Bitcoin will hit four digits again in the next 6 months or so. The technology is way undervalued at current levels.
To play devils advocate: It aint going nowhere unless someone figures out a way to incentivize consumers to start buying it. Undervalued or not, it will be dead in the water if nobody feels like using it. -B- The incentive will ultimately be that merchants will charge lower prices for goods/services paid for with bitcoin because the merchant incurs lower costs in processing these payments (and has less fraud related expenses) |
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The vast majority of merchants are going to sell the bitcoin they receive regardless of the season. I am not sure that merchants like overstock (and others that accept bitcoin) have seen that much of an uptick in bitcoin related payments since black friday
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I see quite a few posts of people predicting that btc will reach 2k this year, I just wondered what your reasonings for it were?
When gox fell completely I expected the price to go back up, but it seems to have just stalled around the 300 mark even after their dimise.
I am just wondering with all the other coins now out there, why do you think it will go straight back up and to 2k or beyond?
6x times in 1 year? That is wishful thinking. The price of bitcoin went up more then 100x in 2013 and went up similarly huge amounts in previous years. For the price to only go up by 6x would mean that the rate of price increase would be slowing tremendously. |
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The problem i see with pos is that it discourages spending. If you notice most of the pos coin holders, they don't go about giving away tips. Same goes when it comes to spending. We need the coin to turn around which indirectly helps adoption rate. The idea will probably work for coins which has established itself with large userbase but definitely not for new coins.
Isn't that why it encourages spending? If I am a PoS stakeholder, I don't want "my" coin (= investment) to fail. That's why I give away some as a bounty or donation for dev/media/publicity work. I observe that effect in the PoS community that I'm part of, almost everything is done because there is a bounty for it, put up by some large stakeholders, or crowdfunded. @ OP: There are two different types of PoS sytems here: The ones where the supply is fixed. If you stake them, you get transaction fees paid by other users, but the supply remains constant (or decreases if coins are burned). Then there are the ones where you "mint" coins. Newly minted coins are created "out of thin air", just like newly mined bitcoins. Most PoS coins will not stake unless the coins have not moved your coins in 'x' amount of time so if you spend them then you are going to be penalized. |
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Recent discussion of value in another forum proved again: supply and demand analysis only works when currency supply does not change. Now when currency supply suddenly changes (QE stopped), the total effect on the market is dominant, outweighs small change in supply and demand
The liquidity crisis will be first felt in oil, then cost of everything will go down, creating a race to the bottom price war, then mass firing of labor force...
The QE has barely made it out of the banks and into industry in the USA, and pretty much all the other central banks are just cranking it up. Those currency supply effects are a bit further downstream, money supply is still growing just slower in the USA and faster elsewhere. QE did not flow into US economy, since the return is bad there. But after banks get rid of bad assets, their extra liquidity went into middle east and those shale companies Overall consumer interest rates declined in the US which means that QE did flow to the economy. I think the problem was that consumers generally did not take out more loans (and spend the lending proceeds) due to these lower interest rates |
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Correct but assets that are used for different purposes can be somewhat related. Oil and Bitcoin are two scare resources with increasing demand and a supply that goes up only slowly
Just because two assets have similar supply characteristics does not mean that their price is going to be correlated. The demand dynamics for both bitcoin and oil are very different as their uses are very different. It is also much easier to manipulate the supply (and price) of oil via cartels then it is for bitcoin |
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This appears to still be in the very early testing phase and will probably not be available for some time. Also more efficient miners will only result in overall higher hashrate on the network which means a higher difficulty, not a lower amount of electricity used |
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I'm talking about the problem of distribution of wealth, namely the rules by which wealth can be acquired, used and disposed of. Let see what you guys think.
Distribution of wealth does seem to be a problem right now. Whatever new btc from mining will have most of them ended up in the free market because miners will need to sell a portion to cover their overhead cost. Furthermore, with current difficulty that keeps on increasing, it's hard for a single node to grab all the btc, thus wealth distribution by right at this stage is not a major issue . however, what became a problem was during the early day when even a conventional cpu is enough for mining. Today early adopters still hold on to substantial amount and to be fair, their decision can easily change the course of the market price movement. Well we still have the mining proceeds from the early miners that are held by very few people. It is the early adopters that sill hold a large percentage of bitcoin that has been mined to date. I do agree that the majority of the newly mined bitcoin will be traded and sold in the open market in order to pay for expanses which will further distribute the distrubation of bitcoin |
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This is because of oil prices.
Maybe. Oil industries make up a substantial part of the Russian GDP ( 13.9% in 2012). it is likely a combination of the price of oil dropping and economic restrictions the US (and other countries) has put on Russia in response to the situation in the Ukraine. Oil prices have fallen by more then 50% in the past few months. This would translate to a more then 7% decline in the Russian GDP which is no small decline and is plenty of a reason for their currency to go into a free fall The sanctions by EU have hit Russia harder than the sanctions by Europe. Europe is one of the largest trading partners of Russia. Plus the fact that Europe is able to trade within itself and trades with both China and the US (meaning that Russia is not as an important of a trading partner to europe) |
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What encourages companies like Blockchain in development of tools for programmers, for exemple, get bitcoin difficulty, or number of transactions per day....what do they win? I google it, and I found someone saying that blockchain makes money by charging merchants and large transactions at 0.1%. Is that true?
If you are referring to sites like blockchain.info (and other block explorers) then it is ad revenue. Blockchain.info displays ads on their main page, the 'explorer' page and in their wallet. I don't believe they sell any kind of service above that. They are however able to sell very targeted advertisements which can generally command higher then average prices |
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The government is very present everywhere including in the Economy and they control the capital but they are going slowly in the correct direction in the sense that they talk about less control and restriction.
Their efforts were initially directed on making sure that the massive population finds productive employment. Once this is taken care of, they may consider lessening restrictions. They have a plan and it is working. They became the biggest and better producer and now the Yuan will increase in value and the chinese will enjoy even increasing standard of living. There has been buying pressure on the Yuan for decades because they are a net exporter. The chinese government has intervened via keeping the price of the Yuan generally fixed which helps keep the prices of chinese exported goods competitive internationally. If the price of the Yuan was able to trade freely then chinese goods would be much more expensive and the chinese economy would not be what it is today |
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Bank run time  Why would there be a bank run? The reason the negative interest rates were put in place was because people were putting too much money into banks, and was intended to slow the flow of money into banks |
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Governments manipulate exchange rates, banks manipulate interbank rates. This has been going on for decades. Governments are levying fines now because their treasuries are empty. Soon they will collude again.
I don't think banks are really able to manipulate interest rates, nor exchange rates (as they were accused of doing). I think this was a case of bankers having a big ego and were bragging about being able to do things they were not really capable of doing, and as a result essentially admitted guilt to a crime they were not committing |
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I guess bitcoin gambling accounts for a significant portion of the bitcoin economy. It is tough to quantify this though. I remember reading that Satoshi Dice accounted for 25-50% of all bitcoin transactions last year. According to reports, the gambling industry is poised to grow further. https://www.cryptocoinsnews.com/bitcoin-will-revolutionize-gambling/I think major sectors in the bitcoin economy would be - Mining - ASIC Manufacturing (Aren't these purchased primarily using bitcoins) - Gambling - Trading (Bitcoin exchanges) - Bitcoin Mixing - Remittance - Pornography (Girls Gone Bitcoin, among others  ) - Illegal activities (Buying drugs, Ransomware, etc) - Ancillary Services (Legal, Compliance, Bitcoin software, etc) Thanks for your input. I know gambling is big, and somehow this is worrying. BTC deserves better. I wish a car manufacturer could sell its products and accepts only BTC as a payment. I think the big advantage that gambling has is that payouts are its primary expense and these can be denominated in Bitcoin. A car manufacturer would have to pay for materials, components, wages, utility bills, etc. which are necessarily fiat denominated. Unless you have these being paid in Bitcoin, it would be very difficult for a car manufacture to sell its products and accept only BTC as payment. They could use Coinbase and never have to deal with Bitcoins if they don't want to. They accept Bitcoin, but they will receive dollars. I don't think merchants that convert the bitcoin they receive from sales to fiat immediately should really truly be considered to be part of the 'bitcoin economy' as they are both pricing their goods in terms of fiat and receiving their goods in fiat. The only real exception would probably be overstock who only converts a portion of their revenue to fiat and is active in the bitcoin related economy/community |
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stress test are like Standard & Poor outlook/ratings!!!
do you remember S&P rating about Lehman Brothers??
now we know the truth!!!
and the truth was not what Standard & Poor have said
S&P, Fitch, Moody's, they all got it wrong and geologists still cant predict earthquakes..whats up with that?! The financial crisis was statically very unlikely to happen, something that would be expected to happen less then once in a lifetime. It would not be expected that the 'experts' be able to predict such a crisis |
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I really don't think that the USA will ever completely pay their debts, unless they just continue to print enough money to do so...
It is possible, however entitlements will need to be vastly reformed in order for this to be possible. The US last had a budget surplus in the late 1990s/2000 and it could potentially pay off the national debt in only a few decades.....assuming that is what congress decides to do with the surplus; the last time we had such a surplus congress decided to lower taxes (and stimulate the economy) |
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You're wrong.
If you are paid in goods and services, you owe tax on the fair market value of those goods & services.
I'm surprised this still comes up, Google is your friend.
It would be illegal to do what I wrote in the last post, I was just saying some people do that not to pay revenue taxes There are very few taxes on a company's revenue (the only tax on revenue is via the ACA on medical devices). The rest of the taxes in the US are based on either income or asset levels. There is also sales tax but this is not a revenue tax, it is a consumption tax |
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Ho Ho Ho, Christmas came early this year
continuing
19d7yR4gL2E2fgB5ERpFLhZEDUCgYZdbsH
701 posts
I also updated my signature
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picking and choosing whom to debate with
<!!!>
I feel that you have made no mistake in posting this thread. You have simply usurped the realisation that the good people in this community are not prepared to sit back and watch new users and new adopters of bitcoin be scammed senseless by pyramid schemes. You have probably done more good, than harm. Mabsark remains a trusted member of this community and you seem to have (proverbially) shot yourself in the foot by picking and choosing which arguments to debate. regards,  How or why is he considered a trusted member of the community in your eyes? As far as I can tell from his trust feedback he has done very few deals over a short period of time. I am not really sure why he was ever put on default trust in the first place. |
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SMS > QR CODES
There are some risks to these kinds of services. For example sending via SMS will somewhat centralize bitcoin as the Bitcoin protocol does not support sending money to a cell phone number. Also there are a number of scam services out there that automatically bill your cell phone bill every month for what is essentially nothing |
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