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Message
re: Why is Bitcoin soaring?
Posted on 3/5/24 at 9:43 am to RATeamWannabe
Posted on 3/5/24 at 9:43 am to RATeamWannabe
quote:
think they just announced a govt program to accept crypto payments
That’d be huge if true
Do you have confirmation?
1
Posted on 3/5/24 at 9:51 am to SlidellCajun
Posted on 3/5/24 at 10:44 am to RATeamWannabe
Looks more like use of blockchain technology than actual usage of bitcoin.
This post was edited on 3/5/24 at 11:32 am
Posted on 3/5/24 at 1:32 pm to RATeamWannabe
(no message)
This post was edited on 3/21/24 at 12:10 pm
Posted on 3/6/24 at 2:32 am to boomtown143
quote:
The best time to buy "new things" is when it's "hard or harder" to get. (i.e. no CEXs).
So true. Once a coin hits Coinbase, you already missed out on a ton of gains.
Posted on 3/6/24 at 1:05 pm to The Baker
quote:
Your argument about some ancillary application of gold for electronics doesn’t explain 99% of its history as a store of value. Not an impressive counterpoint.
“Store of value” hmmm. Not sure what you’re talking about.
Nonetheless, if you’re so hung up on gold, I’ll point out some very important differences that might help you or maybe not. The only reason for my addressing it is in the relevance of ownership and investment, not so much as a currency.
Gold is real. It is a mined product that is used in real life for products from jewlery to computer parts. In some instances it’s the best product for a particular application. It’s not used as a currency from my experience but I’m sure some do use it. The USD is far more efficient as a currency.
It has real usage and thus, as intrinsic value. There is an efficient market that establishes the price.
Bitcoin, is a digital currency that CAN be used as currency but nothing else.
It has massive competition as a currency including the USD which is very easy to use. It’s had a massive run up and that’s wonderful. I’d recommend that those trading it, be very careful. We saw the crash in nov 2021. It can happen again.
Posted on 3/9/24 at 4:04 pm to SlidellCajun
I have no idea or opinion about bitcoin’s price action. And this information very well may be buried somewhere in this thread. But since I have a passing/casual interest in the IBIT product (as a derivatives tradeable), I saw that BlackRock is pushing to have the SEC allow options on IBIT. I think this took place in late January or early February, so the 21 day public comment period should be up by now.
Has anyone here heard anything further about options on this or other bitcoin derivatives?
Has anyone here heard anything further about options on this or other bitcoin derivatives?
Posted on 3/9/24 at 11:23 pm to Jag_Warrior
I will preface this with I know some not a lot about the overall concept of Bitcoin and I have an immaterial amount already invested in BTC but I don’t know a lot of the details.
It seems to me the value of bitcoin comes from the blockchain. People “mine” bitcoin which essentially means they provide servers for the blockchain to run on. They get rewarded for this with Bitcoin. The halving cycle cuts the reward for mining in half every four years. Which is fine when the price of Bitcoin keeps going up.
I think eventually the idea of Bitcoin is to be used as a currency. To be used as a currency, you need a somewhat stable value of the asset. With an ever increasing value of the asset, you’d be stupid to use it to purchase everyday items (see the guy that bought two pizzas with 1 bitcoin a long time ago).
I guess my question is eventually what is the reward for people to host the blockchain network? How do the economics not flip to where it’s more costly to host it than the eventual rewards you get? If the value of bitcoin is stable, then my rewards constantly get dwindled down to nothing. Then when we’ve reached the 21 million mark there’s nothing left to reward people with.
Why wouldn’t they quit hosting it at that point?
It seems to me the value of bitcoin comes from the blockchain. People “mine” bitcoin which essentially means they provide servers for the blockchain to run on. They get rewarded for this with Bitcoin. The halving cycle cuts the reward for mining in half every four years. Which is fine when the price of Bitcoin keeps going up.
I think eventually the idea of Bitcoin is to be used as a currency. To be used as a currency, you need a somewhat stable value of the asset. With an ever increasing value of the asset, you’d be stupid to use it to purchase everyday items (see the guy that bought two pizzas with 1 bitcoin a long time ago).
I guess my question is eventually what is the reward for people to host the blockchain network? How do the economics not flip to where it’s more costly to host it than the eventual rewards you get? If the value of bitcoin is stable, then my rewards constantly get dwindled down to nothing. Then when we’ve reached the 21 million mark there’s nothing left to reward people with.
Why wouldn’t they quit hosting it at that point?
This post was edited on 3/9/24 at 11:25 pm
Posted on 3/10/24 at 9:55 am to Weagle25
quote:
Why wouldn’t they quit hosting it at that point?
They will make enough money just on fees alone. The more Bitcoin rises in price, the more money miners make on fees. Between now and approximately the year 2140 when the last Bitcoin is mined, the miners' break even point also doubles in price at each halving. To some extent, Bitcoin has to appreciate in price over time for the network to survive, but also as the price appreciates, the miners make more and more on fees, and that will reach a price where miners make plenty just on fees alone. Also, the break even price for individual miners is dependent on what they have to pay for electricity. Some get it dirt cheap.
This post was edited on 3/10/24 at 10:06 am
Posted on 3/10/24 at 10:57 am to 98eagle
quote:
To some extent, Bitcoin has to appreciate in price over time for the network to survive,
That’s what I’m asking.
I understand they currently have incentive but I’m saying in the future isn’t the economics of it guaranteed to flip at some point to where they have zero incentive? Then they quit hosting and the network crashes and bitcoin is worthless.
In 2141, don’t you still need miners to host the blockchain? There’s no more bitcoin to reward them with. Theres no centralized institution with incentive to pay them to keep it going.
This post was edited on 3/10/24 at 11:01 am
Posted on 3/10/24 at 11:13 am to Weagle25
quote:
In 2141, don’t you still need miners to host the blockchain?
yes.
quote:
There’s no more bitcoin to reward them with. .
miners will be rewarded with transaction fees instead of BTC after the last btc is mined.
quote:
Theres no centralized institution with incentive to pay them to keep it going
thats kind of the point of bitcoin...
Posted on 3/10/24 at 11:16 am to Weagle25
Everytime you buy or sell Bitcoin on an exchange, you have to pay transaction fees to the miner who mined the block that had your transaction. In 2141,these fees will more than reward the miners to stay in business.
This will be just like VISA at that time. They just make transaction fees.
Someone like Michael Saylor can convince you better than I can. Do some searches on YouTube about this.
This will be just like VISA at that time. They just make transaction fees.
Someone like Michael Saylor can convince you better than I can. Do some searches on YouTube about this.
Posted on 3/10/24 at 11:59 am to AMS
quote:
thats kind of the point of bitcoin...
The point is to be decentralized. But you still have to give incentive to people to maintain it which is what I was asking about. I didn’t know about the fee mechanism.
How do those fees compare to a Visa/Mastercard? Are the already charging those or is that something that comes later? I know I paid one with my purchase but thought it was because I bought through Coinbase.
quote:
Someone like Michael Saylor can convince you better than I can. Do some searches on YouTube about this.
I will try
This post was edited on 3/10/24 at 12:00 pm
Posted on 3/10/24 at 1:24 pm to Weagle25
It's easy to incentivize people to buy, hold, and use Bitcoin. It's way better than FIAT like the US Dollar which is being printed into oblivion and worth less every year and can't keep up with inflation. Again, watch some Michael Saylor videos on YouTube. He will explain how Bitcoin is way better than any investment.
Concerning Bitcoin vs. MasterCard fees, Bitcoin fees are less.
Plus, the rise of on inscriptions has led to increased on-chain activity, with token collectibles generating substantial transaction fees for miners.
Concerning Bitcoin vs. MasterCard fees, Bitcoin fees are less.
Plus, the rise of on inscriptions has led to increased on-chain activity, with token collectibles generating substantial transaction fees for miners.
This post was edited on 3/10/24 at 1:28 pm
Posted on 3/10/24 at 6:26 pm to 98eagle
quote:
. In 2141,these fees will more than reward the miners to stay in business
Posted on 3/10/24 at 7:07 pm to Hulkklogan
That's a good one! Made me laugh! We won't be around to see but I would bet on Bitcoin being around and worth a whole lot more in 2141 and the US Dollar being worthless if it even still exists.
Posted on 3/10/24 at 7:11 pm to 98eagle
I really meant to ask if you are sure the BTC transaction fees will be enough to keep enough miners operating to keep the network secured once issuance dries up
Posted on 3/10/24 at 8:05 pm to Hulkklogan
I think so. Michael Saylor, Satoshi Nakamoto and other Bitcoin advocates since it's inception think so. The fees per block go up as Bitcoin prices go up, but since the average transaction will be more and more at the Satoshi level, individuals trading Satoshis will still see relatively low fees, but the miners will be making much more at the block level. I know Bitcoin is not failing within my lifetime in my opinion. I'm glad I bought in, in a big way 8 years ago.
Posted on 3/11/24 at 9:26 am to 98eagle
A few questions-
With the halving- shouldn’t the price double from current levels?
When bitcoin was at 17,000, were you bullish?
What did you use as your metric to make that evaluation?
With the halving- shouldn’t the price double from current levels?
When bitcoin was at 17,000, were you bullish?
What did you use as your metric to make that evaluation?
Posted on 3/11/24 at 9:29 am to SlidellCajun
quote:
A few questions-
With the halving- shouldn’t the price double from current levels?
When bitcoin was at 17,000, were you bullish?
What did you use as your metric to make that evaluation?
1. If there is more demand than supply, sure. If there is more supply than demand, no.
2. LOL.
3. I studied the history of money and game theory.
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