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The Bitcoin network protocol was designed to be extremely flexible. It can be used to create timed transactions, escrow transactions, multi-signature transactions, etc. The current features of the client only hint at what will be possible in the future.
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Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
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rebuilder
Legendary
 Offline
Activity: 1615
Merit: 1000
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June 07, 2011, 01:47:19 PM |
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I ate one egg yesterday. Today I ate two. Will I eat 74 eggs this Sunday?
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Selling out to advertisers shows you respect neither yourself nor the rest of us.
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Too many low-quality posts? Mods not keeping things clean enough? Self-moderated threads let you keep signature spammers and trolls out!
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Bruce Wagner (OP)
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June 07, 2011, 01:50:46 PM |
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I ate one egg yesterday. Today I ate two. Will I eat 74 eggs this Sunday?
No. 64 eggs on Sunday ....at the current growth rate extrapolated. That's what I am asking. |
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rebuilder
Legendary
Offline
Activity: 1615
Merit: 1000
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June 07, 2011, 01:52:38 PM |
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I ate one egg yesterday. Today I ate two. Will I eat 74 eggs this Sunday?
No. 64 eggs on Sunday ....at the current growth rate extrapolated. That's what I am asking. You're right and I'm mistyping. Anyway, point is, there's no way to know. The math is correct, in that if you extrapolate like that, you get those results, but why would you think the market will follow that logic? |
Selling out to advertisers shows you respect neither yourself nor the rest of us.
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Too many low-quality posts? Mods not keeping things clean enough? Self-moderated threads let you keep signature spammers and trolls out!
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Bruce Wagner (OP)
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June 07, 2011, 01:56:34 PM |
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I ate one egg yesterday. Today I ate two. Will I eat 74 eggs this Sunday?
No. 64 eggs on Sunday ....at the current growth rate extrapolated. That's what I am asking. You're right and I'm mistyping. Anyway, point is, there's no way to know. The math is correct, in that if you extrapolate like that, you get those results, but why would you think the market will follow that logic? Well, that's not the point. In fact, I don't. Personally, I expect the growth rate to go up exponentially.... But again, that's beside the point. Are you sure that my math is correct.... at.... "annual return on investment of about 50,000%" .....? |
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sirky
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June 07, 2011, 02:12:27 PM |
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It doesn't work that way.
If it just about doubles every month (which it has so far to get from .06 to 19 in 8 months that would mean almost a million percent gain), I think.
Month AGR 824578%
1 0.06 MGR 127%
2 0.1362
3 0.309174
4 0.70182498
5 1.593142705
6 3.616433939
7 8.209305043
8 18.63512245
9 42.30172795
10 96.02492245
11 217.976574
12 494.8068229
Does this look about right?
Of course, note that I don't believe that this is a realistic model.
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justusranvier
Legendary
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Activity: 1400
Merit: 1009
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June 07, 2011, 02:13:31 PM |
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If you believe that Bitcoin will grow until it displaces all other currencies in the world then eventually the value of a Bitcoin will reach $70 trillion / 21 million = about $3 million and then steadily appreciate with world GDP growth.
In that scenario you'd expect an S curve to describe the trajectory.
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cypherdoc
Legendary
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Activity: 1764
Merit: 1002
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June 07, 2011, 02:16:05 PM |
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don't laugh. several early adopters got btc at $.003 for a 633,333% rise given a 19 btc/shr. Bruce, the growth in price has been parabolic and won't continue like that forever or even for the intermediate term. no one knows for sure tho  |
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Bruce Wagner (OP)
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June 07, 2011, 02:20:53 PM |
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I'm looking for an ANNUAL increase.... expressed an a %....
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jerfelix
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June 07, 2011, 02:52:44 PM
Last edit: June 07, 2011, 03:05:32 PM by jerfelix |
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I'm looking for an ANNUAL increase.... expressed an a %....
You asked a very simple question. Not sure why everyone misunderstood! In 8 months: 20/0.06 = 33333% (or 33332% GAIN) That's a monthly compounded rate of: 0.06 x (1+ n ) ^ 8 = 20 or n= (20 / 0.06 ) ^ (1/8) -1 n=1.06, or a 106% gain every month In other words, your value is 206% of last month's value (or approximately doubling every month.) Proof: 0.06 * 2.06 ^ 8 = 20 so to answer your question, doubling every month, for a year.... 2.06 ^ 12 = 5839, which is 583,900% You were off by a factor of 10. **note, I did monthly compounding. Continuous compounding will yield a different answer, but pretty close.** |
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cypherdoc
Legendary
Offline
Activity: 1764
Merit: 1002
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June 07, 2011, 03:28:59 PM |
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I'm looking for an ANNUAL increase.... expressed an a %....
You asked a very simple question. Not sure why everyone misunderstood! In 8 months: 20/0.06 = 33333% (or 33332% GAIN) That's a monthly compounded rate of: 0.06 x (1+ n ) ^ 8 = 20 or n= (20 / 0.06 ) ^ (1/8) -1 n=1.06, or a 106% gain every month In other words, your value is 206% of last month's value (or approximately doubling every month.) Proof: 0.06 * 2.06 ^ 8 = 20 so to answer your question, doubling every month, for a year.... 2.06 ^ 12 = 5839, which is 583,900% You were off by a factor of 10. **note, I did monthly compounding. Continuous compounding will yield a different answer, but pretty close.** LOL, this is precisely why we believe in Bitcoin! |
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Findeton
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June 07, 2011, 03:59:03 PM |
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You can't predict future. Tomorrow bitcoin could crash down to 0.01$/btc. |
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jerfelix
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June 07, 2011, 04:00:48 PM |
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Sure. I did the math pretty quickly, but I think I got it right. It'd be embarrassing if I got it wrong. I have a reputation to uphold, as if I know something about compound interest! |
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jerfelix
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June 07, 2011, 04:05:50 PM |
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You can't predict future. Tomorrow bitcoin could crash down to 0.01$/btc. No one is predicting the future. He is trying to calculate the PAST rate of return over an 8 month period, expressed as an ANNUAL figure. |
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billyjoeallen
Legendary
Offline
Activity: 1106
Merit: 1007
Hide your women
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June 07, 2011, 04:10:33 PM |
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I ate one egg yesterday. Today I ate two. Will I eat 74 eggs this Sunday?
I can eat 50 eggs. |
insert coin here:
Dash XfXZL8WL18zzNhaAqWqEziX2bUvyJbrC8s
1Ctd7Na8qE7btyueEshAJF5C7ZqFWH11Wc
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billyjoeallen
Legendary
Offline
Activity: 1106
Merit: 1007
Hide your women
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June 07, 2011, 04:25:46 PM |
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I calculate it would take 49 days at 10% growth rate per day to gain 100X (10,000%). Is this right? This is
extremely unlikely, but a much better bet than a lottery ticket. Much much better. I took my entire poker-playing bank roll and dumped it into Bitcoin AT $9-12/btc. Kinda nice not having to grind out winnings hour after hour.
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insert coin here:
Dash XfXZL8WL18zzNhaAqWqEziX2bUvyJbrC8s
1Ctd7Na8qE7btyueEshAJF5C7ZqFWH11Wc
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jerfelix
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June 07, 2011, 05:01:36 PM |
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I calculate it would take 49 days at 10% growth rate per day to gain 100X (10,000%). Is this right? This is
extremely unlikely, but a much better bet than a lottery ticket. Much much better. I took my entire poker-playing bank roll and dumped it into Bitcoin AT $9-12/btc. Kinda nice not having to grind out winnings hour after hour.
Your math looks correct, but your logic can be questioned. Past performance is not necessarily an indicator of future success, but the 8 month average gain has been about 2.45% gain per day. (This is still very respectable, but nowhere near the 10% per day that you predicted.) At that rate, it will take 190.3 days for you to get 100x gains. math: past 8 months it went from .06 to 20 (approx). So 20/.06 = 333.33 so that's a compounded average daily gain of 2.45% (333.33 ^ ( 1 / 240 ), which is 1.0245, or a 2.45% gain. it will take you 190.3 days at that rate: log( 100 ) / log ( 1.0245 ), which is 190.3 On the other hand, if we hit a knee in the curve, then 49 days might be correct. Who knows! You nearly doubled your money; you should be happy, and get out. |
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billyjoeallen
Legendary
Offline
Activity: 1106
Merit: 1007
Hide your women
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June 07, 2011, 05:22:55 PM |
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I calculate it would take 49 days at 10% growth rate per day to gain 100X (10,000%). Is this right? This is
extremely unlikely, but a much better bet than a lottery ticket. Much much better. I took my entire poker-playing bank roll and dumped it into Bitcoin AT $9-12/btc. Kinda nice not having to grind out winnings hour after hour.
Your math looks correct, but your logic can be questioned. Past performance is not necessarily an indicator of future success, but the 8 month average gain has been about 2.45% gain per day. (This is still very respectable, but nowhere near the 10% per day that you predicted.) At that rate, it will take 190.3 days for you to get 100x gains. math: past 8 months it went from .06 to 20 (approx). So 20/.06 = 333.33 so that's a compounded average daily gain of 2.45% (333.33 ^ ( 1 / 240 ), which is 1.0245, or a 2.45% gain. it will take you 190.3 days at that rate: log( 100 ) / log ( 1.0245 ), which is 190.3 On the other hand, if we hit a knee in the curve, then 49 days might be correct. Who knows! You nearly doubled your money; you should be happy, and get out. Um, why would I want to get out and by implication get into a fiat currency that can be diluted at the whim of a central banker? sure, bitcoin price could plummet, but so could dollars. This is my gambling bankroll and I'm going to let it ride. |
insert coin here:
Dash XfXZL8WL18zzNhaAqWqEziX2bUvyJbrC8s
1Ctd7Na8qE7btyueEshAJF5C7ZqFWH11Wc
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jerfelix
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June 07, 2011, 06:07:47 PM |
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Um, why would I want to get out and by implication get into a fiat currency that can be diluted at the whim of a central banker? sure, bitcoin price could plummet, but so could dollars. This is my gambling bankroll and I'm going to let it ride.
Sorry, it was a poorly worded joke. |
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