Wow. Bitcoin is almost $1,500

[Train]

There is no limit on fractional (decimal places) of a bitcoin.

This isn't true. BTC can only be broken down to 8 decimal places. The smallest unit is called a "satoshi", or "sat" for short.

 

[Train]

When mining becomes pointless transaction fees will skyrocket making the utility of bitcoin fall.

Skyrocket? You mean an increase to cover mining reward? Barely noticeable.

 

[SunnyD]

This isn't true. BTC can only be broken down to 8 decimal places. The smallest unit is called a "satoshi", or "sat" for short.

There is no theoretical limit as to how far a bitcoin can be divided. The only limitation is existing code. That being said, eight decimal places still leaves room for a LOT of inflation.

Skyrocket? You mean an increase to cover mining reward? Barely noticeable.

With each halving, the reward for mining decreases. To cover the cost of keeping transactions running, the transaction fee will go up to compensate. What happens when the last block is mined and there is no longer any incentive to "mine"? With nothing else to back it up people won't continue processing the blockchain. The transaction fee will have to compensate, ergo it will skyrocket.

 

[ultimatebob]

"In retrospect, it was inevitable." Elon Musk.

Tesla released their 10-K filing, and it revealed Tesla purchased $1.5 billion bitcoins in January 2022 and it could accept bitcoin as payment for Tesla cars in the future.

Bitcoin has won. It has made it. Now Tesla has done it, other big companies will follow. This is huge news today for Bitcoin. Bitcoin is up to $43,620 and Tesla stock is up to $872.

I knew this news was coming after Elon changed his profile pic to add "bitcoin" and tweeted, "In retrospect, it was inevitable." I wanted to beat Tesla to bitcoin and buy it before they did but it seems Tesla bought bitcoin soon after Elon Musk twitter post.

Game has changed. Everyone needs to own bitcoin going forward.

Of course, it could also mean that both Tesla stock and Bitcoin are overhyped and overpriced and both are overdue for a correction. Only time will tell, I guess.

 

[Train]

There is no theoretical limit as to how far a bitcoin can be divided. The only limitation is existing code. That being said, eight decimal places still leaves room for a LOT of inflation.



With each halving, the reward for mining decreases. To cover the cost of keeping transactions running, the transaction fee will go up to compensate. What happens when the last block is mined and there is no longer any incentive to "mine"? With nothing else to back it up people won't continue processing the blockchain. The transaction fee will have to compensate, ergo it will skyrocket.

I don't see how that refutes what I said. Pretty sure the current fees are already larger than the now heavily decreased mining reward.

"Theoretical" is pointless. Theoretically, we could make the mining reward 10 times what it is now.

 

[SunnyD]

I don't see how that refutes what I said. Pretty sure the current fees are already larger than the now heavily decreased mining reward.

"Theoretical" is pointless. Theoretically, we could make the mining reward 10 times what it is now.

Currently you get something like 12.5 btc to solve a block. That's significantly higher than the current 0.00085 btc transaction fee. I know for 12.5 btc I would definitely keep running mining farms at scale. At 0 btc though, I'd be hard pressed to eat the cost of electricity for the meager current transaction fee.

Now you may be thinking "I never get 12.5 btc to mine" - because for small miners (ie people that haven't dumped millions into large asic farms) you're mining in a pool and splitting the outcome likely many thousands of ways. These large scale miners don't.

And no, theoretically you can't change the block reward without destroying the blockchain entirely. I mean you can, but that serves no purpose other than to deplete the mineable pool of coins faster, hastening everything I've said will happen. Changing the fractional division of a coin affects literally nothing.

 

[Train]

Currently you get something like 12.5 btc to solve a block. That's significantly higher than the current 0.00085 btc transaction fee.

You know there's more than one transaction per block, right? Last I checked, it was well over 2000 transactions per block.

And the current reward is only 6.25, and has been for nearly a year.

 

[SunnyD]

You know there's more than one transaction per block, right? Last I checked, it was well over 2000 transactions per block.

And the current reward is only 6.25, and has been for nearly a year.

Yes and oops - I'm still not used to it being 2021 yet. Regardless, neither point you make here changes the argument in the slightest.

 

[Train]

Yes and oops - I'm still not used to it being 2021 yet. Regardless, neither point you make here changes the argument in the slightest.

Your argument is that "fees will skyrocket" which is effin retarded.

 

[DrMrLordX]

I just wish Litecoin gained better acceptance. I don't understand why as venerable and how "tied" to BTC it is that it really has fallen by the wayside compared to more recent upstarts like ETH. What makes ETH more desirable than LTC (other than the price obviously)?

Litecoin's only real distinction, back in the day, was mining. There's not much on the technical side that makes LTC better than BTC. It's not a very exciting token from a technical point of view. Ethereum tried (and somewhat succeeded) in bringing smart contracts to the fore. It fulfills a completely different purpose than BTC or LTC that at least nominally attempted to be units of currency for the resolution of debts. ETH isn't currency at all - it's time on a supercomputer. That supercomputer has a lot of growing to do before it makes good on all its promises, and in some areas, it's conspicuously behind schedule.

 

[SunnyD]

Your argument is that "fees will skyrocket" which is effin retarded.

Great counterpoint! Thanks for totally clearing that up.

 

[ultimatebob]

Who'll be the next big company to announce it bought bitcoins and will accept bitcoin as payment? Apple? I don't know. Tim Cook is too conservative IMO and will probably wait even though it would be great for Apple.

It was Jack Dorsey's Square who started this movement and I see lot of tech companies following Tesla's lead to bitcoin. 2022 is supposedly the year 3 of the bitcoin super cycle. Today's Tesla news could very well be the catalyst that sparks the super cycle. Square will benefit from this movement. I should've kept my Square stock.

Apple doesn't really like open standards. They would probably develop their own cryptocurrency and integrate into Apple Pay somehow.

 

[ultimatebob]

eh, i'm still not convinced

i own some BTC and ETH, but if BTC gets to 50$k i think i'll sell and take the chance of waiting for a dip

I gotta admit... now that there are some BIG companies that own a lot of Bitcoin, the chances of it plummeting in value as badly as it did during the 2018 correction are a lot lower. I still think that you're buying in at the highs at this point, though. I'd still wait for a price correction if you want to buy in now.

 

[njdevilsfan87]

The crypto market is superheated at the moment. Total cap is almost at $1.5T and absolutely everything is pumping.

Here's my poor MS Paint fractal at where we may be in this super cycle:



That's being conservative too, as the pattern is breaking a little so I'm jumping ahead in time relative to the prior run. Last time around we reached this point, the entire market cap proceeded to increase another 7-8x before the big blow off top. If we repeat the same, we may see the entire market cap of cryptocurrencies rival that of gold soon. If we're not ahead in the trend and it just continues to follow that of the prior cycle very closely, then Bitcoin itself could end up rivaling the market cap of gold.

Either, BTFD whenever it happens. I feel like a lot of alts need a good shake right now.

 

[DrMrLordX]

Not everything is pumping. A lot of smaller project tokens went insane in 2017 that aren't moving right now. Take a look at Raiden. It's flat. Which is kinda funny. Buterin warned them not to ICO . . .

 

[brianmanahan]

i told myself i was gonna sell out at 50$k

but now i want to hold on for more

 

[gorobei]

i mentioned it in the other OT "regrets" btc thread, but it bears repeating. all posts concerning bitcoin should have the current price at time of posting so that in the future readers looking back have context for these statements (also so we can have a laugh). so 1btc=$51,055.00

i went back and reviewed the old vc&g btc/crypto grandaddy thread. chiropteran i raise my cup to toast your foresight, and i pour one out for your 43coin samsung tab. as ponyo put it: may you be enjoying your pina colada on some tropical beach with your crypto fortune. i hope the rest of us hodlers join you some day.

 

[Torn Mind]

Acceptance of bitcoin required the same mental leap as fiat. It's the human mind that renders the material valuable or not.

 

[Fritzo]

Acceptance of bitcoin required the same mental leap as fiat. It's the human mind that renders the material valuable or not.

I declare leaves to be valuable and worth $10 per leaf.

::begins raking::

I'M RICH!

 

[IronWing]

I declare leaves to be valuable and worth $10 per leaf.

::begins raking::

I'M RICH!

“If," the management consultant said tersely, “we could for a moment move on to the subject of fiscal policy. . .”
“Fiscal policy!" whooped Ford Prefect. “Fiscal policy!"
The management consultant gave him a look that only a lungfish could have copied.
“Fiscal policy. . .” he repeated, “that is what I said.”
“How can you have money,” demanded Ford, “if none of you actually produces anything? It doesn't grow on trees you know.”
“If you would allow me to continue.. .”
Ford nodded dejectedly.
“Thank you. Since we decided a few weeks ago to adopt the leaf as legal tender, we have, of course, all become immensely rich.”
Ford stared in disbelief at the crowd who were murmuring appreciatively at this and greedily fingering the wads of leaves with which their track suits were stuffed.
“But we have also,” continued the management consultant, “run into a small inflation problem on account of the high level of leaf availability, which means that, I gather, the current going rate has something like three deciduous forests buying one ship’s peanut."
Murmurs of alarm came from the crowd. The management consultant waved them down.
“So in order to obviate this problem,” he continued, “and effectively revalue the leaf, we are about to embark on a massive defoliation campaign, and. . .er, burn down all the forests. I think you'll all agree that's a sensible move under the circumstances."
The crowd seemed a little uncertain about this for a second or two until someone pointed out how much this would increase the value of the leaves in their pockets whereupon they let out whoops of delight and gave the management consultant a standing ovation. The accountants among them looked forward to a profitable autumn aloft and it got an appreciative round from the crowd.”

 

[sdifox]

I declare leaves to be valuable and worth $10 per leaf.

::begins raking::

I'M RICH!

Are you in California? I hear they have a lot of leaves that need raking.

 

[VirtualLarry]

“If," the management consultant said tersely, “we could for a moment move on to the subject of fiscal policy. . .”
“Fiscal policy!" whooped Ford Prefect. “Fiscal policy!"
The management consultant gave him a look that only a lungfish could have copied.
“Fiscal policy. . .” he repeated, “that is what I said.”
“How can you have money,” demanded Ford, “if none of you actually produces anything? It doesn't grow on trees you know.”
“If you would allow me to continue.. .”
Ford nodded dejectedly.
“Thank you. Since we decided a few weeks ago to adopt the leaf as legal tender, we have, of course, all become immensely rich.”
Ford stared in disbelief at the crowd who were murmuring appreciatively at this and greedily fingering the wads of leaves with which their track suits were stuffed.
“But we have also,” continued the management consultant, “run into a small inflation problem on account of the high level of leaf availability, which means that, I gather, the current going rate has something like three deciduous forests buying one ship’s peanut."
Murmurs of alarm came from the crowd. The management consultant waved them down.
“So in order to obviate this problem,” he continued, “and effectively revalue the leaf, we are about to embark on a massive defoliation campaign, and. . .er, burn down all the forests. I think you'll all agree that's a sensible move under the circumstances."
The crowd seemed a little uncertain about this for a second or two until someone pointed out how much this would increase the value of the leaves in their pockets whereupon they let out whoops of delight and gave the management consultant a standing ovation. The accountants among them looked forward to a profitable autumn aloft and it got an appreciative round from the crowd.”

That sounds... a lot like EIP-1559!

 

[dawp]

I declare leaves to be valuable and worth $10 per leaf.

::begins raking::

I'M RICH!

-looks around-
so that's where my stash went!!

 

[SunnyD]

I just mathed my old bitcoin wallet to see how much btc I've ever made. At current rates, about 80k. I'm sad.

 

[Torn Mind]

I declare leaves to be valuable and worth $10 per leaf.

::begins raking::

I'M RICH!

I heard Canadians require a Maple Leaf to do business there.

The French-Canadians tried to riot out of the policy but failed.