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The 1 MB block limit threatens Bitcoin's ability to function as the global reserve currency. It should eventually be changed to 10 GB per block to handle tens of billions of transactions per week.
Future scenario:
Paychecks are sent to billions of people in the form of bitcoins twice a month. People fund online accounts with bitcoin transfers once a week to do a majority of their transactions off the blockchain. No one runs a full node anymore, it's just too expensive. Instead everyone uses a SPV client and countries keep copies of the full blockchain to keep each other honest. Each country's government mines bitcoins and uses the transaction fees to fund government projects.
Fees per KB are around 20 satoshi or 2 USD, so peer to peer transfers are affordable, but rarely initiated because the opportunity cost of spending old bitcoins is just too damn high. The floating transaction fee formula everyone has agreed on effectively limits the average number of transactions to 6 per person per month. Because of this, everyone divides their bitcoin balance into thousands of addresses to accrue confirmations in case their bitcoins need to be quickly spent. Around 50M transactions are included in each block, giving a block reward of 100M USD from fees alone. Governments are smaller and more cost-effective with their spending so the 100M is just enough.
The price of a bitcoin is 10M USD and fiat is nonexistent.
Future scenario:
Paychecks are sent to billions of people in the form of bitcoins twice a month. People fund online accounts with bitcoin transfers once a week to do a majority of their transactions off the blockchain. No one runs a full node anymore, it's just too expensive. Instead everyone uses a SPV client and countries keep copies of the full blockchain to keep each other honest. Each country's government mines bitcoins and uses the transaction fees to fund government projects.
Fees per KB are around 20 satoshi or 2 USD, so peer to peer transfers are affordable, but rarely initiated because the opportunity cost of spending old bitcoins is just too damn high. The floating transaction fee formula everyone has agreed on effectively limits the average number of transactions to 6 per person per month. Because of this, everyone divides their bitcoin balance into thousands of addresses to accrue confirmations in case their bitcoins need to be quickly spent. Around 50M transactions are included in each block, giving a block reward of 100M USD from fees alone. Governments are smaller and more cost-effective with their spending so the 100M is just enough.
The price of a bitcoin is 10M USD and fiat is nonexistent.
Assurance contracts can handle crowd funding, described here https://en.bitcoin.it/wiki/Contracts#Example_3:_Assurance_contracts, but I don't know if this has been implemented in code yet.
How can a 0.01 mining contract pay 0.02 in under 24 hours?
Last time I checked, 0.01 BTC buys you 1-2GH/S. At current difficulty, you net 0.0001 BTC in 24 hours.
OP was probably giving you a bullshit reason for the loan.
Last time I checked, 0.01 BTC buys you 1-2GH/S. At current difficulty, you net 0.0001 BTC in 24 hours.
OP was probably giving you a bullshit reason for the loan.
It's a free market. If a lot of people want the price to rise substantially by the summer, you can be 100% sure it won't happen.
I believe Bitcoin will facilitate the greatest wealth transfer of all time: the transfer of wealth from all the dummies who purchased in 2014 to all the smarties that purchased in 2013!
I believe Bitcoin will facilitate the greatest wealth transfer of all time: the transfer of wealth from all the dummies who purchased in 2014 to all the smarties that purchased in 2013!
So bear or bull now?
For the next 8 months? BEAR
It's a free market. If a lot of people want the price to rise substantially by the summer, you can be 100% sure it won't happen.
I believe Bitcoin will facilitate the greatest wealth transfer of all time: the transfer of wealth from all the dummies who purchased in 2014 to all the smarties that purchased in 2013!
I believe Bitcoin will facilitate the greatest wealth transfer of all time: the transfer of wealth from all the dummies who purchased in 2014 to all the smarties that purchased in 2013!
Even with collateral, you're taking 1% and the house takes 1%. This is an even worse deal than if I gambled with just the house.
Not to mention the odds of you returning any coins at all
Not to mention the odds of you returning any coins at all
Is the overwhelming use of these ~10 USD loans gambling/trading? I can't see how anyone can otherwise turn a profit so quickly. If so, can we logically conclude that most of these loans will default and that the OP is just really really generous/naive?
I realize most of these are for gambling and i've acknowledged this earlier in the thread. I only loan to those with good reputation, so the risk is minimal. Most of the borrowers don't want to ruin their reputation over a few dollars, so they'd find another way to short the loan repayment in the event they lost while gambling. Sometimes I am willing to take a risk, but it's never more than I can afford to lose.
I see. Sorry for calling you out. I was just initially confused why anyone would partake in something so risky, but your explanation makes sense.
Is the overwhelming use of these ~10 USD loans gambling/trading? I can't see how anyone can otherwise turn a profit so quickly. If so, can we logically conclude that most of these loans will default and that the OP is just really really generous/naive?
Re: I think most of you underestimate just how important china was
I think bitcoin is still overvalued at this point in time. It went up 10 times its value in less than a month, and less than 6 months after the previous bubble peak.
Remember it took 2 years after the $30 bubble peak to bubble again to $266. The price can't rise this quickly without some serious correction.
At this point in time I wouldn't pay more than $300 a coin. I might pay more per coin in the future, but right now $300 seems like a fair price.
You guys are laughing that $30 was a steal in June 2011, but it was $1 in April 2011 and $2 in Nov 2011. $30 was definitely overpriced at that point in time.
Remember it took 2 years after the $30 bubble peak to bubble again to $266. The price can't rise this quickly without some serious correction.
At this point in time I wouldn't pay more than $300 a coin. I might pay more per coin in the future, but right now $300 seems like a fair price.
You guys are laughing that $30 was a steal in June 2011, but it was $1 in April 2011 and $2 in Nov 2011. $30 was definitely overpriced at that point in time.