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Showing 5 of 5 results by greenearplugs
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Re: [ annual data ] A BITCOIN PRICE THEORY
by
greenearplugs
on 02/01/2015, 16:43:25 UTC
Nice theory.

According to the latest update, we are seeing a movement to centralizing coins into a few big whale wallets, which bodes bad for the future of the bitcoin.

the annualized growth numbers for the larger buckets (everything above 1 btc) are LOWER than the annualized growth numbers for small balance buckets (less than 1 btc), so not sure that your conclusion is accurate
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Re: [ 14 august data ] A BITCOIN PRICE THEORY
by
greenearplugs
on 26/09/2014, 15:25:57 UTC
for anyone who really wants the data...look at gbianchi's recent posts here on bitcointalk.  He posts on an italian forum here, but all the data is there, and he seems to update more frequently on that forum (ie the last few days)

on a side note (this might not be the correct forum for it), but i've done a separate regression analysis on active wallets vs price from June 2010 to Jan 2013...with the idea being that after 2013, the willy bot artificially inflated prices.  This actually shows up in the data as well.  There is a solid line of best fit on active wallet vs price graph from June 2010 to Jan 2013.  After Jan 2013 this relationship breaks down.  Now maybe it was metcalf's law taking affect after Jan 2013...or maybe it was the willy bot.   My model assumes no metcalf's law, and only zipf's law (which is a 2x increase in price for every 2x increase in users...as opposed to metcalfs law which is a 4x increase in price for every 2x increase in users).  My models shows a fair value of less than $100 per coin...but that fair value is growing at 50-100% per year.  Anyways...more details here:

http://www.reddit.com/r/Bitcoin/comments/2h8he9/longterm_correlation_btc_users_vs_btc_price/
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Board Bitcoin Discussion
Re: No matter how much we love BTC, confirmations take way too long!
by
greenearplugs
on 29/07/2014, 15:32:37 UTC
i've been in many discussions on this exact topic and have yet to here a good response.  Even peter todd's double spending could be prevented with a simple smart wallet that checks for and flags any transactions that don't come from "vanilla" sources.  If there is anything even remotely suspicious, then the transaction is flagged, and the customer is not allowed to leave the store with the product.

Anyone with more technical knowledge care to refute satoshi here?



So what happened to Satoshis theory As this person stated?



Satoshi's comment PASTED IN HERE  VV  
*********************
I believe it'll be possible for a payment processing company to provide as a service the rapid distribution of transactions with good-enough checking in something like 10 seconds or less.

The network nodes only accept the first version of a transaction they receive to incorporate into the block they're trying to generate.  When you broadcast a transaction, if someone else broadcasts a double-spend at the same time, it's a race to propagate to the most nodes first.  If one has a slight head start, it'll geometrically spread through the network faster and get most of the nodes.

A rough back-of-the-envelope example:
1         0
4         1
16        4
64        16
80%      20%

So if a double-spend has to wait even a second, it has a huge disadvantage.

The payment processor has connections with many nodes.  When it gets a transaction, it blasts it out, and at the same time monitors the network for double-spends.  If it receives a double-spend on any of its many listening nodes, then it alerts that the transaction is bad.  A double-spent transaction wouldn't get very far without one of the listeners hearing it.  The double-spender would have to wait until the listening phase is over, but by then, the payment processor's broadcast has reached most nodes, or is so far ahead in propagating that the double-spender has no hope of grabbing a significant percentage of the remaining nodes.
 
**********************************


Or is this what payment processors do already and we are talking about something quicker here?

Just curious has anyone looked at the other coins, and why are some stating HIGH security even more than BTC or same + MUCH faster transaction times... I just don't get it, cant we just implement the same thing? Many test coins around.

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Board Bitcoin Discussion
Re: No matter how much we love BTC, confirmations take way too long!
by
greenearplugs
on 28/07/2014, 20:30:01 UTC
Yes but part of the appeal of crypto is you don't have to use payment processor.

If going to have the money flow through a third party anyway, why deal with the volatility?
Because volatility is temporary, while increasing value is permanent. For fiat scrip, decreasing value is permanent. I'll leave the math to you, detective.


Joe empties his phone. Sends half a btc to his phone as dust inputs. Goes to Raley's, all his inputs are dust resulting in a very large kb transaction of fresh dust - which he doesn't pay a fee on. When will the transaction be confirmed?

Meanwhile his shell script detects the spend, waits for two failed confirmations (at which point Joe is long gone) and then double spends them with a transaction fee.

Miners see the transaction with a fee and confirm it. Didn't cost Joe anything, worst case scenario is some miner confirms the first spend and he pays for his groceries. Normal scenario, he's already in his car by the time the next block happens and long gone by the time the grocer sees 2 blocks w/o a confirm.

wouldn't it be fairly easy for a merchant wallet to check for this type of thing.  If any of the above scenarios are true, then the customer would have to wait for full confirmation.  Basically, wait 10 seconds, have the merchant wallet check for double spends.  10 seconds is enough of a head start that the first transaction should be propagated to enough of the network to make double spending unpractical.

Satoshi addressed this here. Are there any flaws in his plan?:

https://bitcointalk.org/index.php?topic=423.msg3819#msg3819
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Re: [ 2 april addresses chart ] A BITCOIN PRICE THEORY
by
greenearplugs
on 03/04/2014, 20:36:50 UTC
so based on your active addresses growth, the question becomes what will the relationship be going forward.  Should we use zipfs law, metcalfs law, or the fit that you've constructed in the thread?

as i understand it, zipfs law basically has price growth growing in a linear relation to user adoption which is fairly conservative.  Using your active address chart, we get a prices

Date          Number of act adr.         Price/Coin
1/1/2016    10,105,263                   $3,115.79
1/1/2018    42,548,476                    $13,119.11
1/1/2020    179,151,479                $55,238.37
1/1/2022    754,322,020                $232,582.62
1/1/2024    3,176,092,716              $979,295.25
1/1/2026    13,373,021,965             $4,123,348.44