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

[NotLambchop]

@ChuckBuck
Such butthurt on such a delightful morning...

[Richy_T]

Mining difficulty adapts to bitcoin price. If price drops to $10, difficulty will drop too.

Is just simple offer and demand. If market don't want to pay more than $10, miners can't spend more than $10 to mine them. Otherwise they would be mining at a big loss.
But if market want to pay $10,000 and miners only spend $100, that's ok because they are doing it at a profit. Of course more miners would join mining because high profits and then, after time, mining each bitcoin would be near $10,000 each.

Hint: Remember bitcoin could be mined for nearly $0 each (if just 1 computer mining and no demand at all). It is just offer and demand (rising price and difficulty) the one who makes mining more expensive.

Completely correct. This is important to remember for when the block reward goes away and miners come to rely on fees. It is the mining that will adapt. Though the block reward halving will affect bitcoin price as it will affect supply.

[NotLambchop]

...
Why would a multi billion dollar conglomerate like Microsoft have to pander to such an insignificant currency as Bitcoin and such a small minority of users like us Bitcoiners?

Because it costs them nearly nothing, far less than they hope to get from (admittedly) nearly-irrelevant contingent like you Bitcoiners.

So they're using a payment processor.  So what?  They immediately convert fiat, we know!    They're definitely not hurting or needy for these measly sales.

I'm pretty sure they're way smarter than you, and know a thing or two about tech and business, than NotLambChop.

Large profits result from series of small profits.  That's how money is made.
Now go play your new vidya.

So answer me this, NotLambChop.  Why bother adding it as a payment?  Apple, Amazon, and Google haven't done it yet.

Because the companies you've listed think Bitcoin is too embarrassing?  What point are you trying to make here?

Very curious of company as successful as their's to just add it.  Adding Bitcoin won't make them any real profit, Why add it?

Think deeper, this is a Multi Billion dollar company, and please don't retort with "it costs them nothing".  

A rational agent should take profit, no matter how trivial, when no risk is involved.  So yeah, it cost them nothing & they make money.
Not sure how this could be made any simpler.
Now run along & play your vidya.

Nothing?

It cost them resources & time that could theoretically be used for more profitable ventures than the thrills of a couple Bitcoiners buying Xbox Ones on their website.

Surely you're not thinking they're making any significant profit with Bitcoin as it is right now  

How much resources does it take to start using a payment processor for select digital content, with barely any PR--a few blog posts?  If you're suggesting that Microsoft made a mistake, that's possible too tho.  I'm on the fence re. this, convince me

[JimboToronto]

1100 was the result of many factors including unrestrained exuberance and MtGox shenanigans.

The same could be said for $32 in June 2011 or $266 in April 2013.

On and on it goes. MtGox may be gone but where speculation runs rampant, shenanigans will continue.

Some will bitch about it, some will stubbornly deny it, some will try to profit from it and some will simply wait it out.

[NotLambchop]

...
No, it's called a negative feedback loop and should probably respond like any other damped oscillation.
...

Not all negative feedback loops result in damped oscillation.  Oscillators, for instance, are simply a negative feedback loop with a time delay.
This is sorta important to remember, and the reason not everything should be modeled on pendulum of a run-down clock.

Well, the time delay arises from the properties of the system. And it's true that not all negative feedbacks result in damped oscillations, those are unstable systems which has not been evidenced in either the price markets or the mining markets.

There is also little evidence to suggest that damped oscillation model is useful in modeling markets or Bitcoin mining.

[brg444]

How much resources does it take to start using a payment processor for select digital content, with barely any PR--a few blog posts?  If you're suggesting that Microsoft made a mistake, that's possible too tho.  I'm on the fence re. this, convince me

Not a mistake. It's called foresight and having a vision. Something you so evidently lack.

[JimboToronto]

---

...Same song and dance answer "cost them nothing", not answering the question still...
I expected more from you, NotLambChop.  Thought you'd actually answer with an actual rebuttal and not just lay down like a turd.

Those are pretty unrealistic expectations.

[lightfoot]

Completely correct. This is important to remember for when the block reward goes away and miners come to rely on fees. It is the mining that will adapt. Though the block reward halving will affect bitcoin price as it will affect supply.

To an extent. Remember though that there are a fair number of irrational people out there, and the issue of the "dollar auction" is one to contend with.

IE: If you go below Capital investment+electricity/rent/staff costs then you are losing money on your farm, but you're losing less than if you just turned it all off and tossed it in the trash. Negative return but still logical. If you go below elec/rent/staff and still mine then you are insane and need mental help. :-)

[NewLiberty]

...
No, it's called a negative feedback loop and should probably respond like any other damped oscillation.
...

Not all negative feedback loops result in damped oscillation.  Oscillators, for instance, are simply a negative feedback loop with a time delay.
This is sorta important to remember, and the reason not everything should be modeled on pendulum of a run-down clock.

The expert on negative feedback tells all.

[NotLambchop]

How much resources does it take to start using a payment processor for select digital content, with barely any PR--a few blog posts?  If you're suggesting that Microsoft made a mistake, that's possible too tho.  I'm on the fence re. this, convince me

Not a mistake. It's called foresight and having a vision. Something you so evidently lack.

So Microsoft, having decided to let a payment processor pay it in $$$, is now a visionary?
But brg444, you said open source...  

[ssmc2]

The wittle wamb is so hungry and we insist on feeding him 

[aminorex]

How do we know there's not a china teapot in an elliptical orbit about the Sun?

In fact we know that there is a china teapot in an elliptical orbit about the Sun.
But perhaps that was your point.

[Richy_T]

The inelastic supply seems to be an issue then. If people demand less, we should be producing less instead of flooding the market so quickly? This must be what creates the volatile bubble-bust cycles. Just like silver

It really isn't all that critical as long as it's predictable.

[NotLambchop]

The wittle wamb is so hungry and we insist on feeding him 

We like you, ssmc2.  We'll keep you alive to watch your friends perish.





  ~your Beneficent Reptilian Overlords.

[brg444]

How much resources does it take to start using a payment processor for select digital content, with barely any PR--a few blog posts?  If you're suggesting that Microsoft made a mistake, that's possible too tho.  I'm on the fence re. this, convince me

Not a mistake. It's called foresight and having a vision. Something you so evidently lack.

So Microsoft, having decided to let a payment processor pay it in $$$, is now a visionary?
But brg444, you said open source...  

Baby steps  

You know they can decide to hold whatever % of BTC they choose right?

"Microsoft has a long-term vision for bitcoin, BitPay and the blockchain. Starting with digital goods in the US is the logical first step, however, they want to expand to Europe and globally and add support for other products as part of that rollout."

[JimboToronto]

The wittle wamb is so hungry and we insist on feeding him 

It's the holiday season and feeding the less fortunate is traditional, even if we do it with a slingshot.  

[NotLambchop]

The inelastic supply seems to be an issue then. If people demand less, we should be producing less instead of flooding the market so quickly? This must be what creates the volatile bubble-bust cycles. Just like silver

It really isn't all that critical as long as it's predictable.

The point is it *is* critical--it is the basis of all modern economies.  All.

[macsga]

...
No, it's called a negative feedback loop and should probably respond like any other damped oscillation.
...

...

The expert on negative feedback tells all.

Clearly LambTroll has ABSOLUTELY NO IDEA what a damped oscillation is or how it may be implemented into a chaotic system. Also, he's using straw man paradigms -all the time- presenting false evidence, that conform his straw man theories, according to his will with only one goal: To occupy space in this thread and to add noise. Please don't fall into his trap. Just press ignore and let him live in oblivion.

AND PLEASE DON'T QUOTE THE TROLLZ!

[NotLambchop]

How much resources does it take to start using a payment processor for select digital content, with barely any PR--a few blog posts?  If you're suggesting that Microsoft made a mistake, that's possible too tho.  I'm on the fence re. this, convince me

Not a mistake. It's called foresight and having a vision. Something you so evidently lack.

So Microsoft, having decided to let a payment processor pay it in $$$, is now a visionary?
But brg444, you said open source...  

Baby steps  

You know they can decide to hold whatever % of BTC they choose right?

"Microsoft has a long-term vision for bitcoin, BitPay and the blockchain. Starting with digital goods in the US is the logical first step, however, they want to expand to Europe and globally and add support for other products as part of that rollout."

Lol, do understand that Microsoft flatters you only to get into your pants wallet.

[ChartBuddy]

Explanation