Author Topic: Cryptocurrencies  (Read 170036 times)

wachtwoord

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Re: Cryptocurrencies
« Reply #920 on: October 29, 2019, 10:20:45 AM »
SD you're saying that the price will be higher if the accessible supply is lower. That is true, but how is that an impairment?

I wish all my investment were impaired in that fashion! It's like a company buying back shares without the associated cost.

Also 21M is not a magical number. It's not even the actual number as the actual number is 2100 trillion units. Arbitrarily 100M of these units is known as a Bitcoin.
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SharperDingaan

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Re: Cryptocurrencies
« Reply #921 on: October 29, 2019, 10:52:45 AM »
Agreed, ’immutable’ just means unchanging.
https://en.wikipedia.org/wiki/Immutable_object

To the coder, coding in Python, this is just an object (stored information) that cannot be changed – it has nothing to do with whether that object is ‘complete’ or not. The widespread view of the ‘tech’ silo.

To the business (user), paying the coder; ‘immutable’ means the record is reliable, and holds ‘no surprises’. The widespread view of the ‘business’ silo; is that if a record is ‘incomplete’, it is unreliable, and impaired. Don’t care why.

The technology removes the intermediaries, places reliance on the coding, and enables automation via the use of smart contracts. In a business, that’s an annual saving of tens of millions, and removes the bulk of the time-tested and well proven human external/internal control apparatus. It also removes the bulk of the sales staff, and the office space currently housing all these people. Fortunately there are simple, practical solutions, to the incomplete record problem.

The mining fee is a transaction cost; hence the more a Bitcoin costs, the more it costs to transact. But like any other business, Bitcoin has to compete against other non-bank payment systems (Hawala, Chiti, Casino's, etc); charge too much, nobody uses Bitcoin (and the higher that fee, the more likely that is to occur.) Some calculate that this transaction cost is extremely high; others claim it is zero - as until we hit the token cap, the 'system' pays, and not the transactors.

My own view is that for most users of Bitcoin, transaction cost is irrelevant (not price sensitive).
I also think that it is not cheap, and that ultimately, price will be used to 'throttle' processing speed (higher speed via fewer, high-value transactions, vs many low-value transactions). Friends in low prices would start at a transaction cost of $1000+ transaction, in return for its 'unique' benefits. Inclined to agree with them. 

SD
« Last Edit: October 30, 2019, 05:37:52 AM by SharperDingaan »

Liberty

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