization. I do own a little ETC for speculation. Send $50 of LTC , transaction fee was 1 penny.
I also am moving to LTC , it arrived so fast at it's destination compared with bitcoin , it was a pleasant surprise.
It is a pleasure to use and an old bitcoin chain, so it has many of the same characteristics. |
|
|
|
Transaction times are taking longer and fees are increasing. Bitcoin started small. I don't know what everybody's deal is with nodes. It's so flippin' easy to run a full node, I didn't even know I was running three different ones ( Bitcoin Core, Bitcoin Unlimited, Litecoin and DASH). I did notice the significant investment in purchasing mining equipment - including dedicated circuits. If the question is about SegWit/Lighting, then read the 2004 Ripple white paper by Ryan Fugger. If we are talking about the purpose of Bitcoin, we should remember the context of its inception and the message encrypted in the genesis block: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks"This was probably intended to comment on the instability caused by fractional-reserve banking and to provide people with another option: peer-to-peer cash. If they really believed (Blockstream / Core Developers) in Bitcoin, they would conduct all of their business in Bitcoin. I've got too much invested for a 20 year old, developer who lives in grandma's basement, to think s/he's an economist. If it takes two coins and a hard fork. I was against it a few months ago and, now, I say the sooner the better. EDIT: Even if someone was having 51% of the hashing power, that wouldn't mean that bitcoin was not functioning ... the hardware owners might decide to jump to another pool if the jumping of the pool owner is not seen in their lucrative advantage. Well put and insightful. I've switched pools multiple times and even having miners on multiple pools. Though I've recently switch them all to a BU pool because I am sick of these long confirmation times and high tx fees. |
|
|
|
... because it will be expensive in the future
or zero. |
|
|
|
... a spam of transactions at the moment.
What is a spam transaction? |
|
|
|
If you'd like to see how much you can trust exchanges, this video stays in my mind: https://www.youtube.com/watch?v=T1X6qQt9ONgThey later found the exchange had 80,000 BTC stolen, so they crashed the price to less than 0.1¢ and "withdrew" those coins. |
|
|
|
I have tried to examine my computer should I be looking at like Administrative tools or something I've tried to look in the past after this took place is there something specific i should look for like in.... Event Viewer or something like around the date of 1/31 -2/1?
I'd use Network Monitor. See what traffic is coming and going. If it's a keylog, then it probably only sends a couple of kb of information at set intervals, e.g., daily. They are difficult to find. I had somebody open word and type threatening messages to intimidate me. I gave it to a "white hat hacker" friend, who was able to put "my computer" on another computer and wait. We found out it was somebody from EV, going through a VPN in Belgium. It was somebody I knew. F****r!!! |
|
|
|
I use bitcoin many times a week.
Yup. Me, too. It was 3-8 times daily. Now, it's zero. In fact, I used my bank for the first time in a long time, for an internet purchase, today because I didn't want to add $6-8 to purchase a tree. I don't want segwit.
IMO, that's because you use bitcoin. |
|
|
|
|
Show Posts
