Peter R
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August 02, 2014, 04:42:50 AM |
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Another worrisome aspect of the blockchain statistics is that the "effective fee" for bitcoin payments is about 4% -- since the mining community earns 4000 BTC/day to process transactions whose estimated output volume (minus changeback) is 100'000 BTC/day. Since mining is still a substantially free market, the actual cost must be not much below that value.
Currently users do not pay that 4% fee, because it is paid by all the long-term holders of bitcoins, that lose 4000*365/12'000'000 = 12%/year of their value because of mining inflation. (And, of course, that loss is more than offset by the price increase due to speculative demand.) But since that fee will some day become a real transaction fee paid by users, it seems to be a bit too high for a service that is still often touted as "free" or "much cheaper than bank transfers".
That really is an interesting analysis. But I still believe it's more or less a self-regulating market. The only thing that concerns me is if miners really stop including transactions because the fees is too low... The transaction rate of Bitcoin is artificially capped. We can expect that 4% value will drop by orders of magnitude when that artificial cap is lifted. Also, it will be cut in half soon (every 4 years). The "effective fee" that Jorge is talking about is due to the expansion of bitcoin's monetary base. Like Justus said, with bitcoin this inflation programatically tapers off over time. The higher inflation rate right now helps to distribute bitcoins to a broader user base.  It's interesting to compare this to the "effective fee" due to expansion of the monetary base in fiat currencies. Here's the relevant chart for the USD. Note the opposite nature of the concavity.  |
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ChartBuddy
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August 02, 2014, 04:59:55 AM |
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ChartBuddy
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August 02, 2014, 06:01:14 AM |
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blatchcorn
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August 02, 2014, 06:58:30 AM |
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COME ON $600  Hahahaa C'mon $600!  |
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ChartBuddy
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August 02, 2014, 06:59:56 AM |
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Newbie1022
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August 02, 2014, 07:07:49 AM |
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Paul George's near self-amputation today... what do we think, gang... is that a bullish or a bearish omen?
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magicmexican
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August 02, 2014, 07:48:51 AM |
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Classic 2h red macD dump, most likely going to ~580 again or slightly higher
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justusranvier
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August 02, 2014, 07:51:51 AM |
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Once upon a time somebody had a version of this image modified for Bitcoin, but I can't find it and I'm too lazy to make one myself:  Stability is boring. |
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ChartBuddy
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August 02, 2014, 07:59:56 AM |
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ChartBuddy
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August 02, 2014, 08:59:56 AM |
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JayJuanGee
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Self-Custody is a right. Say no to"Non-custodial"
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August 02, 2014, 09:00:11 AM |
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Classic 2h red macD dump, most likely going to ~580 again or slightly higher
Speaking of candles... it is funny that the Weekly MACD had been red for much of the beginning of the week; however, it appears that this week's MACD is NOT going to close out red - unless BTC prices go below$570.... What U think? |
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roslinpl
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August 02, 2014, 09:53:39 AM |
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So quiet ...  "A silent before the storm!" they say .... >$600 is coming. |
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ChartBuddy
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August 02, 2014, 09:59:56 AM |
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ubercool
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August 02, 2014, 10:15:42 AM |
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Market not able to hold above 600, not a good sign. |
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falllling
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August 02, 2014, 10:21:13 AM |
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Market not able to hold above 600, not a good sign. better sell now or lose money when the big dump starts |
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roslinpl
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August 02, 2014, 10:29:30 AM |
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Market not able to hold above 600, not a good sign. better sell now or lose money when the big dump starts HUEHUEHUEUHEUE  Sorry mate - xD but we know what you bear what to do :] Believe me or not ... but HODL ! |
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anujjain
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August 02, 2014, 10:33:53 AM |
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Market not able to hold above 600, not a good sign. better sell now or lose money when the big dump starts HUEHUEHUEUHEUE Sorry mate - xD but we know what you bear what to do :] Believe me or not ... but HODL ! Yes, holding is best strategy for now, atleast for this weekend. |
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niktitan132
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August 02, 2014, 10:56:04 AM |
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Market not able to hold above 600, not a good sign. better sell now or lose money when the big dump starts HUEHUEHUEUHEUE Sorry mate - xD but we know what you bear what to do :] Believe me or not ... but HODL ! Yes, holding is best strategy for now, atleast for this weekend. The HODL spirit is strong,here.  |
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manfred
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Energy is Wealth
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August 02, 2014, 10:57:57 AM |
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Once upon a time somebody had a version of this image modified for Bitcoin, but I can't find it and I'm too lazy to make one myself: Stability is boring.  |
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ChartBuddy
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August 02, 2014, 10:59:54 AM |
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