Merged Bitcoin - Part 3

Suddenly said:
I could have sworn part of the hype about bitcoin was that it would be an inflation proof currency. Which heavily implies stability.
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That conclusion doesn't follow. Like everything else, bitcoin is only worth what somebody is willing to pay for it.

"Inflation proof" simply means that you can't dilute the bitcoin supply by printing more bitcoins. A fixed supply is actually a design flaw for something that is supposed to be a currency.
 
Bitcoin 20204.
Maybe best and last chance to short.

Just saying... as technical analyst...
 
Some more stories, round tripping etc.

Coinfessions.

The link does not transfer from Trading View, but here is the gist.

In fact, the majority of testimonies center around one topic: the failure to turn paper gains into real ones.

“At one stage I had retirement money on the table,” claimed a submitter. “I failed to take profit despite the fact I had notes on my desk and my Discord group leaders telling me so. I didn't tell my wife. We could have had the life we dreamed about and I regret it every day.” There are countless submissions like this one, each more painful to read than the last. Some confessors saw their portfolio skyrocket in value only to quickly have it return to square one, a trading mistake commonly referred to in the space as “round-tripping.”

A theme that sadly comes up, again and again, is the idea of being worse off than before entering the crypto space. Posters have admitted to losing their entire life savings to market volatility, exploits, scams, protocol implosions, or lending company withdrawal freezes.

Maybe google

Coinfessions: Where Crypto Twitter Bears Its Soul
 
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Cryptocurrency Ethereum is about to cut its emissions by 99 per cent — a huge shake-up that will challenge Bitcoin

Amid the continuous noise about cryptocurrencies, it's often hard to pick out what really matters.

However this month, if all goes to plan, the energy-hungry digital sector will undergo its biggest shake-up in years.

Ethereum, the world's second largest cryptocurrency, is tomorrow expected to start a technology changeover which, once complete, should cause its carbon emissions to plummet by 99 per cent.

The rapid growth in cryptocurrencies in recent years has been staggering. Unfortunately, so too has been their contribution to climate change, due to the enormous amount of electricity used by computers that manage the buying and selling of crypto coins.

Take, for example, the world's biggest cryptocurrency, Bitcoin. At a time when the world is desperately trying to reduce energy consumption, Bitcoin uses more energy each year than medium-sized nations such as Argentina. If the Ethereum switch succeeds, Bitcoin and other cryptocurrencies will be under immense pressure to deal with this problem.
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tl;dr Etherium is finally moving to a proof-of-stake model.
 
Samson said:
I think of bitcoin code as an achievement of great genius.
It is a bit Westworld AI.
Could you briefly explain your post?
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You haven't heard of forks before? That is where new of code operates on the same blockchain. If the old code continues to be used then the blockchain "forks". (This has already happened with Bitcoin Cash).

If POS works well for Ethereum then somebody is bound to try it with the bitcoin blockchain. Whether POS displaces POW for bitcoin is anybody's guess.
 
psionl0 said:
You haven't heard of forks before? That is where new of code operates on the same blockchain. If the old code continues to be used then the blockchain "forks". (This has already happened with Bitcoin Cash).

If POS works well for Ethereum then somebody is bound to try it with the bitcoin blockchain. Whether POS displaces POW for bitcoin is anybody's guess.
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Does the bitcoin block chain "know" bitcoin cash exists?
If you get my question.
 
Dr.Sid said:
For GFX card manufacturers, maybe .. but for who else ?
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If a product is expensive to produce, it has to sell for more. Then (if anybody wants it) that price becomes the norm. With Bitcoin, being more expensive makes it more desirable, which makes it more expensive, which...

Like I said, it's a feature. The shocking part is that people who mined Bitcoins when they were cheap to mine also benefit from them becoming more expensive to mine. A useless product that magically increases in 'value' the longer you don't use it!
 
Roger Ramjets said:
If a product is expensive to produce, it has to sell for more. Then (if anybody wants it) that price becomes the norm. With Bitcoin, being more expensive makes it more desirable, which makes it more expensive, which...
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That is just fantasizing. Bitcoin's value comes from speculation and not from miners.
 
psionl0 said:
That is just fantasizing. Bitcoin's value comes from speculation and not from miners.
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That's my understanding too. When the price drops, mining becomes less profitable (assuming miners want to convert to fiat ASAP and not hold for speculation, which seems to be the case) .. and number of miners drops. When the price rises, number of miners rises as well .. but it lags weeks behind the price, not the other way around.
 
A Bitcoin mining company not in trouble at all, nosiree

https://www.theblock.co/post/167850...to-mining-firm-poolin-amid-liquidity-problems

They definitely have got all the Bitcoins they owe you but they're not letting you withdraw them just in case.

Meanwhile...

https://techcrunch.com/2022/09/05/b...o-discontinue-support-for-usdc-usdp-and-tusd/

Binance is taking all of your USD Coin, Pax Dollar and True USD and converting them into its own stable coin. It doesn't look like BUSD needs propping up at all, nosiree.
 
Dr.Sid said:
That's my understanding too. When the price drops, mining becomes less profitable (assuming miners want to convert to fiat ASAP and not hold for speculation, which seems to be the case) .. and number of miners drops. When the price rises, number of miners rises as well .. but it lags weeks behind the price, not the other way around.
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That is pretty much how it has happened. If you compare the price charts and the difficulty charts, you will see that between April and June 2021 the price of bitcoin halved and the mining difficulty fell between May and August 2021.

However, since the fall from its peak price in November 2021, the mining difficulty continued to rise until May 2022 when it started declining slightly. It appears that many miners are prepared to operate at a loss for a while in the hope that the next big price bubble will cover the losses.
 
psionl0 said:
The main selling point of bitcoin is that you don't need to trust a third party. You can store your bitcoins in your private wallet. So what do people do? The leave their bitcoins with an exchange. :eye-poppi
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If that wasn't an option the price would have never gotten anywhere near where it has. People looking at a crypto ad on TV and acting on it aren't going to be the most savvy bunch and understanding the nuts and bolts well enough to use a private wallet is a barrier to entry that very few of these people are going to cross.

The biggest hole in applying a deregulated caveat emptor sensibility to the modern world is that the world is so complex that expecting every person to be savvy about everything in their lives is essentially a rejection of the division of labor. This is as good an example as any.
 
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