Bitcoin

[Maddog]

Rumors that the US might create a federal bitcoin reserve...

Something was already approved by the legislature ??

https://www.congress.gov/bill/118th-congress/senate-bill/4912

 

[Ruffnd]

I just hate this stuff with no backing, security and or insured. Might as well go to casino. Plus bit coin is maxed out already on coins. Notice all crooked countries over seas it all starts. I know few who last some good money awhile back. Have fun.

Bitcoin will never be “maxed out”. If my memory serves me right there is a max of 23 million bitcoin available to be mined. As they are mined the requirements to mine one doubles at certain thresholds. So they will never all be mined. Similar to cutting a unit of measurement in half again and again. You would never reach the end. Correct me if I’m wrong.

 

[Maddog]

I just hate this stuff with no backing, security and or insured. Might as well go to casino. Plus bit coin is maxed out already on coins. Notice all crooked countries over seas it all starts. I know few who last some good money awhile back. Have fun.

What backing does the US$ have?

 

[CatDaddy]

The U.S. has kicked around the idea of a Bitcoin reserve. It isn't something that's been decided on yet. Seems like a possible hack to pay down the national debt given the Bitcoin track record. Tell me when it's actually gone back to zero - it hasn't. In the past year it's increased 148%. Seems like easy money to me. Forget morals.....You think the dollar is based in morals? Let's get rid of this debt and start over. Possibly Bitcoin is the answer and we've pissed away opportunity up to this point already.

 

[Traxion]

What backing does the US$ have?

It’s all fiat currency. It’s just a matter of who you trust more.

 

[CatDaddy]

XRP!

 

[Allen]

What backing does the US$ have?

The currency of every nation is backed by its economy and eventually, the taxpayers. In some regards, that's better than having it tied to a commodity.

 

[Allen]

Bitcoin will never be “maxed out”. If my memory serves me right there is a max of 23 million bitcoin available to be mined. As they are mined the requirements to mine one doubles at certain thresholds. So they will never all be mined. Similar to cutting a unit of measurement in half again and again. You would never reach the end. Correct me if I’m wrong.

I do believe the code is effectively going to prevent the mining of the last bitcoin.

What I want to know is what happens to the bitcoin that becomes inaccessible? You know, someone dies with the keys to their bitcoin wallets, etc.

The transaction fees on this stuff will be the death of it.

 

[Sum1]

Im definitely not a crypto genius by any stretch of the imagination. What happens if people start pulling money out of etherium and Bitcoin and start putting it into coins that actually have use like XRP? It seems like this could happen and drive the price of Bitcoin much lower. Are people actually using Bitcoin for anything other than a store a wealth? Etherium is slow and expensive, I don’t see it doing much.

 

[Lycanthrope]

I just hate this stuff with no backing, security and or insured. Might as well go to casino. Plus bit coin is maxed out already on coins. Notice all crooked countries over seas it all starts. I know few who last some good money awhile back. Have fun.

bitcoin isnt maxed, but there is a maximum that will ever be issued. It doesnt really matter too much how many there are as it is infinitely divisible pretty much, so you could pay someone .0000000001 bitcoin if the price gets crazy. Thats kinda a pita though and it would be good if there was a way to split it to keep the numbers easier to use.

 

[Jiffy]

https://www.jamestownsun.com/news/c...ew-applied-blockchain-facility-near-ellendale

What they're not talking about is the riff raff that is/will be coming along with this. (I'm guessing some of you out in western ND can relate)

Ellendale isn't going to be that small town anymore. Even if they're still relatively "small" in stature, their problems are going to be "big town".

I have connections, people are divided on this. Most don't really like it, from what I gather.

Doesn't matter really, it's happening.

 

[Lycanthrope]

https://www.jamestownsun.com/news/c...ew-applied-blockchain-facility-near-ellendale

What they're not talking about is the riff raff that is/will be coming along with this. (I'm guessing some of you out in western ND can relate)

Ellendale isn't going to be that small town anymore. Even if they're still relatively "small" in stature, their problems are going to be "big town".

I have connections, people are divided on this. Most don't really like it, from what I gather.

Doesn't matter really, it's happening.

What kind of problems are you anticipating? Do you have extra power in that area? Essentially it will probably just be a building with a bunch of computers running in it. Shouldnt need a lot of staff, and IT guys typically arent 'riff raff' like they have to deal with out in the oilfields.

 

[Allen]

bitcoin isnt maxed, but there is a maximum that will ever be issued. It doesnt really matter too much how many there are as it is infinitely divisible pretty much, so you could pay someone .0000000001 bitcoin if the price gets crazy. Thats kinda a pita though and it would be good if there was a way to split it to keep the numbers easier to use.

And this directly relates to one of my issues with bitcoin, or any of the blockchain stuff. At some point, those who mine bitcoin by recording the transactions will go bankrupt if they can't mine enough coins to keep the lights on. What happens when mining bitcoin is no longer profitable?

My guess is that's when they are going to implement transaction fees, so to buy a can of soda out of a bitcoin capable vending machine, it's going to cost you the bitcoin equivalent of a dollar for the soda, and then some other fee is going to get tacked on.

All paths seem to lead to this inevitability.

 

[Lycanthrope]

And this directly relates to one of my issues with bitcoin, or any of the blockchain stuff. At some point, those who mine bitcoin by recording the transactions will go bankrupt if they can't mine enough coins to keep the lights on. What happens when mining bitcoin is no longer profitable?

My guess is that's when they are going to implement transaction fees, so to buy a can of soda out of a bitcoin capable vending machine, it's going to cost you the bitcoin equivalent of a dollar for the soda, and then some other fee is going to get tacked on.

All paths seem to lead to this inevitability.

I let AI answer this for you:

Here's an analysis and refutation of the comment:

Analysis:

• The comment raises concerns about the sustainability of Bitcoin mining based on profitability.
• It suggests that when mining becomes unprofitable, miners might exit, potentially leading to transaction fees as a way to maintain network operations.

Refutation:

1. Mining Economics and Difficulty Adjustment:
   • Bitcoin has a built-in mechanism called the "difficulty adjustment" which happens every 2016 blocks (approximately every two weeks). This adjusts the difficulty of mining based on how quickly blocks were mined in the previous period. If fewer miners are active due to unprofitability, the difficulty decreases, making mining easier for remaining miners, which could potentially restore profitability.
2. Transaction Fees Already Exist:
   • The comment assumes that transaction fees are not currently part of Bitcoin's ecosystem, which isn't accurate. Bitcoin transactions already include fees which miners collect. These fees are intended to incentivize mining even after the block reward (newly minted bitcoins) halving events reduce the reward to zero.
   • As the block reward diminishes over time due to halving events, transaction fees are expected to become a more significant part of miners' revenue. This is not an "inevitability" in the negative sense but rather a planned feature of Bitcoin's protocol to maintain network security.
3. Scalability and Fee Structure:
   • The concern about high transaction fees for small transactions like buying a soda might be exaggerated for typical Bitcoin usage. Bitcoin's design, particularly with the advent of technologies like the Lightning Network, aims to handle microtransactions with minimal fees off-chain, thus reducing the burden of on-chain fees for everyday use.
   • On-chain fees depend on network congestion and the size of the transaction data, not just the amount being transferred. Hence, small transactions won't necessarily equate to high fees unless there's extreme network congestion.
4. Economic Incentives and Market Dynamics:
   • The market will likely adjust to changes in mining profitability. If mining becomes unprofitable, some miners might indeed exit, but others with lower operational costs or more efficient technology could continue. Moreover, if transaction fees rise due to fewer miners, this might also incentivize new or existing miners to invest in more efficient hardware, thereby balancing the ecosystem.
5. Long-term Vision vs. Short-term Fluctuations:
   • Bitcoin's design anticipates these economic dynamics. The shift from block rewards to transaction fees was part of Satoshi Nakamoto's plan to ensure the security of the network in the long term, even when no new bitcoins are being issued.

In conclusion, while the concerns about mining profitability and transaction fees are valid considerations, they do not necessarily lead to the scenario described in the comment. Bitcoin's protocol includes mechanisms to adjust to these economic conditions, and the community continues to innovate with solutions like second-layer scaling solutions to mitigate potential issues with transaction costs and network capacity.

 

[Allen]

So, there are already transaction fees.

Otherwise, it would seem your AI response supports a lot of my concerns over increased fees in the future and profitability (pronounced sustainability) of the miners.

It would also seem that bitcoin is ripe for manipulation. If the price of a bitcoin falls, profitability falls until such time as the code allows for more bitcoins per unit of transactions recorded.

Yeah, I get it...some of you have made a lot of money off of this fad, and I'm glad for you on that. It doesn't change my position that it's unsupported garbage that will one day collapse like the house of cards it is.

 

[Obi-Wan]

https://www.jamestownsun.com/news/c...ew-applied-blockchain-facility-near-ellendale

What they're not talking about is the riff raff that is/will be coming along with this. (I'm guessing some of you out in western ND can relate)

Ellendale isn't going to be that small town anymore. Even if they're still relatively "small" in stature, their problems are going to be "big town".

I have connections, people are divided on this. Most don't really like it, from what I gather.

Doesn't matter really, it's happening.

“What we told the town to expect is during the construction project in Jamestown, we had somewhere between 100 to 150 construction workers working on our projects,”

The Ellendale facility is expected to be operational in the first half of 2023.

When construction is completed, 30 to 45 employees will be needed for the facility.

Ellendale has a population of 1394 so the 30-45 would be a whopping 2-3 % increase.

Since your link was a story from 2022 and was supposed to be operational in 2023 what was the result of all the " riff raff " and " big town problems " ?

 

[Jiffy]

What about the new million square foot facility?

How many is that one going to employ?

Oh! You didn’t know?

Have you heard the plans to expand in the next decade?

Didn’t think so…

 

[Wall-eyes]

What backing does the US$ have?

Everything just like it has been forever, better than bit coin not for me.

 

[Obi-Wan]

What about the new million square foot facility?

How many is that one going to employ?

Oh! You didn’t know?

Have you heard the plans to expand in the next decade?

Didn’t think so…

I read the link you posted. if you want me to read more post up to date links instead of 2 yr old stories. Since you seem to the the one that knows everything why don't you go ahead and enlighten the rest of us.

 

[Jiffy]

nope.