But can I have your view on the "velocity" of those two ? BTC and $ ?
I have the feeling that currently bitcoin is the tortoise looking at the number of transactions in the blockchain.
We have very limited data to work with. Velocity is the metric which balances money supply and GDP. GDP = Velocity * Money Supply. In plain english terms (economic activity) = (avg number of times a $/ BTC is involved in an economic transaction) * (money supply) Change in velocity is why we have seen little inflation despite the fed printing an insane amount of cash. If velocity remained constant we would have seen massive price inflation which would drive up at least the nominal GDP and force companies to spend their rapidly depreciating cash reserves. Everyone has heard about how much the fed is printing (increase the money supply) however the other component is velocity and in this lackluster recovery velocity has collapsed. More money is offset by less transactions per unit (dollar) and thus the economy remains sluggish.  BCT image proxy doesn't like the image so here is a direct link to the chart: http://research.stlouisfed.org/fred2/graph/?s[1][id]=M1V In the Bitcoin world I don't know of any detailed analysis of GDP or velocity. The nature of Bitcoin makes that difficulty, although as Bitcoin gets larger I imagine economists will attempt to estimate the GDP just like they do other economies. Even in "real" economies GDP, velocity, inflation, and even money supply are just estimates. One crude way would be to look at things like blockchain.info "estimated transaciton volume". Blockchain attempts to remove the change from the transaction, but not all those transactions are "economic" and thus don't contribute to the "Bitcoin GDP". Someone moving coins from one wallet they own to another wallet they own is not economic activity, anymore than moving $100 from your checking account to your savings account adds to the US economy. Per blockchain.info there were 73 million BTC in transactions in 2013. The average money supply for 2013 was 11.4 million BTC. If we assume all blockchain tx were economic (not likely) and there were no economic off blockchain tx (not likely) that would be a velocity of ~6.5. The hard part would be quantifying economic tx vs non-economic txs. In comparison, national economies generally have a velocity of between 5 to 10 when looking at the M1. Bitcoin is technically more like M0 but it probably displace the utility of M1 so that might be a better comparison. Currency is a store of value, and a unit of account (used in transactions). Bitcoin has been primarily the former but if it was used in transactions heavily I would imagine it would have a velocity on the high end of national currencies (i.e. velocity of 8 to 10 or higher). On the other hand if BTC remains primarily a store of wealth and not a transactional currency it could have a very low velocity. I don't know if anyone computes the velocity of gold (or more specifically gold bullion and coins) but my SWAG is that it is very low (<1). A lot of gold once minted simply never changes hands for years or even decades. TL/DR version: We don't have enough information to estimate with any degree of accuracy the velocity, or GDP of the "Bitcoin economy". Most national economies have a velocity (M1) of 5 to 10. If we Bitcoin ends up similar that would mean supporting a $10T economy would mean a money supply valued at $1T to $2T. On the other hand if Bitcoin was used more as a store of value then it would drive down velocity and increase the value of the money supply. Thanks for the explanation , I appreciate it. I also believe that lots of those transactions are from people changing addresses not even talking about some betting websites that artificially inflate the volume , or how the scammers from sheep market tried to run with the coins. But still to think of bitcoins trying to replace this and the value it should reach for this sounds too good to be true for a bitcoin HODLr. |
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Why should I particularly amaze the most spectacularly random person that instead of discussing something making actual points, insults a post and judges someone by the nickname ? I feel like reporting you to moderation. I'll see if you edit your post first  Feel free to report it. I CONSIDER IT TO BE THE MOST STUPID IDEA! EVER! Also , that's my personal opinion. In case you don't know , on this forum we appreciate freedom , that's why we have bitcoin in the first place. If you want me to change my opinion come with the arguments that afrocoin is a good idea , and why we shouldn't use farming , hunger coin or somalicoin for that. And why should a coin make people reach based on a donation campaign. That is a way only a LOWLIFE would want to make money from. And threatening me with a mod report and giving me an ultimatum to change my post! What the hell is this ? Gulag or are you in the second grade? |
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i love the article , very detailed with lots of information and arguments for the full of FUD title.
Oh , wait , this is fudzilla.com
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Juts ignore all the alt section.
The amount of crap that spawn there each day is enough to make the whole crytpto world look like a joke.
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oh ok, so it has to do with the computing power, not the total amount of bitcoins. makes sense to me
Yes. :-) And even that is unlikely for many reasons. Investing 50 millions to gain the same amount of hashpower the network currently has is not that unlikely. But the they don't care about bitcoin yet , they don't see it as a threat and until now , I don't see any reasons why they should. |
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Change the title to India cracks on illegal bitcoin exchange.
Also , nobody cares about them and their 2 BTC volume.
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I doubt any of those copycatmeme coins will see another x-mas.
People will find new memes , new coins , these clones have nothing special just different supply , reward and blocktime. No innovation.
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It seems I'm not the only one hoping for an adult game which involves bitcoins.
That xxxx is misleading.
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I must say they were some greedy bastards , they could have waited a few days more and catch more coins  |
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Ahahahhahh! Oh boy are you about to have your world crushed, the reason that paper money has appeared to have low volatility ( note how I said appeared ) is because central banks have come together to make sure to stop any other form of currency taking place and they deliberately fix the exchange rates to hide all the evidence of what paper money is doing to our economies. Now that Bitcoin has entered the picture it has immediately come under attack by them because like with Gold/Silver it is honestly reflecting what is happening to those markets because it has a fixed supply and certain scarcity compared to paper.
Siding with these other paper currencies just because it hasn't happened to them yet is foolish and short sighted and I'll also point out another target that fiat currencies supporters go after, haven't you ever wondered why Americans are always attacking China's currency? Sure, there's is paper too and I don't like that either but because they actually produce things in their economy and pay off debt they're making the western countries look bad.
USA is criticizing the yuan because the Chinese peg their currency to others , and don't let it float like it should be on a free market , by this encouraging their exports. Also , I can laugh at the "things" China produces compared to your debtfull western countries. 1 China $ 2,057,000,000,000 2012 est. 2 United States $ 1,564,000,000,000 2012 est. 3 Germany $ 1,460,000,000,000 2012 est. 1 billion people , helped by an under valuated currency managed to export 133% more than 80 millions germans. Can I lol at that? |
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Somebody should make Afrocoins
A fair percentage of the mined blocks go directly to people in need in Africa.
Media coverage guaranteed as soon as the first 100 thousand dollars was successful donated. Then the moon.
Why I'm not amazed that this stupid idea comes from a new used with the "doge" in its username? |
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Too bad your fans are worth maybe 0.182 satoshi , and not per piece , all of them.
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So it isn't a virus?  No, it is a shit. One of the best replies here . But if the coins itself isn't a joke , the launch was one , a total failure. |
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We should start boycotting mtgox and bitstamp , because they trade only bitcoin.
Also we should boycott cryptsy because it has doge and not hamstercoin
And this forum because there are threads about nxt and ripple here.
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I think it's necessary to highlight here: no miner can change the blockchain history or steal anyone's bitcoin even he has more than 51% of the hash rate. What he can do is only make several blocks mined recently become orphan. It means 1) he can try double spending, but not easy after enough number of confirmations. If there're too many confirmations, it takes long time for his fork to catch up. 2) he can block some accounts to make any transactions, but at a very high price. He has not make every block including that transaction orphan.
That's almost all he could do with more than 51% of hash rate.
True. Double spending would probably be the most that would be accomplished, as well as orphaning a few blocks mined by others. You can only double spend coins you own, so to even make a double spend worthwhile, you would already need to own a substantial amount if Bitcoin. If you did own that amount of Bitcoin, you probably wouldn't want to upset its value. False, false, false. He can steal anyone's bitcoin and yes he can change the blockchain history. Upset the value? Exactly what banks and governments would like! Hmmm , we should correct the bitcopedia then? The attacker can't: Reverse other people's transactions Prevent transactions from being sent at all (they'll show as 0/unconfirmed) Change the number of coins generated per block Create coins out of thin air Send coins that never belonged to him |
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There is no any Impact of India News coz Bitcoin specially dont have anything big in India but China is something in Bitcoin market because the most volume traded in the market is by BTCChina so there will always be Impact of china and now China is also clearing all the way to open fluent Trading so lets hope its good starting again in China, Anout India untill india has a Good stratagic exchanges like BTCChina, Mtgox or Bitstamp then they could have some impact recently its just the impact for Indian Market in India but not globally.
Good Luck
Please , read again what you have just posted and if you don't get dizzy by that , try to tell us what the hell you were trying to say. |
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More than 50% can't afford a single satoshi let alone a bitcoin.
Got your point but not sure if single satoshi is that expensive (just yet)  Apart from the trouble sending 1 satoshi to an address and paying a fee , they should also have a computer , a smartphone etc. Which , in a country where there are regions with 4$/day average wage seems a bit too much. |
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Yea, figured the China-market is bigger, but still. The Indian regulation was a little bit worse also as I understand it.
India had no presence in the Bitcoin community or market to begin with, it has nearly zero mining, and just recently opened the 1st exchange (which is now gone), so it had basically zero positive effect on Bitcoin, therefore the negative effects are zero as well. The IMMEDIATE negative effects are very little, but India has a billion people -- about 15% of the world's population, with China having a similar amount. So the effect definitely matters. Or at least WILL matter. Numbers means nothing. So , they have 15% world population , and? What else? Do they have the money European and American citizens afford to invest in bitcoins? They have less than 1% of those. More than 50% can't afford a single satoshi let alone a bitcoin. |
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Well once again $1T economy doesn't require $1T in cash. i.e. the world economy $75T annually runs on ~$10T in cash (M0).
Money supply is a timeless value. Values of economies (i.e. GDP) are timed value (i.e. usually $x per year). You can't directly compare the two and they will never exactly equal each other unless velocity is 1. Usually the same unit (dollar or Bitcoin) can be used in MORE THAN one transaction per year and thus the velocity is >1.
Like usual , appreciating your post. But can I have your view on the "velocity" of those two ? BTC and $ ? I have the feeling that currently bitcoin is the tortoise looking at the number of transactions in the blockchain. |
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Man really?
We need all of these! No , we don't need all of those. And you need to go see a doctor. |
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