I think it does and here's why: If you can make a bitcoin for 1$, why would you buy one for 300$? It does influence the price, but it's not the only factor determining it's price.
Good point, I was kicking around the idea that btc was base pricing itself to the aggregate cost of mining, and now someone else confirms my suspicion..thanks. Sorry. It is not a good point, because it assumes that the entire demand for bitcoins could be satisfied by mining. In fact, the number of bitcoins obtained by mining would not change, so the number of bitcoins traded on exchanges would not change. For example, let's suppose that 1000 people want 1 bitcoin each, 100 bitcoins are mined, and the price is 300$. 100 people would get mined bitcoins and 900 people would buy the bitcoins for 300$. Now, suppose the cost of mining bitcoins drops to 1$. Still, 100 people would get mined bitcoins, and 900 people would buy the bitcoins for 300$ each. Nothing has changed. Furthermore, if it only costs 1$ to mine a bitcoin, then people would start mining like crazy and the difficulty would rise until the cost of mining a bitcoin is about 300$. The price of a bitcoin determines the cost of mining. |
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Bitcoin Miner Ditches Clients to Chase $2 Billion Coding Prize
Coding Prize? I think the author is confused. |
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So some people claim that coins are worthless if the cost of production is near zero. Other people claim that it doesn't matter what the cost to producing a coin is as there are other factors that determine the price.
What are your opinions?
The myth lives on. Consider Proof-of-Stake coins. The cost of production of Proof-of-Stake coins is 0, yet they are not worthless. It is actually the other way around. The cost of production depends of the value of the coins produced because of the way the difficulty works. if it costs you $350 in electric to make a bitcoin you are seriously stupid to sell for $200... you might aswell not mine and be $150 better off..
More accurately, if a bitcoin sells for $200, then it is seriously stupid to pay $350 to mine it. |
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Why would we need a central bank? I don't understand the purpose of trying to get a bank involved into Bitcoin. I think Bitcoin was purely created for the opposite purpose.
The logic is simple: 1. There will be Bitcoin banks because many people like to have someone else hold their money (for example, all the people with money in their Coinbase accounts and on exchanges). 2. These banks will loan out their deposits (because they can and it generates a profit). That means fractional reserve banking for Bitcoin. 3. A Bitcoin central bank facilitating inter-bank lending of reserves will lower the occurrence of Bitcoin bank defaults. There should be a Bitcoin central bank. |
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I'm going to be adding a page to my miconations website that will allow micronation enthusiasts to apply for digital citizenship. This form would require their BTC wallet address. I was wondering if there was any reason a person my not be willing to enter their address into the site. I mean you can only pay someone with their wallet address correct?
A terminology lesson is needed here. There is no such thing as a "wallet address". An "address" holds bitcoins. A "wallet" holds addresses. A wallet can hold more than 1 address. For example, a Bitcoin Core wallet holds at least 100 addresses. Furthermore, a person can obviously have more than one address. There is no reason why a person can't have a million addresses. There is no reason why a person can't generate an address to be used only for your site. So, the answer to your question is that there is no problem with asking someone to register a bitcoin address on your site. Finally, your plan will not work very well. With all but a few wallets, it is difficult to send money from a specific address. |
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Holding results in low market volume and thus greater volatility.
I don't believe that is true. Mathematically, holding might affect the overall price and the volatility in absolute terms, but would not affect the volatility in relative terms. |
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The Core Devs could release a Bitcoin Core that utilised CPU only cryptography ... it would put Bitcoin mining back into the hands of the little guy.
That will never happen, and even if it did, it still wouldn't fix anything. Rather than warehouses full of ASIC miners, you would see warehouses full of CPU miners. |
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There is no voting. When somebody creates a feature, people may adopt it. If enough people adopt it, then everyone will adopt it. Currently, the core devs (and especially the Bitcoin Foundation) have a lot of influence over what people choose to adopt, but that will change over time (hopefully).
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Go to https://www.bitaddress.org/ and click on "Bulk Wallet". Your request seems unusual. Perhaps you could explain your plan. There may be a better way. Take a look at "How do I use a Bulk Wallet to accept bitcoins on my website?" at the bottom. |
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I am by no means qualified to answer my question nor do I know if it is possible but I feel that with the introduction of ASICs (greedy companies wanting to make a buck) and the Industrial Mining (greedy companies to wanting to make a buck) it's all going south.
I may be completely wrong but without everybody being afforded equal opportunity to be involved it will never be as great as it should/could be.
To me the appeal was being part of something that was controlled by nobody... Surprise surprise big business has taken over.
You are the greedy person. You want to get a bigger portion of bitcoins without doing anything to earn that bigger portion. Everyone has an equal opportunity to mine bitcoins. There is nothing and nobody stopping you. The amount of bitcoins you mine is proportional to the amount of money and effort you put into it, whether you are a poor person with a graphics card or a person with a warehouse full of miners. |
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Mining is what gave Bitcoin its early boost, but now most Bitcoin users care about mining bitcoins about as much as they care about working at a bank or panning for gold.
Either way, there is no way to limit someone's hash rate.
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I'll conclude with the fact that money does not make you smart, and not having any doesn't make you stupid. It also doesn't take a genius to get rich, even the ethical way. The majority of rich people I know are NOT rich because they worked hard and earned it. At the end of the day, those rich people likely see me as one of the stupid ones, but I am OK with that.  This, most people that got rich come from early money distributions (just like rich bitcoin people). Once you inherit 5 millions, it's HARDER to lose them than to keep them. If you are born in middle class, chances are you'll be stuck there, let alone being legit poor. A breakthrought through the class you are born at is nothing but luck. Working hard and saving = you may become a millionaire, but you'll get to enjoy it where, in the cementery? what a joke. According to Forbes, 273 of the 400 richest people in the U.S. earned their way onto the list. A minority inherited their money. |
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Im new to this whole bitcoin movement. I already learned my first lesson, which is nobody likes using paypal for btc lol. But can someone explain to me what is escrow? I tried googling it and found nothing so I figured id ask you guys  Basically, it goes like this: 1. The buyer gives the money to a person (the escrow) that both the buyer and the seller trust. 2. The seller sends the buyer the items. 3. The buyer authorizes the escrow to release the money to the seller. Escrow usually includes arbitration. If the seller doesn't uphold his end, the buyer asks for the money back from the escrow. If the buyer doesn't authorize the release the money, the seller asks the escrow to release it anyway. |
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You are an early adopter, but if all you care about is getting rich, then you have missed the train (and the point).
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Yes , we need Bitcoin price range between $600 - $700 .
If bitcoin always in good price ,im sure lot of people in the world began to see this as a good investment.
More people use and invest in Bitcoin , price will always high.
The stability of the price is most important. Single digit inflation of the price is ideal. Stability means no change in value. You have been brain-washed by the people running the Federal Reserve who claim that stability means 2% inflation. BTW, I think you got your term backwards and you meant "deflation" instead of "inflation". Bitcoin is ultimately deflationary at the point when coins are lost faster than they are mined. Still, single-digit deflation is not stable and is really no better than single-digit inflation. |
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(LOL. And we wonder why "normal people" don't use Bitcoin yet. This is so many years away from being easy enough for the mainstream populace!  ) "normal people" don't need to change the size of the key pool or run their client from a command line. |
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The primary cause of a flash crash is lack of liquidity. None of the other causes listed above will result in a flash crash if the market is liquid enough to support the volume, though margin calls and stop loss orders can exacerbate the situation.
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