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Is it possible to resell a BFL pre-order?
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You don't need to "find" real uses for Bitcoin. Millions of dollars worth are being transacted every day. Apparently someone is using them. You could argue that speculation isn't the best use of it, but keep in mind that it is still incredibly young, and still very obscure (despite being trumpeted on major news media in this last year). Patience is a dying virtue. We need to breathe some life back into it. Don't worry about Bitcoin losing ways to be used. If that's your concern, then ask yourself what are you doing to strengthen this new economy? Are you hoarding coins in defense of inflation or are you using them as a medium for exchanging value (i.e. purchasing goods and services with them). Be the change you want to see.
Ture, I'm accepting bitcoin payment for my sales. If there are enough people providing products/service around the world, then in principle you can live with bitcoin anywhere But people must first have the motivation to get the coin, and they must be able to get coin easily, it is this step stop bitcoin from mass adopted So far, that motivation is mostly coming from speculation. I've found only one practical use: Investors who want to diversify their portfolio and take bitcoin as a risk digital asset. Considering that more and more people are becoming financial and investment aware, there is demand from that direction, this is for sure But since bitcoin has very strange fundamentals (What you can do with a bitcoin is not as clear as a house/gold/diamond), an investor might totally get shocked by its price development, still lots of uncertainty People have been participated in central banks game for centuries, what is the motivation for them to switch to another game? That game must have much favorable terms for them in order for them to switch For miners, the benefit is very clear, they have an extra income source and it is fun, but for rest of the people, why use bitcoin instead of USD is typically a political debate which is out of grasp of majority |
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The problem is, if you rely on charity, the unevenness of the society will become extremely high, people are willing to lose a couple of percent in a transaction or exchange, so does their willing to contribute as charity
Banks will get 100 million for themselves before you get a chance to earn 1 million
I think certain kind of coercien is needed to get a good habit, just like brushing your teeth, you did not get used to it from the beginning
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I mean something that can really push it to spread much more widely. Currently it is only limited to a small fraction of people, it does not help normal people to reach one specific goal that they can not achieve by other means
The most important character for a currency is universal equivalence, and this character typically established on a fact that everyone want it. I have not found a good reason that everyone want to have bitcoin (of course a fast price appreciation is an universal reason that everyone want it, but when price do not appreciate that fast, many of them will leave)
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OP missed option of "Average down until it reaches zero, where you buy all the coins with one dollar"  |
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It just feels stupid that you send some one a coin and he send you a coin back and you need two transactions broadcasted just for nothing happened in reality The book keeping method is a common practice in accounting, it reduce the real transaction in financial system. If you have lots of bitcoin nodes that transfer bitcoins between each other, the real amount of transaction on the blockchain will be very small and the nodes just need to broadcast the net incoming or outgoing transactions BTW, I think today most of the transactions are just pools paying miners, that can be dramatically reduced by reduce the pay out frequency  |
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If one miner is earning BFL $8k/month, why would they sell it, for $2500?
Because currenty there is a huge uncertainty of difficulty. Theoretically you could make a ROI in a couple of weeks, but in reality it might take 2 months, and after that first month any further gain might diminish very fast, so eventually it could take 3+ months to get the investment back, and there is also an exchange rate risk, the price might drop I think after the network reached 1PH, the further increase of hash power will not be that fast and ASIC pricing will back to the traditional 3 month ROI standard |
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Some of my projection:
This summer, when ASICminer/Avalon/BFL pushing tons of hash power to the network, if the bitcoin price stay the same, there will be tens of thousands of GPU miners forced to mine at a loss, at that stage it is much wiser for them to purchase bitcoin, (there are no ASIC devices ready for delivery), that will in turn support the bitcoin price, so I think the price will still rise until autumn
But by October, most of the miners will finish their upgrade to ASIC devices, and ASIC devices will become widely available for purchase, there will be less and less buying support for bitcoin, until ASIC devices have been driven to a low profitability level that it barely pays the electricity, that will happen much later next year, so price might fall during that period
In a word, when ASIC devices is still profitable and becomes readily available for delivery, a large amount of capitals will flow to that direction thus reduce the bitcoin buying support
FED is going to end its QEI sometime during this year, that will also impact the available risk capital in the market
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My point is, they will see the benefit if we wait patiently, governments are already setting up their own destruction with hyperinflation, I for instance didn't see much point in studying economics and history until I experienced a financial recession for myself, now I know how to defend against it, it will be the same for a lot of people when it comes to Bitcoin, chances are if we have another Cyprus or Greece people are going to immediately start looking for alternatives.
That's true, if the current monetary system run into a disaster, then bitcoin is ready to rescue, but there is also a possibility that nothing happened (Banks gain 1 billion while give you one million, as long as you are satisfied with one million, you might not care about their gain) |
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I want to change the fan on Avalon to a high CFM model, but I'm not sure the fan plug can provide enough current, the existing fan is drawing 1.3A maximum and I'm getting a 3.0A fan, will it cause overheat or burn some part on the controller unit?
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People who want to get coin have 2 choices, either mine or buy. When the difficulty is too high, they will buy, otherwise they will mine. If they mine they will increase the difficulty until a point that mining become unprofitable then they will buy again
Miners could still mine when not profitable, because they believe that price will rise in the future, but that just increase the difficulty for all the miners and eventually someone will just buy (If price will rise in the future anyway, buying now is the most simple decision)
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All you need are people with the balls to accept Bitcoin and people will find uses for it on their own, it will happen eventually, as someone who is setting up selling stuff for Bitcoin entirely I've done the maths and believe me the benefits of Bitcoin far outweigh the bad stuff ( if you can call anonymity and deflation and the like bad ) I would rather get 100 sales in Bitcoin than in paper. The amazing thing is because of how Bitcoin is still maintaining it's value if I make even less than 100 sales I will still be able to expand faster than I ever could in paper and that's because Bitcoin has more purchasing power.
Let's look at current pricing, if I managed to sell say, a game for 0.1 BTC and got 100 sales that would make 10 Bitcoins, selling the Bitcoins on the market even at lows would net me a lot more than paper and if I chose to trade with Bitcoin I have the added advantage of it keeping value after I trade it, at current prices I'd get about £848 going by MTGOX of course. If I sold the same at current paper money prices along with all the crap you have to deal with when it comes to paypal and the like I would only get around £700 and of course there's the problem of tons of regulation regarding the currency as well as the fact that paper money is all being hyper-inflated to nothing so by the time I get any of the money back it would have dropped in value massively. There's of course all the restrictions that are lifted in Bitcoin too, no one tells you what you can do with your money and so on, the only restrictions I can really see out in the open are the fact you need an internet connection and a computer of some sort but that's a small price to pay for having what is pretty much total freedom over your own finances, you can trade with anyone as well regardless of the country they're from.
Trust me, people are interested in Bitcoin, neo-keynesians and the government loyalists out there love to spread bullshit about Bitcoin and I've seen them do it even on these forums, we just have to be patient and wait for people to come to us and be helpful when they need it.
We all know that from a higher level bitcoin excels, but for most people who don't have so much knowledge in economics and computers, they can't see that benefit. And currently some of the country still have deflation, their fiat money even gained in purchase power, only China have high inflation rate now |
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If the margins are very thin then bitcoin is even more unsuitable, the exchange rate fluctuation can wipe out the profit
But they can accept Bitpay, which still has a way lower margin than credit cards. Yes, that is not really using Bitcoins, but it will solve the problem that you need more merchants accepting Bitcoins in order to make it more attractive for consumers to buy Bitcoins in order to get more merchants to accept Bitcoins in order to... For a normal consumer: 1. He pay the merchant directly use CC, pay a 4% higher price 2. He buy bitcoin through some local bitcoins exchange, pay 2% spread, and pay the merchant with bitcoin, pay a 1% higher price due to merchant don't want exchange risk and use Bitpay He would still use CC because of much less exchange hassle. Using bitcoin is like using Euro in sweden, you first go to forex exchange to buy some Euro, and then spend it at some local shops that accept euro, and finally those merchant have to exchange received euro back to swedish kronor... In this process, many time and value is lost due to exchange between different currencies So I think at retail level bitcoin does not really make people's life simpler. For pure online transaction, exchange might not be a problem, but people still need some powerful entity to provide escrow service and solve the dispute Bitcoin still function like gold, it is not as convenient as fiat to do the trade with, but works as a reliable medium of saving, a ledger of credit |
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-ability for merchant to buy android phone etc for $40 and start using the transaction network without fees and contracts
This is a good point, if bitcoin is widely available, it is much better than joining the exiting transaction network, but the problem is bitcoin user base are still very small. People don't get their income in bitcoin's form, that's the biggest obstacle for them to spend bitcoin When it comes to internet transaction, the trust is the core issue. And this typically require a trustworthy central authority that can act as a middle man, with a well-known and regulated entity to organize the trade, both buyer and seller have much less risk. It almost has nothing to do with the currency used, it's this regulated trustworthy entity make people comfortable to do the trades. Otherwise they will have to manage the risk by themselves, which might cost more than the fee they pay to the middle man |
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Sure, merchants will get more profit by accepting bitcoin
How is that not a giant benefit? Some merchants operate on very low margins and are happy about every cent they can gain. Other usefulness: - protection against crazy inflation (like in Argentia) - ability to transfer money from/in every country of this world (or even to the moon once there is internet there  ) If the margins are very thin then bitcoin is even more unsuitable, the exchange rate fluctuation can wipe out the profit Maybe for some countries with unstable monetary system it will help, but for established big countries the benefit is not clearly visible International transfer is a usage, but today you can make purchase abroad with a credit card, as long as you don't buy cars or more expensive stuffs, and there is seldom a occasion that you urgently want to buy a house/car abroad If something sold exclusively for bitcoin, like Avalon mining rig, then bitcoin can be considered a real usage in this specific area. But currently this kind of pure bitcoin based economy activities only exists in mining equipment area, hope something will grow out of this |
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For me, the real use of bitcoin is hedging the risk of long term inflation
But, FED's mandate is both low unemployment and low inflation, if they start to tighten, USD might hold its value very well. Although bankers unfairly benefit from the QE process, as long as normal people's life is not heavily affected, no one cares
I just did an international purchase with my CC and it went so smooth, just like purchase an icecream at local shop, I don't think bitcoin will shine in this area
Sure, merchants will get more profit by accepting bitcoin, but currently the amount of people who are able to pay bitcoin is still very small, merchants still get more sale with CC
After all the hype, if bitcoin can't really provide something more practical and useful, it might just get ignored and stay as a geek's hobby, just like a computer game, played and forgotten
Any other thoughts?
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1 bitcarat = 1 carat bitcoin = 1/100 BTC, still gives a feeling of expensive
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For currency, supply and demand do not affect its value, it is mostly decided by the historical consensus
For bitcoin, there is a consensus of continuous appreciation due to limited supply, and that appreciation speed is largely related to the difficulty of the network
During 2012, most of the time the difficulty changed very slow, so does the exchange rate, but now when ASIC devices are being deployed, difficulty will rise at least 10-20 times, so does the exchange rate. I think current exchange rate already priced in the batch of ASIC chips that are going to hit the network during summer, unless there is a forecast of large increase of future difficulty, the exchange rate will be stable for a while
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The mining return will drop so fast that soon people will just buy coins instead of mine, why bother with so much hassles about the electricity/heat/management of rigs if you are not a hardware fan... ASICminer's shares could be another alternative
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Due to limited supply of coins and unlimited supply of fiat money, it is possible to forever support the exchange price but it is not possible to forever limit the exchange price
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