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If only the main purpose of a blockchain was to enable speculation
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Now we watch the bull despair begin to rise as the price stubbornly stays sub 240, leading to an eventual fall back to 220
Someone is caught short... just a HODLer laughing at the blatant manipulation at Bitstamp. who posts coins for sale there when they get more at Bitfinex, which has more than twice as much volume? |
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Now we watch the bull despair begin to rise as the price stubbornly stays sub 240, leading to an eventual fall back to 220
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These guys fall into the assumption that the blockchain can exist without a healthy Bitcoin which is nonsense. If the blockchain is a success, it means Bitcoin is doing great because is the native currency in which miners get paid to keep the blockchain going. Everyone will be using Bitcoin, even if they don't know they are using Bitcoin, as the Winklevoss brothers pointed out. It will be the underlying mechanism of all future electronic transactions.
a blockchain can exist without a healthy bitcoin. (if we define healthy as one that makes mining profitable) Miners can have incentives to operate without making a profit on mining. Mining companies that have diversified revenue streams, generating fiat - including hashpower rental, exchange services etc, would have an incentive to continue to operate the network regardless of it being profitable purely from mining. Bitpay, or coinbase for example would have an interest in operating a transaction confirmation service (mining) in order to maintain their business models so long as the potential cost of operating the miners was lower than the potential profit from the service that the blockchain enabled. Don't assume that mining has to be a source of profit for miners - the blockchain enables other services to be offered to customers - so long as those services can generate revenue someone will have an incentive to maintain the blockchain - even at a loss from mining alone. |
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I think i just found a bull's cryptonite.
That graph. Whenever i post that 2012-2015 graph, i just make 'em puke. They are going berserk on me shortly after. The truth...
They can't handle the truth.
But why not claim the bull run started at 0.01$ and that we have to go back there before rallying again. |
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One of the narratives in the media these days is that lots of people are saying that they believe in bitcoin the technology, even if they are not necessarily believers in bitcoin the currency. I have the impression that it is the conservative approach in some circles -- it is a way to ease into bitcoin (professionally speaking) without sounding like one of the early adopter nut jobs.
Indeed, there are more and more stories about financial institutions and even governments making use of bitcoin the technology, not necessarily bitcoin the currency. Notable examples include: Overstock issuing the first ever crypto-bond; Nasdaq building a mechanism to record trades on the blockchain; Honduras working with Factom to record land titles on the blockchain. Even the idea that Greece may somehow make use of the blockchain is sounding less like a joke, and more like a serious proposal by serious people.
And yet, the bitcoin market cap remains just a few billion dollars, which makes it vulnerable to attack.
At some point, I can envision the US government waking up to the fact that the bitcoin blockchain MUST be kept safe and secure for the sake of regional or even worldwide political and economic stability. The last thing they would want would be for someone (China?) to spend a few billion dollars in computing power and take over the blockchain in some attempt at economic terrorism. So, how can the US protect the blockchain? In the time-honored tradition of course: they bail it out. IOW it may become official US (and other nations) policy to prop up the value of bitcoin in the name of worldwide stability. Some will oppose this policy. Others will argue that this will turn out to be a lot less expensive than maintaining a gigantic military, and guess what -- more effective.
What do you think, oh ye citizens of bitcointalk? Is this what the future has in store?
The Finance Industry woke up two-three years ago to the idea that a cryptocurrency might prove a disruptive technology and threaten it's operations. Ripple have been aggressively marketing a form of crypto that the existing finance industry love because it enables them to maintain the existing closed user loop model but still take advantage of some of the advantages of crypto around instantish payments and remittance. In the short term expect the finance system to begin to use ripple , see CBA and others, and try to block/impede the use of other forms of crypto , see bitlicences, and Accenture's submission that wallets should be regulated (ie user loops closed). In the medium term I think these closed user loops will fail as the tech is there for person to person activity and the US methodology of regulating the point of exchange of fiat for BTC adequately covers the money-laundering angle that banks are using as their main point of defence. However Europe has yet to rule and don't be surprised if they come out in support of the existing European Banking system and make crypto extremely hard to use. PS: Please don't make this is a shouting match about Ripple I don't like the system but have to admit the way they are selling it to the Finance Industry is smart. |
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last thing you want on btc-e at the moment is fiat you can't get out.
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wow thanks for those charts - they've never been posted in this forum before.
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Because the volatility in Chinese Stock Markets is greater than that in Bitcoin and the Chinese Money is chasing fairies in equity land at the moment.
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No crash - but anyone else wondering if the OP had a head's up on the Finex hack.
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Plenty of places for Lawsky to pocket outrageous consultancy fees before he retires to various board positions with various financial firms advising them how to make a blockchain that is more fit for payments purposes than bitcoin, or for asset management, etc etc.
He's an attorney not a dev. yes and the finance industry doesn't need advice on regulation and legal implications. |
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Its not bullish for bitcoin - it is bullish for crypto adoption. Lawsky knows that the financial services industry will seek to create a replacement for the payments network , ideally (from their perspective) a quasi-walled garden which only authorised participants (banks and payments agents) can access
So the future of crypto is as an inter bank payment network only accessible by a few hundred or thousand players? I think he'd be out of a job pretty rapidly then. Once it's ticking away nicely that's that. and as a seperate blockchain for use by a global decentralized stock exchange, and as a tax collection mechanism with tax collection and point of transaction, and a lot of other uses. But there does not need to be one only, and it does not need to be bitcoin, and it does not need to exist yet or be invented in the wild. You think the finance industry doesn't have as many or more smart people than the bitcoin community and cannot see the advantages of the tech, and of the potential competitive threat? Plenty of places for Lawsky to pocket outrageous consultancy fees before he retires to various board positions with various financial firms advising them how to make a blockchain that is more fit for payments purposes than bitcoin, or for asset management, etc etc. |
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Ok so we all get what he's doing to make money. However I think this is a very bullish development. He stepped down and is creating his own firm to handle regulation on digital currencies like bitcoin, meaning he knows bitcoin is here to stay and there is money to be made in the sector. Lawsky talked to higher-ups and big dirty bankers and likely knows what is coming down the pipe for bitcoin from a regulation and banking perspective. If he stepped down and decided to start a law firm that handled other financial regulations that did not include virtual currency, then that would have been a huge red flag of bad things to come for bitcoin. Its not bullish for bitcoin - it is bullish for crypto adoption. Lawsky knows that the financial services industry will seek to create a replacement for the payments network , ideally (from their perspective) a quasi-walled garden which only authorised participants (banks and payments agents) can access - they can then use blockchain tech to deliver many of the cost saving benefits of bitcoin to themselves and some to the customer base. A closed loop blockchain is perfectly feasible for the financial sector to implement. It would be centralised to the effect that it would be operated only by one industry - but decentralised in that each firm would keep a copy of the ledger and there would be multiple copies. If each Financial Institution is regulated to be only able to operate a specific number of nodes and there are multiple (a hundred or so) operating institutions then the network would be protected against 51% attacks by law. |
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Ok, I've just spoken to the Norwegian tax authorities about how to classify my Bitcoin mining business and they've basically sent it back to me and asked how they do it in other countries(?!?!?!). Do any of you know what industry code / tax bracket a bitcoin mining business registers under in your country?
go with software as a service (if that category exists) and it is favourable You are running software CGIMiner, BFGMiner,etc to provide a transaction confirmation service to the blockchain and bitcoin community. |
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I believe itbit has a new York banking license. But a bitcoin bank isn't required to pay you interest.
at current rates - no one pays you interest on a current account |
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For bitcoin levels of Volatility outside of bitcoin space - check out the stock price performance of Hanergy Thin Film Power Group Limited - a HK based solar panel maker - the stock is down 47% today. The company's market cap has been reduced by $18.6 billion USD.
Now you know why the chinese granny's have been avoiding bitcoin - they have had other things to lose their shirts on.
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