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d_eddie
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Merit: 3563
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December 04, 2020, 02:42:27 PM Merited by JayJuanGee (1) |
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There is one problem: mining. Satoshi Nakamoto (whoever he was) once said ( https://bitcointalk.org/index.php?topic=57.msg415#msg415) that "the price of any commodity tends to gravitate toward the production cost" and "in later years, when new coin generation is a small percentage of the existing supply, market price will dictate the cost of production more than the other way around". I agree. Later years are still very far away. Widespread institutional adoption may shift the balance, but without it the price will gravitate toward the mining cost, that is low tens of thousands, for years to come. Which is why non mining hodlers like difficulty increases. Not only more security, but also higher production cost.
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ivomm
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Activity: 1888
Merit: 3081
All good things to those who wait
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December 04, 2020, 02:59:11 PM Last edit: December 04, 2020, 03:18:56 PM by ivomm Merited by vapourminer (1), JayJuanGee (1) |
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I've been contemplating somethig recently. We all expect that 2021 will be incredible for Bitcoin. May be the price will cross 50K, 100K, 200K, or even more. With that in mind, wouldn't it be better if I take an unpaid leave of absence from my work for 1 year and go to some exotic island with no internet and tv. My work spot will be reserved, so I have no worries for that. I could just put some sell orders between 50K and 500K and when I return, I will discover what happened. In this way, I will avoid the emotional decisions and selling too much too early.
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Alexander_Z
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Z
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December 04, 2020, 02:59:44 PM |
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There is one problem: mining. Satoshi Nakamoto (whoever he was) once said ( https://bitcointalk.org/index.php?topic=57.msg415#msg415) that "the price of any commodity tends to gravitate toward the production cost" and "in later years, when new coin generation is a small percentage of the existing supply, market price will dictate the cost of production more than the other way around". I agree. Later years are still very far away. Widespread institutional adoption may shift the balance, but without it the price will gravitate toward the mining cost, that is low tens of thousands, for years to come. Which is why non mining hodlers like difficulty increases. Not only more security, but also higher production cost. Right. I am not against difficulty increases (my mining days are long gone), but I can hardly imagine a tenfold increase of the current production cost. As I understand, the main constituents are electricity costs and equipment costs (the equipment quickly becomes obsolete and constantly needs to be replaced). The efficiency (hash per joule) continues to increase, so I doubt that the energy consumption can increase significantly. Faster and more efficient equipment is more expensive, but its cost needs to increase faster than difficulty to make the cost of production higher.
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El duderino_
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Activity: 2674
Merit: 13096
BTC + Crossfit, living life.
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December 04, 2020, 03:06:19 PM |
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Wake a brother up when page parity occurs
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Tash
Sr. Member
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Activity: 1190
Merit: 305
Pro financial, medical liberty
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December 04, 2020, 03:17:54 PM |
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There is one problem: mining. Satoshi Nakamoto (whoever he was) once said ( https://bitcointalk.org/index.php?topic=57.msg415#msg415) that "the price of any commodity tends to gravitate toward the production cost" and "in later years, when new coin generation is a small percentage of the existing supply, market price will dictate the cost of production more than the other way around". I agree. Later years are still very far away. Widespread institutional adoption may shift the balance, but without it the price will gravitate toward the mining cost, that is low tens of thousands, for years to come. Which is why non mining hodlers like difficulty increases. Not only more security, but also higher production cost. It is stating the obvious if something cost 1 dollar to make and I can sell it for 100, how long before someone sells it for 90 Years ago the market was flooded with PoS coins, and now, none to be found with high market capitalization.
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d_eddie
Legendary
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Activity: 2660
Merit: 3563
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December 04, 2020, 03:31:14 PM Merited by JayJuanGee (1) |
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There is one problem: mining. Satoshi Nakamoto (whoever he was) once said ( https://bitcointalk.org/index.php?topic=57.msg415#msg415) that "the price of any commodity tends to gravitate toward the production cost" and "in later years, when new coin generation is a small percentage of the existing supply, market price will dictate the cost of production more than the other way around". I agree. Later years are still very far away. Widespread institutional adoption may shift the balance, but without it the price will gravitate toward the mining cost, that is low tens of thousands, for years to come. Which is why non mining hodlers like difficulty increases. Not only more security, but also higher production cost. Right. I am not against difficulty increases (my mining days are long gone), but I can hardly imagine a tenfold increase of the current production cost. As I understand, the main constituents are electricity costs and equipment costs (the equipment quickly becomes obsolete and constantly needs to be replaced). The efficiency (hash per joule) continues to increase, so I doubt that the energy consumption can increase significantly. Faster and more efficient equipment is more expensive, but its cost needs to increase faster than difficulty to make the cost of production higher. Right, but you're forgetting another important factor to the final cost: the amount of competition. If you're the only one left mining, it doesn't really matter how computationally powerful or energetically efficient your rig is: each hour, all 6 blocks will be yours. Competition is what drives the arms race to get more powerful, more efficient gear and ultimately lifts production costs.
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True Myth
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December 04, 2020, 03:46:19 PM |
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A push above $20k would really be the icing on the cake now. #ThisTimeIsDifferent
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fillippone
Legendary
Online
Activity: 2324
Merit: 16579
Fully fledged Merit Cycler - Golden Feather 22-23
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December 04, 2020, 03:47:24 PM Last edit: May 16, 2023, 12:56:21 AM by fillippone |
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Wake a brother up when page parity occurs
Soon. Grayscale adding another 7000+ Bitcoin to their holdings. Where did you get that image from? Nothing too difficult I cannot replicate with ease on my spreadsheet. Everything you wanted to know about Grayscale BTC Trust but were afraid to ask!
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cAPSLOCK
Legendary
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Activity: 3808
Merit: 5244
Maybe the Mars is the future!
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December 04, 2020, 03:52:57 PM |
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Call in for WEEKEND-PUMP
Seconded Tripled Quads. And feck it. Let's melt a couple faces out there. P Schiff's would be a good start.
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bkbirge
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December 04, 2020, 03:58:01 PM |
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I've been contemplating somethig recently. We all expect that 2021 will be incredible for Bitcoin. May be the price will cross 50K, 100K, 200K, or even more. With that in mind, wouldn't it be better if I take an unpaid leave of absence from my work for 1 year and go to some exotic island with no internet and tv. My work spot will be reserved, so I have no worries for that. I could just put some sell orders between 50K and 500K and when I return, I will discover what happened. In this way, I will avoid the emotional decisions and selling too much too early. Sure, if you have the resources to do that go for it. Might be your last chance to live a truly unconnected life for awhile.
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El duderino_
Legendary
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Activity: 2674
Merit: 13096
BTC + Crossfit, living life.
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December 04, 2020, 04:02:26 PM |
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El duderino_
Legendary
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Activity: 2674
Merit: 13096
BTC + Crossfit, living life.
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December 04, 2020, 04:03:39 PM |
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Torque
Legendary
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Activity: 3710
Merit: 5286
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December 04, 2020, 04:10:13 PM |
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There is one problem: mining. Satoshi Nakamoto (whoever he was) once said ( https://bitcointalk.org/index.php?topic=57.msg415#msg415) that "the price of any commodity tends to gravitate toward the production cost" and "in later years, when new coin generation is a small percentage of the existing supply, market price will dictate the cost of production more than the other way around". I agree. Later years are still very far away. Widespread institutional adoption may shift the balance, but without it the price will gravitate toward the mining cost, that is low tens of thousands, for years to come. Which is why non mining hodlers like difficulty increases. Not only more security, but also higher production cost. Right. I am not against difficulty increases (my mining days are long gone), but I can hardly imagine a tenfold increase of the current production cost. As I understand, the main constituents are electricity costs and equipment costs (the equipment quickly becomes obsolete and constantly needs to be replaced). The efficiency (hash per joule) continues to increase, so I doubt that the energy consumption can increase significantly. Faster and more efficient equipment is more expensive, but its cost needs to increase faster than difficulty to make the cost of production higher. Right, but you're forgetting another important factor to the final cost: the amount of competition. If you're the only one left mining, it doesn't really matter how computationally powerful or energetically efficient your rig is: each hour, all 6 blocks will be yours. Competition is what drives the arms race to get more powerful, more efficient gear and ultimately lifts production costs. Speaking of which, has anyone got some good links on info regarding the current state of ASICs, pricing, ongoing R&D, etc.? I feel like I've gotten out of the loop on current/future mining hardware.
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ErisDiscordia
Legendary
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Activity: 1133
Merit: 1163
Imposition of ORder = Escalation of Chaos
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December 04, 2020, 04:12:35 PM |
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I wonder what TERA is doing. I figured she'd be back when the bull started but probably made enough in the last two bubbles.
Why do people think TERA is a woman? IIRC, there was just one forum member who started calling TERA a 'she', TERA never corrected (which I understand if you care about opsec), and everybody just started taking over this habit. Not saying she cannot be a woman, but there is like zero indication about his/her gender. If anything, I would think that traders that are early adopters of bitcoin have a higher likelihood of being male (though undoubtedly some women are also early adopters and/or trader). I think she referred to herself as a she. At least, she never contradicted anyone calling her 'she'. Not that it means much of course. I never contradicted Roach either after he came to the conclusion I must be a female for not supporting his brand of fascism
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Torque
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December 04, 2020, 04:16:47 PM Merited by JayJuanGee (1) |
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True Myth
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December 04, 2020, 04:31:10 PM |
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Blockchain Association Lobby group vs Big Banking Lobby group. Anyone know where to find a quick reference on current Senators and State Representatives who support Cryptocurrency vs who is in the big bank's pockets?
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Paashaas
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Merit: 4689
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December 04, 2020, 04:37:34 PM Merited by fillippone (2) |
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JayJuanGee
Legendary
Online
Activity: 3878
Merit: 11065
Self-Custody is a right. Say no to"Non-custodial"
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December 04, 2020, 04:51:01 PM |
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Decided to set up a $25 daily recurring buy at Gemini, until I get bored after 'doing enough of that for a while', or run out of money - whichever comes first.
Let's see how this bold strategy plays out.
Might work better as selling a few weeks back Though I understand the decision as it’s just a % of the stash Point of the matter remains that these two strategies or actions are somewhat conflicting and incoherent..., and I suppose that one of the ways to reconcile the incoherence angle is to point out that the two actions were employed at differing points in time... but whatever, to each their own... peeps have their ways. I will concede; however, that it can be difficult for any one of us to attempt to employ consistencies in our investment approach, whether dealing with bitcoin or various other investments - there are uncertainties that are difficult to account for, and then there are impulses to do the right thing and get better value and not leave value on the table, but almost no matter what we do, value is likely to be left on the table from time to time, which is not necessarily a bad thing and it should become much easier to deal with (both financially and psychologically) the leaving of value on the table when we feel that we have surplus value in our holdings...
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JimboToronto
Legendary
Online
Activity: 4172
Merit: 4816
You're never too old to think young.
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December 04, 2020, 05:12:15 PM |
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Good morning Bitcoinland. The battle for $19k rages on... currently $19037USD/$24375CAD (Bitcoinaverage) We waited so long to get back to $19k. I don't mind consolidating here for a little while. We're still ahead of schedule. $20k will come soon enough and then 6 digits before too long. Relax and enjoy the show. Go Bitcoin go. Wake a brother up when page parity occurs
Aaah. Remember when gold ounce price parity was a thing? Before long we'll look back fondly at page parity with a warm nostalgia.
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