The State of Cryptocurrency

[trog100]

does it not occur to you ford that anything that can just be created out of thin air is ultimately worthless..

trog

 

[hat]

To be fair, the same thing can be said about Bitcoin, or any cryptocurrency. Ultimately, it is the flow of fiat currency through Bitcoin that gives it its value. Sure, I can sit here and mine petty amounts per day "out of thin air"... but what enables me to do that? USD does, because that's what I pay my electricity bill with. I also used USD to buy my video cards in the first place. It's essentially a toy... a side hustle. Though mining has helped me greatly since I've started doing it, that's still all it really is.

Here's another way to look at it: currently, with two GTX1070s, I earn just under a dollar's worth of BTC per day. Or, I can take an extra day of work at my very mediocre job and pull down an extra $100 in a single day. In other words, it would take over 3 months of constant, uninterrupted mining to equal what I can do in a single day at work. I continue to do it because at this point it's essentially "free" for me to do so (as the cards have since paid for themselves), and market conditions could always improve... maybe eventually I can have a whole single bitcoin and it will be worth some stupid amount of money as some predict... but I wouldn't bet the farm on it.

 

[trog100]

fiat can be created at the touch of a keyboard.. bitcoin requires an input of energy and compute power.. unlike fiat it isnt just created out of thin air.. plus there is a finite supply fiat has an infinite supply..

trog

 

[hat]

Supply of crypto is pretty much infinite as well. Take BTC for example. Each BTC is made of 100 million units called "satoshi". If one bitcoin was $100m, each Satoshi would be one dollar. Multiply that by the eventual 21 million cap of existing bitcoin and you have, well, a lot. Supply and demand will handle the price. There will always be enough bitcoin to go around.

Yes, it takes a lot of energy to create new crypto. It's designed that way, because if anyone can just go get an antminer and mine hundreds of bitcoin, well... It wouldn't be very good. So there's an artificial "difficulty" variable at play that makes them harder to get. It's inherently wasteful by design, because there's no other way to control the supply.

 

[FordGT90Concept]

fiat can be created at the touch of a keyboard.. bitcoin requires an input of energy and compute power.. unlike fiat it isnt just created out of thin air.. plus there is a finite supply fiat has an infinite supply..

Except fiat are destroyed as easily as they are created. Money supply flexes with money demand. That's why commodity prices stay relatively flat...stability is important.

Bitcoin, especially, has no stabilizing mechanics. A cryptocurrency could probably be created which creates supply relatively to demand but it can't take into consideration broader economic factors like the Federal Reserve and the Euro Bank does. As such, it will never be an effective replacement--only a supplement/complement.

Supply of crypto is pretty much infinite as well. Take BTC for example. Each BTC is made of 100 million units called "satoshi". If one bitcoin was $100m, each Satoshi would be one dollar. Multiply that by the eventual 21 million cap of existing bitcoin and you have, well, a lot. Supply and demand will handle the price. There will always be enough bitcoin to go around.

Double precision which BTC uses has limitations on accuracy. The further the number gets from zero, the greater the rounding error.

Significand or mantissa: 0-51 <- describes the actual number so 51 bits of precision
Exponent: 52-62
Sign (0 = Positive, 1 = Negative): 63

-1.7976931348623157E+308 to 1.7976931348623157E+308

 

[Space Lynx]

Except fiat are destroyed as easily as they are created. Money supply flexes with money demand. That's why commodity prices stay relatively flat...stability is important.

Bitcoin, especially, has no stabilizing mechanics. A cryptocurrency could probably be created which creates supply relatively to demand but it can't take into consideration broader economic factors like the Federal Reserve and the Euro Bank does. As such, it will never be an effective replacement--only a supplement/complement.



Double precision which BTC uses has limitations on accuracy. The further the number gets from zero, the greater the rounding error.

Significand or mantissa: 0-51 <- describes the actual number so 51 bits of precision
Exponent: 52-62
Sign (0 = Positive, 1 = Negative): 63

-1.7976931348623157E+308 to 1.7976931348623157E+308

Let them have their delusions Ford, they will never touch the actual power that comes with Fiat. aka taxes + military + law enforcement. Fiat is king and always will be and has been since society existed, it is a mechanism of power not money and power will never be given up. crypto is just so small in the eyes of the shakers and bakers moving trillions around that they are not worried about it, the moment they become worried about it they will ban all exchanges and all businesses from being allowed to use it and then guess what, it no longer will have power. power resides in the physical military, law enforcement, and tax payer system

At this point most crypto holders are just hoping to get rich quick on another fake spike generated by some big movers who made the big spike in the first place due to no regulation and they are trying to justify it because they have a little extra money (fiat) they don't mind losing out on. hehe funny how they don't risk too much of their fiat isn't it?

 

[FordGT90Concept]

Wait, what? It has nothing to do with power and everything to do with practicality. Gold standard was as much a liability (suffer the wrath of fluctuating demand) as a boon (natural growth in supply). Fiat, so far, has proven very resilient...minimizing the number and severity of huge financial disruptions. Fiat is being tested to its limits right now. If it breaks, maybe something else (could be crypto-based) rises from the ashes. If it doesn't, well, it's pretty much the last nail in the coffin for crypto ever challenging fiat.

 

[Space Lynx]

Wait, what? It has nothing to do with power and everything to do with practicality. Gold standard was as much a liability (suffer the wrath of fluctuating demand) as a boon (natural growth in supply). Fiat, so far, has proven very resilient...minimizing the number and severity of huge financial disruptions. Fiat is being tested to its limits right now. If it breaks, maybe something else (could be crypto-based) rises from the ashes. If it doesn't, well, it's pretty much the last nail in the coffin for crypto ever challenging fiat.

It's to corrupted to break. Every country owes each other so much money they won't allow it to break. They will just keep allowing each other to raise the debt ceiling to keep the peace, as long as no one does anything crazy like give everyone a million dollars, a few shady things will go down sure, but overall everything will stay steady. People are already bored and want to go back to work, tax payer system will start getting paid into again very soon at full speed.

 

[trog100]

my comments have been more about knocking fiat and the current money printing to infinity that is going on..

things will never go back to how they were this virus is a game changer.. we have to learn to live with it.. how we do that remains to be seen..

trog

 

[Asylum]

Sell now. looks like another drop is coming,..

 

[R-T-B]

Double precision which BTC uses has limitations on accuracy. The further the number gets from zero, the greater the rounding error.

I don't know how you don't grasp that they addressed that in the source way back at it's inception by using integer units as needed, basically. The rounding error simply does not occur in bitcoin. There is an ancient issue open for it that has long since been addressed back in like, 2011. In short, they noticed this very quickly (especially when thousand+ bitcoin wallets were the norm) and addressed it equally quickly.

That point of yours is at this point, pure FUD. Satoshi's are effectively both accurate and indivisible.