Where will Bitcoin be on 9/4/2018?

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No votes (0%)
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1 vote (11.11%)
2 votes (22.22%)
2 votes (22.22%)
1 vote (11.11%)
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3 votes (33.33%)

9 members have voted

December 11th, 2017 at 12:09:58 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 1068
Posts: 12569
Quote: AZDuffman
It is also the first thing, except land, that there will be a finite supply of, and the first with near-infinite fractionability.


I don't understand the value of a finite supply if you have near-infinite divisibility?

$1=5,903 Satoshi current BTC price $16,967
$1=1,000 Satoshi (Satoshi= 1 mil) -> BTC price $100,000

In theory there is no upper limit to the number of $100 banknotes produced, but since a bitcoin is infinitely divisible you can potentially have more money than US banknotes. A satoshi would have to be worth about 1 mil and the market value of all BTC would be roughly the same as all USD banknotes and coins.
December 11th, 2017 at 1:13:46 PM permalink
kenarman
Member since: Oct 24, 2012
Threads: 14
Posts: 4470
Quote: Pacomartin
I don't understand the value of a finite supply if you have near-infinite divisibility?

$1=5,903 Satoshi current BTC price $16,967
$1=1,000 Satoshi (Satoshi= 1 mil) -> BTC price $100,000

In theory there is no upper limit to the number of $100 banknotes produced, but since a bitcoin is infinitely divisible you can potentially have more money than US banknotes. A satoshi would have to be worth about 1 mil and the market value of all BTC would be roughly the same as all USD banknotes and coins.
I t

I must have an error in the way I understand Bitcoin Paco. I thought that the "miners" verified the validity of a transaction with their computers. For doing this they got paid in Bitcoins. When the upper limit for the number of Bitcoin is hit how will the "miners" be paid since the transactions will still need to be verified? I must not fully understand the process is the solution for this problem already built-in to the system.
"but if you make yourselves sheep, the wolves will eat you." Benjamin Franklin
December 11th, 2017 at 1:46:36 PM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 135
Posts: 18136
Quote: kenarman
I t

I must have an error in the way I understand Bitcoin Paco. I thought that the "miners" verified the validity of a transaction with their computers. For doing this they got paid in Bitcoins. When the upper limit for the number of Bitcoin is hit how will the "miners" be paid since the transactions will still need to be verified? I must not fully understand the process is the solution for this problem already built-in to the system.


IIRC it will be a fee like a credit card.
The President is a fink.
December 11th, 2017 at 2:00:00 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 146
Posts: 25010
Quote: AZDuffman
Most wealth is an illusion.


Look at the stock market, pure illusion.
And people know it, there's nobody
kidding themselves that they can't lose
half their portfolio overnight.
If you take a risk, you may lose. If you never take a risk, you will always lose.
December 11th, 2017 at 3:41:11 PM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 135
Posts: 18136
Quote: Pacomartin
I don't understand the value of a finite supply if you have near-infinite divisibility?


Because you still have the finite supply. Just more ways to whack it up.
The President is a fink.
December 11th, 2017 at 5:49:33 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 1068
Posts: 12569
Quote: AZDuffman
Because you still have the finite supply. Just more ways to whack it up.


$1 in the year 1917 is equivalent to $19.12 in 2017 which is equivalent to 3% a year for a century.

But since Bitcoin is free to grow to any possible value (relative to USD or EURO) and it is infinitely divisible, the supply is essentially as infinite as any other currency.
December 11th, 2017 at 6:11:54 PM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 135
Posts: 18136
Quote: Pacomartin
$1 in the year 1917 is equivalent to $19.12 in 2017 which is equivalent to 3% a year for a century.

But since Bitcoin is free to grow to any possible value (relative to USD or EURO) and it is infinitely divisible, the supply is essentially as infinite as any other currency.


No, it is not. Still just 21MM available. What is happening is the deflationary effect. 8 years ago, a pizza cost 10 Bitcoin. Today, a Bitcoin will buy a Hyundai Accent. The $10 pizza back then costs $11.50 now. The pizza and the Bitcoin are the same items as back then. If there were more Bitcoin supply chasing the same pizza, it would cost more than Ƀ10.
The President is a fink.
December 11th, 2017 at 6:24:32 PM permalink
ChesterDog
Member since: Oct 24, 2012
Threads: 0
Posts: 64
Quote: Nareed
... But huge losses could happen, too, when said companies were unsuccessful. a British company, I forget its name, that promised trade with Latin America, found its stock go sky high very quickly...


Recently, I learned on DT or WOV, that was the "South Sea Company," and Robert Walpole, who would much later become the first prime minister of Great Britain, sold his shares in it at the right time.
December 11th, 2017 at 9:11:35 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 1068
Posts: 12569
Look, the number of $100 banknotes has increased by more than 400% not adjusting for inflation since the "big headed Benjamins" were release. Because of deflationary factors the 2.6 billion Benjamins in 1996 would be worth the same as 3.9 billion Benjamins today. There is no formal upper limit on the number of Benjamins in circulation. In fact the Japanese circulating more than twice as many banknotes per capita of value 10,000JPY~$88 as their society is more afraid of banks than we are.

11,548,000,000 2016
10,822,000,000 2015
10,145,000,000 2014
9,247,000,000 2013
8,631,000,000 2012
7,826,000,000 2011
7,046,000,000 2010
6,564,000,000 2009
6,250,000,000 2008
5,693,000,000 2007
5,641,000,000 2006
5,450,000,000 2005
5,167,000,000 2004
4,878,000,000 2003
4,587,000,000 2002
4,211,000,000 2001
3,777,000,000 2000
3,862,000,000 1999
3,201,000,000 1998
2,916,000,000 1997
2,614,000,000 1996

Quote: AZDuffman
No, it is not. Still just 21MM available.

What difference does it make if there are only 21MM BTCs available forever if there is no limit to how valuable a BTC can become expressed in USD? They have no limit on the market value of the Bitcoins in circulation. It is the greatest Ponsi scheme in the world.
December 11th, 2017 at 9:24:47 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 146
Posts: 25010
Quote: Pacomartin
Look, the number of $100 banknotes has increased by more than 400% not adjusting for inflation since the "big headed Benjamins".


How many Benji's are even in the US,
half of them?
If you take a risk, you may lose. If you never take a risk, you will always lose.