Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

[Assmaster2000]

"The last year has seen this narrative arise that progress on tech is stagnant.
This narrative was partly due to price stagnation... but also encouraged largely by a huge misunderstanding regarding what Core actually does and how Core functions."



http://www.coindesk.com/zurich-bitcoin-core-scaling/

[BitUsher]

Core proves once again that they are able to scale bitcoin with cutting edge innovation -

https://bitcoincore.org/en/2016/06/07/compact-blocks-faq/

Why Compact Blocks are superior to Xthin blocks which was long ago discarded by core as being insecure and inferior-

https://www.reddit.com/r/Bitcoin/comments/4mt6ek/part_4_of_5_towards_massive_onchain_scaling_xthin/d3ye2i0

    BIP 152 is superior in several different ways.

    (1) It is not vulnerable to short id collision attacks and filter cpu waste attacks.

    (2) It can use less bandwidth (due to not having to send a filter).

    (3) It achieves a lower minimum latency (0.5 RTT vs 1.5 RTT). Xthin cannot achieve 0.5 RTT under any condition.

    (4) It has a (hopefully) complete specification (the behavior of xthin blocks has no written specification)

    (5) The implementation is very small and clean.


P.S... and yes, Compact blocks code already exists and has been tested for many months in elements alpha.
 

[Assmaster2000]

^Are they still planning on finishing SegWit sometime?

[podyx]

https://www.youtube.com/watch?v=-SdUulSxhFw

[bitebits]

Cost of production is doubling in less than a month ... that will set the new floor for bitcoin price to the $840-960 range (at the minimum without difficulty increases) in the medium term.

Cost of production for a monetary good is the economic defence against counterfeiting.  While gold is money, and sometimes attracts a monetary premium substantially above it's cost of production, for someone to produce gold "from nothing" they need to expend an equivalent amount of resources to the cost of production.  Over long terms the price of the monetary good may be attracted to its cost of production but ultimately that is as cheap as you can acquire it for, as long as it is still desirable as a monetary good.  For the same reason the lowest value of fiat paper money is the cost of the paper it is printed on and the ink, i.e. it's cost of production (about a few cents for a $100 bill).

While bitcoin is still valued as a monetary good, that can be transported in minutes across the internet as a final settlement for bearer instruments exchanged on a censorship-resistant network, it still needs to defend against counterfeiting.  The cost of production defends against counterfeiting since this is as cheap as you can produce bitcoin.  If bitcoin becomes more desirable for other reasons of its utility, such as store of value, medium of exchange (network effect increasing), etc., then it may easily attract a monetary good premium on top of the cost of production, but the cost of production has invariably set the floor for the lower bound on bitcoin prices, as long as it has remained a monetary good.

Bitcoin is still monetising.

Good read! I wonder how the following scenario plays out according to your theory:
- Cost of production: 100$
- Current bitcoin price: 100$

Then Bitcoin becomes more desirable for other reasons of it's utility:
- Cost of production: 100$
- Bitcoin price: 125$

Wouldn't the cost of production then quickly be rising to ~125$, since it is profitable again to buy and fire up more miners? Basically setting a new higher floor for the lower bound on bitcoin prices? Looks like a self-fulfilling prophecy.

[zimmah]

Cost of production is doubling in less than a month ... that will set the new floor for bitcoin price to the $840-960 range (at the minimum without difficulty increases) in the medium term.

Cost of production for a monetary good is the economic defence against counterfeiting.  While gold is money, and sometimes attracts a monetary premium substantially above it's cost of production, for someone to produce gold "from nothing" they need to expend an equivalent amount of resources to the cost of production.  Over long terms the price of the monetary good may be attracted to its cost of production but ultimately that is as cheap as you can acquire it for, as long as it is still desirable as a monetary good.  For the same reason the lowest value of fiat paper money is the cost of the paper it is printed on and the ink, i.e. it's cost of production (about a few cents for a $100 bill).

While bitcoin is still valued as a monetary good, that can be transported in minutes across the internet as a final settlement for bearer instruments exchanged on a censorship-resistant network, it still needs to defend against counterfeiting.  The cost of production defends against counterfeiting since this is as cheap as you can produce bitcoin.  If bitcoin becomes more desirable for other reasons of its utility, such as store of value, medium of exchange (network effect increasing), etc., then it may easily attract a monetary good premium on top of the cost of production, but the cost of production has invariably set the floor for the lower bound on bitcoin prices, as long as it has remained a monetary good.

Bitcoin is still monetising.

agreed, the lower boundary of the rpcie is the production cost.

It could accidentally be below this value for a short time, but never for long.

The upper boundary is pretty much unlimited (limited only by the amount of value we can exchange for it). So the absolute upper value would be everything in the world divided by the amount of bitcoin in circulation. Of course we would never quite reach that value, but that would be the absolute upper limit it could never go above.

[bitebits]

[...]
Plus bitcoin is my main currency. It is made to gain value over time as opposed to federal reserve notes which are built with the purpose of losing value over time. Losing 1% up front does not keep me up at night.

Funny how you can be so theoretically correct, but currently still be seen by the majority as irrational. Even on a bitcoin forum.
Let's check back in a couple of years!

[barbs]

its just so rude, so so rude

[Assmaster2000]

I'm so happy I didn't invest in scamcoin ETH, because if it wasn't a scam coin, I'd be pretty sad right about now.

Which I'm totally not.

[J4mie]

Hopefully we can hold $500

[DeathAngel]

Hopefully we can hold $500

Stop trolling, it's highly unlikely the price will drop below 500 USD. A correction of sorts always happens after a significant price rise, this is normal.
We won't fall below 500 though imo.

[becoin]

Hopefully we can hold $500

Some dickhead thinks if they chart double top on the charts people will panic and dump their bitcoins. Won't happen. This correction is just a buy opportunity.

[savetherainforest]

Hopefully we can hold $500

Some dickhead thinks if they chart double top on the charts people will panic and dump their bitcoins. Won't happen. This corrections is just a buy opportunity.

Exactly! ... I made 5% already .. bought back in! Good profit is good!

[StraightAArdvark]

And only hours to the (>$15) drop. Not trading advice, have been wrong before.
But not often

И нa cтapyxy бывaeт пpopyxa

$564. Feels a bit better

[zimmah]

Price movements seem to indicate that by june 10th we would probably either break the 4000 CNY barrier (about $600) or we would drop back a bit.

[rjclarke2000]

A small correction and suddenly  YYNBBbchnvv and his mates with names like 44TIZXbhmjh come out to play telling us it's a scamcoin piece of shit again.

Crazy.

[Syke]

I'm so happy I didn't invest in scamcoin ETH, because if it wasn't a scam coin, I'd be pretty sad right about now.
http://s32.postimg.org/lh6113y7p/Capture.gif
Which I'm totally not.

Take your altcoin spam to the altcoin forum.

ETH price 1 month ago: .0248 BTC
ETH price today: .0251 BTC

Such growth!

[jbreher]

Blockstream's entire future is dependent on Segwit. Jihan holds the power to deny them what they need, until they give him what he wants.

Well, Core _could_ capitulate on the 'anything less than 95% is evil' doctrine. That'd be fun.

[barbs]

are the waters safe again?

[XCASH]

A small correction and suddenly  YYNBBbchnvv and his mates with names like 44TIZXbhmjh come out to play telling us it's a scamcoin piece of shit again.

Crazy.

If you look at a chart and zoom out to the 30 day view you can see the price has been range bound. It keeps chipping away at the walls below 4000 CNY and $600. After its broken through those walls there's not much resistance. Eventually its going through them despite the small corrections like todays.