News Bitcoin’s Value Soars to All-Time High as Coinbase Enters the Stock Market

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The author of this page apparently isn't aware, or atleast the article implied that you need 30 million of GPU's to mine BTC. No.. you use ASIC's to mine BTC.. you use GPU's to mine ETH. <ugh> C'mon tom's...
 
Blitz Hacker said:
The author of this page apparently isn't aware, or atleast the article implied that you need 30 million of GPU's to mine BTC. No.. you use ASIC's to mine BTC.. you use GPU's to mine ETH. <ugh> C'mon tom's...
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And you're apparently not aware that services like NiceHash mean you can easily get paid in BTC for mining on a GPU. Which means $30 million in GPUs may not only be used for direct ETH mining, and BTC prices do have an impact on the feasibility of making money via crypto mining.
 
I must preclude this post with an appeal to please forgive my total ignorance on this subject but, hey, it never stopped me before.
So, way back when, money was created as a physical form for a physical asset; for example a silver or gold coin. Then coins became a physical yet indirect representation of a physical asset (lead coin representing a share of gold). Then the physical asset backing money was removed (no more gold or silver backed currency) and we had a physical yet indirect representation of an indirect asset which amounts to a promise to make good on the money. Then with computers the physical money went away and we just had an abstract concept which represented the promise to make good on that indirect asset. Now with cryptocurrency, we have a totally abstract concept which represents the totally abstract value of a totally abstract asset. Question: How can this be heading in a good direction?
 
husker said:
I must preclude this post with an appeal to please forgive my total ignorance on this subject but, hey, it never stopped me before.
So, way back when, money was created as a physical form for a physical asset; for example a silver or gold coin. Then coins became a physical yet indirect representation of a physical asset (lead coin representing a share of gold). Then the physical asset backing money was removed (no more gold or silver backed currency) and we had a physical yet indirect representation of an indirect asset which amounts to a promise to make good on the money. Then with computers the physical money went away and we just had an abstract concept which represented the promise to make good on that indirect asset. Now with cryptocurrency, we have a totally abstract concept which represents the totally abstract value of a totally abstract asset. Question: How can this be heading in a good direction?
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I won't try to address the other aspects, but the backing of cryptocurrencies is basically the cryptography and algorithms that we now trust, in lieu of trusting the governments and banks. Is that better, or worse? I don't have an answer that would satisfy everyone, that's all I know.
 
husker said:
I must preclude this post with an appeal to please forgive my total ignorance on this subject but, hey, it never stopped me before.
So, way back when, money was created as a physical form for a physical asset; for example a silver or gold coin. Then coins became a physical yet indirect representation of a physical asset (lead coin representing a share of gold). Then the physical asset backing money was removed (no more gold or silver backed currency) and we had a physical yet indirect representation of an indirect asset which amounts to a promise to make good on the money. Then with computers the physical money went away and we just had an abstract concept which represented the promise to make good on that indirect asset. Now with cryptocurrency, we have a totally abstract concept which represents the totally abstract value of a totally abstract asset. Question: How can this be heading in a good direction?
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Similar to this podcast about the US government borrowing too much money and maybe it does not matter anymore. https://www.npr.org/2021/02/23/970595276/bond-voyage
 
If I understand correctly then, public confidence in the asset backing is the asset backing. Cryptocurrency just seems shakier because it is new and unfamiliar, but not any less "real" than what traditional currencies have devolved into.
 
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You're Trusting the Algorithms and encryption of a total stranger from a foreign country who is not accountable to you or the laws of your country over you're own government because Reddit told you too. It's compelling because the stories of rags to riches and the actually money you see piling up in your accounts. Like any Ponzi scheme it pays out to the early adopter to draw in more patsys. This could be different because of the Wall Street backing but it was completely criminal in inception and has been traced as a way to fund ISIS and Drug Cartels, Child Trafficking and very little positive. It's also completely traceable like you had a tracking device on every dollar bill in your pocket and it can be tracked by all governments not just the one you live under.
 
That being said, you can make money right now by playing the game and you might lose money if you do not. My friends been mining since February and has mined about 120 dollars to date. If Bit Coin goes to 200k that's a 1,000 dollars. I think Intel will will stop the insanity but it's going to take a couple years for thier new Fabs in Arizona to come online. Then they'll be cranking out minig cards in quantities AMD and Nvidia can only dream of and prices will drop to MSRP.
 
husker said:
Cryptocurrency just seems shakier because it is new and unfamiliar, but not any less "real" than what traditional currencies have devolved into.
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The uncertain value makes it a poor currency. It's difficult to understand the price of goods or labor represented in BTC because the price is always changing. It's also an uncertain store of value, because your savings can jump up and down with the market. Add to this the inconvenience of using BTC as a payment method (it takes a long time for a transaction to clear with greater fees), and you get a purely speculative asset.

It's possible a cryptocurrency will be a feasible replacement for the dollar, but it won't be bitcoin.
 
AtrociKitty said:
The uncertain value makes it a poor currency. It's difficult to understand the price of goods or labor represented in BTC because the price is always changing. It's also an uncertain store of value, because your savings can jump up and down with the market. Add to this the inconvenience of using BTC as a payment method (it takes a long time for a transaction to clear with greater fees), and you get a purely speculative asset.

It's possible a cryptocurrency will be a feasible replacement for the dollar, but it won't be bitcoin.
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You can use stable coins like DAI if you want something that is tied to currencies. DAI is pegged to the dollar and does not fluctuate more than a penny.

I don't see crypto currency any worse than stocks. Sure I "own" a part of a company but they still are going to do what they want and overpay their CEO at the expense of the lowest paid workers but that is a tangent. I am not going to bother mining either, I have been buying them. I wish i would have bought a lot more last summer because all but one of my coins have gained value.
 
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JarredWaltonGPU said:
And you're apparently not aware that services like NiceHash mean you can easily get paid in BTC for mining on a GPU. Which means $30 million in GPUs may not only be used for direct ETH mining, and BTC prices do have an impact on the feasibility of making money via crypto mining.
Click to expand...
Ni
Soaptrail said:
If long term investing is your goal ETH is a better investment over Dogecoin.
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Anything is a better long term investment that dogecoin. Considering there is infinate inflation on the currency because it is mined, and has no coin cap. Meaning if you invest 1000 usd into doge coin for x doge coins today, in 5 years it will be worth fractions of a penny. Unless the demand for the currency exceeds the supply (in which case open market will just mine/supply more currency) I wish they pushed anything but a non-coin cap'd crypto
 
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Blitz Hacker said:
Anything is a better long term investment that dogecoin. Considering there is infinate inflation on the currency because it is mined, and has no coin cap. Meaning if you invest 1000 usd into doge coin for x doge coins today, in 5 years it will be worth fractions of a penny. Unless the demand for the currency exceeds the supply (in which case open market will just mine/supply more currency) I wish they pushed anything but a non-coin cap'd crypto
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Never underestimate the power of a meme. Not that I'd recommend investing lots of money into Doge, but even though the supply is technically unlimited, the inflation rate does decrease over time simply because it's now a static block reward. Unless the core algorithm is changed, the block reward is a static 10,000 from now until forever. With 129.5 billion Doge in existence, and a rate of generation of 5.25 billion Doge per year, that's an increase in supply of 4% this year. Ten years from now, it would be a 2.8% increase. It will take 25 years from now (yeah, Doge in 25 years feels sooo long!) to double the current number of Doge. And it would take another 98.5 years to double again.

Is an unlimited supply of a coin a bad idea? People will argue both sides. Chia is also going for a technically unlimited supply, but at far slower rates than Doge. I do wonder how Bitcoin and other cryptocurrencies that have a finite supply will actually fare once the only real block reward comes from transaction fees. Maybe it will be fine, everyone swapping around coins and such. Personally, I think the biggest problem with Bitcoin is still that 10 minute average block time, but it remains the first and biggest cryptocoin.
 
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