As newbie on this forum i ask myself the question why give people loans with altcoins as collateral? If they trade their altcoins in BTC. Their problem would be solved, cause they have their bitcoins. Can one explain this please, thanks?
All the responses so far explain why altcoins make good collateral, but nobody has answered your real question: Why get a loan if you already have altcoins? Why not trade the altcoins for BTC instead? Consider this: would it make sense to get a BTC loan and use dollars as collateral? The only reason I can think of is maybe currency arbitrage. If the borrower thinks that the value of Bitcoin is going drop relative to the altcoin, then it makes sense. Also, if the borrower thinks that the altcoin is going to crash, they they could offer the altcoin as collateral, and then just default when it crashes. |
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The maximum block size prevents a miner from spamming. Transaction fees don't.
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You can join Danny Hamilton's anti-signature campaign. It is quite a different experience - about 80% of the posts are hidden. Check my signature.
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Of course it will. It is a big change to the bitcoin economy, or ecosystem. The supply will decrease, ...
The supply will not decrease. It is increasing now and it will continue to increase after the halving. Bitcoins are not consumed. There will always be more and more bitcoins available for sale until the subsidy goes to 0. |
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Only if the GPU is on the laptop.
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Does reflexivity apply to bitcoin?
Yes. In a simple form. A rising XBT:USD price attracts more users. New users bid up the price, attracting even more new users. This has happened several times since 2010, resulting in large new waves of users each time.
A rising price attracts more speculators. The result is a bubble that eventually pops, and then the speculators leave. |
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The Fed pays 0.5% interest on excess reserves, so banks won't loan those excess reserves at less than 0.5%. Charging interest on reserves would be like charging interest on a saving account.
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Yes the one who sell coin daily are the bitcoin miners and if they will get only half amount of bitcoin as reward after halving. Bitcoin must be pumped almost double to around 1k to compensate expense of mining.
... or the cost of mining drops as the least efficient miners stop mining and the difficulty goes down. |
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Hello
Please I need to know one question and it's important
If I deposit 5000 eur via wire transfer to BTC-E (cheapest way for this amount) and I buy BTC then send to Bitstamp and sell BTC and withdraw to bank
If arbitrage between BTC E and BITSTAMP is 2% ( the 2% of 5000 =50 eur profit) rest 15 eur of wire trasnsfer and maybe 10 for costs and withdrawal, this is net profit of 25 eur
Can I do that continiously depositing in BTCE and withdraw in BITSTAMP? What is the bad part of this idea? the will stop you or what?
It works in general, but there are still some risks with your plan and you won't make as much as you expect in the end. For example, in the hour it takes to transfer the bitcoins from BTC-e to Bitstamp, the price could drop 2%. |
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Spreading out the purchase via "dollar-cost averaging" is good if you want to buy over a period of time, but if you have money to spend now, it is better to buy all at once now, rather than waiting while the price goes up.
I think your missing the point of dollar-cost averaging though... the whole idea is that you have literally no clue if the price is going up or down, so you spread the risk over days. If we knew 100% market was going up of course dollar-cost averaging is not as good. With commissions being % based, it eliminates the barrier to entry that dollar-cost averaging usually entails 1. The point of dollar-cost-averaging is to avoid trying to time the market. That's why you buy fixed amounts at fixed times. The point is not to reduce risk. There is a more effective way to reduce risk: diversification. 2. You do have a clue (or at least you think you do) about which way the market is going. Otherwise, why would you be buying bitcoins? If you believe that the price is going up, then obviously the longer you wait to buy, the less you will make. 1) When focusing down to buying into one 'stock', timing the market is the main risk. The whole point of dollar-cost-averaging (When you already have the cash as OP stated)is to avoid the risk of a bad entry time. Of course, if you don't have the money up front it is used as a way to slow accumulate wealth. The way to reduce risk is through diversification of assets. Look at it from an asset allocation perspective. Initially you are 100% cash, then you are 90% cash, then you are 80% cash, ... Why sit on all that cash? Just reallocate it and be done with it. |
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As most of people here, I agree that spreading out the purchase is usually a better strategy.
It doesn't cost any more in commission, because almost all the exchanges are charging a percentage fee, whether you buy 1 or 100 btc.
It might work out cheaper to transfer the funds to the exchange all at once - depends on the fees your bank is charging.
How much you should spread it out also depends on how liquid is the exchange you have chosen.
Some exchanges have lower fees if you put in the limit order, rather than just lift the best offer - if you are not in rush, I advise you do that.
Spreading out the purchase via "dollar-cost averaging" is good if you want to buy over a period of time, but if you have money to spend now, it is better to buy all at once now, rather than waiting while the price goes up. I think your missing the point of dollar-cost averaging though... the whole idea is that you have literally no clue if the price is going up or down, so you spread the risk over days. If we knew 100% market was going up of course dollar-cost averaging is not as good. With commissions being % based, it eliminates the barrier to entry that dollar-cost averaging usually entails 1. The point of dollar-cost-averaging is to avoid trying to time the market. That's why you buy fixed amounts at fixed times. The point is not to reduce risk. There is a more effective way to reduce risk: diversification. 2. You do have a clue (or at least you think you do) about which way the market is going. Otherwise, why would you be buying bitcoins? If you believe that the price is going up, then obviously the longer you wait to buy, the less you will make. |
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In my opinion, it would be a mistake to wait to see what your bank decides to do. I would immediately take action and convince them that your transaction was legitimate, and that the fact that you were paid with stolen money is irrelevant, assuming that it was truly stolen. If they don't want to lose a customer, they will have to take your side.
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Some excerpts from the recent article at ZH (for what it's worth) Last Wednesday, we brought you the story of Craig Steven Wright who was “outed” by Wired and Gizmodo as Satoshi Nakamoto, the pseudonymous founder of bitcoin Mr Wright has alleged payments were made in August 2013 of $38.8m — then the equivalent of 245,103 Bitcoin — for Siemens software and gold from Paynes. He then claimed payments were made to Mr Ferrier of $20.3m — or 135,100 Bitcoin — in September 2013 for the “core software” from Al-Baraka The takeaway: if you believe Wright is Satoshi, then the founder of bitcoin is skeptical enough of his creation's intrinsic value compared to hard assets that he was at one time willing to trade a sizeable portion of his cryptocurrency wealth for physical gold Why am I not surprised? They are saying that Satoshi spent nearly 400,000 BTC (8,000 block rewards) in 2013, yet none of his bitcoins have been moved as far as anyone can tell. How can that be? |
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So, the nett worth of all "wealth" or assets / resources in the world, is currently $241 000 000 000 000.
Lets presume BTC was the global currency/commodity used by intelligent computers to manage the world's resources, in today's value - and that everything was backed by/priced in BTC. $241 trillion / 21 million = $11 476 190 (In today's terms.)
...
The flaw in your thinking is that assets are never "backed" by currency. I bought my car with dollars, but that doesn't mean there are dollars sitting around somewhere representing the value of my car. It is better compare Bitcoins to other currencies. The USD M0 is about $4 trillion. If Bitcoin completely replaced the U.S. dollar today, then each bitcoin would be worth about $280,000. That is incredibly unlikely to happen in our lifetimes. On the other hand, if Bitcoin replaced even 1% of the USD, that would be quite an accomplishment, and in that case the value a bitcoin would be worth about $2800. So, go ahead and fantasize about your future mega millions, but please just remember that it is just a fantasy. Please note: My numbers assume that fractional reserve banking of bitcoins will exist and that the velocity of money will be the same. I believe that FRB is likely and the velocity will likely be much higher, and if true it means that the value of a bitcoin will turn out to be lower than the numbers above. |
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Bitcoin is only mentioned in passing, here: Bitcoin has been facing the same level of scrutiny from governments, as many people feel that digital currency provides too much anonymity.
Otherwise, it's just another JP Buntinx shovelware article. |
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Who watches his addresses??? How will we know when if/when any are moved?
I think Satoshi Doesnot use same bitcoin addresses. We cannot find him because we get no information from btc addresses. He Also might have his own Client and a very unique bitcoin address and he might like to remain anonymous . He is also the founder of bitcoins so he may have many private knowledges which we donot have. We cannot find his btc address Nothing that you wrote makes any sense. Please read more and post less. |
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As most of people here, I agree that spreading out the purchase is usually a better strategy.
It doesn't cost any more in commission, because almost all the exchanges are charging a percentage fee, whether you buy 1 or 100 btc.
It might work out cheaper to transfer the funds to the exchange all at once - depends on the fees your bank is charging.
How much you should spread it out also depends on how liquid is the exchange you have chosen.
Some exchanges have lower fees if you put in the limit order, rather than just lift the best offer - if you are not in rush, I advise you do that.
Spreading out the purchase via "dollar-cost averaging" is good if you want to buy over a period of time, but if you have money to spend now, it is better to buy all at once now, rather than waiting while the price goes up. |
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...
If the owner was a Mark Karpeles
surely he would have written better scripts
as he has an English speaking background
...
Sorry to burst your conspiracy bubble, but Mark Karpeles is French. English is not his native language, nor is it a language in which he is particularly fluent. |
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You assume that the price will rise over the long term (otherwise you wouldn't be buying), so the longer you wait, the more expensive the bitcoins will become. For that reason, it makes sense to buy it all right now. However, there are two other factors: - Short term price expectations. If you expect the price to take a dump in the near future, then it would be better to buy after the drop, but you might want to buy some now in case you are wrong.
- Liquidity. If the amount you are buying will move the market, then you should buy smaller amounts over time in order to give sellers time to come into the market and fill your orders.
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[  Even if Bitcoin is eventually adopted by only 1% of the world population, we are still in the innovator phase according to that graph. |
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