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

[hyphymikey]

4 million a day in interest lol...

go back to school.

ha my bad, drunk night.

[ChartBuddy]

Explanation

[Raystonn]

Hey look, it's one of those "not backed by anything" guys again. Grab the pitchforks! 

I am not saying that; that is just the way the SEC presumably sees it.

Bitcoin is backed by energy.  Its Proof of Work requirement is essentially a proof of expenditure of energy.  You cannot spend a unit of energy more than once.  You can spend it on mining Bitcoin, mining another PoW coin, or something else like running your household.  Energy is a commodity that has a price, and it cannot be counterfeited.

Now Proof of Stake coins... that's another topic.  There's nothing backing those.  You can hold an infinite number of different PoS coins.  Inflation through diversification into new PoS coins will ultimately destroy purely PoS coins.

[aminorex]

Bitcoin is a commodity, not a security.  When you hold it, you have it, just like gold or wheat or a eurodollar swap or yen. The SEC does not regulate commodity contracts.

[Raystonn]

Bitcoin is a commodity, not a security.  When you hold it, you have it, just like gold or wheat or a eurodollar swap.

Yes.  In fact, all commodities are backed by energy.  Physical commodities can be mined or created with expenditure of energy.  So can Bitcoin.

[Mervyn_Pumpkinhead]

Bitcoin is backed by greed, that makes people waste energy for a no gain process.

Increased hashrate as a security measure is a joke. You only have to compromise the security of 2 pools to compromise the bitcoin network, no matter the hashrate of these pools.

[Raystonn]

Bitcoin is backed by greed, that makes people waste energy for a no-gain process.

Increased hashrate as a security measure is a joke. You only have to compromise the security of 2 pools to compromise the bitcoin network, no matter the hashrate of these pools.

Not a real issue.  If it happens, the blockchain will be forked to a pre-tamper point and everyone will keep their Bitcoins.

[ShroomsKit]

Bid side is starting to look more healthy. We might see some positive action today.

[ChartBuddy]

Explanation

[TheJuice]

Bid side is starting to look more healthy. We might see some positive action today.

Im a bit bored recently. Would be nice to have a quick run to 750 this week.

[ShroomsKit]

Bid side is starting to look more healthy. We might see some positive action today.

Im a bit bored recently. Would be nice to have a quick run to 750 this week.

I'm pretty sure everyone is bored by now.

[ChartBuddy]

Explanation

[Searing]

Bid side is starting to look more healthy. We might see some positive action today.

Im a bit bored recently. Would be nice to have a quick run to 750 this week.

I'm pretty sure everyone is bored by now.

I'm in the 'last throes' of mining..have a knc jupiter 550gh and have an alt Titan knc miner 300mh
and sp30 6.5th miner coming in august

not bored ..freaked out..not bored

but can't see this next year..my last hurrah in 2015 can only see buying coins..btc coin price goes up
or the balloon will deflate imho incomparing price vs difificulty

besides you pay an asic mnfg company these days they likely will use your $$$ for 5 months or
more or less as a loan or use your $$$ to continue to expand their word class PH farm


Searing

[ChartBuddy]

Explanation

[DubFX]

What's up with that volume? We are really near 0 at bitstamp 

[raid_n]

Bitcoin is backed by energy.  Its Proof of Work requirement is essentially a proof of expenditure of energy.  You cannot spend a unit of energy more than once.  You can spend it on mining Bitcoin, mining another PoW coin, or something else like running your household.  Energy is a commodity that has a price, and it cannot be counterfeited.

Now Proof of Stake coins... that's another topic.  There's nothing backing those.  You can hold an infinite number of different PoS coins.  Inflation through diversification into new PoS coins will ultimately destroy purely PoS coins.

Bitcoin is not backed by energy, rather the way the blockchain reaches consensus through PoW is. This may seem like nitpicking but it is an important difference.
Bitcoins mined at difficulty 1 are worth exactly as much as those mined now. You can subscribe to the idea that the cost of mining dictates the value of bitcoin but I won't.

The value of a bitcoin is what the economy gives it. Bitcoin works and will work once no more block rewards are given out as long as enough miners mine for tx fees.
By your logic those miners will also dictate the price of bitcoin allthough the energy expenditure will most likely be less than it is today.

[Wary]

Bitcoin is backed by energy.  Its Proof of Work requirement is essentially a proof of expenditure of energy.  You cannot spend a unit of energy more than once.  You can spend it on mining Bitcoin, mining another PoW coin, or something else like running your household.  Energy is a commodity that has a price, and it cannot be counterfeited.

Now Proof of Stake coins... that's another topic.  There's nothing backing those.  You can hold an infinite number of different PoS coins.  Inflation through diversification into new PoS coins will ultimately destroy purely PoS coins.

Bitcoin is not backed by energy, rather the way the blockchain reaches consensus through PoW is. This may seem like nitpicking but it is an important difference.
Bitcoins mined at difficulty 1 are worth exactly as much as those mined now. You can subscribe to the idea that the cost of mining dictates the value of bitcoin but I won't.

The value of a bitcoin is what the economy gives it. Bitcoin works and will work once no more block rewards are given out as long as enough miners mine for tx fees.
By your logic those miners will also dictate the price of bitcoin allthough the energy expenditure will most likely be less than it is today.

The value is what the economy gives it, but the cost is the energy. They close because the competition between miners pushes cost to the value (and for some unlucky miners - beyond it).

[ChartBuddy]

Explanation

[raid_n]

The value is what the economy gives it, but the cost is the energy. They close because the competition between miners pushes cost to the value (and for some unlucky miners - beyond it).

Exactly. The point is that if bitcoin crashed say to 1 cent then obviously the energy expenditure for mining new bitcoins will adapt to reflect that.
You can't say bitcoin is backed by energy because throwing more energy at the system will not necessarily increase its value.

I think it is a dead end to try to argue PoW superiority through energy expenditure.
It is used because the method is extremely solid for reaching probabilistic consensus with anonymous participants.
PoW is a means to an end just like the blockchain is. It should not be seen as something magical and be worshipped. It is a solid piece of engineering for a specific problem.

[T.Stuart]

Ooh.

This will be interesting to keep an eye on.

http://www.forexminute.com/bitcoin/rakuten-ceo-does-not-rule-out-bitcoin-acceptance-in-the-future-38563