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

[macsga]

the bitcoin network currently costs ~3600 BTC/day = ~1.2 million USD/day, or over 10 USD/transaction.

Source?

Miners get paid 25 BTC per block mined.

At 1 block every 10 minutes, that is 144 blocks/day, hence 3600 BTC/day.

At 350 USD/BTC, that is 1.26 million dollars per day.

Last time I looked there were about 100'000 transactions per day.  Hence 12.6 dollars per transaction.

Transactions seem free now because the network is paid with newly issued coins (there is an ugly word for that, but let's not rub that in).

Who pays that cost are the people who buy those 3600 new coins per day; whether small investors at the exchanges, or bigger investors over-the counter or by contracts with miners.  Those people give 1.26 million dollars per day, that they earned elsewhere, to the miners of the world; that goes into equipment, buildings, personel, electricity bills, and miners' profits.

Hahaha... nice one! Kudos for the way you explained it and happily won't argue. You know though -deep inside- that this is a completely wrong way to calculate it... right?

https://en.bitcoin.it/wiki/Transaction_fees

[1715010789]

1715010789

[1715010789]

1715010789

[ChartBuddy]

Explanation

[thefunkybits]

everyone is overly bearish... pretty sure this means the price is wrong.

Indeed...everyone is expecting it to hit the long term trendline, but sell volume is low on a longer term scale

Just when you think you have everything figured out, sentiment can turn on a dime

[fewcoins]

the bitcoin network currently costs ~3600 BTC/day = ~1.2 million USD/day, or over 10 USD/transaction.

Source?

Miners get paid 25 BTC per block mined.

At 1 block every 10 minutes, that is 144 blocks/day, hence 3600 BTC/day.

At 350 USD/BTC, that is 1.26 million dollars per day.

Last time I looked there were about 100'000 transactions per day.  Hence 12.6 dollars per transaction.

Transactions seem free now because the network is paid with newly issued coins (there is an ugly word for that, but let's not rub that in).

Who pays that cost are the people who buy those 3600 new coins per day; whether small investors at the exchanges, or bigger investors over-the counter or by contracts with miners.  Those people give 1.26 million dollars per day, that they earned elsewhere, to the miners of the world; that goes into equipment, buildings, personel, electricity bills, and miners' profits.

Oh great even more money floating over to China!

[DaRude]

Think that was the last of Finex dumpers coins, now can we go up??

[DaRude]

the bitcoin network currently costs ~3600 BTC/day = ~1.2 million USD/day, or over 10 USD/transaction.

Source?

Miners get paid 25 BTC per block mined.

At 1 block every 10 minutes, that is 144 blocks/day, hence 3600 BTC/day.

At 350 USD/BTC, that is 1.26 million dollars per day.

Last time I looked there were about 100'000 transactions per day.  Hence 12.6 dollars per transaction.

Transactions seem free now because the network is paid with newly issued coins (there is an ugly word for that, but let's not rub that in).

Who pays that cost are the people who buy those 3600 new coins per day; whether small investors at the exchanges, or bigger investors over-the counter or by contracts with miners.  Those people give 1.26 million dollars per day, that they earned elsewhere, to the miners of the world; that goes into equipment, buildings, personel, electricity bills, and miners' profits.

Wow do you consider USD inflation when calculating mastercards transaction costs too?

[JorgeStolfi]

Hahaha... nice one! Kudos for the way you explained it and happily won't argue. You know though -deep inside- that this is a completely wrong way to calculate it... right?

https://en.bitcoin.it/wiki/Transaction_fees

Transaction fees now yield only 15 BTC per day or so to the miners. 

In the future, as the block reward decreases, the transaction fees would have to make up for the difference, in order to keep the network working.  How much they would have to be depends on the price of BTC, the traffic at that time.  We cannot predict now how the transition will work out.  For the time being, it is a fact that the network is supported by the block rewards, and fees are negligible in that regard.

[ChartBuddy]

Explanation

[samsonn25]

Inevitabley transaction  fees will  increase when miners  arent rewarded  enough as blocks divide  and the last coins are minted.

[hmmmstrange]

Hahaha... nice one! Kudos for the way you explained it and happily won't argue. You know though -deep inside- that this is a completely wrong way to calculate it... right?

https://en.bitcoin.it/wiki/Transaction_fees

Transaction fees now yield only 15 BTC per day or so to the miners. 

In the future, as the block reward decreases, the transaction fees would have to make up for the difference, in order to keep the network working.  How much they would have to be depends on the price of BTC, the traffic at that time.  We cannot predict now how the transition will work out.  For the time being, it is a fact that the network is supported by the block rewards, and fees are negligible in that regard.

So the miners are getting subsidized about $10 per transaction from bitcoin inflation, where you are getting subsidized about $10 per post from Brazil robbing it's taxpayers and inflating the Brazilian real.

[JorgeStolfi]

Oh great even more money floating over to China!

Yes, China is an exporter of bitcoins, and that transfers wealth from the West to China.

I don't know where the main mining ASIC manufacturers are (China, taiwan, Korea?) but that is a major industry too.

Wow do you consider USD inflation when calculating mastercards transaction costs too?

Not sure I get your point.  1.2 million per day is the cost of the bitcoin network in dollars. I did not consider the dollar inflation there, why should it be considered for MasterCard?

But anyway, Bitcoin inflation is 1.3 million bitcoins per year over 13 million existing bitcins, or 10% per year.  How much is the dollar's?

[DaRude]

Think that was the last of Finex dumpers coins, now can we go up??

    Or not he still has at least 500BTC more

[JorgeStolfi]

So the miners are getting subsidized about $10 per transaction from bitcoin inflation, where you are getting subsidized about $10 per post from Brazil robbing it's taxpayers and inflating the Brazilian real.

Come on guys, you are supposed to know those numbers. 

[hmmmstrange]

So the miners are getting subsidized about $10 per transaction from bitcoin inflation, where you are getting subsidized about $10 per post from Brazil robbing it's taxpayers and inflating the Brazilian real.

Come on guys, you are supposed to know those numbers.  

shadowstats has m1 inflation smack dab at 10%
m2 @6%
m3 @5%

[YogoH]

Inevitabley transaction  fees will  increase when miners  arent rewarded  enough as blocks divide  and the last coins are minted.

Not if the volume is sufficient. It will be market based.

[ChartBuddy]

Explanation

[ChartBuddy]

Explanation

[gotmilk_]

http://cointelegraph.com/news/113076/florida-town-becomes-first-municipality-in-world-to-embrace-bitcoin

[solex]

Have we reached the moon already?

2014 Lamborghini for 1 BTC

http://www.eggify.com/vehicles/cars/2014-lamborghini-aventador-lp-700-4-roadster_i1969

[LFC_Bitcoin]

Have we reached the moon already?

2014 Lamborghini for 1 BTC

http://www.eggify.com/vehicles/cars/2014-lamborghini-aventador-lp-700-4-roadster_i1969

Lol we wish.

I'd be delighted if we ever make 10,000 per BTC.